Ningbo Municipal Audit Office of the People's Republic of China
Audit Report
] *   t #  [ 2 019 ] 2 5 -#
NINGBO AUDIT REPORT C 2019 ] NO.25
Project Name:  GEF Grant Ningbo Low-carbon City Building Energy
Efficiency and Renewable Energy Project
At &#:       14522-CN
Grant No.:      14522-CN
~~~~~ Ekt4   ±                          )t1A4  Nt~±±~ flN  4v 1
Project Entity: Ningbo Leading Group's Office for Low-carbon City
Building Energy Efficiency and Renewable Energy Project
2018
Accounting Year: 2018


目录
Contents
一、审计师意见．...........．……，.．…，,.,.．…，..．……，..................．……1
1 .Auditor,5 Op讯ion ..........．……，.............．……，,,,,，二，，二，.........．……3
二、财务报表及财务报表附注…，……，................．……，...．……，．……6
11 .Financial Statementsa且d Notes to the Financial Statements..．……，..．一6
（一）资金平衡表．.．……，,,,..................．……＿.,,...........．……，6
1 .Balance Sheet.......．……＿,..............．……，…＿...........．……，二＿.,,._6
（二）项目进度表．..............................................．……，二，．…8
11 .Summary ofsources andUses of Funds by Project Component,.．……8
（三）赠款协定执行情况表．...............．……，,.,,.....．……，.．……10
iii,Statemcnt of ImPlementation of Grant Agreement.．…，.．…，....．……10
（四）专用账户报表，二，．…，．…，.．……，...．……，.,.,.....．……，……11
iv.Spccia1Account Statement.......................-.....．……，…，.．…＿.．…11
（五）会计报表附注…，，…，……，．…，,.，…，.,,,.．…，.......．……＿＿二13
v,Notes to the Financia]S极temcnts，二，.．……，.．……，……＿ .....．……16
三、审计发现的问题及建议．…，二，.................．……，……，,......．……20
111,Audit Findings andR&ommendations....．……，……，，……，,，…，.,.,,...．……‘．……21


一、审计师意见
审计师意见
宁波低碳城市建筑节能和可再生能源应用项目领导小组办公室二
我们审计了全球环境基金（以下简称GEF）赠款宁波低碳城市建筑节能
和可再生能源应用项目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、赠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19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、项目进度表及赠款协定执行情况
表是你办的责任，簖制专一用账户报表是子波币财政局的责任，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‘自、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。
1


（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编制，公允反映了GEF赠款宁波低
碳城市建筑节能和可再生能源应用项目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币财政局报送给世界银行的第NBI。号至
NB犯号提款申请书及所附资料。我们认为，这些资料均符合赠款协议的要
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。
宁淡币审计局
二。一九年五月十八日
地址：中国宁波币郸州区宁穿路2001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


1. Auditor's Opinion
Auditor's Opinion
To Ningbo Leading Group's Office for Low-carbon City Building Energy
Efficiency and Renewable Energy Project
We have audited the special purpose financial statements (from page 6 to page
18) of Global Environment Facility (GEF) Grant Ningbo Low-carbon City
Building Energy Efficiency and Renewable Energy Project, 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 Grant
Agreement and the Special Account Statement for the year 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 Grant
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 grant agreement;
11 . 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
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 Global Environment Facility
(GEF) Grant Ningbo Low-carbon City Building Energy Efficiency and
Renewable Energy Project 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 grant
agreement.
