3 0 JUN 2018

H0ix50 1'~~~ ju14iit} 0PRqr Public Disclosure Authorized Provincial Audit Office of the People's Republic of

Audit Report

Public Disclosure Authorized ~#'kVtK (2018) 146-# QIANAUDITREPORT (2018) NO.146

Project Name: Guizhou Cultural and Natural Heritage Protection and Development Project Financed by the World Bank Public Disclosure Authorized # Sk A7693-CN Loan No.: 7693-CN

Proj ect Entity: Guizhou Cultural and Natural Heritage Protection and Development Project Management Office Public Disclosure Authorized

2017 Accounting Year: 2017

一 、审计 师意见

审计师意见

贵州省 世界银行 贷款 实施文化 与 自然遗产保护和发展项 目办公 室：

我们 审计 了世界 银行贷款贵州文化 与 自然遗产保护和 发展项 目20 17 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 20 页）。

（一 ）项 目执行单位及贵州省财政厅对财务报表 的责任

簖制上述财务报表中的资金平衡表、项 目进度表是你办的责任，编制 贷款协定执行情况表、专用账户报表是贵州省财政厅的责任，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

我们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 。 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

1 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 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 提供 了基础。

（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贵 州文化与自然遗产保护和发展项目2017 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 审查 了本期 内省财 政厅报送给世 界银行 的第 CUIZHOU 一024 号 提款申请书及所附资料口我们认为，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 。

本审计 师意见之 后，共 同构 成审计报告 的还有 两项 内容 ：财务报表及 财务报表附注和审计发现的问题及建议。、洲一 － & ’一 井 ’戈

中、／浪 共、 ：贵瞻 备计厅 价 又，裸 二疙卜七日

＼ 叭知 ～ ·

地址：贵 阳市市 北路 52 号 邮政簖码 ：550004 电话 ：86一0851 一866 14379 传真：86一0851 一86614396

2 1. Auditor's Opinion

Auditor's Opinion

To Guizhou Cultural and Natural Heritage Protection and Development Project Management Office (PPMO)

We have audited the special purpose financial statements (from page 6 to page 20) of Guizhou Cultural and Natural Heritage Protection and Development Project financed by the World Bank, which comprise the Balance Sheet as of December 31, 20171 the Sunu-nary 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.

Responsibilities of the Project Executing Agency and the Guizhou Provincial Finance Department for the Financial Statements

The preparation of the Balance Sheet, the Summary of Sources and Uses of Fw-ids by Project Component is the responsibility of your entity, while the preparation of the Statement of Implementation of Loan Agreement and the Special Account Statement is the responsibility of Guizhou Provincial Finance Department, 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

3 amounts and disclosures in the financial statements. The procedures 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 Guizhou Cultural and Natural Heritage Protection and Development 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 special account for the year then ended in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement.

Other Matters

We have audited the loan withdrawal application numbered GUIZHOU-024 and enclosed documents that had been submitted to the World Bank from Guizhou Provincial Finance Department during this period. In our opinion, these documents meet the requirements according to the loan agreement, may serve as the basis for loan withdrawal applications.

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.

4 Guizhou Provincial Audit Office of the People's Republic of China June 27, 2018

Address: No. 52 North Road, City, Guizhou Province Postcode: 550004 Tel.: 86-0851-86614379 Fax: 86-0851-86614396

The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version.

5 二、财务报表及财务报表 附注 n.Financial Statements and Notes to the Financial Statements （一 ）资金平衡表 i。Balance Sheet 资 金 平 衡 表 BALANCE SHEET 2017 年 12 月 31 日（A 5 ofD。。ember 31,2017) 项 目名称：贵州省世界银行贷款实施文化与 自然遗产保护和发展项 目 Project Nam 已：Guizhou Cultural and Natural Horitage Protection and Development Project Financed by the World Bank 簖报单位：贵州省世界银行贷款实施文化与 自然遗产保护和发展项 目办 货币单位：人 民币元 Prepared by:Gui 幼 ou CultUral and Natural Heritage Protection and Currency Unit:RMB Yuan

琪后续 （TObecon定定nued)

6 Applicafion ofFund Line Beginning Balance Ending 13a1zice Somces ofFund Line Beginning BaJanceý Ending Bal"ee No. No.

20 47 Marketable Securities WcrId Bank Loan Sti-vice Fee Payabil ..

21 A, 48 Total Fixed Assets Other Payables

9 Zi * 22 ýLl ±ýWM5M 49 Fixed Assets, Cost Appropiiafion of Fund 4: ý,ý i+ ffi l p 23 +1 fg)&qýÅ 50 333,564.05 453,740.55 Less: Accumulated Depýcdation Retajned Enmings Fffl ;ý 1ý iý dý ý.1 24 Fixed Assets, Net

25 Fixed Assets Pending Disposal 14 ýk ý-y ffi ý ý 5i i ýi 9 * 26 Fixed Assets Loýses in Susptiise

27 532,897,149.42 534,839,866.57 51 532,897,149.42 534,838,966.57 Total Lication ofFund Total Soiirces af Fund （二）项 目进度表 11.Summary of Sources and Uses of Funds by Project Component 项 目 进 度 表 （一 ） SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENTI 本期截至 20 17 年 12 月 31 日 (For the period endod December 31,2017) 项 目名称：贵州省世界银行贷款 实施文化与 自然遗产保护和发展项 目 Project Name:Guizhou Cultural and Natural Heritage ProteCtlon and Deve]opment Project Finance 己by the World Bank 簖报单位：贵州省世界银行贷款实施文化与 自然遗产保护和发展项 目办 货币单位：人民币元 Prepared by:Guizhou Culttlral and Natural Heritage Protection and Curr的 cy Unit:RMB Yuan

才

8 Current Period curnwative 41 AA fl-M O A-1 j V3 yx 1- 0, % Current Period Current Period Current Period % Life of PAD Cumulative Cumulative Completed Budget Actual Completed Actual

24,326,010.03 106,206.92 29,571,300,00

91 WT-9 1,416,241.62 37,961,500.00 30,984,627,19 Li ping County to, MpA 185,250.32 41,969,200.00 37,257,935.04 Jinping County I I , IR d I ZFL 6,944,224.20 28,547,200.00 25,958,366,52 Lpishan County 12, 3,967,090.51 12,386,700.00 15,160,984.85 Tianzhu County 13, -MJFK 3,333,393.37 27,299,900.00 26,602,133.71 14, 74W 21,556.61 8,084,600.00 5,591,358.28 Pingba County

)5, Ab'tfi 6,535,243.93 38,231,900.00 39X5,593.89 Guanling County 16, IXZ-rIj 811,767.47 60,311,200.00 36,587,646.16 Xingyi City 17, 45,997,97 1 8'098 100.00 16,558,09V2 Zbenfeng County 18, ty,10JI05 1,122,338.65 12,341,500M 13,199,504.42 Provincial Tourism Bureau 19, 01H+10it 7,039.646,82 69,283,900.00 54,361,388.17 GNU 20.4'L -17,466,311.21 15,722,02TS3 others 21,974,993.47 2 -Fr Difference -226,606,908.28

lzWk Ek 9,629,186,20 27,326,303.35 Change in Receivables 2. fa f,T;&k : it 3,077,642.84 44,927,731.12 Change in Payables 3. 1 M 5EL -39,193,560.82 40,030,061.79 Change in Cash and Bank 4. -Y it -120,176.50 -453,740,55 Other SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT II *A A 2017 4 12 A 31 U (For the period ended December 31, 2017)

