3 JUN 2018 Audit Service Center of China National Audit Office for Foreign Loan and Assistance Projects Audit Report * ht4t (2018) 27-v AUDIT REPORT (2018) NO. 27 Project Name: China Contaminated Site Management Project Granted by GEF X : TFOAO193 GrantNo.: TFOAO193 Project Entity: Foreign Economic Cooperation Office, Ministry of Environmental Protection 2017 Accounting Year: 2017 目录 CO双tents 一、审计师意见……，..．……，.......................................．……，..．……，,，二，.,.,.．…，1 1 .Auditor&5 Opinion.,.，…，…，.,．…，．……，...．……，.,，……，............................．……，3 二、财务报表及财务报表附注．...........................................．……，......．……6 11,Financial Stateme爪5 and Notes to the Financial Statemellts.．…，...．……6 （一）资金平衡表…，....．……，.．……，.,.．…，．…，.,.,，二，二，,......．……，.,..．……，…6 1 .Balance Sheet...................．……，．…，.....．……，．…，二，,.,.．…，,，二，,..........．……6 （二）项目进度表……，.．…，,,,,．……。二，....．……，...．……，…，，二，二，，……，..．……7 11.Summary ofsources andUsesofFundsbyProjectComponeflt二，二7 （三）赠款协定执行情况表．.....................．……，.................．……，二，二，.,9 111 .statement ofllnplementatinn ofGrantAgreement...............．……，.,,9 （四）专用账户报表．,.．……，...．……，…，…，...．……，,.,.,.．…，,，。．....．……，,.,,.10 iv. Special Account statement ....．……，.．……，.．…，,...．……，...............．……10 （五）财务报表附注．,．…，.．…，，二，…，二，.．…，．…，...............................．……n vi.Notes tothe Financlal Stateme爪二，．…，,.．……，..．……，，……，二，.,,...．……14 三、审计发现的问题及建议．.....．……，……，,,,..................................．……， .17 111.Audit Findings and Recominendations ....．……，.,,．…，.．…，.,,，。…，.．····……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污染场地管理项目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报表等特定目的财务报表及财务报表附注（第6 页至第16页）。 （一）项目执行单位对财务报表的责任 簖制上述财务报表是你单位的责任，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，并使其实现公允反映； 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 1 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 意见提供了墓础。 （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、会计制度和本项目赠款协定的要求编制，公允反映了全球环境 基金赠款中国污染场地管理项目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2、3、4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。 。味｛页粉， 审计籲国外艇鑫款项巨审翻盯盛中心 睽6么2瞥－ 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 1. 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 6 to Page 16) of the China Contaminated Site Management Project Granted by GEF which comprise the Balance Sheet as of December 31, 2017, 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 then ended, and Notes to the Financial Statements. Project Entity's Responsibility for the Financial Statements The preparation of the Financial Statements is the responsibility of your entity, 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; 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 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 3 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 the China Contaminated Site 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. 2, 3, 4 submitted to the World Bank during the period. In our opinion, this withdrawal application complies 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. 4 Audit Sr=ie Cehter of hina National Audit Office for Foreigii L aand Assistah{& Projects June 2 2QY8 Address: No. 4 Zhongguancun 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. 5 II. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCE SHEET 2017 * 12 T 31 H1 (As of December 31, 2017) : gf XE : TF0A0193 Name of the Project: China Contaminated Site Management Project Granted by GEF Grant No.: TFOA0 193 414:W ~ Xk tT + WP*42: kR~iv Z Entity Name: Foreign Economic Cooperation Office, Ministry of Environmental Protection Currency Unit: RMB Yuan Beginning Ending Beginning Ending Application of Fund Balance Balance Sources of Fund Balance Balance 3,471,003.78 8,904,985.58 C - 1,795,239.28 7,601,394.28 Total Project Expenditures Co-funding Received Fixed AssetsTransferred 0.00 0.00 it 13,874,000.00 18,591,869.17 Total Grant 2.*eVaP t L = E fltt&AAit Construction Expenditures to be 0.00 0.00 Total Payable 1,676,889.82 -4,616,121.36 Disposed 3. ,L R*B 0.00 0.00 g ' ' - 0.00 0.00 Investments Transferred-out Other Payable 4.E- IRTt 3,471,003.78 8,904,985.58 0.00 0.00 Construction in Progress Other Fund Equipment 0.00 0.00 Retained 0.00 0.00 Earnings Including: Equipment Losses in 0.00 0.00 Suspense 13,875,125.32 12,672,156.51 Total Cash and Bank Cah if Bak 13,875,125.32 12,672,156.51 Cash in Bank Includi: Specil A cco13,875,125.32 12,672,156.51 Including: Special Account 2. 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Special Account Statement -t)fl t P A A SPECIAL ACCOUNT STATEMENT *MAI 2017 * 12 A 31 9 (For the period ended December 31, 2017) Project Name: China Contaminated Site Depository Bank: China Minsheng Banking Management Project Granted by GEF Cooperation, Beijing Finance Street Branch. ft & 4 : TFOA0193 XT: 697933122 GrantNo.: TFOA0193 Account No: 697933122 A a * It - -:q-, * 9 to 0 T A % to Pf -6- 1 t 4 - -if 4 i: A t Prepared by: Foreign Economic Cooperation Currency Unit: USD Office, Ministry of Environmental Protection A%3 . Pan A-Account Activity for the period Amount M?0*0 (2017/l/1) Beginning balance (Jan. 1,2017) 2,000,162,22 M b Add: *M-93 iaff R441% 845,316.82 Total amount deposited by World Bank 949.41 Total interest earned this period if deposited in Special Account Deduct: Total amount withdrawn 907,069.92 M f 11 It, 3 LP, A IV 0,00 Total interest transferred out of the Special Account *M iu- 191 1; f 40 Total amount recovered by World Bank 0.00 M *+ 49(201711213 1) Ending balance (Dec.31, 2017) 1,939,358.53 B44: Part B-Account Reconciliation I - * -w- 4K r -9 k4 9 It V 2,000,000.OG Amount advanced by World Bank )MO Deduct: 2. -9 Fr- iR 4t R lk A, V 0,00 Total amount recovered by World Bank 3. * M 99 * -V PI A, P -6,k 4 49 2,000,000.00 Outstanding amount advanced to the Special Account at Dec.31, 2017 4.-VflRkPM41+,V (2017/12/31) 1,939,358,53 End balance of Special Account (Dec.31, 2017) WX Add: Amount claimed but not 0.00 yet credited at Dec,31,2017, 6. A Aq * E, 3 flgl A V & Pk-i- 0 61,753.10 Amount withdrawn but yet claimed 7. A R - 4- IR # it 3t 83 ( §P * * # 5 V 6 0.00 Accumulative service chEges (if not included in item 5.or 6.) Deduct: 1,111.63 Interest earned (if included in Special Account) 9,*M M * *)f AP - k i hk*g 2,000,000,00 Total advance to Special Account accounted (Dec.31, 2017) 10 （五）财务报表附注 财务报表附注 1．项目基本情况 全球环境墓金赠款中国污染场地管理项目赠款协议于2015年6 月24日由国际复兴开发银行（简称世界银行）与中华人民共和国财 政部（简称财政部）共同签籲。财政部与环境保护部（简称环保部） 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）负责赠款的佼用、管理和监督。环保部对外合作中 心于2015年9月n日分别与辽宁省环境保护厅、重庆市环境保护 局签籲了示范项目执行协议。项目计划资金总额7500万美元，其中： 赠款资金1500万粎元（环保部对外合作中心745万美元；辽宁项目 办475万粎元，重庆项目办280万美元）；配套资金6000万美元（实 物配套2108万粎元，现金配套3892万美元）。该项目目标为提高 中国污染场地管理能力，并对受持久性有机污染物（POPs）和其他 危险化学物质污染的场地进行环境无害化识别和清理示范。项目主 要内容包括：(l）场地污染防控能力建设；(2)POPs和其他有害 化学品污染场地清理示范；(3）项目管理。项目计划于2021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。）13号）的要求编制。 