3 0 JUN 2018 Audit Service Center of China National Audit Office for Foreign Loan and Assistance Projects Audit Report WtKP4K (2018) 20 # AUDIT REPORT (2018) NO. 20 Project Name: Municipal Solid Waste Management Project Granted by GEF x #: TF018479 Grant No.: TF018479 Project Entity: Foreign Economic Cooperation Office, Ministry of Environmental Protection t#,#: 2017 Accounting Year: 2017 目录 ContentS 一、审计师意见.,二,,…,.…,.……,.…,.…,,..…,...............……,…,·…,············……l 1 .Auditor&sOPinion......……,...……,.,…,,二,,,.…,..……,.……,.,…,........……,.,,.3 二、财务报表及财务报表附注..................……,..................................……5 11 .Financial Statements and Notes to the Financial Statements…,二,...……5 (一)资金平衡表二,…,.......……,,.……,…,,..································,,一5 1 .Balance Sheet .................................……,……,…,,.............……,,.,…,.,·…5 (二)项目进度表.,,......……,..............……,二,二,,···,,·,··,·,··,,,·········,··……6 11.Summary of Sources and Uses ofFunds by Project Component..…6 (三)赠款协定执行情况表.,,...............……,.........……,……,,.……,.,.,,.8 111 .Statement of ImPlementation of Grant Agreement ......……,……,,.,,.8 (四)专用账户报表.......……,…,.……,.,..……,,..,..··,···········,·····,···一9 iv. Special Acc0Llnt Statemeni .....……,二,.,,.…,,,..……,二,.,二,,…,,..……,……9 (五)财务报表附注……,,.…,……,.........……,....·············,,··········一n v.Notest0theFinancialStatements.....……,.,二,.,.,…,..................……,.14 三、审计发现的问题及建议.............……,…,,......,,,··,··,··,········,····,····……18 nl.Audit Findings and Reco~endations .................……,.…,...........……,19 一、审计师意见 审计师意见 环境保护部环境保护对外合作中心: 我们审计了全球环境基金赠款中国城市生活垃圾综合环境管理项目 2017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、赠款协 定执行情况表和专用账户收支表等特定目的财务报表及财务报表附注(第5 页至第17页)。 (一)项目执行单位和财政部预算评审中心对财务报表的责任 簖制上述财务报表中的资金平衡表、项目进度表、赠款协定执行情况 表是你单位的责任,簖制专用账户报表是财政部预算评审中心和你单位的 责任,这种责任包括: 1.按照中国的会计准则、会计制度和本项目赠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 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。 l (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、 会计制度和本项目赠款协定的要求簖制,公允反映了全球环境基金赠款中 国城市生活垃圾综合环境管理项目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 我们还审查了本期内报送给世界银行的第4、5号提款申请书。我们认 为,该提款申请书符合赠款协议的要求,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。 了找琢;、;、 ·二.称沙‘幼扩.,, 审计籲鼠外赞撬款项月嘟刹篆务中心 龟劲注8年七月28泪督 尹严 地址:中国北京中关村南大街4号 邮政簖码:100086 电话:86一10一62 1 5 0750 2 Auditor's Opinion Auditor's Opinion To Foreign Economic Cooperation Office, Ministry of Environmental Protection We have audited the special purpose financial statements (from Page 5 to Page 17) of Municipal Solid Waste Management Project Granted by GEF, which comprise the Balance Sheet as of December 31, 2017, Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Grant Agreement and the Special Account Statement for the year then ended, and Notes to the Financial Statements. Project Entity and Budget Appraisal and Evaluation Center of Ministry of Finance's Responsibility for the Financial Statements The preparation of the Balance Sheet, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Grant Agreement is the responsibility of your entity, while the preparation of the Special Account Statement is the responsibility of Budget Appraisal and Evaluation Center of Ministry of Finance and your entity, which include: i. Preparing and fair presenting