Project Name: Guizhou Cultural and Natural Heritage Protection and Development Project Financed by the World Bank 9 14,ft: 0)1,1-r k4 ~tkR, A t I4A 4 A iol p4VA Ij~ P ; ,~ )IR`TPt Prepared by: Guizhou Cultural and Natural Heritage Protection and Development Project Management Office Currency Unit: RMB Yuan

Project Component Project Expenditure

Cumulative Amount Assets Transferred Construction Xpl jiA4r i) j9i.JiE Work in Progress Expenditures to be Trnesered-ut Fixed Asset Current Asset Intangible Asset Deferred Asset Disposed Transferred-out 1.±ThTIP Civil Works 409,788,022.86 409,788,02286 2ood 7,673,906.01 7,673,906.01 Goods ______3. C-A R RiVL I 117,043,272.52 17,043,272.52 Consulting Services and Training .Poef 980,130.00 Front-end fee 980,130.00

Batchpaym 31,248,689.06 31,248,689.06 6th 748,480.98 748,480.98 Other ______

Total 467,482,501.43 467,482,501.43

10 iii. Statement of Implementation of Loan Agreement

STATEMENT OF IMPLEMENTATION OF LOAN AGREEMENT .. ; Y 2017 * 12 A 31 E (For the period ended December 31, 2017)

Financed by the World Bank Project Name: Guizhou Cultural and Natural Heritage Protection and Development Project WRaT*1 *11- yyr Vt-4Iz: Ak/R-rjK Currency Unit: USD/ RIVB Yuan Prepared by: The Finance Department of Guizhou Province &11 % 2k :& R1*1-F1kQ1Uk NOI& Cumulative Withdrawals 1 IJ Loan Amount Current-period Withdrawals Category k- TV R(Z 4FrAA L%T USD USD RMB USD RMB 50,338,346.27 328,920.822.20 1. T 2Civil Works 50,315,500,00 6,087,217.89 39,775,099.14 2. Go 1,755,000.00 73,871.94 482,694.03 1,174,421.66 7,673,906.01 Goods ______3. lting ice 2,757,500.00 723,344.38 4,726,476.85 2,608,318.16 17,043,272.52 Consulting Servic and Training 4. Ati {Wq 150,000.00 150,000.00 980,130.00 Front-End Fee . 5. t44 4,872,000.00 304,366.50 1,988,791.58 4,782,328.22 31,248,689.06 Batch payments 6 -5,000,000.00 -32,671,000.00 Special Account ______114,548.22 748,480.98 7.t )JfRfM-Zs;'- 9, M 150,000.00 71,315.85 465,992.03 59,167,962.53 386.615,300.76 itTotal 60,000,000.00 2,260,116.56 14,768,053.63

- -XA i Tl&f4tL: i1&= 6.5342.tX R VfP( Exchange Rate: US$1 = RMB6.5342yuan)

11 iv. Special Account Statement

SPECIAL ACCOUNT STATEMENT ,f- _2017 - 12 | 31 H (For the period ended December 31, 2017)

-4 El Depository Bank: ABC Gulyang Xinhua Branch Project Name: Guizhou Cultural and Natural VUL: 23-992001040018002 Heritage Protection and Development AccountNo. :23-992001040018002 Project Financed by the World Bank A If R1': S&W: 7693-CN Currency: USD Loan No. 7693-CN

Prepared by: The Finance Department of Guizhou Province

A-'*3: AqkAIMMMUIM J J Part A-Account Activity for the Current Period Amount

3,851,834.87 Beginning Balance

Add:

A]itW ji 2,260,116.56 Total Amount Deposited this Period by World Bank

SEJ3tA M (&AtfEiikfl½) 1,007.11 Total Interest Earned this Period if Deposited in Special Account

Total Amount Refunded this Period to Cover Ineligible Expenditures

Deduct:

6,106,032.18 Total Amount Withdrawn this Period

ljU 4EtUf 3 i-q[ AsLrp A 15.co Total Service Charges this Period if not Included in Above Amount Withdrawn

*A& 06,911.36 Ending Balance

(08 To be continued)

12 Amount Part B-Account Reconciliation 1. ?4 5&&,000,000.oo Amount Advanced by World Bank

Deduct: 2, tiF-ITM1&A9 5,000,000.00 Total Amount Recovered by World Bank 3. 0 Outstanding Amount Advanced to the Special Account at the End of this Period 4. VMRP'MAAB9 6,911.36 Ending Balance of Special Account

Add:

Amount Claimed but not yet Credited at the End of this Period

Application No. Amount

6. o Amount Withdrawn but not yet Claimed at the End of this Period

7. Th 1 itli (l*,ilE 5 V16 t ) 325.00 Cumulative Service Charges (If not Included in Item 5 or 6)

n49': -I Deduct:

8. J,ARA ( 4A htR l4-) 7,236.36 Interest Earned (If included in Special Account)

9. 0 Total Advance to the Special Account Accounted for at the End of this Period

13 （五 ）财务报表附注

财务报表附注

1 ．项 目概况 世界银行贷款贵州省实施文化与自然遗产保护和发展项目于2006 年 成立领导小组，组建贵州省世界银行贷款实施文化与自然遗产保护和发展 项目办公室 （以下简称省项目办）。经过世行专家近两年时间完成 “项 目 鉴别 、预评估 、评估 ”的国际程序后 ，于 2008 年下半 年启动 国内审批程 序 。2008 年 8 月，省 国土资源厅批 准 了 《土地 预审报告 》 ，10 月，省环 保局批 准 了 《环境影响 报告 书》 ，n 月，省发 改委批准 了 《可行性研 究 报告》，12 月24 日，国家发改委正式批复 《资金申请报告》。至此，本 项目的国际、国内审批程序全部完成。

本项 目贷款 号为 7693一CN，于 2009 年 6 月 26 日正式签订贷款协定和 项目协定。本项目计划总投资人民币548,999,200 元，其 中：少数民族文 化遗产保护291,207,100 元，自然遗产和景点保护与开发 139,338,200 元， 旅游 门户 城镇 设施 106,641,100 元 ，能力建设和项 目实施 支持 11,812,800 元 。项 目建 设 资金 来 源 ：世 界 银行 贷 款 60,000，。00 美 元 （折 合人 民币 373,95 几60。元），省级及各项目市洲1 ）、县人 民政府配套资金人 民币 175,048,600 元 。本项 目在贵 阳市 、黔东南州 、黔西 南州 、安顺市的 20 个 子项 目单位实施 。 由省 、市 （州 ）、县 （市 、 区）三级项 目办进 行管理 。

