AlKW 2019 Audit Office of Guangxi Zhuang Autonomous Region of the People's Republic of China Audit Report $ # #C[2019 ) 17 GX AUDIT REPORT C 2019) NO. 17 Project Name: Guilin Integrated Environment Management Project Financed by the World Bank T : 8458-CN Loan No.: 8458-CN Project Entity: Project Management Office of the Leading Groups of Guilin Integrated Environment Management Project Financed by the World Bank 2018 Accounting Year: 2018 邊 一f 纏 】 「濺 ! _j 矓 】 ?j 〕 纏 Contents ............ I ......................... I ................................................ 1. Auditor's Opinion ............................................................................................. 3 ......................................................................... 6 11. Financial Statements and Notes to the Financial Statements ......................... 6 ........................ I .............................................................. 6 i. Balance Sheet ............................................................................................. 6 ....................................................................................... 8 ii. Sunu-nary of Sources and Uses of Funds by Project Component ............. 8 10 k ) Z t) L I t - WA A A ..................................................................... 10 iii. Statement of Implementation of Financing Agreement ........................ 10 Rg 4RA ................................................................................. 11 iv. Special Account Statem ent ..................................................................... I I I ................................................................................. 13 v. N otes to the Financial Statem ents ........................................................... 16 ........................................................................... 2 0 -J III. Audit Findings and Recomm endations ....................................................... 22 i i 一年 或 〕 一、审计师意见 甘飞 珑审计师意见 桂林市世行贷款环境综合治理工程项目领导小组办公室： l我们审计了世界银行贷款桂林市环境综合治理项目2018年12月31 日的资金平衡表及截至该日同年度的项目进度表、贷款协定执行情况表和 专用账户报表等特定目的财务报表及财务报表附注（第6页至第19页）。 户冷 _!（一）项目执行单位及幼襼壮族自治区财政厅对财务报表的责任 簖制上述财务报表中的资金平衡表、项目进度表及贷款协定执行情况 表是你办的责任，簖制专用账户报表是广西壮族自治区财政厅的责任，这 种责任包括： 1．按照中国的会计准则、会计制度和本项目贷款协定的要求编制项 目财务报表，并佼其实现公允反映； 2．设计、执行和维护必要的内部控制，以使项目财务报表不存在由 …于舞弊或错误而导致的重大错报。 （二）审计责任 …）我、｛J的责任是在执行审计工作的基础上对财务报表发表审计意见。我 们按照中国国家审计准则和国际审计准则的规定执行了审计工作，上述准 则要求我们遵守审计职业要求，计划和执行审计工作以对项目财务报表是 否不存在重大错报获取合理保证。 皇 奥为获取有关财务报表金额和披露信息的有关证据，我们实施了必要的 审计程序。我们运用职业判断选择审计程序，这些程序包括对由于舞弊或 错误导致的财务报表重大错报风险的评估。在进行风险评估时，为了设计 恰当的审计程序，我们考虑了与财务报表相关的内部控制，但目的并非对 洲内部控制的有效性发表意见。审计工作还包括评价所选用会计政策的恰当 〕l ! 诬华 飞 { 性和作出会计估计的合理性，以及评价财务报表的总体列报。 我们相信，我们获取的审计证据是适当的、充分的，为发表审计意见澡 提供了基础。礴 （三）审计意见 我们认为，第一段所列财务报表在所有重大方面按照中国的会计准 则、会计制度和本项目贷款协定的要求编制，公允反映了世界银行贷款桂 林市环境综合治理项目2018年12月31日的财务状况及截至该日同年度 的财务收支、项目执行和专用账户收支情况。 （四）其他事项 ,_&．我们坪审查了本期内报送给世界银行的第GXGL05至第GXGL07号＊ 提款甲请书及所附资料。我们认为，这些资料均符合贷款协议的要求，可’ 以作为申请提款的依据。 财务靠鼻蕊鳖囊髻舜厦荔概岁告的还有两项内容：财务报表及藻 、一川户，\ ·＿、户〔J& 书孚 中华人民二和。习：、、：，磷区审计厅靡 亘。19年匕习玲旧． 