28 JUN2019 Audit Office of Ningxia Hui Autonomous Region of the People's Republic of China Audit Report H * 4 4 C 2019D 25 # NPAO FOREIGN INVESTMENT AUDIT REPORTC 2019 NO. 25 Project Name: Ningxia Desertification Control and Ecological Protection Project Financed by the World Bank 91 A : 8159-CN Loan No.: 8159-CN Project Entity: Forestry Department of Ningxia Hui Autonomous Region 2018 Accounting Year: 2018 目录 COntentS 一、审计师意见二,.……,…,.,二,.……,.....……,.......................……,.....……,..……1 1 .Auditor性Opinion.............……,…,.,.,..…,.,.…,.,…,..…,……,,.…,...……,..…,.…3 二、财务报表及财务报表附注.,,,.,二,,.......……,二,................................……5 11 .F 1 n a n cial Statements and Notes to the厂inancial Statements........……5 (一)资金平衡表.....……,,,,,,,.,.,.,,…,,,.,.,.,.…,…,,.,,,,二,.,……J..........……5 1 .B川a nCe Sheet.,…,.............................……,..…,二,..……,,,.,二,.,.,,..…,,.…,二5 (二)项目进度表..................................................……,,,..…,,,,,...……,.7 1 1.Summary ofSourcesandUsesofFundsbyPrOjectComponent……7 (三)贷款协定执行情况表,........……,.,.……,二,…,........……,.…,..…,.…9 1 1 1 .Statement of lmplementation of Loan Agreement...……,,.……,,.,二,.9 (四)专用账户报表…,二,二,,,.,.,二,..……,.,.…,.…,…,,,二,.……,...........……10 iv. Special Account Statement.............……,,二,,,.,,,.,.,二,.,.,,,,…,.,,,..…,.…10 (五)财务报表附注.............................................................……,…,.,12 v.Notes tothe日nanCial statements…,二,,..................……,,...........……14 三、审计发现的问题及建议 .....……,...……,.……,.,.................……。,....……16 l!I,Audit Findings and Recommendations.............……,,二,.,.........……,.,,,,二16 附表1:采购检查情况表,.,,,.…,.,,,…,.,,…,.…,,,二,…,,,..……,.,……,…,二,…,.,21 Annex!:p犷ocurement post Review sheet....……,......................……,.,.……21 附表2:已检查合同清单.,................................................................……22 Annex 11:List of Contracts Reviewed…,…,.,,,.,.…,…,.,…,…,.…,.,,.,,.,…,..……22 一、审计师意见 审计师意见 宁夏回族自治区林业和草原局: 我们审计了世界银行贷款宁夏黄河东岸防沙治沙项目2018年12月31 日的资金平衡表及截至该日同年度的项目进度表、贷款协定执行情况表和 专用账户报表等特定目的财务报表及财务报表附注。(第5页至第巧页) (一)项目执行单位及宁夏财政厅对财务报表的责任 簖制上述财务报表中的资金平衡表、项目进度表及贷款协定执行情况 表是你局的责任,簖制专用账户报表是宁夏财政厅的责任,这种责任包括: 1.按照中国的会计准则、会计制度和本项目贷款协定的要求编制项 目财务报表,并佼其实现公允反映; 2,设计、执行和维护必要的内部控制,以使项目财务报表不存在由 于舞弊或错误而导致的重大错报。 (二)审计责任 我们的责任是在执行审计工作的基础上对财务报表发表审计意见。我 们按照中国国家审计准则和国际审计准则的规定执行了审计工作,上述准 则要求我们遵守审计职业要求,计划和执行审计工作以对项目财务报表是 否不存在重大错报获取合理保证。 为获取有关财务报表金额和披露信息的有关证据,我们实施了必要的 审计程序。我们运用职业判断选择审计程序,这些程序包括对由于舞弊或 错误导致的财务报表重大错报风险的评估。在进行风险评估时,为了设计 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。 (三)审计意见 1 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宁 夏黄河东岸防沙治沙项目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报送给世界银行的第17号至第22号提款申请书 ·及所附资料。我们认为,这些资料均符合贷款协议的要求,可以作为申请 提款的依据。 本审计师意见之后,共同构成审计报告的还有两项内容:财务报表及 财务报表附注和审计发现的问题及建议。 :一:: 二 认 气 一 悠显饥鸟哲护 ;览户 地址:中国宁夏回族自治区银川市新华西街392号 邮政簖码:750001 电话:86一0951一5043073 传真:86一0951一5044183 2瑙蘸黝漾薰氰} 1. Auditor's Opinions Auditor's Opinions Ningxia Hui Autonomous Region Bureau of Forestry and Grassland: We have conducted an audit upon the Balance Sheet, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Loan and Finance Agreement for the year then ended, and Notes to the Financial Statements by 31 December of 2018 of the WB Loan Funded Ningxia Desertification Control & Ecological Protection Project. (From Page 5 to Page Project Implementation Organization's Responsibility for the Financial Statements It is your organization's responsibility to prepare the financial statements abovementioned. And such responsibility shall include; i. Preparing and fairly reflecting the enclosed financial statements in accordance with Chinese accounting standards and system, and the requirements of the project loan and finance 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 It is the auditor's 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 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 3 sufficient to provide a basis for the formation of our auditor's opinion. Auditor's Opinions In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, financial position of the WB loan funded Ningxia Desertification Control & Ecological Protection Project as of 31 December 2018, its financial receipts and disbursements, the project implementation for the year then ended in accordance with Chinese accounting standards and system, and the requirements of the project loan and finance agreement. Other Matters We also examined the withdrawal application from No. 17-22 and the attached documents submitted to the World Bank during the period. In our opinion, those documents comply with the project loan and finance agreement and can serve as basis for loan withdrawal. The audit report consists of the Auditor's Opinion and two more parts hereinafter: Financial Statements and Notes to the Financial Statements, Auditor's Findings and Advices. Ningxia Hui Autonomous Region Department of Audit, the People's Republic of China June 27, 2019 Address: No. 392 Xinhua Xijie, Yinchuan City, Ningxia, P.R. China Postcode: 750001 Tel.: 86-0951-5043073 Fax: 86-0951-5044183 The English translation is for the convenience of report users; please take the Chinese audit report as the only official version. 