Other Matter
We also examined the withdrawal applications from No.NBl0 to N1312 and the
attached documents submitted to the World Bank during the period. In our
opinion those documents comply with requirements of the project grant
agreement and can serve as basis for grant 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
May28, 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
(-) *tJF
i. Balance Sheet
BALANCE SHEET
2018 4    12 A] 31 E
(As of December 31, 2018)
Project Name: GEF Gmnt Ningbo Low-cajbon City Building Fnegy Efficiency and Renewable Energy Project
Prpared by Ningbo Leading Group s Office for Low-carbon City Building
Energy Efficiency and Renewable Energy Project                                                      Currency Unit: RMB Yuan
Applicatinn off und          Beginning Ralance  Ending Balance     Sources of Fund      Ne Beginning Balance  Ending. Balnce
Total Project 1Expenditures       22,176,542.42  29,421,262.09   Total Projeet           28        9,340636.69   13,0! 8.03382
Appropriatton Funds
F:xed Assets Transferred                                       Project Captal and Capital  2-
Surplus
Construction Expenditures  3                                                             30
to be Disposed                                                 luc luding Grants
3                           4k                                                              31       1,5715.21
Investments Transferred-out                                      Total Pro[1 c Grant
CP    79,42 1.262,09             Total Projct 3                  14.587. I5.42  19.287533.18
Investmieni Grami
v46                                               -     i,Th5t                           14557 (049
Invsestmenttan Receivable                                           Foreien Grant       38                       9
Including: World Bank      7                                                              34
Investnent Grant Receiable                                        Inei_ng' IDA
Appropnation of Investment  8                                                             35        14,587105.42  19,287.533.18
Loan                                                                IR
jzh.1.4<knf 1  ±______i
Inciuding: :ppropratio n of                                              U 1  17
World Bank Investmient                                     -            Technical
Grant                                                               {ooperation
10
Equipment                                                             Co- Finatn_ n
Including: Equipmlent Losses  31 (2                                                       38
in Suspense                                                         Dorestne Luan
Tota, l Vas an1Bn                     1,627,1l1.32     53 911 14  239 r
Tota Cash and Bank                                                   Other Loan           39
i. tR,'f 5,1                    727553
Cash in Bank                      1,627,58533   2 785,550 21   Apprepriation of         40
nvestment Loar
)u 4 (To be continued)
6


14        l,216582.38     2.54.228.70                                41 :               --
Includg Spe     Account                                                   Incuding: Wor d Bank Grant
2.                15               2 5.99         360.93                                 42
Cas on IHld                                                  -          Bond Fund
T6           30000.00       30,000.00     Construction Expenditures   43
to be Offset
Including: World Bank Grant                        -                -                                 44
Interes Receis.able                                                       Ixal Pavable
Wo)rld Bank, Jrant
Comnitnrnt fee          8                                   -     nluding W'orld Bank         43
Rceivable                                                          Grant Interest Payable
World Bank Grant Scrvice-   ig                                            World Bank Grant        46
