Ningbo Municipal Audit Office of the People's Republic of China Audit Report WFT ( 2019) 28 - NINGBO AUDIT REPORT [2019J NO,28 Project Name: Ningbo Municipal Solid Waste Minimization and Recycling Project Financed by the World Bank A : 8250-CN Loan No.: 8250-CN Project Entity: Ningbo Municipal Government Investment Project Evaluation Center 4dt4,A: 2018 Accounting Year: 2018 目录 ContentS 一、审计师意见........……,…,.…,二,....................……,二,.,........……1 1.Anditor&s OPinion二,二,.................……,.,,................................……3 二、财务报表及财务报表附注..................……,,.,,.......... .......……,二6 11 .Financial Statements and Notes to the Financial Statemenis…,,..…,..……6 (一)资金平衡表.....……,……,...............................……,.,..……6 1 .Balance Shect二,.......................……,...........................……,,…6 (二)项目进度表..........……,..……,.,……,.....................……,,,,.8 11.Summary of Sources and Uses of Funds by Project ComPonent.....……8 (三)贷款协定执行情况表…,.…,,............................……,二,..……10 111 .statement oflmplementation of Loan Agreement·…,....···········……10 (四)专用账户报表…,.........................……,.,...……,二,.......……H iv. Special Acc皿ni Statemeni二,.,.…,.................................……,.…11 (五)会计报表附注...……,.,.........……,.....................……,,,.…,13 v. Notes to the Financial statements...........……,…,,................……17 三、审计发现的问题及建议.....……,,,…,..……,.,.,.,..................……21 111.Audit Findings and Reco~endations....……,.……,.…,.,·……22 一、审计师意见 审计师意见 宁波市政府投资项目评审中心: 我们审计了世界银行贷款宁波城镇生活废弃物收集循环利用示范 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20页)。 (一)项目执行单位及宁波市财政局对财务报表的责任 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 表是你单位的责任,簖制专用账户报表是宁波市财政局的责任,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 l 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 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约恰当 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,公允反映了宁波城镇生活 废弃物收集循环利用示范项目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 我们还审查了本期内由宁波市财政局报送给世界银行的第NB16号至 NB22号提款申请书及所附资料。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。 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。 宁波币审。一吕’ 2。四年6月1吕目 地址;中国宁波市勤州区宁穿路20沮号2号楼7楼 邮政簖码:315066 电话:86一0574一89186079 传真:86一0574一87279659 2 1. Auditor's Opinion Auditor's Opinion To Ningbo Municipal Government Investment Project Evaluation Center We have audited the special purpose financial statements (from page 6 to page 20) of Ningbo Municipal Solid Waste Minimization and Recycling 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 Loan Agreement and the Special Account Statement for the year then ended, and Notes to the Financial Statements. Project Entity and Ningbo Municipal Finance Bureau's Responsibility 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 Loan Agreement of the financial statements is the responsibility of your entity, while the preparation of the Special Account Statement is the responsibility of Ningbo Municipal Finance Bureau, 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 perfon-ning procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected 3 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 entity's 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 Ningbo Municipal Solid Waste Minimization and Recycling 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 applications from No.NB 16 to No.NB22 and the attached documents submitted to the World Bank during the period. In our opinion those documents comply with requirements of the project loan agreement and can serve as basis for loan withdrawals. 