t *i IrT Sichuan Provincial Audit Office of the People's Republic of China Audit Report 'I ke C2019I 27 SICHUAN AUDIT REPORT C 2019 ) NO. 27 Project name: Sichuan-Chongqing Cooperation (Guang'an) Demonstration Area Infrastructure Construction Project Financed by the World Bank S~ : 8472-CHA Loan No.: 8472-CHA Project Entity: Guang'an Project Management Office 2018 Accounting Year: 2018 Contents I. A uditor's O pinion..................................................................................... 3 11. Financial Statements and Notes to the Financial Statements................6 (............ ...... .. .......... .................................................... 6 i. B alance Sheet ........................................................................................... 6 (........................ .................................. ...........................8 ii. Summary of Sources and Uses of Funds by Project Component........... 8 ( )..................... ... ................................... 10 iii. Statement of Implementation of Loan Agreement...............................10 (................................................................................ 12 iv. Designated Account Statement.............................................................12 ( M N ................. .................................. ...........................14 v. Notes to the Financial Statements..........................................................17 IIA d Fni sa21mnao................................................25 111. Audit Findings and Reommendations............2.........2 「； 一一一 一、审俪靓 世呷卼呼／J\ill哗： ·！纂娜舒浑肖黔 一一一 （一）项目执行单位及四川省财政厅对财务报表的责任 一 …：崔川丫一 一‘ 甲审计责任 · 协…淤）教燕从一 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 锣粼默黑蹂黑慕赢耀款霄 &1 : 一， 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）审计一意见 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 川渝合作（幼妥）示范区基础设施建设项目2018年12月31日的财务状况 及截至该日同年度的财务收支、项目执行和指定账户收支情况。 （四）其他事项 我们审查了本期内由四川省财政厅报送给世界银行的第QF一201712 号、QF一2 01 8 01号、QF一2 0 1 8 03号、QF一2 01 8 06号、QF一2 01807号、 CQLI一201802号、LS一201803号至LS一201808号、LS一201705号、LS一201708 号、Lszz一201801号至Lszz一201807号、Ls一zxZo18o7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定的要求，可以作为申请提 款的依据。 本审计师意见二后，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。 中华人民共和国四川省审计厅 20 19午6月25日二 凄 地址：中国四川省成都币水兴巷15号 邮政簖码：610012 电话：86一028一86522202 传真：86一 028一86522039 1. Auditor's Opinion Auditor's Opinion Guang'an Project Management Office We have audited the special purpose financial -statements (from page 6 to page 20). of.Sichuan-Chongqing Cooperation (Guang'an) Demonstration 'Area Infrastructure Construction Project Financed by the World Bank, which comprise the Balance Sheet as of December 31,2018, the Surni-nary of Sources and Uses of Funds by Project Co I mponent, the Statement of Implementation of Loan Agreement and the Designated Account Statem ent for,the year then ended, and Notes to the Financial Statements. i. Project Entity and Sichuan Provincial Finance Department'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 is the responsibility of your office, while.the preparation of the Designated Account Statement is the responsibility of Sichuan Provincial Finance Department, which includes: 1. Preparing and fairly presenting the accompanying financial statements in accordance with Chinese . accounting standards and system, and the requirements of the project loan agreement; 2. Designing, implementing and maintaining necessary internat control to ensure that the financial statements are free from material misstatement, whether due to fraud or error. H. 