Fee Receiabe                                                               C-ommmilent Fee
Paya ble
i,~l- EF,1
Marketable Secunetis                                                          World Bank Grant
Service Fce Payable
|L, I '                        2           93588 3-        68393.,                                  48                 -
[otal Hxed Asset                                                         Other Payables
1i,~29600        I29262.00        0       049
Fixed Asset Cost                                                          Appropriafion c)f Fund
Less: Accumulated            23           35,673.63       60,86823                                  50
Depreciation                                                            Retained Earnings
-4          93.588.37       68.393.77
Fird Assets, Net
Fixed Asts Pending Disposal
Fied Asss LsIss in         26                  -
Suspense
o27                                    3,9,42 I l     32.305 567 00                                 51it3,92 742.1            2 30L 567 00
Toial Appieatio3n ofFund                                                   ltal ources tf Furnd


(=) * f t&
ii. Summary of Sources and Uses of Funds by Project Component
] l 4 1 Ä (-)
SUMMARY OF SOURCES AND USES OF FUNDS
BY PROJECT COMPONENT I
4A        2018    12 1 31 E
(For the period ended December 31, 2018>
01uttt:    Xi                'W,                äk, Ž)J75  jjj $F
PNject Name: GEF Grant Ningbo Low-arbon City Building Energy Eficiency and Renewable Energy Prject
Prepared by. Ningbo Leading Group's Ofie for Lowcarbon City Building
Energy Effciency and Renewable Energy Pmject                                                    Curreney Unit: RNB Yuan
Current Period                          Curnulauie
Current Period  Current Period  Current      † d %  ti   CuIulative  Cumat
BudgetPed                            Life of PAD     Actual        ul
Completed                            Cjonpietcd
Tetal Sources of Funds                     7.522,704.30   7832.4 8    111L379               32.305.567 00    88.57%
nternt4[rl Finncin3,046,362.00          4.571,081 26   50 05%   21 4J6 100 00 9.569,2562   91 37%
tnainaoul FirjancirinIe::ý                                                      ý))( '15925-
la T-      IR%   [BRD                     3,046.362.0   4,571,081 26   50.05%   21,416.50000                  913 %
~L9 't          46Ž425                                               9 569,215.62    8 0
Count-pr Financng                          4476 34230     8,743.63      85 04%    15,056,l99 l 2 3635L3         59%
Project Approprianon Funds                 4,476,342.30  3,80,743 63    85 04%  1 5,056,81 1.99  1             84 59%
2iAOSjl  Ln,
iäiT å R PE!Tl 418
",ý2,043n   ~4  7  (,.(7   6,0%   6.`7,319  9 42         80 679
Total Application fi Funds (by Project Conponent)  2522.704 32 7 447) 767  %00%9
Pronioting the Deve)opnent of Low-carbon,   864.65000     750,5000    86 83%    4,895.200.00  4.657.446 06   95.14%
Adaptive and Livable Urban Forms
lIrproving Energy Effcien -of Large Sized  6075079 13  5.636,44.1    92.78%   25.96 21 1 99                7 86%
Public and Commrnercial Buikdings                                                             22,262.198 32
Projec mnag'een                          582.975AL0    857478.Ž4    147 09%    2,61190000   2501,61771       5.78%
Difference ,133.105.22                                                                        2.884,30491
Change in Rcevables0                                                                                   .
Change n Pa'ables
Change in Cash and Bank                 ),58529911914
Other                                                   -25,194.60                             68,393.77
8


SUMMARY OF SOURCES AND USES OF FUNDS
BY PROJECT COMPONENT II
*4« J     2018 #  12 1 31 ES
(For the period ended December 31, 2018)
Projcet Name: GEF Grant Ningbo Low-carbon City Budding Energy Efficiency and Renewable Energy Project