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. Ningbo Municipal Audit Office of the People's Republic of China June 18, 2019 4 Address: 7F, No.2 Building, No.2001, Ningchuan Road, Yinzhou District, Ningbo City, Zhejiang Province, R.P. China Postcode: 315066 Tel: 86-0574-89186079 Fax: 86-0574-87279659 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version. 5 II. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCE SHEET 2018 * 12 A 31 F (As of December 31, 2018) Project Name: Ningbo Municipal Solid Waste Minimization and Recycling Project Financed by the World Bank Prepared by: Ningbo Municipal Government Investment Project Evaluation Center Currency Unit: RMB Yuan Application of Fund n Beginning Balance Ending Balance Sources of Fund n Beginning Balance Ending Balance No. No.P Total Project Expenditures 1 775,799,484.12 1,245,077,532.99 Total Project 28 813,258,976.07 922,606,598.12 Appropriation Funds Fixed Assets Transferred- 19,613,788.30 Project Capital and Capital 29 - - Surplus Construction Expenditures 3 -I-cui rants 30- to be Disposed Icuig rns3 3. d~i &V 3 8,440 Investments Transferred-out - - Foreign Grant 31 - 480,424.00 4 onst tion in Progress 5 775,799,484.12 1,225,463,744.69 1 o fI t L32 262,272,938.28 435,166,572.16 Cosrcini rgesTotal Project Loan 3 6,7,3.8 4516521 Investment Loan Receivable 6 - - Total Project 33 262,272,938.28 435,166,572.16 Investment Loan Including: World Bank 7 - - (1) El H N 34 262,272,938.28 415,166,572.16 Investment Loan Receivable Foreign Loan Appropriation of Investment 3 - - 35- - Including :Appropriation of 9 - FY_A PMWf 36 262,272,938.28 415,166,572,16 World Bank Investment IBPJ Loan &Arvt{1tn-fa- Eqipn 10 Technical 37 - - Equipmtent Cooperation Including: Equipment Losses 11 - - 38 - in Suspense Co Financing Toti Cashnd Bank 12 346,134,459.77 216,938,006.83 (2) D Ian 39 - 20,000,000.00 C.sh nBank3 13 346,131,818.34 216,937,447.84 2. therLoan 40 - - Including: Special Account 14 28,050,330.86 10,785,642.61 Appropriation of 41 I_ Investment Loan li9 ( To be continued) 6 結 7 (二)项目进度表 11.Summary of Sources and Uses of Funds by Project Cojllponent 项目进度表(一) SUMMARYOFSOURCESANDUSESOFFUNDS BY PROJECT COMPONENTI 本期截至2018年12月31日 (For the period ended December 31,2018) 项目名称:世界银行贷款宁波城镇生活废弃物收集循环利用示范项目 ProjectName:NingboMUniciPalsolidW韶teMinimizationandRecyclingProjectFinancedbytheWbrIdB助k 簖报单位:宁波市政府投资项目评审中心货币单位:人民币元 六 8 � �t; v � ��� � �w ,� ` с � F �� R � � � � � �i Р� 'ц'{ о о � � � ro U � у �.{��°G. �7с й :� ,и � � � �и �р � ����-ч!! � � 00 д' И � О� и со �л �' ^ о"+ " N � о `^_ � � � ._ со .о с ~ с � � v й +мд � 'У n м `� б N О 3 '" � и �� А � � �� z � w � � �� � v � � Q � �� w � �� О � . 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Special Account Statement * M * At SPECLkL ACCOUNT STATEMENT *M A 3F 2018 -4 12 M 31 E3 (For the period ended December 31, 2018 33 04*1,: tL ) iRff*,T1,k ' k o [Yk A t -: f M A It, ]:'FI, N Project Name: Ningbo Municipal Solid Waste Depository Bank: China Everbright Bank Minimization and Recycling Project Financed Ningbo Branch by the World Bank 76801488000009243 J*J k-Pv: 8250-CN AccountNo.: 76801488000009243 Loan No: 8 2 5 0- CN tFP#4: Xt -%4*4k: Currency Unit: USD Prepared by: Ningbo Municipal Financial Bureau A.13 : *M41MKPO NR Part A-Account Activity for the Current Period Amount PAMMf 4,292,948.53 Beginning Balance M bl: Add: 20,353,198.19 Total Amount Deposited this Period by World Bank Total Interest Earned this Period ifDeposited in Special Aecount To,, Amount Refunded this Period to Cover Ineligible Expenditures Deduct: 23,074,528.68 Total Amount Withdrawn this Period Total Service Charges this Period ifnot Included in AboveAmount Withdrawn MIZ ffi 1,571,518.04 Ending Balance (,Fo 9TO be Continue) I I 多 财务报表说明是本表的组成部分(The notes are integral parts ofthe枷ancial statements) l2 (五)会计报表附注 财务报表附注 1.