the accompanying financial statements in accordance with Chinese accounting standards and system, and the requirements of the project grant agreement; ii. Designing, implementing and maintaining necessary internal control to ensure that the financial statements are free from material misstatement, whether due to ftaud 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 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 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 3 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 Municipal Solid Waste Management Project Granted by GEF as of December 31, 2017, 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 grant agreement. Other Matter We also examined the withdrawal application No.4, 5 and the attached documents submitted to the World Bank during the period. In our opinion, those documents comply with the project grant agreement and can serve as basis for grant 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. Audii Sedrvice,Cenr rf ina National Audit Office for Foreg%oan and Assis e Projects June Address: o Zo guancun South Avenue, Beijing, P.R.China Postcode: 100086 Tel.: 86-10-62150750 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version. 4 IFinancial Statements and Notes to the Financial Statements (-) *iflr* i. Balance Sheet BALANCE SHEET 2017 * 12 )A 31 El (As of December 31, 2017) :k&y': TF018479 Name of the Project: Municipal Solid Waste Management Project Granted by GEF Grant No.: TFO 18479 Entity Name: Foreign Economic Cooperation Office, Ministry of Environmental Currency Unit: RMB Protection Yuan Application of Fund Line Beginning Ending Sources of Beginning Ending A lt Balance Balance Fund Line Balance Balance No. ______No. _ ___ Total Project 1 15,089,130.57 22,789,527.34 i t 14 1,602,829.70 2,150,829.70 Co-funding Expenditures Received Fixed Assets 2 0.00 0.00 .U-if 15 28,552,210.36 35,067,610.80 Transferred Total Grant Construction 3 0.00 0.00 it 16 2,230,253.66 5,223,089.77 Expenditures to be Total Payable Disposed Investments 4 0.00 0.00 A. it 17 0.00 0.00 Transferred-out Other Payable 4. 4-tAUiI# t Construction in 5 15,089,130.57 22,789,527.34 Other Fund 18 0.00 0.00 Progress 6 0.00 0.00 Retained 19 0.00 0.00 Equipment Earnings -Att': * A4 r4 AEaring Including: Equipment 7 0.00 0.00 Losses in Suspense Tol C8 17,296,163.15 19,652,002.93 Total Cash and Bank 1. I ak 9 17,296,163.15 19,652,002.93 Cash in Bank Including: Special 10 16,988,960.79 19,202,281.00 Account 2. .1 -1 11 0U0 0.00 Cash on Hand Total Prepaid and 12 0.00 0.00 Receivable Total Application of 13 32,385,293.72 42,441,530.27 Total Sources 20 32,385,293,72 42,441,530.27 Fund 1. of Fund , 5 :-―な・ !섭, ��АΡ1 �; `O о $ ° д � м -� и о о � � о й � о }� � �.�х.. оо м м � О � � ' ^€' гn С� cV � м 1� � �i S[�[� �°'tE� �� да ��� � = � ���� �3 Е-� F•� � '�' ;G °о• о � °в, й � � � � � � о й °о � � � � С� '� U [} i.'�. 