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 3 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 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. iii. Opinion In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, the financial position of Sichuan-Chongqing Cooperation (Guang'an) Demonstration Area Infrastructure Construction Project Financed by the World Bank as of December 31, 2017, 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 Chinese accounting standards and system, and the requirements of the project loan agreement. (IV)Other Matter We also examined withdrawal application No. QF-201712,No. QF-201801,No. QF-201803,No. QF-201806,No. QF-201807,No. CQL1-201802,No. LS-201803 to No. LS-201808,No. LS-201705,No. LS-201708,No. LSZZ-201801 to No. LSZZ-201807,No. LS-ZX201807 and the attached documents submitted to the World Bank by Sichuan Provincial Department of Finance during the period. In our opinion, those documents comply with the project loan agreement and can serve as basis for loan withdrawal. 4 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. Sichuan Provincial Audit Office of the People's Republic of China June 25 , 2019 Address: No.15, Yong Xing Alley, Chengdu City, Sichuan Province, P.R. China Postcode: 610012 Tel.: 86-028-86522202 Fax: 86-028-86522039 The English translation is for the convenience of report users; please take the Chinese audit report as the only official version. 5 IT. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCE SHEET 2018 12A 31 H (As of December 31, 2018) Project Name: Sichuan-Chongqing Cooperation (Guang'an) Demonstration Area Infrastructure Construction Project Financed by the World Bank Prepared by: Guang'an Project Management Office C rrency Unit: RMB Yuan 1* ~Line M ALine Application of Fund N. Beginning Balance Ending Balance Sources of Fund No. Beginning Balance Ending Balance Total Project Expenditures 1 179,280,16084 280,773,086.14 Total Project Appropriation 28 96,598,316.52 151,944,334.27 Funds Fixed Assets Transferred 2 0.00 0.00 Project Capital and Capital 29 0.00 0.00 Surplus Cnstruction Expenditures to 3 0.00 0.00 30 0.00 0,00 be Dispoe d Including: Grants Investments Transferred-out 0.00 0.00 Total Project Loan 31 100,867,98671 172,068,594.30 4. SW 1. f L Construction in Progress 5 179,280,160.84 280,773,086.14 Total Project Investment 32 100,867,98671 172,068,594.30 Loan 6 0.00 0.00 (1) Ir g an33 100,867,986.71 172,068,594 30 Investment Loan Receivable Foreign Loan Including: World Bank 7 0.00 0.00 T 34 0.00 0.00 Investment Loan Receivable Including: IDA Appropriation of Investment 8 0.00 0.00 35 100,867,986.71 .172,068,594.30 Loan IBRD Including Appropriation of 9 0.00 0.00 Technical 36 0.00 0.00 World Bank Investment Loan Cooperation Equipment 10 0.00 0.00 o g 37 0.00 0.00 Including: Equipment Losses in 11 0.00 0.00 (2) EMl3 0 00 Suspense Domestic Loan Total Cash and Bank 12 30.059,101.27 34,678,396.93 Other Loan 39 : 0.00 0.00 Cash in Bank 13 30,059,101.27 34,678,396.93 Appropriation of Investment 40. 0.00 0.00 Loan Including: Special Account 14 27,715,349.61 23,855,59208 Including: World Bank Loan 41 0.00 0.00 2. JIT Cash on Band 15 0.00 0.00 od d 42 0.00 0.00 ) (TobecontinudBond Fund To (lbe continued) 6 16 8,028,991.69 25,947,251.57 Construction Expenditures 43 0.00 0.00 Total Prepaid and Receivable to be Offset Including: World Bank Loan 17 0.00 0.00 44 19,893,145.87 17,364,822.73 Total Payables Interest Receivable World Bank Loan WrBn n8 0.00 0.00 Including: World Bank Loan 45 0.00 0.00 Commitment Fee Interest Payables Receivable World Bank Loan World Bank Loan Service- 19 0.00 0.00 46 . 