一 婆 地址：中国幼襼南宁市民族大道98号 邮政簖码：530022 耀：粼撇默：：靡 、履 2} 1. Auditor's Opinion Auditor's Opinion To Project Management Office of the Leading Groups of Guilin Integrated Environment Management Project Financed by the World Bank We have audited the special purpose financial statements (from page 6 to page 19) of Guilin Integrated Environment Management Project Financed by the World Bank, which comprise the Balance Sheet as of December 31, 2018, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Financing Agreement and the Special Account Statement for the year then ended, and Notes to the Financial Statements. The Responsibility of Project Entity and the Finance Department of Guangxi Zhuang Autonomous Region for the Financial Statements The preparation of the Balance Sheet, the Summary of Sources and Uses of Funds by Project Component and the Statement of Implementation of Financing Agreement is the responsibility of your entity, while the preparation of the Special Account Statement is the responsibility of the Finance Department of Guangxi Zhuang Autonomous Region, which includes: i. Preparing and fair presenting the accompanying financial statements in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement; ii. Designing, implementing and maintaining necessary internal control to ensure that the financial statements are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Government Auditing Standards of the People's Republic of China and International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of 3 material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entities' preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is appropriate and sufficient to provide a basis for our audit opinion. Opinion In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, financial position of Guilin Integrated Environment Management Project Financed by the World Bank as of December 31, 2018, its financial receipts and disbursements, the project implementation and the receipts and disbursements of the special account for the year then ended in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement. Other Matter We also examined the withdrawal application No.GXGLO5 to No. GXGLO7 and the attached documents submitted to the World Bank during the period. In our opinion, those documents comply with the project loan agreement and can serve as basis for loan withdrawal. The audit report consists of the Auditor's Opinion and two more parts hereinafter: Financial Statements and Notes to the Financial Statements, Audit Findings and Reonmmendations. ~J AuditOfice oGangi 7huang Autonomous Region-Af the People'sReublic of China June 19,,.2019j 4 Address: No. 98, Minzu Avenue, Nanning, Guangxi, P.R. China Postcode: 530022 Tel.: 86-771-5800259 Fax: 86-771-5800259 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version. 5 I. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCE SHEET 2018 4- 12 A 31 E (As of December 31, 2018) Project Name: Guilin Integrated Environment Management Project Financed by the World Bank Prepared by: PMO of the Leading Groups of Guilin Integrated Environment Management Currency Unit: RMB Yuan Project Financed by the World Bank Line Line Application of Fund No Beginning Balance Ending Balance Sources of Fund No. Beginning Balance Ending Balance To 2r dt re 1 149,585,716.56 246,050,02530 TotalProject 28 55,444,078,11 68,874,037.10 Total Project Expenditures Appropriation Funds Fixed Assets Transferred 2 - - Project Capital and Capital 29 - Construction Expenditures 3 -Including: Grants to be Disposed 3. aBi 4 P H 31 116,737,688,291 180,892,829A67 Investments Transferred-out Total Project Loan 4. -ERI 1. 