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Special Account Statement *MAP-11* (-) SPECIAL ACCOUNT STATEMENT *A A 3-F 2017 * 8 A 9 9 (For the period ended Aug 9, 2017) Project Name: Municipal Solid Waste Depository Bank: China CITIC Bank H.O. Management Project Granted by GEF General Banking, Beijing, China Wk-T: TF018479 M -: 7111011482600008861 Grant No.; TFO 18479 Account No: 7111011482600008861 a 4k * 1:L: 4 joll 10 9 9 w * rp IIZP Jb -F *I,,: A G Prepared by: The Budget Appraisal and Currency Unit: USD Evaluation Center of MOF A P3)1: -k IV Part A-Account Activity for the period Amount M*U+V (2017/111) Beginning balance (Jan. 1,2017) 2,449,035.72 itto Add: *M1b1--w4Rff 0.00 Total amount deposited by World Bank *M411A LVI't1% 13 ) 0.00 Total interest earned this pq6od if deposited in Special Account )AP Deduct: *M30tAg Total amountwithdrawn 191,969.02_ * M fil Is )t 'Lh 10, 9 0.00 Total interest transferred out of the Special Account iE E I ff 0, $1 Total amount recovered by World Bank 2,257,066.70 *+ 9(2017/819) Ending balance (Aug 9, 2017) 0.00 B -0 3)-: *)f W, ' iA:W Part B-Account Reconciliation i - I'Tr ift ff -9 YA 4 & -0, A 3,000,000.00 Amount advanced by World Bank C Deduct: 2, -9,, , ff V ' -, 3,000,000,00 Total amount recovered by World Bank 3.*M M *+)fl 0 -64' 4 A * V 0.00 Outstanding amount advanced to the Special Account at Aug 9, 2017 (2017/8/9) 0.00 End balance of Special Account (Aug 9, 2017) lho Add: 0.00 Amount withdrawn but yet claimed A: I/ Deduct- 6.31,11 A, # 'k ( 4 A -t A M # 0 3 0,00 interest earned (if included in Special Account) 7.* M M * 1 ffl RP t Alk 4 & * V Total advance to Special Account accounted for at month/day 0.00 year tWAlJkfA (z) SPECIAL ACCOUNT STATEMENT II MAI 2017 *- 121 31 El (For the period ended December 31, 2017) Project Name: Municipal Solid Waste Depository Bank: China Minsheng Management Project Granted by GEF Banking Cooperation, Beijing Finance Street Branch ii$A#: TF018479 Jik-: 697933122 Grant No.: TFO 18479 Account No: 697933122 ZA r* i -FT{FtKA *1-o. ; t 4 p T * 1: At Prepared by: Foreign Economic Cooperation Currency Unit: USD Office, Ministry of Environmental Protection Part A-Account Activity for the period Amount AJA (201718/10) Beginning balance 0.00 (Aug.10,2017) JOb Add: 3,507,915.66 Total amount deposited by World Bank Total interest earned this period if deposited in 57.66 Special Account )AP Deduct: S#t 4 & Total amount withdrawn 569,238.51 Lb 10 1 ra0.00 Total interest transferred out of the Special Account M * A- (2017/12/31) Ending balance (Dec.31, 2,938,734.81 2017) B*3): +MPPA19 PartB-Account Reconciliation 3,000,000.00 Amount advanced by World Bank AP Deduct: 2. * A i T#40 SR0.00 Total amount recovered by World Bank Outstanding amount advanced to the Special 3,000,000.00 Account at Dec.3 1, 2017 4,W P AJ#Th%~ # (2017/12/31) 2,938,734.81 End balance of Special Account (Dec.31, 2017) 3h Add: .AE3.UM A * k44 M OR61,322.85 Amount withdrawn but yet claimed 46t Deduct: 6.-I,4A A (TA frAPE ) 57.66 Interest earned (if included in Special Account) 7.*M*KAX -WlQ4gt& Total advance to Special Account accounted 3,000,000.00 (Dec.31, 2017) 10 (五)财务报表附注 财务报表附注 1.项目基本情况 项目全称为全球环境基金赠款中国城市生活垃圾综合环境管理 项目,项目赠款协议于2014年12月30日由国际复兴开发银行(简 称世行)与财政部共同签籲。财政部与环境保护部(简称环保部)于 2015年9月28日签籲转赠协议,由环境保护部环境保护对外合作中 心(简称环保部对外合作中心)负责赠款的使用、管理和监督。环保 部对外合作中心与昆明市人民政府和云南省环境保护厅、宁波市人民 政府签籲了示范项目实施协议,项目具体实施机构分别为云南省环境 保护对外合作中心(简称云南项目办)、宁波市环保局固体废物中心 (简称宁波项目办)。 项目计划资金总额6292万粎元,其中:赠款资金1200万美元(环 保部对外合作中心278万粎元,云南项目办782万美元、宁波项目办 140万粎元),扼诺配套资金5092万美元(环保部对外合作中心664 万粎元,云南项目办3128万粎元,宁波项目办1300万美元)。该项 目目标为按照《关于持久性有机污染物(POPs)的斯德哥尔摩公约》 要求,运用现有的BAT/BEP技术,避免和减少二恶英类和其他污染 物的产生和排放。