000 0 00 Fee Receivable Payables 20 0.00 0.00 World Bank Loan Service 47 000 0.00 Marketable Securities Fee Payables 21 0.00 0.00 A. * * 48 0.00 0.00 Total Fixed Assets Total Other Payables 22 0.00 0.00 49 0.00 000 Fixed Assets, Cost Appropriation of Fund Less: Accumulated 23 0.00 0.00 50 8,804.70 20,983.34 Depreciation Retained Earnings 24. 0.00 0.00 000 0 00 Fixed Assets, Net 25 0.00 0.00 0.00 0.00 Fixed Assets Pending Disposal 26 0.00 0.00 0.00 0.00 Fixed Assets Losses in Suspense 27 217,368,253.80 341,398,734.64 1 217,368,253.0 41,398, Total Application of Fund Total Sources of Fund 2 ii. Summary of Sources and Uses of Funds by Project Component SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I S2018 * 12 A 31 1 (For the period ended December 31, 2018) Project Name: Sichuan-Chongqing Cooperation (Guang'an) Demonstration Area Infrastructure Construction Project Financed by the World Bank Prepared by: Guang'an Project Management Office Currency Unit: RMB Yuan Current Period Cumulative Current Period Current Period C Cumulative Cumulative % Period % Life of PAD Budget Actual peed Actual Completed Completed Total Sources of Funds - 333,497,890.00 126,546,625.34 37.95% 1,213,118,500.00 324,012,928.57 26,71% Interational Financing 229,997,890.00 71,200,607.59 30.96% 615,000,000.00 172,068,594.30 27 98% IBRD 229,997,890.00 71,200,60759 30.96% 615,000,000.00 172,068,594.30 27,98% 103,500,000.00 55,346,017.75 53.47% 598,118,500.00 151,944,334.27 25.40% Counterpart Financing 1 E Domestic loan 2, TM Appropriation Funds 103,500,000.00 55,346,017.75 53.47% 598,118,500.00 151,944,334 27 25.40% 3, JJH_* Project Capital Total Application ofFunds (by 333,497,890.00 101,492,925.30 30.43% 1,213,118,500.00 280,773,086.14 23.14% Project Component) Technical Assistance 1,090,400,00 3,820,000.00 Urban Infrastructure Investment 236,828,000.00 63,703,735.77 26.90% 712,751,000.00 180,181,547.66 25 28% for Linshui County 3. TME n AtRa Urban Infrastructure Investment 92,800,000.00 34,220,910.48 36.88% 473,283,200.00 94,275,526,63 19.92% for Qianfeng District 4, 9! FAlgf Project Management & Capacity 2,779,490.00 3,568,279.05 128.38% 23,264,300.00 6,316,011.85 27.15% $ Difference 25,053,700.04 43,239,842.43 Change i Receivbles 17,918,259.88 25,947,251.57 2. W rEft 2,528,323.14 -17,364,822.73 Change in Payables 3. ArFKk1t Change in Cash and Bank 4,619,29566 34,678,396 .93 Other .-12,17864 -20,983.34 8 , → : & F 「「―젱―- ㅑ L & ■ 『 떼 i � � ' ' � - � � � � . . � � _ . .. . . � - �. � ,W .. й �� � � vi о � . � . � . . . . . . � � .. . l ^ м м °° N , . и �п о . � .. � . � . � Q� � - � tu о+ . ��. . . � .N � ��i й �.и гv . . � . � �. - м� . .� К+ - м t� �� � � .,,N� � � . . s_ � 3 � � - � � � . . . - . _ . . � � �t• . .' м . [� . . . . . .� �. . . � . � � - �м ��� � .�П �N. . о Е �К д � v N � N' . - . сб � � �.U . . � . � . . и . .-. � � �. о . . . СД �о _: г� о о . . . . .о � ��м n . �'^ 'й�. � . , � . . � . � � . � . �rn � и . м . �'.� �.',r^ . . . ._ � _ . � . . . � � . . 3 W � � ° .'�•� � � '�' }�. °и rn v ° °� � .. .�. �r, b �а. � � � м� � �� � � � � -� м N��� . � . . .�� h� _ � � . .U � Q �ti s � . м .� � � ���. w ... . � I и �� 3 N м м� . . � � 1"�� . _ . �����/ . 