9I . s 149,585,716.56 246,050,025.30 Total Project 32 116,737,688.28 180,892,829.67 Construction in Progress Investment Loan InvassentLoa Reeivble 6 -- Ivsmn Loan6 F i6 g(1) M LE 33 93,363,296.28 155,892,829.67 Investment Loan Receivable Foreign Loan Including: World Bank 7 - - nluding IDA 34 - Investment Loan Receivable Appropriation ofInvestment 8 35 93,363,296.28 155,892,829.67 Loan Including ;Appropriation of 9 - - Technical 36 - World Bank Investment Loan Cooperation 510 - - 37 - - Equipment Co- Financing (2) ~M ilik Including: Equipment Losses 11 - - Domestc Loan 38 23,374,392.00 25,000,000.00 in Suspense 0 cs h and Bank 12 35,712,032.94 16,359,686.00 2 e an 39 I. MF r+; Cash in Bank 13 35,712,032.94 16,359,686.00 Appropriation of 40 - Investment Loan A :&AttWrTI 14 32,698,484.02 14,283,353,69 Including: World Bank 41 - Including: Special Account La Loan 2. gk15 - Il 42 Cash on Hand - Bond Fund Y6A (To be continued) 6 Total Prepaid and Receivable 16 992,786.00 3,694,980 50 Construction Expenditures 43 to be Offset including: World Bank Loan 17 - - Total Payable 44 14,080,971.45 16,296,390.93 Interest Receivable World Bank Loan 1- - Including: World Bank 45 Commitment Fee Receivable Loan Interest Payable World Bank Loan 4 World Bank Loan Service- 19 - - 46 Fee Receivable Commitment Fee Payable Mreal S20 - - World Bank Loan Service 47 Marketable. SecuritiesFePabl Fee Payable A. 9 *P-ilt 21 - - 48 Total Fixed Assets Other Payables tLil11*k ±M&4VIZUE 49 Fixed Assets, Cost Appropriation of Fund 8M:Z.itmfnW1-fltW Less: Accumulated 23 - - R 50 27,797.66 41,434.10 DeprecationRetained Earmngs Depreciation Fixed Assets, Net 24 Fixed Assets Pending Disposal 5 26 - Fixed Assets Losses in Suspense- STotal Application ofFund 27 186,290,53550 266,104,691,80 Total Sources ofFund 51 186,290,535.50 266,104,691.80 .7 ii. Summary of Sources and Uses of Funds by Project Component SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I 4IT 2018 4 12 A 31 El (For the period ended December 31, 2018) t9 # -rt ViZ: AR S P -A Project Name: Guilin Integrated Environment Management Project Financed by the World Bank Prepared by: PMO of the Leading Groups of Guilin Integrated Environment Management Currency Unit: RMB Yuan Project Financed by the World Bank Current Period Cumulative Current Period CurrentPeriod Currant eAR Cumulative Cumulative % Budget Period Period % Life of PAD Ata opee Budget Actual Completed Actual Completed 97,518,959.43 77,585,100.38 79.56% 959,090,000.00 249,766,866.77 26.04% Total Sources ofiFunds . Tk NM 87,118,959.43 62,529,533.39 71.77% 616,950,000.00 155,392,329.67 25.27% International FinancingII 1. U l3fxWERM 87,118,959.43 62,529,533.39 71L77% 616,950,000M0 155,892,829.67 25.27% 1BRD I 10,400,000.00 15,055,566.99 144.77% 342,140,000.00 93,874,037.10 27.44% Counterpart Fimancmng Total Application of Funds (by 97,518,959.43 96,464,308.74 98.92% 959,090,000.00 246,050,025.30 25.65% Project Component) 1.iwar lipeli 57,159,543.93 55,884,075,47 97.77% 253,690,000.00 156,280,896.38 61.60% Guilin water supply pipelines 2t. :W kW#JE i*lI Transformation of Guilin Sewerage 25,441,600.00 19,205,281.85 75,49% 555,030,000.00 65,989,569.21 11.89% & WWTP, pumping stations and urban drainage pipe network 3,3iFE IN 8,000,000.00 16,939,352.17 211.74% 128,140,000.00 18,015,066.31 14.06% Sludge management ofili02 war ity m4,517,880.00 3,915,065.57 86.66% 7,830,000.00 4,302.189.53 54.94% Guilin water quality monitoring and pollution management Capacity building and project 2,399,935.50 520,533.68 21.69% 14,400,000.00 1,462,303.87 10.15% implementation support Mr -18,879,208.36 - - 3,716,841,47 - Difference I. A-V,E 2,702,194.50 - - 3,694,980.50 Change in Receivables 2. V-4t'IC k -2,215,419.48 - -16,296,390.93 Change in Payables 3. 