<IW l        f5 I    t                                                                      $$ttl k~ If ý L É f'
Prepared by: Ningbo Leading Group's Oflice for Low<arbon City Budding
Energy Efficiency and Renew,able Energy Piect                                            Curreic Unit: RMB Yuan
Project Expendiiurce____
PrnaiCopoen     † tu    A______        ssets Tra nsferred
Cumulatne              -f                 i-          II            (Cnstjrcn  Investments
A uCurrent          Intanible  Deferred  Work in Progress  Expenditures to  i   ransferred-
ArnuntCulenh  Inanuble   Defire                -be Disposed       ouIt
Asset     Asst      Asset
P     ti. the evlpant j  4I57                                             4657 44&06
c arbo , rA.i and
qpio-ng Eneg Eficiency  22,262932                                        22 26 19 32
of laæe Size:i Pubicand
Cemncia Buikdngs
3   l i  1
Project managenent
29.421,262.09                                           29,421,262109
9


(5=) nniýýMtrnn*
iii. Statement of Implementation of Grant Agreement
STATEMENT OF IMPLEMENTATION OF GRANT AGREEMENT
*tt 4     2018 4-- 12 f] 31 H
(For the period ended Decernber 31, 2018 )
Project Name: GEF irnr Ningbo Low-carbon City Building Energy Eficiency and Renewable Energy Poject
red by: Ningbo Leading Group's Office for Lnw-carbon City Budding
Energ EfflciencyandRenewable Energy Pljeet                         Currenc Unit: USD RMB Yuan
Category        Grant Amioun      Cunrent-period Withdrawals      cunlauive Withdraw als
i  ftÅÅfl          *5KTIT04           Kf
USD            USD           RMB             UTSD            RMB
Goods , Cnnsultants     2 ,00 ,       285,257.U3   1,957 776.0                       750719  8
Ser ices and traurnn
<   uilding Subproe       1,40000        260,00]0 1,784.432 00         63000 00      4,323 8 6 00
Grneen OuiI&ng Subprojeei
Grants;
sn-1tJt ~     I uc.ouoio,    32s601.3     223,752.          6,483, 9,7 4
Accon                000                                        4000000     2,745280.00
Special A;mu)ýni
577.858.7j   3,96596n24       2  10 ,82 64  19,287,533.18
o0


(V5U) *Mf*PJra,
iv. Special Account Statement
SPECIAL ACCOUNT STATEMENT
7ýM Al 2018       12 /A 31 E
(For the period ended December 31, 2018)
Project Name: GEF Grant Ningbo Low-carbon City     Depository  Bank: China     Construction  Bank
Building Energy Efficiency and Renewable Energy   Ningbo Residence City Construction Branch
Project t
IHU' : 14522- CN                                 FI: 33114102000220500135
Grant No 14522-CN                                  Account No.: 33114102000220500135
Prepared by: Ningbo       Municipal    Financial Curreney: USD
Bureau
,Ait-9' T± fW  W )T '1K y,`zI   fl   1                     lv T7
Part A-Accorit Activity fr the Current Period                   Amount
gggy 97(05iL75
Beginning Balance
Add:
MJIM¯    m                                                                             57 858.76
Ttal Arnount Deposited this Period by World Bank
4AJ]t'À2&      Y #À  Prlöc                                                                    185166
Ttal Interest 1arne  this Period if Deposited in Special Account
ITotal Anunt Refunded this Period to Coser [neligible Expenditures
Deduct:
44 zI   i                                        1                                         399j 67.94
Total Armount Withdrawn this Period
Total Service Chames this Period if not Itluded in Above Anount
Withdrawm_n
ENAN                      ~375,-42
Ending Balance
(åN jtTo be continued)


B ýý ý,,: ý- F4  ifKr,RfA
Par B-Account Reconcilialion                                           Amount
i. Rit: 0d iŽt t
Anount Advanced by World Bank
Deduct
Total Arount Recovered by World Bank
3.     M   9   ET       #M%
Outstanding Amnount Advanced to the Special Account at the End of this Ped                                t400,000r00
Ending Balance of Special Accouit                                                                           375,924.23