'fl . . о .'пгl� .� ��� . � � . � \/ � . � w � о - � . . . -, � _ . . # .. n. . . . . м . . о � м . � � й � U � � Ч . �I с а v " -• о '��Г С � . t � n С] . м � � м °` . . м �, о . . . ,� � �- Z . . � � . � . .�''�' .. � в' а= rn и оо � , �_�� . .. � �+ � � U . . _м. - N О°i.. й .oNi'' . 0�1 U . '^ �.. -+,� о •� � _ �.j.� . ^ . ..3... �_ � . . _ . °о о° о°�� °о .°о .��.с � . . '. �..,� � � и � . о ".о о�� � о� �о ^ � � � � � о о°о . . ° с°�^�� � о°о � ° й �,%��в � о о �/�{ � . - � � � пL N - V �гF О . . W . о О, о ,. N � � � � '"Г (+-� м- � � . � � � � � � �� ] ' v �. м . � а� й . . . . � � � . � � � .`цг � � � . . . , .. ,�о�� � �� � ♦ М"у сЧ a�i `а сб ,� Е'+ �. о � -� � оо ,b � -- � �� : Г�j,•" . � Np .�'�О . . . ¢ . . Ic-, с и о +.., � w i�Fi .� о С � _о �� �� � '� � �� � � � ` � ' ,� о т, -� }� а � п. � � � � � �г,� ° � � ь-+ � к -� � � �з , а �О : � �_ � ' �р � � � с С--� � � ��1 w - •г , . � `� 'Ш а `� р и � - � : О w �� �.�' Я о � °G' о °_' о � 1� а� а� � �, о n, о а, , пК. .�; :� "� о� Е с-`°' о °' о °' о п.7 С w � U: °� С� о U о U _ ;����,�, � �,.� � рр�' � � о л •С �, •� . j _ ., ` �. � � � ,� '� .б-гс�Г•. •��в � . . �� ��! и_ С�. _й ' . . . . � � вr •�Q -/• � �U �..О Q О�: �(� � . ; fl" Е"� � ��� .� U_ од С) сд � v1 . . � ;� о � � � г,_�, � �� ,а �. , . � ,��:�� �� .. . . *� � rl.i.� . . � ..� .� . С � . �j' � : � � �1�'� .� ' �¢ .а О' .1 : О' --r=г .+..� � s �"'� ° iг п п � : п , , - �-�,�G . у � �' � � � ��j��. р�}�-, �, �', � � � ��� � � и � J r..� . � � ;�¢ � � .�' � нЁ- Z � � � ^ � � � � н� F� � : 11 � � � � � � � д � � ����~ � п .r, �, � Н `-' : : t�� ° � и а w, а N . . .. 4E. � °о й ° . о ' . , � . . . . . �О . О � . . . � � � � . � `�? . . °° � и `о^ и � . �. � � . . . . � . , . � �¢ � � � � .. О .. . . . . . . . ЭЕR' �� . t � � .. � '""' р� v�'j ^ . . . . . , . . �� 3 � „ : � '� � о � о � „ . . . . � . м ° c�i о . � ° . . � . . . . . . _ ..1^ ❑ о о. ..� о _ �Q, . .. . . . �. U �К а � °о оо" � , �. . � �.п . � . о . о . . � . � . � � ' � � � � �о � N ^, оо � '� . _ . . , �.� . .' _ ^ N . - .. . , . . . , . � . }Е . о 00 � S . й �. . . . � �. � � . . . [f$ - .-• ° � . . � �. , . � . . iп W '^ °° °ш � . . . . . � 3 � °- '^- ^ . .�. , � . �Q � . � :�� : �. . ^ .. . . . �. . � и � � � . � � s ��, .. � �� oN" - �ио" .. .. . . �. . ... �, �. � . . о � � :� �° � ' � а. о и . �. �, . � v rn ._. . , .. .i� . ' ы .� � - .� о д, оо о _. � .. ' .. ' . . � . . . ' , � - 1h�'�❑и N . :� о �N. , � .' . . � . � V �iK а � о � . . ' � � � . �. . � о й . .. � . � � , . .. . . , . � �. . . . м . оС . . . � . . . . . � � . � . . . о . о о . . .. . . . , ,. � � , �. .. � : � . � о о о . . . . . � . �. � о о . с . . . , • , . . . , . � . � о о о � . .. . � . ' . . ?С-С . . . . (V О V /"� . . . . . . � . �ц � �' N О Г�1 . . . % � . � АΡN � . � . ' . .{��j � . � �, � � n ' ❑ . y�j_ . N м � О � . � ' . . .. ' .� . _ �'. ] . г� о с� . . �. . . . '. . {}i . �. . . . � . � . . � . . . ++�.�-�С . "� . . � � оо рр � - . � . . � . � .. . . . . . . . О . � . . ' �. � .. - . .. � - . . О �О �� � .. . . . . . � � ~ � .�. . . � .. � . . � � � � �� � .. �. � . . ,1Ly1 . �. � � � . .. � � . � . . � � � . �. - 0 � � � . � � . . . . ' . . � �, , . . . . С/i . . . . . � , �, _ . � � . � . . : , ' . . . . , . . � . Ф � .. . . . . . . � . . � , . . . � . . . . . '. . ' . . . .. L� � . . . . , .� . � ,� . . � � . . �. . . � '� . . . . . . � , - СО . . . .. � . . . . . .. . G .�. . � . � . . ._ _ . . � . � �. . � � . . . . . .С �. . .�. . . . . . .