本 项 目 已于 贷 款 关账 日 2017 年 6 月 30 日关 账 ， 累计 提 款 报 账 59,167,962.53 美 元 。

2 ．财务报表编制 范围 本财务报 表 由 19 个 子项 目单位 （省项 目办 、贵州 师范大 学、黔东 南 州 、凯里市、雷山、台江、丹寨 、黄平 、施 秉、剑河 、锦屏 、黎平 、天柱 、 从江、兴义市、贞丰、襼秀区、平坝、关岭）的财务报表以及省财政厅世 界 银行贷款贵 州省 实施文化 与 自然遗产保护和 发展项 目专用账 户报表 、贷

l4 款协定执行情况表合并而成，以反映我省该项 目的全部项 目支出、世界银 行贷款和配套 资金等重要财务信息 。

3 ．主要会计政策 3.1 本项 目财务报表根据财政部颁布 的 《世界银行 贷款 项 目会计核算 办法》和本项 目 《财 务管理手册》、 《社 区参与操作手册》及 《关于规范 程序 加快 提款报账速 度 的通知》来进 行会计核 算和财 务 管理 以及提款报 账 。

3.2 会计核算年度采用公历年制 ，即公历每年 1 月 1 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 记账方法记账 ，以人 民币元为记账本位 币。

3.4 报表 按照 中国人 民银行 2017 年 12 月 31 日汇 率，即 USDI 二人 民 币 6.5342 元进行 了调整 。

4服 表科 目说 明 4.1 项 目支 出 20 17 年 12 月 31 日累计支 出 467,482,501.43 元 。

4.2 货 币资金 2017 年 12 月 31 日 货 币 资 金 余 额 为 人 民 币 4 。，030,061.79 元 ，其 中专用账户 存款折合人 民币 45,160.21 元 。

4.3 预付及应 收款 2017 年 12 月 31 日余额 为人 民币 27,326,303.35 元 。主要是 ：从江 、 1,357,791.00 、凯 里 市 542,541.00 元 、 黎 平 县 l,550,850.00 元 、剑 河 县 2,108,500.00 元 、黄 平 县 952,000.00 元 、西 秀 2,025,000.00 元 、兴 义 市 8,049,745 .00 元、台江 县 1,607,621.00 元 、关 岭 l,578,111.00 元等 。

l5 4.4 项 目拨 款 2017 年 12 月 31 日余额 为人 民币 102,694,294.14 元 ，主要是 ：省旅游 局 7,382,080.76 元 、贵州师大 24,136,200.00 元、黔东南 175,086.00 元 、凯 里市 4,300,000.00 元 、从江 县 1,753,000.00 元 、剑河县 l,871,900.00 元、 施 秉县 2,516,132.00 元、台江县 3,507,832.52 元 、黄平县 4,460,000.00 元 、 黎 平县 5,298,1 58,60 元、天柱县 5 51,000.00 元 、锦屏县 31,712,919,00 元 、 襼秀 区 4,837,5 10,00 元、雷 山县 7,997,797.90 元 、关岭县 13,5 15,240.00 元 、 兴 义市 3,000,000.00 元、贞 丰县 4,068,000.00 元等 。

4.5 项 目借款 2017 年 12 月 31 日余 额为人 民币 386,763,100.76 元；其 中 国际复兴开 发银行贷款额 为 59,167,962.53 粎元，折 合人 民币 3 86,615,300.76 元 。

4.6 应付款 2017 年 12 月 31 日余额为人 民币 44,9 27,731 .12 元 。主要是各项 目办 应 付工程 款、应付利 息款等 。

4.7 留成 收入 2017 年 12 月 31 日余额为人 民币 453,7 40.55 元 ，主要是银 行存款 利 息 收入 。

5 ．专用账户使用 情况 本项 目专用账户设在农行贵 阳新 华支行 ，账号 ：23 一992014010000508, 币种 为粎 元。专用账 户 首次存款 5,000，。00 美元 。期 初余 额 3,851,843.87 元 ，本期 回字｝、资金 2,260,116.56 美元 ，利 息收入 1,007,n 美元 。本期支 付 总额 6,106,032.18 粎元 ，服 务 费 15.00 美 元 ，2017 年 12 月 31 日余额 为 6,911.36 美元 。

6．其他 需要说明 的情况 年末 汇率 由省项 目办集 中调整 ，项 目进度表 （一）中 “项 目支 出合计 ” 栏 “20 ．其他 ”为该汇率调 整数。

l6 v. Notes to the Financial Statements Notes to the Financial Statements

1. Project overview The World Bank Financed Guizhou. Cultural and Natural Heritage Development and Protection Project (hereinafter referred to as the Project) established its project leading group in 2006 and the Provincial Project Management Office (PPMO) was formed. The Project started going tlu-ough the domestic approval procedures in the second half of 2008 after the World Bank staff completed the international procedures, including the project identification, the pre-appraisal and appraisal, over a time period of nearly two years. The Provincial Land Resources Bureau approved the Land Preliminary Examination Report in August 2008, the Provincial Envirom-nental Protection Bureau approved the EnvironmentalImpact Assessment Report in October, the Provincial Development and Reform Commission approved the Feasibility Study Report in November and the National Development and Reform December 241h. Commission formally approved the FundAPP lication Rep ort in Until then, the all international and domestic procedures had been completed for the Project.

The Loan No. of the Project is 7693-CN, and the Loan Agreement and the Project Agreement were signed officially on June 26th, 2009. The total investment plan of the Project was RNM548,999,200 yuan, among which the ethnic minority cultural heritage protection component was RMB291,207, 100 yuan, the natural heritage and scenic site protection and development component was PJ\/IB139,338,200 yuan, the tourism gateway town facilities development component was RiVII3106,641,100 yuan, and the capacity building and project implementation support was RMB11,812,800 yuan. Sources of funds for the Project are the World Bank loan of USD60 million dollars (equivalent to RMB373,950,600 yuan) with counterpart funding of R1\0175,048,600 yuan from provincial, each project city (prefecture), and county people's government. This project is implemented in 20 Plus located in Guiyang city, Qiandongnan Prefecture, Qianxinan Prefecture, and city and is managed at provincial-level, city or prefecture- level, and county, city or district-level, three-level PMOs.

The Project loan account was closed on June 30th, 2017, and USD59,167,962.53 was disbursed accumulatively.

17 2. Consolidation Scope of the Financial Statements The financial statements consist of 19 subproject components' financial statements (PPMO,Guizhou Normal University,Qiandongnan Prefecture,,Leishan,Taijiang,Danzhai,Huangping,Shibing,Jianhe,Jingping,Liping,Tia nzhu,Congjiang,Xingyi City,Zhenfeng, Xixiu District, Pingba, Guanling) and special account statement of the Provincial Finance Bureau on the Guizhou Cultural and Natural Heritage Protection and Development Project Financed by the World Bank.