2.2本项目采用复式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＝人民币6.25 元折算，其余报表折算采用期初汇率为2016年12月31日汇率，即 l粎元＝人民币6.9370元，期末汇率为2017年12月29日汇率，即 1粎元＝人民币6.5342元。 1l 3．报表编制范围 本期财务报表簖制范围包括：辽宁项目办、重庆项目办及环保部 对外合作中心的项目财务报表。环保部对外合作中心负责对本级、 辽宁项目办、重庆项目办的报表数据进行汇总，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 本项目专用账户设在环保部对外合作中心，开户行为中国民生银 行北京金融街支行，粎元账号为697933 1 22。专用账户于2016年7 月13日开立，20 16年存入专用账户首存款（即周转金）为2,000,000.00 粎元。本期期初余额为2,00。，162.22美元，本期世行回补总额为 845,316.82粎元，本期产生净利息为949.41美元，本期支付总额为 907,069.92粎元，专用账户本期期末余额为1,939,358.53美元。 5．报表科目说明 5.1项目支出 截至2017年12月31日，该项目累计支出人民币8,904,985.58 元，占项目总计划额的1.90％。其中：场地污染防控能力建设支出 人民币6,788,323,07元；PoPs和其他有害化学品污染场地清理示范 支出人民币962,494,00元；项目管理支出人民币l,154,168.51元。 5.2货币资金 截至2017年12月31日，该项目货币资金为人民币12,672,156.51 元，全部为银行存款，其中专用账户存款余额1,939,358.53美元，折 合人民币12,672,156.51元。 5.3拨入配套资金 截至2017年12月31日，配套资金累计到位人民币7,601,394.28 元。其中：环保部对外合作中心配套资金人民币2,069,991 .28元；重 庆项目办配套资金人民币5,531,403,00元；辽宁项目办配套资金人民 币0 .00元。 5.4拨入赠款 截至2017年12月31日，该项目累计收到赠款2,845,3 16.82美元， 折合人民币18,591,869.17元。 5.5应付款 应付款期末余额为人民币一4,616,121.36元，其中包括：环保部对 12 外合作中心垫付未回补资金人民币“7,673,14元，专用账户存款利 息收入人民币7,263.61元，重庆项目办由配套资金支持的预付合同 款一5,070,900.00元，以及汇兑收益220,158,11元。 6，其他情况说明 6.1根据项目赠款协议规定，本项目协议签订日（2 015年6月24 日）前至2015年1月1日（含）的合格费用可追溯赠款支付。 6.2项目进度表（一）全球环境基金赠款本期发生额人民币 4,717,869,17元，赠款协定执行情况表中本期提款数人民币 5,523,469.17元，差异人民币805,600.00元为汇率变动产生的差异。 6.3本报表中的配套资金仅反映该项目现金配套部分。 13 vi. Notes to the Financial Statement Notes to the Financial Statements 1. Project Overview The Grant Agreement (therefore abbr. GA) of China Contaminated Site Management Project granted by the Global Environment Facility (GEF) was signed by the International Bank for Reconstruction and Development (therefore abbr. WB ) with the Ministry of Finance, People's Republic of China (therefore abbr. MOF) on June 24, 2015. 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. Project implementation agreement has been signed between FECO and Environmental Protection Bureau of Chongqing Municipality and Department of Environmental Protection of Liaoning Province on September 11, 2015. The total cost of the project is USD 75,000,000.00 with a grant of USD 15,000,000.00 from GEF (the amount of the grant allocated to FECO,, Liaoning PMO and Chongqing PMO is USD 7,450,000.00, USD 4,750,000.00 and USD 2,800,000.00 ) and the counterpart fund of USD 60,000,000.00 (the amount of counterpart fund allocated to material counterpart fund and cash counterpart fund is USD 21,080,000.00 and USD 38,920,000.00 respectively). The objectives of the project are to: (1) Capacity development for prevention and control of site contamination; (2) Cleanup demonstrations of contaminated site contaminated with persistent organic pollutants (POPs) and other hazardous chemicals; and (3) Project management with an aim to improve the capacity for managing site contamination, and demonstrate environmentally sound identification and cleanup of sites contaminated with POPs and other hazardous chemicals. The agreed closing date of the project is December 31, 2021. 2. Accounting Policies 2.1 The financial statements are prepared in accordance with the Accounting Principle of the World Bank Loan Project (CaijiZi [2000]13) from the Ministry ofFinance. 2.2 The debiticredit 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 I to December 3 1. Financial Statement for the current accounting period is from January 1, 2017 to December 31, 2017. 