Audit Report Public Disclosure Authorized If? 4 [2017] 55
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Public Disclosure Authorized Ilubei Provincial Audit Office of the People's Republic of China Audit Report Public Disclosure Authorized if? 4 [2017] 55 - HB AUDIT REPORT C2017) NO.55 Project Name: Hubei Jingzhou Historic Town Conservation Project Financed by the World Bank Public Disclosure Authorized Ak #: 8574-CN Loan No.: 8574-CN Project Entity : Project Management Office under the Project Leading Group for the World Bank Financed Project in Jingzhou Public Disclosure Authorized 2016 Accounting Period: 2016 Contents I. Auditor's Opinion ........................................... 3 ..................................................................... 5 II. Financial Statements and Notes to the Financial Statements ..... ..... 5 . ......................................... 5 i. Balance Sheet ............ .................... ...... 5 ............................................................. 7 ii. Summary of Sources and Uses of Funds by Project Component........7 ( 1p)4 ifI ; ............................................... 9 iii. Statement of Implementation of Loan Agreement. ............... 9 ( ) P . ............................... ....... 11 iv. Designated Account Statement............................ 11 (3w) k- # RA...................................................... 13 v. Notes to the Financial Statements .................... ...... 16 III...uditFindingi.......................19 111. Audit Findings and Recommendations ....................................... 20 -. 4fittll al + #ewt#P,Mgg 2016 412 3J 31 H yWTAA )& Mt® JA& gl t)jg fM 18 1 ). (-) x @ ýrotJlì£]E å*-K 0 I*4 l 1 f;tIi, 9 ik ý A 9, X b & Maam 4 J, 9J l, tJK&o;*,; 2. tý-,V nerL sn fceM, P3as ( --) w JtA4 4 -K411 7,ff . Jk e l451di KAMÂA &*+&®ß##&&*+ 5C el1 t9)týas 46 IXkff9fma g +4K e ýilt**JJiý- it ä)y ik å M1 f;zjk*i+1 ýki A t I r -Jfx&r2*W A X† III 4z,i VVO&*JW 9 l 14p yl -t Tk 7ý-+ 4i 9,F kiXkAý L W1 2016 12 A] 31 H C, R & TFT, A t011 Jtì #A&&% MA *T*it 9ý 19 , Ati I HpA *l†#tt* i+ý , ,-4P f,#: k#&A giA4: 430071 ì i: 86-027-87236025 #~: 86-027-87252502 2 . Auditor's Opinion Auditor's Opinion To Project Management Office under the Project Leading Group for the World Bank Financed Project in Jingzhou (PMO) We have audited the special purpose financial statements (from page 5 to page 18) of Hubei Jingzhou Historic Town Conservation project financed by the World Bank, which comprise the Balance Sheet as of December 31, 2016, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Loan Agreement and the Special Account Statement for the year then ended, and Notes to the Financial Statements. Project Entity's and Hubei Provincial Finance Bureau's Responsibility for the Financial Statements The preparation of the Balance Sheet, the Summary of Sources and Uses ot Funds by Project Component and the Statement of Implementation of Loan Agreement is the responsibility of your entity, while the preparation of the Designated Account Statement is the responsibility of Hubei Provincial Finance Bureau, which includes: i. Preparing and fair presenting the accompanying financial statements in accordance with China's accounting standards, accounting system, and the requirements of the Loan Agreement of the project; 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 proccdures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures 3 selected depend on the auditor's judgment, including the assessment of the risks of 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 Hubei Jingzhou Historic Town Conservation Project financed by the World Bank as of December 31, 2016, its financial receipts and disbursements, the project implementation and the receipts and disbursements of the designated account for the year then ended in accordance with China's accounting standards and system, and the requirements of the project Loan Agreement. Other Matters We do not comment on this item because no loan withdrawal application for this project was submitted during this period. 