项目概况 世行贷款宁波市城镇生活废弃物收集循环利用示范项目贷款号为 8250一CN,项目发展目标是通过进行垃圾源头分类和循环利用,帮助宁波市在 所选定的区内增加生活废弃物回收利用的数量和比例。该项目由生活废弃物分 类、收集、分拣和运输,厨余垃圾处理,项目实施支持,能力建设和项目管理 支持四个子项组成。 项目协定于2013年7月4日签订,2013年9月3日生效,预期贷款关账 日期为2019年3月31日。2019年3月巧日,经世行同意,项目关账日延至 2020年3月31日。项目计划总投资为人民币”.26亿元,其中世界银行贷款 总额为8,000万美元。 2,财务报表编制范围 本财务报表由宁波市生活垃圾分类指导中心(简称“市分类中心”)有关 宁波市生活垃圾分类项目财务报表、宁波首创厨余垃圾处理有限公司(简称 “首创厨余处理公司”)有关厨余垃圾处理项目财务报表及宁波市财政局专用 账户报表合并而成。 3.主要会计政策 3 .1本项目会计核算执行《世行贷款宁波城镇生活废弃物收集循环利用示 范项目财务管理暂行办法}}o 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 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31日汇率,即usDI=人民币6,8632 l3 兀。 4.报表科目说明 4.1交付使用资产 2 018年年末交付佼用资产余额19,613,788.30元,全部为生活废弃物分 类、收集、分拣和运输项目,其中固定资产16,815,930,3。元,流动资产 2,797,858.00元。 4.2在建工程 2 018年年末在建工程余额1,225,463,744.69元。其中生活废弃物分类、 收集、分拣和运输项目7 65,477,152.58元;厨余垃圾处理项目341,448,397.14 元;项目实施支持87,847,172.85元;能力建设和项目管理支持30,691,022.12 兀。 4.3货币资金 2 018年年末货币资金余额216,938,006.83元,其中世行专用账户存款额 1,571,518.0礴粎元,折合人民币10,785,642.61元。 4.4预付及应收款 2018年年末预付及应收款余额24,917,。38,69元,其中市分类中心 5,9 43,762.91元,首创厨余处理公司18,973,275.78元。 4.5项目拨款 2 018年年末项目拨款余额922,606,598.12元。其中(l)市级配套资金即 宁波市财政局拨至市分类中心,用于生活废弃物分类、收集、分拣和运输项目 260,叨0,叻0.叨元;(2)区级配套资金即海曙区财政局拨至海曙区子项目办 67,952,959.56元;原江东区财政局拨至原江东区子项目办198,263,247.00 元;江北区财政局拨至江北区子项目办99,7叨,0 00.00元;勤州区财政局拨至 勤州区子项目办87,313,272.19元;镇海区财政局拨至镇海区子项目办 82,6 29,477,25元;北仑区财政局拨至北仑区子项目办13,940,661.21元;东 钱湖财政局拨至东钱湖子项目办21,1 94,829.70元;高新区财政局拨至高新区 14 子项目办6,3 65,000.的元;(3)首创厨余处理公司自筹资金用于厨余垃圾处 理项目85,2 47,1 5 1.21元。 4.6国外赠款 2 018年年末国外赠款余额70,000.00美元,折合人民币480,424.00元, 全部为全球环境基金赠款中国城市建筑节能和可再生能源项目关于宁波市厨 余垃圾处理项目。 4.7项目借款 2 018年年末项目借款余额人民币435,1&,572.16元,其中国际复兴开发 银行贷款额60,491,690.78粎元,折合人民币415,166,572.16元,国内借款 人民币20,0。。,0叨.叨元,全部为首创厨余处理公司来源于中信银行股份有限 公司宁波分行人民币流动资金贷款额。 截至2 018年12月31日,累计提取世界银行贷款资金60,491,690.78美 元,占贷款总额的75.61%。其中:工程累计提款35,996,428.92美元,占该类 计划的8 5.62%。货物和非咨询服务累计提款7,261,279.34美元,占该类计划 的呼7 .21%。咨询服务包括培训和研讨会累计提款1,678,618.72美元,占该类 计划的妮.82%。供货和安装累计提款7,855,363.8。美元,占该类计划的 51 .85%。先征费累计提款2的,0叨.的美元,占该类计划的1的.00%。 4,8应付款 2018年年末应付款余额128,673,933.69元,其中市分类中心 43,8 54,2 32.73元,首创厨余处理公司84,819,700,96元。 5.专用账户使兀情况 本项目专用账户设在中国光大银行宁波分行,账号为 76801488000009243,币种为粎元。专用账户首次存款750万美元。2018年期 初4,292,848.53粎元,2018年世界银行回补20,353,198.19美元,支付 23,0 74,5 2 8.68粎元,年末余额1,571,518.04美元。 6.其他需要说明的情况 l5 6.1根据《关于同意市发展和改革委员会所属事业单位调整方案的函》 (雨机改〔2 019〕120号),宁波市世界银行贷款项目管理办公室从2019年4 月起更名为宁波市政府投资项目评审中心。 6,2根据《关于明确市综合行政执法局所属事业单位调整方案的函》(角 机改〔2019〕124号),宁波市生活垃圾分类管理中心从2019年3月起更.名为 宁波市生活垃圾分类指导中心。 16 v. Notes to the Financial Statements Notes to the Financial Statements 1. Project overview The Loan No. ofNingbo Municipal Solid Waste Minimization and Recycling Project is 8250-CN. The project development objective is to assist selected districts in Ningbo Municipality to increase the volume and proportion of municipal solid waste recycled with processes for waste separation at source and recycling. 