14 2.4 The exchange rate provided in the Project Appraisal Document (PAD) (USD 1=RMB 6.25 yuan) is used as the available exchange rate in the Summary of Sources and Uses of Funds when calculating the life of PAD of the project (the total project cost), the exchange rate as of December 31, 2016 which is USD 1=RIB 6.9370 yuan is used as beginning exchange rate and the exchange rate as of December 29, 2017 which is USD 1=RMB 6.5342 yuan is used as closing exchange rate in other financial statements if mentioned. 3. Consolidation Scope of the Financial Statements Consolidation scope of the financial statement covers the financial statements of Liaoning PMO, Chongqing PMO and FECO. FECO is responsible for preparing its own financial statements and consolidating the financial statements of FECO with two local project implementation PMOs. Each entity has the responsibility for the authenticity and integrity of its own financial statements. 4. Notes to the Special Account 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 amount advanced (namely turn-over fund) is USD 2,000,000.00 is deposited into the account in 2016.The opening balance of the Special Account is USD 2,000,162.22, the amount deposited by WB for this period is USD 845,316.82, the interest income for current period is USD 949.41, the amount withdrawn for this period is USD 907,069.92 and the ending balance is USD 1,939,358.53 as of December 31,2017. 5. Notes to the Financial Statement Accounts 5.1 Project Expenditure As of December 31, 2017 the accumulated project expenditure is RMB 8,904,985.58 yuan, which accounted for 1.90% of the total project cost. among which the payouts for capacity development for prevention and control of site contamination is RMB 6,788,323.07 yuan, cleanup demonstrations of contaminated site contaminated with POPs and other hazardous chemicals is RMB 962,494.00 yuan and project management is RMB 1,154,168.51 yuan. 5.2 Cash in Bank As of December 31, 2017 the Total Cash in Bank of project is RMB 12,672,156.51 Yuan, all of which is in Special Account with an ending balance of USD 1,939,358.531, approximately RMB 12,672,156.5 lyuan. 15 5.3 Counterpart fund The cumulative counterpart fund received is RMB 7,601,394.28 yuan as of December 31, 2017. Counterpart fund of FECO is RMB 2,069,991.28 yuan. Counterpart fund of Liaoning PMO is RMB 0.00 yuan, and counterpart fund of Chongqing PMO is RMB 5,531,403.00 yuan. 5.4 Grant As of December 31, 2017 the accumulated grant received is USD 2,845,316.82, approximately RMB 18, 591,869.17 yuan. 5.5 Payable and other payable The ending balance of payable is RMB -4,616,121.36 yuan. The prepaid cost incurred by FECO is RMB 667,673.14 yuan, the prepaid contract cost of Chongqing PMO supported by the counterpart fund is RMB -5,070,900.00 yuan, the interest income of the Special Account is RMB 7,263.61 yuan and the exchange gain is RMB 220,158.11. 6. Other Explanations for the Financial Statements 6.1 Eligible Expenditures on or after January 1, 2015 and prior to the date of the GA (June 24, 2015) can be retrospectively recognized as grant expenditure according to the GA. 6.2 Total source of fund for current period in the Summary of Sources and Uses of Funds by Project Component is RMB 4,717,869.17 yuan and current-period withdraws in the Statement of Implementation of Grant Agreement is RMB 5,523,469.17 yuan, the difference is due to the exchange gain or loss which is RMB805,600.00yuan. 6.3 The counterpart fund in this report only reflects the cash counterpart fund. 16