3. Accounting Policies 3.1 Financial Statements of the project, as well as financial management of the project and loan withdrawal and reimbursement, were prepared according to the requirements of Accounting Methods for the World Bank Financed Project, the Financial Management Manual, the Community Participation Operation Manual and the Notification on standardization of procedures and acceleration of loan withdrawal and reimbursement speed of the project.

3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January 1 to December 31.

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 31, 2017 of the People's Bank of China, which is USD1= RMB6.5432 yuan.

4. Explanation of Subjects 4.1 Total Project Expenditures As to December 31, 2017, the Project's cumulative expenditures were RMB467,482,501.43 yuan.

4.2 Monetary Capital On December 31, 2017, the balance was RMB40,030,061.79 yuan,and the funds in the Special Account were converted to RMB45,160.21 yuan.

4.3 Prepaid and Receivable Its balance on December 31, 2017 was RMIB 27,326,303.35 yuan, mainly including RMB,357,791.00 yuan of , RM1B542,541.00

18 yuan of Kaili City, RMB1,550,850.00 yuan of , RMB2,108,500.00 yuan of , RMB952,000.00 yuan of Huangping County, RMB2,025,000.00 yuan of Xixiu District, RMB8,049,745.00 yuan of Xingyi City, RMB1,607,621.00 yuan of and RMB1,578,111.00 yuan of Guanling.

4.4 Project Appropriation Funds The balance on December 31, 2017 was RMB102,694,294.14 yuan,mainly including RMB7,382,080.76 yuan of Tourism Administration of Guizhou Province, RMB24,136,200.00 yuan of Guizhou Normal University, RMB175,086.00 yuan of Qiandongnan Prefecture, RIMIB4,300,000.00 yuan of Kaili City, RMB1,753,000.00 yuan of Congjiang County, RMB1,871,900.00 yuan of Jianhe County,RMB2,516,132.00 yuan of Shibing County, RMB3,507,832.52 yuan of Taijiang County, RMIB4,460,000.00 yuan of Huanping County, RMB5,298,158.60 yuan of Liping County, RMB551,000.00 yuan of Tianzhu County, RMB31,712,919.00 yuan of Jingping County, RMB4,837,5 10.00 yuan of Xixiu District, RMB7,997,797.90 yuan of , RMBl3,515,240.00 yuan of Guanling County, RMB3,000,000.00 of Xingyi City and RMB4,068,000.00 yuan of .

4.5 Project Loan The balance on December 31, 2017 was RMB386,763,100.76 yuan, including the IBRD loan of USD59,167,962.53, equivalent to RMB386,615,300.76 yuan.

4.6 Payable The balance on December 31, 2017 was RMB44,927,731.12 yuan, mainly including the payable engineering funds, payable interests, etc.

4.7 Retained Earnings The balance on December 31, 2017 was RMB453,740.55 yuan, mainly interests earned on bank deposits.

5. Special Account The Special Account for this Project was set up in Guiyang Xinhua Branch of Agricultural Bank of China, account No.: 23-992014010000508,USD currency. The initial deposit was USD5,000,000. The beginning balance of current period was USD3,851,843.87, the amount replenished during this

19 period was USD2,260,116.567, and the interest earned was USD1,007.11. The total disbursement of current period was USD6,106,032.18, the service charge of USD15.00 and the ending balance on December 31, 2017 was USD6,911.36.

6. Other Explanations The year-end currency exchange was adjusted uniformly by the PPMO. The adjusted amount on the currency exchange was listed in column 20 others in the Summary of Sources and Uses of Funds by Project Component 1.

20 三 、审计发现的 问题及建议

审计发现的问题及建议

除对财务报表进 行 审计 并发表 审计 意见外 ，审计 中我们还关 注 了项 目 执行过程 中相关单位 国家法规 和项 目贷款协 定遵 守情况 、内部控 制和项 目 管理情况、项目绩效及上年度审计建议整改落实情况。我们发现存在如下 问题：

（一 ）违 反 国家 法规或贷 款协定 的问题

1 ．部分 工程项 目违反招投标 管理规定 ，涉及 资金 1,539.42 万元 。 (l） 天柱县 三门塘文化 遗产 基础设施 建设项 目未 履行招 投标程序 ， 涉及资金 595.92 万元。 天柱县 三 门塘文化遗产基 础设施建 设项 目，由天柱 县世界 银行贷款实 施 文化 与 自然遗产 保护和发展 项 目办公室委托 国信招标 集 团股份有 限公 司进 行招投 标，根 据招标结果于 2013 年 n 月与贵 州保利文物古建 有限公 司签订合同，合同内容为消火检、消防水带、消防泵、垃圾箱、垃圾池、 公厕 、刘 氏宗祠、古碑粤 、表演场 、宅 内主街道 、宅 内步 道 、停 车场建设 、 保护和修 簮，合 同金额 781.26 万元。2015 年 4 月和 2017 年 3 月，天柱县 项 目办又与贵州保利文物古建 有限公 司 2 次 签订合 同，合 同内容为：三 门 塘景 区大 门和清水江文化记忆馆建设 ，合 同金额 219 万元 ；三 门塘步道 、 观 光亭和老球场建设 ，合 同金额 376,92 万元 。上述 2 个 新增建设项 目未 履行招投标 程序 。 (2 ）兴义市 纳灰 河步道建设 及绿化及河岸 生态保护 项 目、万峰林 自 行车和 山地步行 系统 工程项 目末履行招投标 程序 ，涉及 资金 943 .50 万元 。 纳灰河步道建设及绿化和 河岸 生态保护项 目，由兴义 市世界银行贷款 实施文化与自然遗产保护和发展项目办公室委托国信招标集团股份有限 公 司进行招投标 ，根据招标 结果于 2015 年 11 月与黔西 南州协力建设公 司 签订 合 同，合 同金额 1,230.69 万元 ；2015 年 12 月 ，兴义 市项 目办又 与黔 襼南州协力建设 公 司签订补充 协议 ，协议金额为 1,132.m 万元 （取 消原 合

2l 同中的不可预见费98.68万元，调减原合同中的不可预见费64 万元和计 日工277.78 一 万元用于增加便民桥 座341.78 万元），较原合同增加便民 一 桥 座341.78 万元未履行招投标程序。 万峰林自行车和山地步行系统工程项目，由兴义市世界银行贷款实施 文化与自然遗产保护和发展项目办公室委托国信招标集团股份有限公司 进行招投标，根据招标结果于2015年9 月与贵州省大地建筑工程公司签 订合同，合同金额 l,555.60万元；2015年12月，兴义市项目办又与贵州 省大地建筑工程公司签订补充协议，协议金额l,891.39 万元（取消原合同 中的费用265.93万元增加紧 、 ， 急救援 景区公厕和凉亭项目601.72万元）, 较原合同增加紧急救援、景区公厕和凉亭项目601.72 万元未履行招投标 程序。 “ 上述行为违反了 《中华人民共和国招投标法》第四十六条 招标人 和中标人应当自中标通知书发出之日起三十日内，按照招标文件和中标人 的投标文件订立书面合同。招标人和中标人不得再行订立背离合同实质性 ” 内容的其他协议。 的规定，建议你办采取有效措施加强对项目招投标的 监督，严禁违规操作。你办已接受审计建议。