�^. . V . " . . . , . . � . . ' ' � к а `�' � м � � а � , �., � ' � а �� � �„ . . . у �� � - м . . � _ � �� р .� � � . у � . �р ,. , - . � � � . � � � . ' . .. � .� .. .� � . � . � � � . . � . . . . . ,�. ... � . . . . . . "' . . . U . �. .. .. . .. . .U �.. . О . П . . . . . � � � , . . . . � . � _ � . . . ' . . �. . = � ^ � 1 - _. . О. . „IV . . . . . . .. . �. . � . д � . . .- 'г'П\ .. �. . � . , � ., �, . . . .. . . . . С й 7 � .. � . . . . ' . . ' � � � О . � . � . � '� . N V . . с•�S . н ¢ � у .. . . . � а � 'б � � . . . � . GL .�^ у . � . . . . . � . . . , �. � . . . ' . � � b � . � � � - � �. . � . . .. . ' . . . �� � � _ Мt7 . . . . � � . , .. . � _ � . 1ст� . . _ . . . h.i о ° �п Q -� '-�1 w р�( _ � � . � . . . . . . . с � .� � � ЕУ°. 1 . .� � � . �� � � . . � � v � j� � ,` � ` ''�' �i' i�,, м v% й у?j .1 Ч V9 VR P iv. Designated Account Statement DESIGNATED ACCOUNT STATEMENT *M a 2018 12 A 3 1. H (For the period ended December 31, 2018) 11Wff R& I lit, -Hf VA Vkjl)5 0 Project Name: Sichuan-Chongqing Cooperation Depository Bank: Jingcheng Branch, (Guang'an) Demonstration Area Construction Bank of Infrastructure Construction Project Sichuan Financed by the World Bank 51050189083609588666 Rwj- r: 8472-CHALoan Account No.:51050189083609588666 No. 8472-CHA Prepared by: The Finance Department of Sichuan province Currency: USD A%3 : Part A-Account Activity for the Current Period Amount MOW 1+ Vi 1,211,582.69 Beginning Balance 8,023,", 0S Add: Total Amount Deposited this Period by World Bank 8,022,263,16 Total Interest Earned this Period if Deposited in Designated Account 1,729.89 Total Amount Refunded this Period to Cover Ineligible Expenditures Deduct: 9,6SQ,705'58 Total Amount Withdrawn this Period 9,689,685 5S Lb Total Service Charges this Period if not Included in Above Amount Withdrawn 20 00 M & Ending Balance 3,475,870,16 06' To be continued) 12 B Amount Part 3-\ccount Reconeliation t000 100 10 Amount Advanced b% \orld Bank Deduct lotal Amount Recotered b' World Bank )ut,tanding \mount Adanced to the DesiRnated Account at the -nd of this Period 4 ;<' L X 3 Endn Balance t Desumated Account -47 .870 1( Add7 Amount Claimed hut not vet Credited at the En of this Period Application No Amoun IDIDP-i 7.990.089.94 rmount Withdrawn ht not %et C laimed at the End of this Perrod Cumulate Ser c Charges It not Incl ded n tem or t Deduct Interest Earned I fnc uded n Designated Account r,127 37 Total Advance to the Desig_nated A\count Accounted for at the t nd of ths Perid 0t '3 一一 伍）财务报表附注 一瞬瓢款少！．渝、广痴范魂础碱二贷、 号为8472一cN，旨在通过该项目实施改善邻水县和前锋区基础设施 ‘瞥聋箭誉资袭算箕誊誓竺糼霏糼警馨豁鬓拿撬鸯异霆之膏誉重里蓉 ＿一｛粼讲娜分 咨询服务3大类共18个合同包，其中土建工程合同7个、货物采购 合同砂、咨询服务合同砰。 截至2018年12月31日，世界银行贷款川渝合作（广安）示范 宾糼蹂传留｛，裂恶督黔息一璧翼霏 绛糼资黑岔赘籗狱撬）耀忽护霏 水县二三四五号路道施工土建工程（Ls一2)，邻水县一号道路施工土 ；旗汀燕粼｛ 惹簎澎糰撼薰然糯粼 漂塌熬恩围包、、～一办公室 一l4 一「一 一． 一一 器纂爪益黎蒸盘鬓覆区和“县子项目业王单位财务 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｝)（财际字〔2000〕13号）的要求编制。 ·几：点爪一 贷复式记账法记账，以人民币为记账本位币。 一 3.4按照中国人民银行2018年12月31日汇率，即usDI一人民 卜·8632元计篡 __；黛兹岁一 粼森民，34,6 78,396．毓好输、、、款 甲卼．l0朴，折合华岭，85甲2.0娇。 ·4i3预付款及应收款 期末余额为人民币25,947,251·57元，其中：前锋区子项目为人 民币7,558,065185元，邻水县子项目为人民币18,389,18豆72元。 ,：粤器棘户； 巧 一． ’一一一一 一一 」一 4i5留成收入 加18年12月丈日余额人民币20.983.34元，主要是银行存款利 息收入。 一。一 一 一一 一4.6世行贷款 截至本年末，累计佼用世界银行贷款25,071,190.45美元，折合 ．人民币172,068,5 9430元，为贷款总额的25.07％。其中专用账户累 计向世界银行提取贷款23,409,517.67美元，折合人民币 160,664,20 1 .67元，先征费250,0 00.00美元，折合人民币1,715,800.00 元，利息及扼诺费1,411,672.78粎元，折合人民币9,688,592,63元。 一、撼粼燕嘿黔垦器 端定账户佼用情况· 本项目指定账户由四川省财政厅管理，设在四川省建设银行锦 城支行，账号为5 1050189083609588666，币种为美元。