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 Recommendations. Hubei Provincial Audit Office June 30, 2017 Address: No.3 Tian'e Road, Wuchang District, Wuhan, Hubei, PRC. Postcode: 430071 Tel.: 86-027-87236025 Fax: 86-027-87252502 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version. 4 I. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCE SHEET 2016 I 12 ,] 31 N (As of December 31, 2016) Project Name: Hubei Jingzhou Historic Town Conservation Project Financed by the World Bank Prepared by: Project Management Office under the Project Leading Group for the World Bank Financed Project in Jingzhou Currency Unit: RMB Yuan pplanNon of Fund Lme Beginning Balance Ending Balance Sources of Fund ne Beginning Balance Ending Balance Tzt Flo:-t Expenditures 1 0.00 14 139,487.65 Total Project 28 0.00 93,850,000.00 Appropriation Funds Fsxed Assets Transferred 2 Project Capital and Capital 29 Surplus Costiruction Expenditures to 3 - - cli:G 30 .De D-sposed Including: Grants 3 bestments Transferred-out 4 -Total Project Loan 31 0.00 1,734,250.00 1. ttIRWA Construcuon in Progress 5 0.00 14,139,48765 Total Project Investment 32 000 1,734,750.00 Loan Loan Receivable F Foreign Loan 33 0.00 1,734,250.00 IHdBn 7 -- 34 breestnent7 Loan Receivable Including: IDA AW e on of Investment 8 -- 35 0.00 1,734,250.00 Las___IBRD dmAoppopriationof 9 -- Technical 36 B Iniesoink ne Loan cooperation 10 37! ne0: Co- Financing nqtepment Losses in I - (2) 38 Domestic Loan 12 0.00 81,839,855.72 2. Othr La -- Tc- Cash' and Bank Other Loan 13 0.00 81,836,794.72 Appropriation of 40 - Investment Loan 14 Including World Dank 41 - ________ _____ _ Loan 15 0.00 3,061.00 42 - Cash a HandBond Fund Tobe continued) 5 Receivable 16 0.00 5,000.00 Construction Expenditures 43 to be Offset on; Bnk ILoan 17 -- 44 \eab,le Total Payablc C3w Fee 18 - Including: World Bank 45 - Loan Interest Payable Wrld Bank Loan Service- 19 - World Bank Loan 46 Commitment Fee Payable 20 - -I47 -- M eurris World Bank Loan Service Fee Payable 21 0.00 48,077.80 48 TaijF d Asets Other Payables 22 0.00 70,240.00 49 - 22u.00n0,4000Appropriation of Fund L cumulated 23 0.00 22,162.20 Rå E ig 50 0.00 448.171.17 Retamned Eammngs 24 0.00 48.077.80 25 :Asses Pending Disposal F : Assas Losses in 26 27 0.00 96,032,421.17 T o f51 0.00 96,032,421.17 TaAppcationFund of Total Sourcs of Fund421 ( S n1. fi. Summary of Sources and Uses of Funds by Project Coppo oent Summary of Sources and Uses of Funds by Project Component I AM 2016 $ 12 ) 31 U (For the period ended December 31, 2016) 7oiect Name: Hubei Jingzhou Historic Town Conservation Project Financed by the World Bank flXAJiý t,f-f ýt -ý4)f k, -f : A F epared by: Project Management Office under the Project Leading Group for the World Bank Financed Project in Jingzhou Currency Unit: RMB Yuan *43I† Current Period Cumulative Curremt3i 31 ljU'i- I 1,i M91 with98_ýi f Uumulaive Current Period Current Period Period % Life of PAD Cumulative Actual % Completed Budget Actual Compleie d 95,584,250 00 96,032,421.17 100.47% 1,048,654,100.00 96,032,421 17 9.16% T orcs' of Funds inaracing- 1,734,250.00 1,734,250,00 100.00% 615,000,000.00 1,734,250.00 0.29. - -4 Counterpart 93,850,000.00 94,298,171.17 100.48% 433,654,100.00 94,298,171.17 21.74% ý_ -. 'n Total Appbcanon of Funds(ä2 14,139,47.65 14,139,48765 100.00% 1,048,654,100.00 14,139,487.65 1.35% H Cuhural Heritage 348,872,300.00 Cosnnand Tourism semces Improvement EœIogical and Water - 283,822,200.00 &v.r,nmie nt Improvemnent -l..- 100,566,300.00 TnsotImprovemnent Management and 31,697,500.00 insuuional Capacity inprovement Interest- 33,143,400.00 ront end fee 1,734,250.00 1,734,250.00 100.00% 1,537,500.00 1,734,250.00 112.80% K thersw 12,405,237.65 12,405,237.65 100.00% 249,014,900.00 12,405,237.65 4.98% DiTerence 81,892,933.52 81,892,933.52 Change in 5,000.00 5,000.00 2 e L C n0.00 0.00 3 % M&_ cb m 81,839,855.72 81,839,855.72 Cast andý Bank 4t Ocbe- 48,077.80 48,077.80 7 巨 「・ }向 ’ iv.