2．剑河县旅游信息中心建设项目多支付项目国内配套资金93,7％元。 2013年，剑河县旅体委与黔东南州鑫睿洋电梯工程有限公司签订了2 部电梯采购及安装合同，金额595,000元，用作剑河县旅游信息中心建设 项目主楼设施。该电梯由黔东南州鑫睿洋电梯工程有限公司完成安装和交 付佼用，费用已纳入剑河县旅游信息中心项目合同总价，后由剑河县旅游 信息中心项目施工单位贵州中建伟业建设工程公司代为支付，剑河县项目 办另又用国内配套资金多支付贵州中建伟业建设工程公司电梯采购产生 款条际建的（规或设可费〔2011定赠上抵用工款述的程扣93,796标协行公〕）准定10属为司支所违不以号元付规反配当）（定、得合了管第归《的利工理三国集标作。费十际各准的四60,000金类、名条融条费义组件“用收财织元、支取政类贷、出管部增别款，理值门及赠严费和税本款禁60,000项项办33,796将法目项目单第财目元位二务资元和应十管金）增严一理用，值格条暂贵于税按至行州不照33,796第办合中项二法建理十》伟目、（八不财贷元业 22 合规 或超 标准 的费用 支 出，严 禁挪用 、套取项 目资金 。 ”的规定 ，建议你 办督促 剑河县项 目办采取有 效措施 ，追 回多支付项 目国内配套资金 93,7% 元。你办已接受审计建议。

3．兴义 市世行 贷款文 化 与 自然遗产 保护和 发展 项 目部分 由个体施 工 队挂靠有资质公司实施，涉及资金 751.05 万元。 兴义市世行 贷款 文化 与 自然遗产保护和发展项 目中：贵州黔西 南州康 海建筑 工程有 限公 司中标 的万峰林办事处 下纳灰 村人畜饮水项 目、黔西南 州恒立建筑工程有 限公 司 中标 的下纳灰村道路排水项 目、黔西 南州鸿建建 筑安装工程有 限公 司中标 的下纳灰村排污 管道项 目、四川省 沪州市长 江建 筑程有 限公司 中标的下纳灰村 步行道项 目、贵 州鼎 丰源建设工程有限公司 中标的万峰林办事处停 车场项 目、贵州协力建设有 限公 司兴义公 司 中标的 下 纳灰 河上游便 民桥项 目、贵 州黔襼 南州康海建筑工 程有 限公司 中标 的下 纳灰村神树 跳花场项 目、黔襼 南州恒立建 筑工程有 限公 司中标的下纳灰村 场 坝建设项 目共 8 个世行贷款 项 目合 同总价 751.05 万元 ，实 际是 由孔令 锋、王寿坤、杨跃伦、方大金、梁大荣个体施工队为达到世行要求的施工 资质条件 ，挂 靠具备 资质的 中标公 司实施 的。 上述行为违反了 《建设工程质量管理条例》第二十五条 “施工单位应 当依 法取得相 应等级 的资质证 书 ，并 在其 资质等级 许可 的范 围内承揽 工 程。禁止施 工单位超越 本单位资质等级许可 的业 务范 围或者 以其他施 工单 位的名义扼揽 工程 。禁止施工单位允许其他单位 或者个人 以本单位的名义 扼揽工程 。施 工单位 不得 转包或者违 法分 包工程 。”的规定 ，建议你办采 取有效 措施加 强对项 目施 工的监督，确保工程质量 ，严禁违规操作 。你 办 已接受 审计建议 。

（二 ）项 目管理方面存在 的 问题

1 ．台江县 古 建筑 保护和修 簮 子项 目已提款报 账世 行 贷款 资金 359,80 万 元 尚未使 用 。 台江县古建筑保护和修簮项 目于 2014 年与贵州保利文物古建有 限公 司签订 合 同，合 同金 额 9,332,546.40 元 ，后 因部份 内容变更经报省项 目办

23 同意，于 20 16 年 1 月与该公 司重新 签订合 同，合 同金额 15,002,967.31 元 ， 该项目2016 年 6 月 30 日已完工，已累计提款报账 13,466,670.57 元。台 江县审计局对该项 目进行了结算审计，台审投报 （2017)4 号审计报告确 认该项 目结算价款 9,868,645.44 元 ， 已支付施工单 位 9,868,6 45.44 元 ，审 减后项 目结余世行 贷款 资金 3,598,025 .13 元 。以上提款报账材料 中施工方 先按合 同金额开具建筑发票提款报账 ， 已提款 报账世行贷款 资金 3,598,025.13 元 尚未佼用 ，结余在项 目办专户 。建议 你 办会 同贵州省财政 厅督促 台江县将上 述 已提款报账 的世行 贷款 资金 纳入 县财 政专户 管理 ，继 续用于世行项 目建 设。你办 已接受审计建议 。

2 ．部分项 目县滞 留提款 报账世行贷款资金 672.76 万元 尚未使用 。 (1 ） 凯 里 市 非 物 质 遗 产 保 护 与传 承 项 目提 款 报 账 世 行 贷 款 资金 134,172.50 元 尚未使用 。 凯里市非物质遗产保护与传扼项 目由凯里市世行 项 目办于 2016 年 与 季 刀苗 寨社 区项 目管理小组签订合 同，合 同金额 268,3 45 元，后 季刀苗寨 社 区项 目管 理小 组 又 与季 刀 非物 质 遗产 活动 小组 签 订合 同， 合 同金额 268,345 元 ，实施芦笙 、古歌技 艺培训及推广 竞赛 。该项 目已提款 报账 的 134,172.50 元 尚未使用 ，滞 留在项 目办专户 。 (2 ）兴义 市土建项 目提款报账 世行贷款 资金 4,484,693.05 元 尚未 使 用 。 襼 峰林 幼 场建 设项 目 已实施 完 成未 验 收 ， 累计 提 款报 账 实 际 到位 4,571,727,95 元，已支付施工单位 4,321,727.95 元 ，250,000 元滞 留在项 目 办专户 ；万峰林 自行 车和 山地 步行 系统工程项 目，已申请 提款报账 实际到 位 16,323,693.05 元 ，已支付施工单位 12,089,000 元 ，滞 留资金 4,234,693.05 元 ，其 中：项 目办 专户滞 留 2,000 ，。00 元 ，市财 政专户 滞 留 2,234,693 .05 元 。 (3 ） 天柱县三 门塘文化遗产基础设施建设项 目提 款报账世行 贷款 资 金 2,108,709.52 元 尚未使用 。 天 柱 县 三 门塘 文化 遗 产 基础 设 施建 设 项 目累计 提 款报 账 实 际 到位 11,008,709.52 元 ， 已支 付施 工 单位 8,900,000 元 ，滞 留资金 2,108,709.52 元 ，其 中：项 目办专户滞 留 55,6 26.68 元 ，市财 政专户 滞 留 2,053,082.84