指定帐户首 次存款5,000,000.00粎元，2018年年初余额为4.241,582.69美元， 本年度回补8,922,2 63.16粎元，利息收入1729.89美元；本年度支付 知89,685.58粎元，手续费支出20.00美元，期末余额3,475,870.16美 ．一升 一一一 一 & 一l (V) Notes to the Financial Statements Notes to the Financial Statements 1. Project Overview Sichuan-Chongqing Cooperation (Guang'an) Demonstration Area Infrastructure Construction Project Financed by the World Bank, with the loan, No. of 8472-CN, aims to improve the infrastructure ,of Linshui County and Qianfeng District, promote investment, better define the growth prospects of Linshui County and Qianfeng DistrictIn the area connected with Chongqing, and enhance the urban charms 'of livability, ,employment and commerce. The construction contents mainly include the new road pipe network, landscape reconstruction, sewage treatment plant and other infrastructures, as well as the "software" contents such as technical assistance of the Public Training Center in Linshui County. The total investment of the project is estimated to be about RMB 1.2 billion, of which USD 100 million is borrowed from the World Bank (USD 6.0 in I illion:of the subproject of Linshui County and-USD 40 million ,of the subproject in Qianfcng District),-and the rest is supported by domestic supporting funds. The construction period of the project'is 60 months, that is, from September 2015 to September-2020. The account' of the project will be closed on September,30, 2020. This project includes IS contracts for civil works, goods procurement and consulting services in three categories, including 7 contracts for civil works, 3 contracts for goods procurement and 8 contracts for consulting services. As:, of December 31, 2018, all 18 1 contracts were procured for the Sichuan-Chongqing Cooperation (Guang'an) Demonstration Area Infrastructure Construction Project Financed by the World Bank-, ,including 7 civil works contracts, i.e. Intercepting Sewer. Works in Qianfeng District (QF-1), Civil Works of Gongye Avenue in Qianfeng, District (QF-2), Landscape Improvement Works in Qianfeng,:District (QF-3), Civil Works of Binhe South Road in Qianfeng District . (QF-4a), Intercepting Sewer Works, Sewage Treatment Works, Incoming Pipeline and Tail Water Discharge Works in Linshui C ounty (LS-1), Civil Works 17 of No. I Road in Linshui County (LS-2), and Civil Works of No. 2, 3, 4 & 5 Roads in Linshui County (LS-3); 3 goods procurement contracts. i.e. Procurement of M&E Equipment for Public Training Center in Linshui County (LS-4), Procurement of Financial and Commercial Equipment for Public Training Center in Linshui County (LS-5), and Procurement of Automobile Maintenance Equipment for Public Training Center in Linshui County (LS-6); and 8 consulting service contracts. i.e. Urban Asset Management Consulting (ZX-1), Strategic Environmental and Social Impact Assessment of Overall Urban and Industrial Growth (ZX-2), Industrial Value Chain Analysis of Linshui County (ZX-3), Project Management and Construction Supervision Consulting (ZX-4), External Monitoring of Resettlement (ZX-5), External Monitoring of Environment (ZX-6), Investigation of Labor Demand in Linshui County (ZX-7), and Consulting Service for Development of Teaching Materials for Training Courses in Linshui Vocational School (ZX-8). 2. Consolidation Scope of the Financial Statements The consolidation scope of the financial statements includes the financial statement of Guang'an Project Management Office (hereinafter referred to as GPMO) and the owners of the subproject in Qianfeng District and the subproject in Linshui County and the statements of the account designated by the Sichuan Provincial Finance Department. 