Add:
Anount Claitmed but not yet Credired at the End ofthis Peried
Applieation No.
Amount Withdrawn but not yet Caied at the End of this Period
Cutmulative Service Charges (If not Included in ltem 5 or 6)
Deduct
8   .RCýÄ  ( #Àf Ä -,                                                                                             3-æ g,90
Intrest Earned  I  ncluded in Special ACCOUnIO
9. 20 l4 4Müh 41 462
Beg,inningý Balance of 2014
10        -          vi. /                                                                                     400 000900
Total Advanee to the Special Account Accrunted fr at the End ofthis Perod
12


（五）会计报表附注
财务报表附注
1．项目概况
宁波低碳城市建筑节能和再生能源应用项目为国家住房和城乡建设部
统一领导的GEF五期“中国城市建筑节能和可再生能源利用项目”的子
项目（GEF赠款号TFOI 4522一CN）。宁波子项目总投资9822万元人民币
（约1559万粎元），其中GEF赠款350万美元。该项目由促进低碳、具
适应性、宜居的城市形态发展，提高大型公用和商业建筑能效及项目管理
三个子项组成。项目实施时间为20 13年到2018年。
GEF对宁波大学绿色建筑示范项目的支持，将采用基于产出（即对其
增量成本进行分摊）的方式提供上限为140万美元的子赠款，分三个重要
节点按规定比例予以支付。
经调整，2018年4月，原绿色建筑示范项目宁波大学建工楼改扩建工程
替换为宁波首创厨余垃圾处理厂工程。替换后，宁波子项目总投资增至
5780万粎元，项目实施时间延期至2019年。
2．财务报表编制范围
本财务报表由宁波低碳城市建筑节能和可再生能源应用项目领导小组
办公室（简称“市项目办”）有关宁波低碳城市建筑节能和可再生能源应用
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《全球环境墓金（GEF）赠款中国城市建筑节
能与可再生能源项目宁波子项目财务管理办法》。
3.2会计核算年度采用公历年制，即公历每年1月l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
l3


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USD卜人民币
6 .8632元。
4服表科目说明
4.1在建工程
2018年年末在建工程余额29,421,262.09元，累计完成项目总计划的
80.67％。其中促进低碳、具适应性、宜居的城币形态发展4,657,446.06
元，完成该类计划的9514%；提高大型公用和商业建筑能效
22,262,19832元，完成该类计划的76.86%；项目管理2,501,617.71元，占
该类计划的95.78％。
4.2货币资金
2018年年末货币资金余额2,785,9执．14元，其中世行专用账户存款额
364,877.71粎元，计人民币2,504,228.70元。
4.3预付及应收款
2m8年年末预付及应收款余额3仪000.00元，系宁波凌通商旅有限公
司预付租车费30,000.00元。
44固定资产
2018年年末固定资产余额68,393.77元。
4.5项目拨款
2018年年末项目拨款余额13,018,033.82元。其中项目管理的配套资
金2,000,000.00元，7,389,500.99元系宁波大学配套资金，3,628,532.83元
系宁波首创厨余垃圾处理有限公司配套资金。
4.6项目赠款
2018年年末项目赠款余额2,810,282.84美元，折合人民币
l4


19,287,533.18元，全部为国际复兴开发银行赠款额。截至2018年12月31
日，累计提取世界银行赠款资金2,81几282.84美元，占赠款总额的
80.29％。其中：货物和咨询人的服务及培训累计提款1,712,134.25美元，
占该类计划的85.61%，用于绿色建筑子工程的赠款630,00000美元，占该
类计划的45.00%，运行费用累计提款68,148.59美元，占该类计划约
68.15％。
5．专用账户使用情况
本项目专用账户设在中国建设银行股份有限公司宁波住房城市建设支
行，账号为33114102000220500135，币种为美元。专用账户首次存款
40仪000.00粎元。2018年年初余额197,052刀5美元，本年度回补
577,858,76粎元，利息、收入180.66美元，本年度支付399,167.94美元，年
末余额375,924.23美元。
本项目佼用的专用账户20抖年期初余额为10,214.62美元、2014年度
至2018年度利息收入83 190美元，末在资金平衡表中列示。
6．其他需要说明的事项
(l）项目资金平衡表中国际复兴开发银行赠款期末数与期初数之差与
赠款协定执行情况表人民币本期提款数不一致是由于历年汇兑损益造成
的。
(2）资金平衡表本期资金占用期初数与上期期末数减少25,319,072.99
元，系上期期末数按照全成本列示，本期期初数按照增量成本列示的原
因。其中本期按照增量成本列示在建工程期初数22,176,542.42元，比上期
按照全成本列示期末数 47,395,922.61元减少25,219,380.19元；本期按照增
量成本列示预付及应收款合计期初数30,000.00元，比上期按照全成本列
示期末129,692.80元减少99,692.80元。
轰5


v. Notes to the Financial Statements
Notes to the Financial Statements
1. Project overview
The Ningbo project is a subcomponent of GEF's Phase V of the CHINA
Urban-Scale Building Energy Efficiency and Renewable Energy Project
(USBEEREP) coordinated by MOHURD (Grant No.: TF 014522- CN). The
total investment of the Ningbo subcomponent is 98.22 million RMB (equivalent
to 15.59 million USD) including 3.50 million U SD of GEF grant. The project is
composed of three components: Promoting the Development of Low-carbon,
Adaptive and Livable Urban Forms, Improving Energy Efficiency of Large
Sized Public and Commercial Building Project Management. The project
implementation period is from year 2013 to year 2018.
In order to support green building pilot project in Ningbo University, GEFoffers
a sub-grant up to USD 1,400,000.00 based on output (arnortization
onincremental cost), which makes payment according to assigned proportion in
three key pitch points.
In April 2018, The original green building pilot project, Green Building Retrofit
Project at Ningbo University, was replaced by the Project of the Ningbo
Shouchuang Municipal Kitchen Waste Composting Treatment Plant. Then, the
total investment of the Ningbo subcomponent was increased to 57.80 million
USD, and the implementation time of the project was extended to 2019.