24 兀 。 建议 你办 会 同贵 州省 财政 厅督促 相关项 目县将 上述滞 留的提款报账 世行贷款 资金进 行清 理 ，继续用于世行项 目建设 或纳入 县财政专户管理。 你办 已接受 审计建议 。

3．部分项目已完工但未及时组织竣工验收和项 目竣工决算编制。 截至 2017 年 12 月 ：剑河县旅游信息 中心项 目已完工 尚未竣工验 收及 完成项 目竣工决算簖制，展溜及巫包基础设施项 目已完工尚未完成项目竣 工决算簖制 ；天柱县 三i刁塘文化遗产基础设 施建 设项 目已完工 尚末竣工验 收及完 成项 目竣工决 算簖制 ；丹寨县石桥古法手工造 纸遗产地保护项 目已 竣工验收及完成项 目竣工决算簖制尚未进行竣工决算审计；兴义市纳灰河 上游便 民桥 建设 项 目、给水工程项 目、排水工程项 目、村寨排污系统项 目、 下纳灰步行道路项 目、古树名木保护及神树 跳花 场项 目、场坝项 目、西峰 林幼场建设 （停 车场 ）项 目、纳灰河步道建设及绿化及 河岸 生态保护项 目、 90 户 民居立 面改造 项 目和 6 栋 示范 民居项 目、万 峰林 自行车和 山地步行 系统工程项目已实施完成未验收及完成项目竣工决算编制；贵州师范大学 贵 州省 文化 与 自然遗 产保护 发展 中心建设 项 目已于 2016 年 n 月实施完 成，尚未竣工验收及完成项 目竣工决算编制。 建 议你办督 促上述 县项 目办及 时对建 设项 目开展 竣工验 收及完成项 目竣工决算簖制 ，并按规定进行竣工决 算审计。你办 已接 受审计建议 。

4．部分项目办财务管理和会计核算不规范。 丹寨县项 目办专 户利 息未 纳入专账核 算导致 银行 存款账 面余 额与银 行对账 单余额 不符 ；剑河县会计 、出纳对账不及 时，建安工程投 资与应付 工程款科 目多计发生额 ，致佼报 表项 目支 出和应 付款 虚增 ；凯里市项 目办 财务报表部份数据 不准确 ，未登记会计科 目总账 和 明细账 ，部分 会计科 目 佼用不 正确 ；黔东南 州项 目办 财务报表部份 数据不准确 ，存在部分会计科 目佼用 不正确 ；天柱 县财务 管理及会计核算 不规 范 ，部分 凭证附件不齐全 ， 审批程序、现金保 管不规范 ，个别会计科 目使用 不正确 ；兴义 市个别会计 科 目佼用不规 范，明细账 与报表数据不符 。 建 议你办督促 相关项 目办根据相关 审计证据核对上述事项 ，规范财 务

25 管理 ，调整 相关账 簿 、报表记 录 ，做 到账实 、账 表相符 。你办 已接受审计 建议 。

（三 ）项 目绩效方面存在 的 问题

1 ．丹寨县非遗文 化展示 中心项 目因管理不善 ，造 成 国 内配套 资金损失 浪费 114,489 元 。 丹寨县非遗文化 展示 中心项 目，计划投资 267 万 美元，于 2016 年 10 月完 成招投标和 合 同授予 ，同时要求于 2017 年 4 月底完工 。但 因招投标 程序及评 审受 到投标 单位的质疑和 投诉 等原 因造 成工程进展缓慢 ，无法及 时开 工。经省项 目办报世行后 ，世行决定取消对该项 目的投 资 ，调减丹寨 县世行文化遗产保护和发展项 目总投资 273 万美元，导致截至2017 年该 项 目前期支 出，主要 是地 勘费、设计费等共计 114,489 元造成损失浪费 。 建议你 办督促丹 寨县项 目办采取有效措施 ，积极 筹措资金实施丹寨县 非遗文化展示 中心项 目，弥补造成 的损失 。你办 已接 受审计建议。

2．凯里市巴拉河信息中心借给贵州电网公司输电运行检修分公司凯 里管理所作办公用房。 经 实地察看 ，凯里市 巴拉河信 息中心项 目已建成使用 ，目前暂借 给贵 州 电籑公 司输 电运行检修分公 司凯里管理所作办公用房 。 建 议你 办督促 凯里 市项 目办收 回借给贵 州 电网公 司输 电运行 检修分 公 司凯里 管理所作办公用房 的 巴拉河信息 中心 ，按照世界银 行贷款项 目建 设用途佼用 巴拉河信 息 中心 。你 办 己接受 审计建议 。

26 TH. Audit Findings and Recommendations

Audit Findings and Recommendations on the financial In addition to performing the audit and expressing an opinion to compliance with statements, we also make observations with respect loan agreement of applicable provisions of state. laws and regulations and the project management, the relevant entities, its internal financial control and during project performance and the follow-up of previous recommendations issues: the project implementing process. We found the following or the applicable Non-compliance with state laws and regulations provisions of the loan agreement tendering and bidding, I.Some civil works violated the administration of involving funds of RMB 15.3 942 million yuan. Subcomponent in i.Sanmentang Dong Ethnic Cultural Heritage Protection procedure, Tianzhu County did not go through the tendering and bidding involving funds of RN/M595,920 yuan. PMO entrusted Guoxin For the subcomponent in Tianzhu County, the County to the bidding Bidding Group Co., Ltd. to carry out the tender. According Baoli Cultural Relies result,the County PMO signed the contract with Guizhou 2013 for construction, and Ancient Architecture Co., Ltd. in November machine fire fighting protection and renovation of fire hydrants, fire hoses, Liu's ancestor's temple, pumps, rubbish bins, rubbish pool, public toilets, street, walking path, ancient steles, ethnic culture and perfonnance place, main yuan.Tianzhu County and parking lot, the value of it was RMB7.8126 million Relies and Ancient PMO signed a contracts with Guizhou Baoli Cultural Sanmentang scenic area Architecture Co., Ltd. in April 2015,which included contract amount was gate and Qingshui River cultural memory hall.The PMO signed a contracts RMB2,190,000 yuan.In March 2017,Tianzhu County footpath, tourist pavilion with the same company which included Sanmentang yuan.These two and old stadium,the value of contract was RMB3,769,200 bidding procedures. newly added contracts did not go through tendering and greening and protection of ii-Construction of walking path along Nahui River, and mountain bicycling eco-system. of the river, and Wanfenglin hiking and bidding procedures, experience system did not go through the tendering