4 II. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCE SHEET 2018 * 12 A 31 H (As ofDecember 31, 2018) Project Name: Ningxia Desertification Control and Ecological Protection Project financed by the World Bank Prepared by: Forestry Department of Ningxia Hui Autonomous RegionCurrency Unit: CNY Yuan M eA M A r, 4 5i *VIR Line Beginning fl;l Application of Fund Line Beginning Balance Ending Balance Sburce of Fund No. Balance Ending Balance No. Total Project 1 257,021,467.41 335,172,235.64 Total Project 28 41,151,279.40 41,151,279.40 Expenditures Appropriation Funds Fixed Assets 2 -1,000.00 Project 29 Transferred Capital and Capital TranserredSurplus 2. 4ji 1i2#hfM Construction 3 - : t Including: 30 Expenditures to be Grants Disposed Investments 4 - ' 31 199,258,155.62 286,190,147.02 Transferred-out Total Project Loan Construction in 5 257,022,467.41 335,172,235.64 Total Project 32 199,258,155.62 286,190,147.02 Progress Investment Loan i investment 6 a Foreign 33 199,258,155.62 286,190,147.02 Loan Receivable Including: World Bank 7 34 Including: IDA Investment Loan Receivable pi8 - m9k -F8E 35 199,258,155.62 286,190,147.02 Appropriationof IBRD Investment Loan Including :Appropriati 9 36 on of World Bank Technical Cooperation Investment loan RU SW Equipment 10 - *tR9Co- 37 Financing (2) I'1flK 11 (2- i" 38- Including: Equipment - Domestic Loan losses in Suspense I p i, m nit 12 85,525,105.40 98,111,544.86 2. 44iMh- 3 Total Cash and Bank Other Loan Cash in Bank 13 85,524,593.70 98,111,544.86 rk Appropriation of 40 Investment Loan Including: Special 14 32,582,766.20 34,441,434.93 Including: World Bank 41 Account Loan 2. fR½ Cash on Hand 15 511.70 42 Bond_Fund , 5 }RM (To be continued) it Construction .16 204,194.07 204,379.10 Cosrcin43- Total Prepaid and Expenditures Receivable to be Offset Including: world Bank Loan 17 Toa 44 102,342,331.86 106,159,733.18 InterestTotal Payable Interest Receivable World Bank Loan is Including: Commitment Fee World Bank Receivable Loan Interest Payable fl World Bank World Bank Loan Loan Service-Fee Commitment Fee Receivable Payable kL. II M Vt World Marketable Securities Bank Loan Service Fee Payable 21 1000.00 13,000.00 M 48 Total Fixed Assets Other Payables * 22 - ±49 Fixed Assets, Cost Appropriation of Fund Less: Accumulated 2 m /so Retained Earnings Depreciation 24 - Fixed Assets, Net Fixed Assets Pending 25 - Disposal Fixed Assets Losses in 26 - Suspense TotalApplication of 27 342,751,766.88 433,501,159.60 51 342,751,766.88 433,501,159,60 Fund Total Sources of Fund 6 (:z-) * &Al ii. Summary of Sources and Uses of Funds by Project Component SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I 4A,A 12018 * 12 A 31 H (For the period ended December 31, 2018) Project Name: Ningxia Desertification Control and Ecological Protection Project financed by the World Bank Prepared by: Forestry Department of Ningxia Hui Autonomous Regioncurrency Unit: CNY Yuan CM7 current Period Zdt Cumulative Current Current Period Current . N Cumulative u Period Life of PAD Cumulative Period Budget Actual Completed A c t u a l Completed 86,931,991.40 598,060,000.00 327,341,426.42 54.73% TotalI Sources of Funds 86,931,991.40 491,070,000.00 286,190,147.02 58.28% International Financing 86,931,991.40 491,070,000.00 286,190,147.02 58.28% IBRD 106,990,000.00 41,151,279.40 38.46% Counterpart Financing Ai o78,150,068.23 598,060,000.00 335,172,235.64 56.04% Total Application of Funds 59,606,273.11 547,920,000.00 273,701,994.24 49.95% Controlling Desertification and Degradation Protective Shelterbelt 11,520,547.68 25,010,000.00 16,222,808.53 64.87% Plantations Projecit M1,539,766.13 23,870,000,00 13,904,797.62 58.25% Project Management,Capacity Building and M&E I fftrut io - 5,484,181.31 - - 23,756,635.25 Infrastructure Construction - 1,260,000,00 7,586,000.00 602.06% Other 8,781,223.17 -7,830,109.22 Difference JE-11MEk185.03 204,379.10 Change in Receivables hn i3,817,401,32 106,159,733.18 Change in Payables 3. $Tfi {i Change in Cash and Bank 12,586,439.46 98,111,544.86 4. 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