'Me project is composed of four components: Municipal Solid Waste Separation, Collection, Sorting and Transportation, Kitchen Waste Treatment, Project Implementation Support, Capacity Building and Project Management Support. The Project Agreement was signed on July 4, 2013 and came into effect on September 3, 2013. The account of the project will be closed as at March 31, 2019. On March 15, 20191. the World Bank agree to extend the closing date to March 3 1, 2020. The total investment of the project was RMB 1,526,000,000.00, including World Bank loan of USD 80,000,000.00. 2. Consolidation Scope of the Financial Statements These financial statements encompass the consolidated financial statements of Ningbo Domestic Solid Waste Separation Guidance Center for Ningbo Municipal Solid Waste Separation Project financial statement, Ningbo Capital Kitchen Waste Treatment Company Limited for Kitchen Waste Treatment Project financial statement as well as the Special Account Statement set in the Ningbo Municipal Finance Bureau. 3. Accounting Policies 3.1 The Financial Statements of the project were prepared according to the requirements of Interim Measures for Financial Management of Ningbo Municipal Solid Waste Minimization and Recycling Project Financed by the World Bank. 3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January I to December 3 1. 3.3 The accrual basis and the debit/credit double entry bookkeeping method are 17 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, 2018 of the People's Bank of China, which is USD 1= RMB 6.8632. 4. Explanation of Subjects 4.1 Fixed Assets Transferred By the end of 2018, the balance of fixed assets transferred was RMB 19,613,788.30, which belonged to Municipal Solid Waste Separation, Collection, Sorting and Transportation project, including RMB 16,815,930.30 for fixed assets and RMIB 2,797,858.00 for current assets. 4.2 Construction in Progress By the end of 2018, the balance for construction in progress was RMB 1,225,463,744.69, including RMB 765,477,152.58 for Municipal Solid Waste Separation, Collection, Sorting and Transportation Project, RMIB 341,448,397.14 for Kitchen Waste Treatment Project, RMB 87,847,172.85 for Project Implementation Support, and RMB 30,691,022.12 for Capacity Building and Project Management Support. 4.3 Cash and Bank By the end of 2018, the balance for cash and bank was RMB 216,938,006.83, including USD 1,571,518.04 in the Special Account of World Bank, which was equivalent to RMB 10,785,642.61. 4.4 Prepaid and Receivable By the end of 2018, the balance of prepaid and receivable was RMB 24,917,038.69, including RMB 5,943,762.91 for Ningbo Domestic Solid Waste Separation Guidance Center and RMB 18,973,275.78 for Ningbo Capital Kitchen Waste Treatment Company Limited. 4.5 Project Appropriation Funds By the end of 2018, the balance of project appropriation funds was RMB 922,606,598.12. Among those funds, RMB 260,000,000.00 was the municipal-level counterpart funds allocated to Ningbo Domestic Solid Waste Separation Guidance Center by Ningbo Municipal Finance Bureau for Municipal Solid Waste Separation, Collection, Sorting and Transportation Project. RMB 67,952,959.56 was the district-level counterpart funds allocated to Haishu Sub-SWPMO by Haishu District Finance Bureau; RMB 198,263,247.00 was the district-level counterpart funds 18 allocated to original Jiangdong Sub-SWPMO by original Jiangdong District Finance Bureau; RMB 99,700,000.00 was the district-level counterpart funds allocated to Jiangbei Sub-SWPMO by Jiangbei District Finance Bureau; RMB 87,313,272.19 was the district-level counterpart funds allocated to Ymzhou Sub-SWPMO by Yinzhou District Finance Bureau; RMB 