27 involving funds of RMB9.435 million yuan. For the construction of walking path along Nahui River, and greening and protection of eco-system of the river, Xingyi City PMO entrusted Guoxin Bidding Group Co., Ltd. to carry out the tender. According to the bidding result, Xingyi City PMO signed the contract with Qianxinan Prefecture Xieli Construction Co. in November 2015,the value was RMIB12.3069 million yuan. In December 2015, Xingyi City PMO signed a supplementary contract with the same company at a contract value of RMB 11.3201 million yuan(the contingency fee of RMIB986,800 yuan in the original contract was cancelled, the contingency fee of RMB640,000 yuan along with RMB2.7778 million of day work in the original contract was adjusted to add a convenient bridge at the cost of RMB3.4178 million yuan). The additional convenient bridge that was not included in the original contract at the cost of RMB3.4178 million yuan did not go through the tendering and bidding procedures. For Wanfenglin hiking and mountain bicycling experience system, Xingyi City PMO entrusted Guoxin Bidding Group Co., Ltd. to carry out the tender. According to the bidding result, Xingyi City PMO signed the contract with Guizhou Province Dadi Construction and Engineering Co. at a contract value of RMBl5.556 million yuan. In December 2015, Xingyi City PMO signed a supplementary contract with the same conpany at a contract value of RMBl8.9139 million yuan(RLMB2.6593 million yuan in the original contract was cancelled.Emergency rescue, public toilets in the scenic area and pavilions were added at the cost of RMB6.0172 million yuan). The added emergency rescue, public toilets in the scenic area and pavilions at the cost of RMB6.0172 million yuan did not go through the tendering and bidding procedures.

The above practice violated the Article 46 of the Bidding Law of the People's Republic of China,which stipulates that bidder and winning bidder must sign a contract within 30 days after the issuance of the bid-winning notice according to documents of tenders.They shall not sign any other agreement that departed from any substantial provision of the contract.We suggested that your office to take effective measures to strengthen the supervision of project bidding and tendering.Your office accepted the audit suggestion.

2.Jianhe Tourist Information and Training Center overpaid domestic counterpart funds of RMB93,796 yuan.

In 2013, Jianhe County Tourism and Sports Committee and Qiandongnan

28 for Prefecture Xinruiyang Elevator Engineering Co., Ltd. signed the contract major procurement and installation of 2 elevators as the facility of the a structure of Jianhe County Tourist Information and Training Center, at contract value of RMB595,000 yuan. These elevators had been installed and handed over for operation by Qiandongnan Prefecture Xinruiyang Elevator Engineering Co., Ltd., and their costs had been included in the total contract amount for Jianhe County Tourist Information and Training Center, which was paid by the contractor of Jianhe County Tourist Information and Training Center, Guizhou Zhongjian Weiye Construction & Engineering Co. However Jianhe County PMO overpaid Guizhou Zhongjian Weiye Construction & Engineering Co. RMB93,796 yuan(the management fee of RMB60,000 yuan and VAT of RMB33,796 yuan) with domestic counterpart funds for procurement of elevators. Guizhou Zhongjian Weiye Construction & Engineering Co. got RMB60,000 yuan as management fee and RMB33,796 yuan as VAT in the name of work cooperation,which were improper gains.

The above practice violated the Article 34 of the Interim Measures for the Financial Management of Projects Financed by Loans and Grants of InternationalFinancial Organizations (Caiji [2011] No.10), which stipulates that financial departments and project units should make the payment and collect all kinds of expenditures strictly in compliance with the standards, conditions and categories regulated in project loan or grant agreement, as well is as the provisions under Article 21 to Article 28 of these Interim Measures.It forbidden to utilize project funds on expenditures that are unreasonable, incompliance, or exceeding the standards.Embezzling and paraphrasing the project funds are strictly prohibited.We suggested that your office urge of Jianhe County PMO to take effective measures to recover RMB93,796 yuan project domestic counterpart funds that had been overpaid. Your office accepted the audit suggestion.

3.Some contracts of Xingyi City subcomponent were carried out by individual construction teams which had been affiliated to the qualified companies, involving funds of RMB7.5105 million yuan. of The winning bidder of the water supply pipes in Xianahui village Ltd.The Wanfenglin was Qianxinan KangHai Construction Engineering Co., was winning bidder of the drainage channels along roads in Xianahui village of Qianxinan Hengli Construction Engineering Co., Ltd.The winning bidder the sewage system in Xianahui village was Qianxinan Hongjian Construction

29 and Installation Engineering Co., Ltd.The winning bidder of the walking path in Xianahui village was Sichuan Province Luzhou City Changjiang Construction Engineering Co., Ltd.The winning bidder of the parking lot at Wanfenglin was Guizhou Dingfengyuan Construction Engineering Co., Ltd.The winning bidder of the convenient bridge located on the upstream of Xianahui River was Guizhou Xieli Construction Co., Ltd.The winning bidder of the TiaoHua place in Xianahui village was Guizhou Qianxinan Kanghai Construction Engineering Co., Ltd.The winning bidder of the dykes in Xianahui village was Qianxinan Hengli Construction Engineering Co., Ltd.The above 8 construction contract with total contract value of RMB7.5105 million yuan,were actually implemented by individual construction teams led by Kong Lingfeng, Wang Shoukun, Yang Yuelun, Fang Dajin and Liang Darong, on behalf of these qualified contract winners in order to meet the construction qualification required by the World Bank.

The above practice violated the Article 25 of the Regulations on Quality Management of Construction Projects, which stipulates that a construction entity shall obtain the qualification certificate of the corresponding grade and shall undertake projects within the scope licensed by its qualification grade. It is forbidden for a construction entity to undertake the construction of any project beyond the scope licensed by its qualification grade or on behalf of any other construction entity. It is forbidden for a construction entity to allow any other entity or individual to undertake any project on behalf of it. No construction entity may sub-contract or illegally contract out any project undertaken by it.We suggested that your office to take effective measures to strengthen the supervision of project construction, ensure construction quality, and prohibit illegal operation.Your office accepted the audit suggestion.

Issues of Project Management

1.The subcomponent of protection and renovation of historical buildings in Taijiang County disbursed the World Bank loan proceeds of RMB3.598 million yuan, which had not yet been used.

The contract of the subcomponent of protection and renovation of historical buildings in Taijiang County signed with Guizhou Baoli Cultural Relics and Ancient Architecture Co., Ltd. in 2014 at the value of RMB9,332,546.40 yuan. Thereafter, due to some contract variations, upon approval of the PPMO, the

