Audited Project Financial Statements Project Number: 47009-002 Loan Number: 3215 Period covered: 6 July 2015 to 31 December 2016 People’s Republic of China: Guangxi Baise Vocational Education Development Project Prepared by the Baise Municipal Government and Baise University F or the Asian Development Bank Date received by ADB: 28 June 2017 The audited project financial statements are documents owned by the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff. These documents are made publicly available in accordance with ADB’s Public Communications Policy 2011 and as agreed between ADB, Baise Municipal Government and Baise University. + + K *4"A f 6Ji ik?,# tr F t+ tt Audit Office of Guangxi Zhuang Autonomous Region of the People's Republic of China b Ht E1 Audit ort ti H ,l'+R (2017 ) 42 + GX AUDIT REPORT ( 2OT7 ] NO.42 ry.fl 4 tB: f,.i^\ff k+F-tlfr +kr wH 8 4fl it+tH. kRryfl Project Name: Guangxi Baise Vocational Education Development Project Financed by the Asian Development Bank ft. i't, t: 3215-PRC Loan No. : 3215-PRC qfl +ilti+1n: H ETiT4ljIA E rFfi'ikryfl r1F4frS4.4X t1-^8. Project Entity: Leading Group Office for Project Utilized Foreign Capital of Baise City AitHt{: 2ors4t A 6a4-2oL64tz B rt n Accounting Period: July 6,2015-December 3 l, 2016 E Contents tl= rlr & ril 'q -'ItyrF,glr........ .........1 I. Auditor's Opinion .................3 :. vt++v.hkrt++w.+p1t,i ......... .6 II. Financial Statements and Notes to the Financial Statements.................6 (-),fr++|fi* ........6 i, Balance Sheet ........6 (-)4E+E*. , ........8 ii. Summary of Sources and Uses of Funds by Project Component.....8 ( = ) 9i',+tth,t+t"11'H)X,+". ........10 iii. Statement of Implementation of Financing Agreement.................10 ( E ) +)XfiKF +R* . .. .. 1r iv. Special Account Statement....... ........... 11 ( E ) \t++W.Rlt1tir.. .. ... 13 v. Notes to the Financial Statements......... ...............16 r . H it kq, fit t',1 F[.kHiX ..... le III. Audit Findings and Recommendations. ............22 -. Hit,FH.[ Hit,FH,E H E frfri),H E ,ffrftry.A Lff4frSzl.lr tl.*E-: elll H it T -u i[|fr k+X"rlFiikf wH &.M\Lb|H kP-rya 20rc F rz A tt a tu1'ft++',ffi*l.di"Ei^ B FlIx t{ Ht4 E +EE. f ,+lt/t p_+t"11,H A* tu+ ftl[K,p +R* + ++,t E Ht Lt ++W.*kFt ++[* p1t'i (H awEH rs F ). 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( E ) H,fUSfi Alit {.HA I AIX +Rd-4. vjlt)fr k+w.|1frH eooor 4. 80003 tJ,fr + +fr_+kH i6+ kFfiMt,^t+.^J A1! rl.t, r{ t+h f+ f",fr+(ti.ixfit P*, ol X ff h q ifr+k+kfit1e+E. +Hit,FH,E ZE, + Flttd, H'it#+ fr{.-Hffi4 N6: \t ++fr *ktt ++[* [It,i fE H il k I,Ht lE FIX r€il " + +/, R,* Hit,/T 20 it,}|' + Ef trHtit Rr"nt,E ge ? tuFtkffia1 s3oo22 H, if; : 86-771-s800259 ftH 86-771-s8 oo2s9 I. Auditor's Opinion Auditor's Opinion To Leading Group Office for Project Utilized Foreign Capital of Baise City We have audited the special purpose financial statements (from page 6 to page 18) of Guangxi Baise Vocational Education Development Project Financed by the Asian Development Bank, which comprise the Balance Sheet as of December 37,2016, 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 period then ended, and Notes to the Financial Statements. The Responsibility of Project Entity and the Finance Department of Guangxi ZhuangAutonomous 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 Departrnent of Guangxi Zhtang 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 the necessary internal control to ensure that the financial statements are free from material misstatement, whether due to fraud or eror. Auditor' s Responsibilify 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 material misstatement of the financial statements, whether due to fraud or eror. 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 intemal control. An audit also includes evaluatingthe 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 Guangxi Baise Vocational Education Development Project Financed by the Asian Development Bank as of December 37, 2016, its financial receipts and disbursements, the project implementation and the receipts and disbursements of the special account for the period 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.B0001 to No.B0003 and the attached documents submitted to the Asian Development 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 Recommendations. Aud uang Autonomous Regi lic of China June 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 offrcial version. :. M+#.tX.M+#*Fftlt II. Financial Statements and Notes to the Financial Statements (-) fr.#+'&* i. Balance Sheet fra+'&t BALANCE SHEET zorcFnAya (As of December 31, 2016) 4.fl &tfr: friil;t- k&ftft#.f EE-€Hit bk€ kEry.a Project Name: Guangxi Baise Vocational Education Development Project Financed by the Asian Development Bank ffi#Hln: H6frfti)HErfit#4ar.1F4fr+A'9il1tlAB- Hfi41t: /.R,fi,L Lead Offrce for Pro Utilized Fo I of Baise C Unit: R_N4B Yuan lit^ 11t^ Affi yfr+tw. W1+W. N4ilW. tEx& fr + Line fr#*,8 Line Application ofFund Beginning Balance Ending Balance Sources of Fund Beginning Balance Endrng Balance No No TFF+e r! 4E +h+f.ai+ .