项目主要内容包括:(l)改善城市生活垃圾焚化 厂运行和监管的能力建设;(2)改进城市生活垃圾管理规划的能力 建设;(3)项目管理与监测结果发布。项目计划于2019年12月31 日结束。 2.会计核算原则 2.1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(200田13号)的要求编制。 2.2本项目采用借贷记账法进行核算。记账本位币为人民币。 2.3会计年度采用公历年制,即从公历每年1月1日起至12月 31日止。本期报表会计核算期间为2017年1月1日至2017年12月 31日。 2.4本项目财务报表采用的汇率说明:除项目进度表(一)中“项 目总计划额”采用世行项目评估文件中的汇率即1美元二人民币6.14 元折算,其余报表采用的期初汇率2016年12月31日汇率,即1美 1l 元=人民币6.9370元,期末汇率为2017年12月29日汇率,即1美 元=人民币6.5342元。 3.报表编制范围 本期财务报表簖制范围包括:宁波项目办、云南项目办和环保部 对外合作中心的项目财务报表,财政部预算评审中心和对外合作中心 的专用账户报表。环保部对外合作中心负责对本级、各项目办及财政 部预算评审中心、对外合作中心的专用账户报表数据进行汇总,各报 表单位对本单位提供报表的真实性、完整性负责。 4.专用账户情况说明 4.1我中心专用账户开立于2016年7月13日,用于核算全球环 境基金世行执行的赠款项目。经世行批准,2017年8月,本项目专 用账户由财政部预算评审中心转移至环保部对外合作中心管理,本 期专用账户报表包括由财政部预算评审中心编制的专用账户报表 (2017年1月1日至2017年8月9日)和由环保部对外合作中心编 制的专用账户报表(2 017年8月10日至2017年12月31日)两部 分。 4.2截至2017年8月9日,本项目专用账户由财政部预算评审中 心管理,账户设在中信银行总行营业部,账号7111011452600008861, 币种为粎元。该账户管理多个项目并分项核算,因此账户产生的利息 不在本项目下核算。专用账户期初余额2,449,035 .72美元,本期世行 拨款总额0.00粎元,本期利息收入0,00美元,本期支出191,969.02 粎元,本期利息支出。,00粎元,本期退回世行金额为2,257,066.70美 元,期末余额0.00美元。 4.3自2017年8月10日起,本项目专用账户转移至环保部对外 合作中心管理,该专用账户开立于2016年7月13日,开户行为中国 民生银行北京金融街支行,粎元账号为697933 122。本期期初余额为 0.00粎元,本期世行拨款总额为3,507,9巧.66美元,其中包括首存款(即 周转金)3,000,000.00粎元,本期产生利息为57石6美元,本期支付 总额为569,238万1粎元,截至2017年12月31日,专用账户期末余 额为2,938,734.81美元。 5.报表科目说明 5.1项目支出 l2 截至2017年12月31日,本期项目支出人民币7,700,396.77元, 累计项目支出人民币22,789,527.34元。其中:改善城市生活垃圾焚 化厂运行和监管的能力建设本期项目支出人民币5,982,9 16.83元,累 计项目支出人民币16,961,662.77元;改善城市生活垃圾管理规划的 能力建设本期项目支出人民币1,267,0 26.18元,累计项目支出人民币 4,403,852.13元;项目管理与监测结果发布本期项目支出人民币 450,453.76元,累计项目支出人民币l,424,012,44元。 5.2货币资金 截至2017年12月31日,项目货币资金余额人民币19,652,002.93 元,其中:专用账户存款2,938,734.81美元,折合人民币19,202,281 .00 元;环保部对外合作中心银行存款人民币44,8 00.00元;云南项目办银 行存款人民币101,400.00元;宁波项目办银行存款人民币303,521 .93 元。 5.3拨入赠款 截至2017年12月31日,该项目累计收到赠款5,3&,779.53美 元,折合人民币35,067,610.80元。 5.4拨入配套资金 截至2017年12月31日,配套资金本期到位人民币548,0 00.00 元,累计到位人民币2,巧O,829.70元。其中:环保部对外合作中心配 套资金本期到位人民币448,000.00元,累计到位人民币9此,000.00元; 宁波项目办本期配套资金人民币以00元,累计配套资金人民币 287,890.00元;云南项目办本期配套资金人民币10几000.00元,累计 配套资金人民币954,939.70元。 5.5应付款期末余额人民币5,223,089.77元,包括:环保部对外合 作中心垫付未回补资金人民币l,121,012.19元;宁波项目办预收质保 金及垫付未回补资金共计人民币650,238.13元;云南项目办垫付未 回补资金人民币3,698,699,54元;专用账户产生的利息人民币376.76 元;汇率变动产生的汇兑损益人民币一247,236.85元。 6,其他情况说明 本报表配套资金仅反映现金配套部分。 l3 v. Notes to the Financial Statements Notes to the Financial Statements 1. Introduction of the Project The project is GEF China Municipal Solid Waste Management Project. The Grant Agreement (therefore abbr. GA) of Municipal Solid Waste Management Project was signed by the International Bank for Reconstruction and Development (therefore abbr. W13) with the Ministry of Finance, People's Republic of China (hereinafter abbr. MOF) on December 30, 2014. An implementation agreement was signed between MOF and the Ministry of Environmental Protection (therefore abbr. MEP) to designate Foreign Economic Cooperation Office (therefore abbr. FECO) of MEP to be responsible for the use, management and supervision of the grant on September 28, 2015. Project implementation agreement has been signed between FECO and Kunming Municipality and Yuman Department of Envirom-nental Protection and Ningbo Municipality, in which it has been defined clearly that the Foreign Economic Cooperation Office of Yunnan Department of Environmental Protection (therefore abbr. Yunnan PMO) and Solid Waste Management Center of Ningbo Bureau of Environmental Protection (therefore abbr. Ningbo PMO) act as the project's implementation agency. The total cost of the project is USD 62,920,000.00 with a grant of USD 12,000,000.00 from GEF and a counterpart funding of USD 50,920,000.00 (the amount of the grant allocated to FECO, Yunnan PMO and Ningbo PMO is USD 2,780,000.00, USD 7,820,000.00 and USD 1,400,000.00 respectively; the amount of counterpart fund allocated to FECO, Yunnan PMO and Ningbo PMO is USD 6,640,000.00, USD 31,280,000.00 and USD 1,300,000.00 respectively). The objectives of the project are to:(l) Capacity Building for Improved Operation and Regulation of MSW incinerators; (2) Capacity Building for Improved MSW Management Planning; and (3) Project Management and Monitoring Results Dissemination in accordance with/under the Stockholm Convention on Persistent Organic Pollutants with an aim to avoid and reduce the production and emission of dioxins and other pollutants by application of BAT/BEP technology. The agreed closing date of the project is December 31, 2019. 2. Accounting Policies 2.1 The financial statements are prepared in accordance with the Accounting Principle of the World Bank Loan Project (CaUiZi [2000113) from the Ministry ofFinance. 14 2.2 The debit/credit double entry bookkeeping system is applied for bookkeeping purpose. Currency unit for accounting is RMB. 2.3 Accounting period is the Gregorian calendar, which is from January 1 to December 31. Financial Statement for the current accounting period is a interim statement which is from January 1, 2017 to December 31, 2017. 2.4 The exchange rate defined in the Project Appraisal Document (PAD) (USD 1=RMB 6.14 yuan) is used as the reporting exchange rate in the Summary of Sources and Uses of Funds when calculating the total projectcost (life of PAD), the beginning exchange rate used is the exchange rate as of December 31, 2016 (USD 1=RMB 6.9370 yuan) and the ending exchange rate used is the exchange rate as of December 29, 2017 (USD l=RMB 6.5342 yuan) in other financial statements if mentioned. 3. Consolidation Scope of the Financial Statements Consolidation scope of the financial statement covers the financial statements of Ningbo PMO, Yunnan PMO, FECO and the Budget Appraisal and Evaluation Center of MOE. FECO is responsible for preparing its own financial statements and consolidating the financial statements of FECO, two local project implementation PMOs and Special account statement of the Budget Appraisal and Evaluation Center of MOF. Each entity has the responsibility for the authenticity and integrity of its own financial statements. 4. Notes to the Application of Special Account 4.1 This special account was set up on July 13 ,2016 by FECO and it is used to record the income and expenditures of WB project granted by GEE. As agreed by WB, the special account was transferred from the Budget Appraisal and Evaluation Center of MOF to FECO since August, 2017, thus, the Statement of Special Account for this calender year is split into two parts which is the statement of special account of MOF (2017.1.1-2017.8.9) and the statement of special account of FECO (2017.8.10-2017.12.31) . 