30 value of contract was re-signed with the company in January 2016 at the with RMB15,002,967.31 yuan. The contract was completed on June 30, 2016, County accumulative loan withdrawal of RMB13,466,670.57 yuan. Taijiang and the audit Audit office conducted account settlement audit for this project, price of report (Taishen Toubao [2017] NO.4) confirmed that the settlement paid to the the contract was RMB9,868,645.44 yuan, which had been loan proceeds construction contractor, and the balance of the World Bank In the loan upon audit and reduction would be RMB3,598,025.13 yuan. the construction withdrawal application material for the above-mentioned, to the contract contractor firstly issued the construction invoice according that was already amount. the loan proceeds of RMB3,598,025.13 yuan the balance at the disbursed from the World Bank still had not been used, and with Guizhou special account of the PMO. We suggested your office, together to integrate the Provincial Finance Department, urge Taijiang County the management of above-mentioned already disbursed bank loan funds into of the World the county's fiscal special account to use it for the construction Bank financed project. Your office accepted the audit suggestion. million yuan 2.Some project counties detained loan proceeds of RMIB6.7276 disbursed from the World Bank and not yet been utilized. subcomponent in i.Intangible cultural heritage protection and preservation yuan Kaili City had not yet utilized the loan proceeds of RMB134,172.50 disbursed from the World Bank. cultural heritage In 2016, Kaili City PMO signed the contract for intangible with Jidao Miao protection and preservation subcomponent in Kaili City at the value of ethnic community project management group (CPMG) the contract with RMB268,345 yuan. Then, Jidao Miao ethnic CPMG signed of RMB268,345 Jidao intangible cultural heritage activity group at the value song skills as well as yuan to conduct training on Lusheng and ancient disbursed from the competition for promotion.It got RMB134,172.50 yuan account of the World Bank had not yet been utilized and still at the special PMO. the loan proceeds of ii.Civil works contracts in Xingyi City not yet utilized RMB4,484,693.05 yuan disbursed from the World Bank. yet the construction Xifenglin Square completed its construction, but had not actually disbursed examination and acceptance. Loan proceeds that had been out of which accumulatively reached RMB4,571,727.95 yuan, contractor, and the RMIB4,321,727.95 yuan had been paid to the construction

31 remaining RMB250,000 yuan still stayed at the special account of the PMO. Loan proceeds that had been actually disbursed accumulatively for Wanfenglin hiking and mountain bicycle experience system reached RMBl6,323,693.05 yuan, out of which RMBl2,089,000 yuan had been paid to the construction contractor, and RMB4,234,693.05 yuan were detained, among which RMB2,000,000 yuan stayed at the special account of the PMO, and RMB2,234,693.05 yuan was detained at the city's fiscal special account. iii.Sanmentang Dong ethnic cultural heritage protection subcomponent in Tianzhu County not yet utilized the loan proceeds of RMB2,108,709.52 yuan disbursed from the World Bank. Loan proceeds that had been actually disbursed accumulatively for Sanmentang Dong ethnic cultural heritage protection subcomponent in Tianzhu County reached RMBII1,008,709.52 yuan, out of which RMB8,900,000 yuan had been paid to the construction contractor, and RMB2,108,709.52 yuan were detained, among which RMB55,626.68 yuan stayed at the special account of the PMO, and RMIB2,053,082.84 yuan was detained at the city's fiscal special account.

We suggested your office, together with Guizhou Provincial Finance Department, urge the concerned counties to clean up the above-mentioned detained loan proceeds, to either integrate into the management of counties' fiscal special account, or continue using it for the construction of the World Bank. Your office accepted the audit suggestion.

3.Some contracts already completed construction, but not yet carried out in a timely manner the construction completion examination and acceptance as well as construction completion account settlement.

As of December 2017, the Tourists Information Service and Training Center in Jianhe County had been completed but not yet been carried out acceptance and prepared final accounts for completion,infrastructure in Zhanliu and Wubao had been completed but not yet prepared final accounts for completion.Cultural heritage infrastructure in Sanmentang of Tianzhu county had been completed but not yet been carried out acceptance and prepared final accounts for completion.The construction of infrastructure under Shiqiao village handmade paper skill protection subcomponent completed construction examination and acceptance, as well as construction completion account settlement, but not yet finished the audit on constfuction completion account settlement.The construction of the convenient bridge over the

32 upstream of Nahui River, water supply pipes, drainage channels, village sewage system, walking path in Xianahui village, protection of 6 ancient trees and holly tree Tiaohua place, the dike, extension of Xifenglin Square (parking lot), walking path along Nahui River and greening and protection of eco-system of the river, maintenance of the 90 residential houses and 6 demonstrative houses, and Wanfenglin hiking and mountain bicycling experience system in Xingyi city had been completed but not yet carried out completion examination and acceptance, neither did it complete the construction completion account settlement.The Guizhou Province Cultural and Natural Heritage Protection Research Center implemented by the Guizhou Normal University had been completed construction in November 2016 but not yet carried out construction completion examination and acceptance, neither did it complete the construction completion account settlement.

We suggested your office urge the above-mentioned county PMOs to timely carry out completion examination and acceptance and account settlement, and conduct account settlement audit according to relevant regulations. Your office accepted the audit suggestion. not 4.Financial management and accounting of some PMOs were standardized. in Interest earnings of Danzhai PMO's special account had not been included the accounting of the special account, which resulted in the discrepancy between the account's balance and the bank statement's balance.The accountant and cashier did not conduct account checking in a timely manner investment in Jianhe County, and the subjects of construction and installation false and project payables overstated the incurred amounts, resulting in the data increase of project expenditure and payable payments in the report. Some and in the financial statements of Kaili city were inaccurate, general accounts subsidiary accounts unregistered, and used some accounting subjects incorrectly. Partial data of the financial statements of Qiandongnan Prefecture The PMO were not accurate, and used some accounting subjects incorrectly. not financial management and accounting of Tianzhu Countywere approval standardized, attachments to some vouchers were not complete, procedures and cash storage were not standardized, and some accounting in subjects were not used correctly. Utilization of few accounting subjects the Xingyi city was not standardized, and there was discrepancy between subsidiary accounts and data of the financial statements.

33 We suggested your office urge concerned PMOs to check the above-mentioned matters according to the relevant audit evidence, standardize financial management, adjust relevant books and statements records, and make sure that the accounts and financial statement were consistent with the fact.Your office accepted the audit suggestion.

Issues of Project Performance

1.Due to poor management, the Intangible Cultural Heritage Display Center in wasted RMB 114,489 yuan of domestic counterpart funds.

The investment of the Intangible Cultural Heritage Display Center in Danzhai County was expected to be USD2.67 million. In October 2016, the bidding and contract awarding had been completed, and it was required that construction be completed by the end of April 2017. However, due to the questioning and complaints from the bidders on tendering and bidding process and bid evaluation, the engineering progress was slow and could not commence construction in time. Upon informing the World Bank through PPMO, the World Bank decided to cancel its investment in this contract, reduced the total investment of USD2.73 million on cultural heritage protection and development in Danzhai County.Therefore, project preliminary expenditures, as of 2017, mainly including ground survey, design, etc. in total RMIB 114,489 yuan were in vain.

We suggested your office urge Danzhai County PMO to take effective measures to actively raise funds to establish Danzhai County Intangible Cultural Display Center, so as to make up for the loss caused. Your office accepted the audit suggestion.

2.Bala River Information Center in Kaili City had been lend to Kaili management office of the power transmission operation and maintenance branch of Guizhou Power Grid Company as office.

Upon field investigation, Bala River Information Center in Kaili City has been completed and put into use, and currently it was temporarily lent to Kaili management office of the power transmission operation and maintenance branch of Guizhou Power Grid Company as office.

34 We suggested your office urge Kaili City PMO to claim back Bala River Information Center that was lent to Kaili management office of the power transmission operation and maintenance branch of Guizhou Power Grid Company, and utilize the Center according to the construction purpose set out by the World Bank financed project.Your office accepted the audit suggestion.

35