1If±fTihAtR' -19,352,346.94 _ 16,359,686.00 Change in Cash and Bank 4. AZ Other - -13,636.44 . -41,434.10 8 ,_. _ i � �� G г i � i i i i � э i г r '��С К � �. 7 -r н.. � _ � � � ,"�г�',� � F о '��� i п�; � � , , , , � , . , � , , _ -G�; _ ^� _ _� о о � � �й � ы � U �''_ � ~ й � � � � � �к U � Q F� - -r'' ш �� U `".Э �'�.. 7 w О� U [� -� и .... м [� О '�� i `�' М N N '7 и И М М И Go с� �� : п�уΡ ьы.. 'V Q� М М vi О 'V V' Т М V1 .....6 уг�- р� � Й N О - l� � О � � О С т � .-м. � h О т И О N'V Ои � ч�.-"�. __ N .Т� N 'U 'v] Ci 'S G � 'V И М.1 VJ 0� . ! 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Special Account Statement A K P lk A SPECIAL ACCOUNT STATEMENT _1 2018 * 12 31 R (For the period ended December 31, 2018) -t VJ : 3'L A R It Ak* F R - T] ji T M Project Name: Guilin Integrated Environment Management Depository Bark Nanning Branch of Industrial Project Financed by the World Bank Bank Co., Ltd J AAk 845 8-CN kiu-; 552011400100022199 Loan No. 845 8-CN Account No. : 552011400100022199 41,11 Tf # 3L-,: 14 It Prepared by: Tbe Finance Department of Guangyd Currency: USD Zhuang Autonomous Region A-8$3 : Part A-Account Activity for th t Current Period Amount 5,004,206.18 Beginning Balance Add: 82425,901.64 Total Amount Deposited this Period by World Bank 1,782.96 Total Interest Earned this Period if Deposited in Special Account 4 1A T -8. 4 Lb 99 Z It b7i Total Amount Refunded ibis Period to Cover Ineligible Expenditures Deduct: *JU#'tFA 11,350,704,05 Total Amount Withdrawn this Period 36.00 Total Service Charges this Period if not Included in Above Amount Withdrawn I q 3 14r 0 1,081,150.73 Ending Balance (,rp 9,Jo be continued) Amount Part B-Account Reconciliation Amount Amount Advanced by World Bank 5,000,000.00 Deduct: 2. ½FrarMU 9 Total Amount Recovered by World Bank 3. AMMAFAP..&RJ Outstanding Amount Advanced to the Special Account at the End of this Period 5,000,000.00 4. JEPEA0M Ending Balance of Special Account 2,081,150.73 Add: 5. MM iRA Amount Claimed but not yet Credited at the End of this Period Application No. Amount 6. t&~tRllJ £3L {^j Z i4Ri ' ~2,924,80,41 Amount Withdrawn but not yet Claimed at the End of this Period 7. IRA-5Odt18 tt1ttE5h69t9) 84.00 Cumulative Service Charges (If not Included in Item 5 or 6) Deduct: 8. MISLkA (W m rPO ) 6,037.14 Interest Eamed (If Included in Special Account) 9. A MEFERP T WR905,000,000.00 Total Advance to the Special Account Accounted for at the End of this Period 1J 12J （五）财务报表附注 一｛ 才财务报表附注 1．项目概况 ~：世界银行贷款桂林市环境综合治理项目贷款号为8458一cN，旨在通过 ）该项目的实施，提高桂林市供水和污水处理服务水平。该项目内容包括桂 林市供水管籑工程、市区污水处理厂和排水泵站改造及城市排水管网改造 工程、污泥处理工程、桂林市水环境监测与污染源管理信息系统、能力建 设和项目实施支持等。项目协议于2015年4月1日签订，2015年6月29 日生效，预计2020年12月31日前关闭。项目计划总投资为人民币 959,090,000元，其中世界银行贷款总额为100,000,000美元，折合人民币 6 16,950,000元。 …堆：‘财务报表编制范围 本财务报表的簖制范围包括桂林市项目办、桂林市自来水公司、桂林 市排水有限公司、桂林市环境自动监控管理办公室的财务报表及广西壮族 自治区财政厅专用账户报表。 &l 二撰 3．主要会计政策 3.1本项目财务报表按照财政部《世界银行贷款项目会计核算办法》 拱（财际字〔2000〕13号）的要求编制。 ) 3.2会计核算年度采用公历年制，即公历每年1月I日至12月31日。 3.3本项目会计核算以“权责发生制’，作为记账原则，采用借贷复式记 …＿…账法记账，以人民币为记账本位币。 3.4按照中国人民银行2018年12月28日汇率，即USD卜人民币 :6.8632元。 lI3 ：噜 4．报表科目说明 4.，项目支出一〕 20 18年项目支出人民币％,464,308.74元，累计支出人民币 246,050,025 .30元，占总投资计划的25.65％。 4.2货币资金灌 2018年12月31日货币资金余额为人民币1 6,359,686.00元，比上年 减少人民币19,352,346.94元，其中专用账户存款折合人民币14,283,353.69 元。 ; 生 4.3预付及应收款 2018年12月31日余额为人民币3,694,980&50元，主要是预付工程款、 垫付农民工工资保证金等。 洛 ) 4.4项目拨款 2018年12月31日余额为人民币68,874,037,10元，其中：政府配套 资金为人民币1,600,000.00元；企业自筹资金为人民币67,274,037.10元。 万丫准 l 4.5项目借款一壕 2018年12月31日余额为人民币180,892,829.67元，其中：国际复兴 开发银行贷款额为22,714,306.69粎元，折合人民币 155,892,829,67元；国 内借款为人民币25,000,00。·。O元。…｛ 截至2018年12月31日，累计提取世界银行贷款资金22,714,3 06.69&- 粎元，占贷款总额的22.71％。其中：供水子项工程、货物及咨询服务类 累计提款10,499,975.23粎元，占该类计划的44.68%；污水污泥子项工程 着籮馨粹淤糼异籢器鬓粎桌产翼掣署易雾认黔矗男翼嗜 设子项咨询服务、非咨询服务、货物、培训、研讨及工OC类累计提款 194,768.“粎元，占该类计划的13 .43%；先征费25几000.00美元；周转金 ,,000，。。。·。。美元。～_{ 14_) 4.6应付款 雀2018年12月31日余额为人民币16,296,390.93元，主要是应付未付 膺财政垫付的扼诺费、利息和设备款等款项。 4.7留成收入 榷2018年12月31日余额人民币41,434.10元，主要是专用账户存款利 浦息收入。 5．专用账户使用情况 本项目专用账户设在兴业银行股份有限公司南宁分行，账号为 552011400100022199，币种为粎元。专用账户首次存款5,000,000.00美元。 20 18年年初余额5,004,206,18粎元，本年度回补8,425,901.64美元，利息 收入1,782.％粎元，本年度支付n,350,704.05美元，截至本期期末已支 …｛付但尚未申请报账金额为2,92 4,802.4&ha，年末余额2,08&,&0.73美元。 6，其他需要说明的事项 项目资金平衡表中国际复兴开发银行贷款期末数与期初数之差、项目 进度表中相应本期发生额与贷款协定执行情况表人民币本期提款数不一 ；致是由于历年汇兑损益造成的。 护飞 飞 、飞 万飞 { 德 添君 了） ; 奋‘j 飞 ;15 涟 j v. Notes to the Financial Statements Notes to the Financial Statements 1. Project overview The Loan No. of Guilin Integrated Envirom-nent Management Project Financed by the World Bank is 8458-CN, It aims to improve water supply and sanitation services in Guilin City through the implementation of the project,. The contents of this project include the engineering of Guilin water supply network of pipelines; Wastewater Treatment Plants in urban area; transformation of Guilin sewerage, waste water treatment plants in urban area, pumping stations and urban drainage pipe network; sludge management; information system of Guilin water quality monitoring and pollution management; capacity building and project implementation support. The Project Agreement was signed on April 1, 2015 and came into effect on June 2% 2015. The account of the project will be closed before December 31, 2020. The total investment plan of the project was RNM959,090,000 yuan, among which the total World Bank loan amount was USD100,000,000, equivalent to RlAB616,950,000 yuan. 2. Consolidation Scope of the Financial Statements Consolidation scope of the financial statements covers the financial statements of Project Management Office of Guilin, Guilin Water Supply Company, Guilin Sewage Company, Guilin Environmental Automatic Monitoring Management Office as well as the Special Account set in the Finance Department of Guangxi Zhuang Autonomous Region. 3. Accountina Policies 3.1 The Financial Statements of the project were prepared according to the requirements of Accounting Methods for the World Bank Financed Project (Caij izi [2000] No. 13). 3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January I to December 3 1. 16 3.3 The accrual basis and the debit/credit double entry bookkeeping method are adopted. RMB is used as the recording currency of bookkeeping. 