82,629,477.25 was the district-level counterpart funds allocated to Zhenhai Sub-SWPMO by Zhenhai District Finance Bureau; RMB 13,940,661.21 was the district-level counterpart funds allocated to Beilun Sub-SWPMO by Beilun District Finance Bureau; RMB 21,194,829.70 was the district-level counterpart funds allocated to Dongqian Lake Tourism Resort Sub-SWPMO by Dongqian Lake Tourism Resort Finance Bureau; RMB 6,365,000.00 was the district-level counterpart funds allocated to the National Hi-tech Zone Sub-SWPMO by the National Hi-tech Zone District Finance Bureau. RMB 85,247,151.21 was self-raised by Ningbo Capital Kitchen Waste Treatment Company Limited for Kitchen Waste Treatment Project. 4.6 Foreign Grant By the end of 2018, the balance of foreign grant was USD 70, 000.00, equivalent to RMB 480,424.00, all of which were GEF Grant Ningbo Low-carbon City Building Energy Efficiency and Renewable Energy Project related to the Kitchen Waste Treatment Project in Ningbo. 4.7 Project Loan By the end of 2018, the balance of project loan was RMB 435,166,572.16, including USD 60,491,690.78 from JBRD, equivalent to RMB 415,166,572.16; and domestic loan RMB 20,000,000.00 borrowed by Ningbo Capital Kitchen Waste Treatment Company Limited, which was RMB working capital loan amount from China CITIC Bank Corporation Limited Ningbo Branch. As of December 31, 2018, accumulated USD 60,491,690.78 of loan had been withdrawn from the World Bank, accounting for 75.61% of the total loan. In the loan, construction project took USD 35,996,428.92 accumulatively, accounting for 85.62% of the category plan; goods and non-consulting service took USD 7,261,279.34 accumulatively, accounting for 47.21% of the category plan; consulting services, including training and workshops took USD 1,678,618.72 accumulatively, accounting for 42.82% of the category plan; supply and installation took USD 7,855,363.80 accumulatively, accounting for 51.85% of the category plan; front-end fee took USD 200,000.00 accumulatively, accounting for 100.00% of the category plan. 4.8 Payable 19 By the end of 2018, the balance of payable was RMB 128,673,933.69, including RMB 43,854,232.73 for Ningbo Domestic Solid Waste Separation Guidance Center and RMB 84,819,700.96 for Ningbo Capital Kitchen Waste Treatment Company Limited. 5. Special Account The Special Account of this project was set up in China Everbright Bank Ningbo Branch with account number of 76801488000009243 (Currency Unit: USD). The initial deposit of the Special Account was USD 7,500,000.00. The beginning balance of 2018 was USD 4,292,848.53, the amount deposited in this year by World Bank was USD 20,353,198.19 and the disbursement of this year was USD 23,074,528.68. Hence, the ending balance of 2018 was USD 1,571,518.04. 6. Other Explanation for the Financial Statements 6.lAccording to The Letter of Consent to the Adjustment Plan of the Institutions Affiliated to Ningbo Development and Reform Commission (Yongjigai [2019 ] NO. 120), World Bank Loan Project Management Office of Ningbo has been renamed as Ningbo Municipal Government Investment Project Evaluation Center since April 2019. 6.2According to The Letter of Consent to the Adjustment Plan of the Institutions Affiliated to Municipal Comprehensive Administrative Law Enforcement Bureau( Yongjigai [2019) NO. 124), Ningbo Municipal Solid Waste Separation Project Management Center has been renamed as Ningbo Domestic Solid Waste Separation Guidance Center since March 2019. 20