2. Consolidation Scope of the Financial Statements
These financial statements encompass the consolidated financial staternents of
the Ningbo Project Management Office of the Project Steering Group (Ningbo
PMO) for the Ningbo USBEERE Project as well as the Special Account
Statement set in the Ningbo 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
subcomponent of the CHINA USBEEREP funded with GEF grant.
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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, 2018 of the People's Bank of China, which is USDI=
RMB6.8632.
4. Explanation of Subjects
4.1 Construction in Progress
By the end of 2018, the balance for construction in progress was RMB
29,421,262.09, which completed 80.67% of total project plan cumulatively.
Among those grant, component Promoting the Development of Low-carbon,
Adaptive and Livable Urban Forms took RMB4,657,446.06, which completed
95.14% of the categorial plan; component Increasing Energy Efficiency of
Large Sized Public and Commercial Buildings took RMB22,262,198.32, which
completed 76.86% of the categorial plan; component Project management
took 2,501,617.71, which completed 95.78% of the categorial plan.
4.2 Cash and Bank
By the end of 2018, the balance for cash and bank was RMB 2,785,911.14,
including USD 364,877.71 in the Special Account of the World Bank, which
was RMB 2,504,228.70 after conversion.
4.3 Prepaid and Receivable
By the end of 2018, the balance for prepaid and receivable was RMB 30,000.00,
including prepaid cab fare RMB 30,000.00 to Ningbo Ling Tong Business Co.
Ltd.
4.4 Fixed Assets
By the end of 2018, the balance for fixed assets was RMB 68,363.77.
4.5Project Appropriation Funds
By the end of 2018, the balance for project appropriation funds was RMB
13,018,033.82, including counterpart fund of RMB 2,000,000.00 for project
management, counterpart fund of RMB 7,389,500.99 for Ningbo University
and the counterpart fund of RMB 3,628,532.83 for Ningbo Shouchuang Kichen
17


Waste Treatment Co,.Ltd .
4.6 Project Grant
By the end of 2018, the balance for project grant amount withdrawn from the
International bank for Reconstruction and Development was USD 2,810,282.84,
which was RMB 19,287,533.18 after conversion. By the end of December 31,
2018, accumulated USD 2,810,282.84 of grant had been withdrawn from the
World Bank, accounting for 80.29% of the total grant. Among those grant,
services and training expense for goods and consultants took USD 1,712,134.25
cumulatively, accounting for 85.61% of the categorial plan; grant for green
building sub-project took USD 630,000.00, accounting for 45.00% of the
categorial plan; and operating costs took USD 68,148.59 cumulatively,
accounting for 68.15% of the categorial plan.
5. Special Account
The Special Account of this project was set up in China Construction Bank
Ningbo Residence City Construction Branch with account number of
33114102000220500135 (currency Unit: USD). The initial deposit of the
Special Account was USD 400,000.00. The beginning balance of 2018 was
USD 197,052.75, the amount deposited in this year was USD 577,858.76, the
interest income of this year was USD 180.66, the disbursement of this year was
USD 399,167.94 and the ending balance of 2018 was USD 375,924.23.
The beginning balance for the Special Account of 2014 was USD 10,214.62;
the interest income from year 2014 to year 2018 was USD 831.90 which was
not disclosed in the Balance Sheet.
6. Other Explanation for the Financial Statements
( 1 ) Due to fluctuation in accumulated exchange gains and losses over time,
there were discrepancies between the difference of the beginning and ending
balance for the IBRD grant in the Balance Sheet and the amount withdrawn in
current period (Currency Unit: RMB) in the Statement of Implementation of
Grant Agreement.
( 2 ) Because the full cost method was applied in the last period while the
incremental cost method was applied in the current period, the beginning
balance of total Application of Fund in the balance sheet of current period was
reduced by RMB 25,319,072.99 compared to the ending balance of last period.
Of which, the beginning balance of construction in progress of current period
amounted RMB 22,176,542.42, was decreased by RMB 25,219,380.19 from the
ending balance of last period amounted RMB 47,395,922.61; the beginning
is


balance of the prepayment and receivables of current period amounted RMB
30,000,00, was decreased by RMB 99,692.80 from the ending balance of last
period amounted RMB 129,692.80.
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