3. Main Accounting Policies 3.1 The Financial Statements of the project are prepared according to the requirements of the Accounting Methods for the World Bank Financed Project (Caijizi [2000] No. 130) issued by the Ministry of Finance of the PRC. 3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January 1 to December 3 1. 3.3 The accrual basis and the debit/credit double entry bookkeeping method are adopted. RMB is used as the recording currency of 18 bookkeeping. 3.4 The rate of the USD to the RMB on December 31, 2018 of the Bank of China is taken as the exchange rate of the financial statements, that is, USD 1 =RMB 6.8632 Yuan. 4. Explanation of Subjects 4.1 Project Expenditures As of December 31, 2018, the cumulative expenditures were RMB 280,773,086.14 yuan. Specifically: RMB 94,814,612.00 yuan of the subproject in Qianfeng District; RMB 182,473,149.00 yuan of the subproject of Linshui County; and RMB 3,485,325.14 yuan of GPMO. 4.2 Cash and Bank The ending balance was RMB 34,678,396.93 yuan, in which the deposit in the specified account was USD 3,475,870.16, equivalent to RMB 23,855,592.08 yuan. 4.3 Prepayment and Receivables The ending balance was RMB 25,947,251.57 yuan. Specifically: RMB 7,558,065.85 yuan of the subproject of Qianfeng District and RMB 18,389,185.72 yuan of the subproject of Linshui County. 4.4 Payables The ending balance was RMB 17,364,822.73 yuan. Specifically: RMB 7,794,411.87 yuan of the subproject of Qianfeng District, RIB 11,303,811.69 yuan of the subproject of Linshui County, RMB 118,500.00 yuan of GPMO, and reduction of special account and other matters of RMB -1,851,900.83 yuan. 4.5 Retained Earnings The balance on December 31, 2018 was RMB 20,983.34 yuan, mainly the interest on bank deposits. 4.6 World Bank Loan As of the end of the year, the accumulative amount used in the World, Bank loan was USD 25,071,190.45, equivalent to RMB 172,068,594.30 yuan, accounting Tor 25.07% of the total loan amount. Among it, the accumulative loan withdrawn by the special account from the World Bank was USD 23,409,517.67, equivalent to RMB 160,664,201.67 yuan, the front-end fee was USD 250,000.00, equivalent to RMB 1,715,800.00 19 yuan, and the interest and commitment fee was 1 411,672.78, equivalent to RMB 9,688,592.63 yuan. 4.7 Counterpart Fund The amount of counterpart funds planned for this year were RMB 103,500,000.00 yuan, and RMB 55,346,017.75 yuan was actually allocated in place, accounting for 53.47% of the planned amount. As of the end of the year, the accumulative supporting fund allocated in place was RMB 151,944,334.27 yuan, accounting for 25.40% of the total plan of the project, and the supporting fund was free. 5. Use of Designated Account The Designated Account of the project is managed by Sichuan Provincial Finance Department and is set in Jincheng Subbranch of Sichuan Branch of China Construction Bank, with the account number of 51050189083609588666 and USD as currency unit. The Amount Advanced of the Designated Account was USD 5,000,000.00; the Beginning Balance in 2018 was USD 4,241,582.69; the reimbursement was USD 8,922,263.16; the Interest Earned was USD 1,729.89; the disbursement in this year was USD 9,689,685.58; the handling fee expenditure was USD 20.00; and the ending balance was USD 3,475,870.16. 20