4.2 As of August 9, 2017, the special account of the project was set up in the CITIC Bank of China by the Budget Appraisal and Evaluation Center of MOE. This account manages multiple projects and accounting by separate projects. The interest incurred by this account is not accounted under this project. The account number is 7111011482600008861, currency unit is USD. The current beginning balance is USD 15 2,449,035.72, the deposited amount by WB is USD 0.00, current period disbursement is USD 191,969.02, the amount that returned to the WB is USD 2,257,066.70 and closing balance is USD 0.00. 4.3 The Special Account was set up in Beijing Finance Street Branch, Minsheng Bank of China by FECO on July 13, 2016. The account number is 697933122 and currency unit is USD. The opening balance of the Special Account is USD 0.00, total deposit by the WB for this period is USD 3,507,915.66 including the amount advanced (namely turn-over fund) is USD 3,000,000.00, the net interest income is USD 57.66, withdrawal for this period is USD 569,238.51 and the ending balance is USD 2,938,734.81 as of December 31, 2017. 5. Notes to the Financial Statement Accounts 5.1 Project Expenditure As of December 31, 2017 the current project expenditure is RMB 7,700,396.77 yuan, the accumulated project expenditure is RMB 22,789,527.34 yuan , among which the payouts for building capacity for improved operation and regulation of incinerators is RMB 5,982,916.53 yuan, accumulated project expenditure is RMB 16,961,662.77 yuan; improved integration of incineration in MSW management is RMB 1,267,026.18 yuan, accumulated project expenditure is RMB 4,403,852.13 yuan and project management and results monitoring information dissemination is RMB 450,453.76 yuan, accumulated project expenditure is RMB 1,424,012.44yuan . 5.2 Cash in Bank The balance of Cash and Bank accounts is RMB 19,652,002.93 yuan as of December 31, 2017 including the balance of special account USD 2,938,734.81 which is RMB 19,202,281.00 yuan, balance of FECO account is RMB44, 800.00, balance of Yunnan PMO bank account is RMB 101,400.00 yuan and balance of Ningbo PMO bank account is RMB 303,521.93 yuan. 5.3 Grant As of December 31, 2017, the accumulated grant received is USD 5,366,779.53, approximately RMB 35,067,610.80 yuan, 5.4 Counterpart Fund The cumulative counterpart fund received is RMB 2,150,829.70 yuan as of December 31, 2017. For current period, counterpart fund received is RMB 548,000.00 yuan. Counterpart fund of FECO is RMB 448,000.00 16 yuan, cumulative counterpart fund received is RMB 908,000.00; counterpart fund of Ningbo PMO for current term is RMB 0.00 yuan, cumulative counterpart fund received is RMB 287,890.00 yuan; and counterpart fund of Yunnan PMO for current period is RMB 100,000.00 yuan, cumulative counterpart fund received is RMB 954,939.70 yuan. 5.5 The ending balance of payables is RMB 5,223,089.77 yuan, which includes the prepaid cost incurred by FECO is RMB 1,121,012.19 yuan, deposit received by Ningbo PMO is RMB 650,238.13 yuan, the prepaid cost incurred by Yunnan PMO is 3,698,699.54 yuan, and the exchange rate gain or loss is RMB 247,236.85 yuan. 6. Other Explanation for the Financial Statements The counterpart fund in this report reflects the cash counterpart fund only. 17