3.4 The exchange rate adopted in the financial statements was the exchange rate on December 28, 2018 of the People's Bank of China, which is USD1= RMB6.8632 yuan. 4. Explanation of Subjects 4.1 Total Project expenditures The project expenditure in 2018 was RMB96,464,308.74 yuan, and the cumulative expenditures were RMB246,050,025.30 yuan, which accounted for 25.65% of the total investment plan. 4.2 Cash and Bank On December 31, 2018, the balance was RMB16,359,686.00 yuan, RMB19,352,346.94 yuan less than last year. And the funds in the Special Account were converted to RMB14,283,353.69 yuan. 4.3 Prepaid and Receivable On December 31, 2018, the balance was RMB3,694,980.50 yuan, mainly the prepaid project payment in engineering, migrant workers' wage guarantee, and so on. 4.4 Project Appropriation Funds On December 31, 2018, the balance was RMVIB68,874,037.10 yuan, of which the counterpart funds appropriated by government was RMIB1,600,000.00 yuan; funds self-raised by enterprises was RMB67,274,037. 10 yuan. 4.5 Project Loan On December 31, 2018, the balance was RMB 180,892,829.67 yuan, including the IBRD loan of USD22,714,306.69, equivalent to RMB155,892,829.67 yuan; domestic loans of RMB25,000,000.00 yuan. By the end of December 31, 2018, accumulated USD22,714,306.69 of the 17 World Bank loan had been withdrawn, accounting for 22.71% of the total, of which the category of water supply sub-project, goods and consulting services cumulated withdrawals were USD10,499,975.23, accounting for 44.68% of the category plan; the category of waste water, sludge management sub-project and goods cumulated withdrawals were USD6,717,117.06, accounting for 9.08% of the category plan; category of Guilin water quality monitoring sub-project, goods and consulting services cumulated withdrawals were USD52,445.74, accounting for 6.56% of the category plan; the category of capacity building sub-project, consulting service, non-consulting services, goods, training, workshop and IOC cumulated withdrawals were USD194.768.66. accounting for 13.43% of the category plan; front end fee of USD250,000,00; working capital of USD5,000,000.00. 4.6 Payable On December 31, 2018, the balance was RMB16,296,390.93 yuan, mainly due to unpaid financial advances in comnitment fees, interest and equipment payments. 4.7 Retained Earnings On December 31, 2018, the balance was RMB41,434. 10 yuan, mainly interest earned of the Special Account deposit. 5. Special Account The Special Account of this project is set in Nanning Branch of Industrial Bank Co., Ltd., with the account number of 552011400100022199, and USD as currency unit. The initial deposit of the Special Account is USD5,000,000.00. The beginning balance of 2018 was USD5,004,206.18 and the reimbursement in the year was USD8,425,901.64. This year the interest earned was USD1,782.96 and the disbursement was USD11,350,704.05. Amount withdrawn but not yet claimed at the end of this period was USD2,924,802.41. Thus, the ending balance was USD2,081,150.73. 6. Other Explanation for the Financial Statements Due to the change of foreign exchange rate, there are discrepancies between the difference of the beginning and ending balance of the IBRD loan in the Balance Sheet, the current year's loan received in the Summary of Sources 18 and Uses of Funds by Project Component and the amount of current year's withdrawals (disclosed in RMB) in the Statement of Implementation of Loan Agreement. 19