一、审计师意见

 

审计师意见

 

辽宁省财政厅、辽宁省城市建设改造项目办公室：

 

我们审计了亚洲开发银行贷款、水融资赠款供水项目2014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、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5页至第13页）。

 

（一）项目执行单位及辽宁省财政厅对财务报表的责任

 

编制上述财务报表中的资金平衡表、项目进度表及贷、赠款协定执行情况表是你单位的责任，编制专用账户报表是辽宁省财政厅的责任，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、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

 

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、赠款协定的要求编制，公允反映了亚洲开发银行贷款、水融资赠款辽宁省小城镇发展示范项目2014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

 

我们审查了本期内报送给亚洲开发银行的第5至8号提款申请书以及所附资料。我们认为，这些资料均符合贷、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。

 

 

 

中华人民共和国bt365官方网注册

                            2015年6月23日

 

 

 

 

地址：中国辽宁省沈阳市皇姑区北陵大街45-1号

邮政编码：110032

电话：86-024-86892075

I. Auditor’s Opinion

 

Auditor’s Opinion

 

To Liaoning Provincial Department of Finance and Liaoning Urban Construction & Renewal Project Office

 

We have audited the specific purpose financial statements (from page 5 to page 13) of Liaoning Small Cities and Towns Demonstration Sector Project financed by the ADB and granted by GEF, which comprise the Balance Sheet as of December 31, 2014, Project Progress Sheet, the Status of Loan (Grant) Agreement Implementation and the Special Account Statement for the year then ended, and Notes to the Financial Statements.

 

Project Implementation Agency's and Liaoning Provincial Department of Finance’s Responsibility for the Financial Statements

 

The preparation of the Balance Sheet, Project Progress Sheet and the Status of Loan (Grant) Agreement Implementation is the responsibility of your entity, while the preparation of the Special Account Statement is the responsibility of Liaoning Provincial Department of Finance, 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 loan (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 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.

 

Opinion

 

In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, financial position of Liaoning Small Cities and Towns Demonstration Sector Project financed by the ADB and granted by GEF as of 12 31, 2014, 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 loan (grant) agreement.

 

Other Matter

 

We also examined the withdrawal application No.5 to NO.8 and the attached documents submitted to the ADB during the period. In our opinion, those documents comply with the project loan (grant) 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, Audit Findings and Recommendations.

 

 

 

Liaoning Provincial Department of Audit of People's Republic of China

June 23, 2015

 

Address: No.45-1 Beiling Street, Huanggu District, Shenyang, Liaoning

Postcode: 110032

Tel.: 86-024-86892075

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

二、财务报表及财务报表附注

Ⅱ. Financial Statements and Notes to the Financial Statements

 

 

二、财务报表附注

财务报表附注

 

1.项目概况

辽宁小城镇发展示范项目贷款号 2250-PRC。该项目旨在帮助促进辽宁小城镇城市化进程的协调与可持续发展;缩小城乡差距，改善生产、就业和生活条件。该项目涉及7个项目实施机构，主要项目活动包括：：(i) 东港市的道路和桥梁建设及其配套服务设施、排水和污水处理、河道治理和区域改造项目；(ii)喀左蒙古族自治县供水子项；(iii)凌海市道路建设和改造及其配套服务设施；（iv）后续子项。项目协议于2010 年3月30日签订，2010年7月1日生效，预计2016年3月31日关闭。项目计划总投资为2.1亿美元，折合人民币1,433,914,225.00元，其中亚洲开发银行贷款总额为1亿美元，折合人民币6.8亿元; 水融资赠款250,000.00美元

 

2.财务报表编制范围                                                                                                                                                                         

本财务报表的编制范围为东港项目办、凌海项目办、沟帮子项目办、西丰项目办、盖州项目办和喀佐利民自来水有限责任公司的财务报表、水融资赠款项目和省财政厅专用账户报表。

 

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。

3.2会计核算期从1月1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2014年12月31日汇率，即USD1=人民币6.1190元。

 

4.报表科目说明

4.1 项目支出合计

2014年项目支出人民币230,532,027.28元，累计支出人民币662,766,277.34元，占总投资计划的46.22%。

 

4.2 货币资金合计

2014年12月31日货币资金余额为人民币83,665,551.95元，比上年增加人民币30,339,749.58元，其中专用账户存款折合人民币23,992,665.74元。

 

4.3 预付及应收款合计

2014年12月31日余额为人民币10,740,250.42元，主要是预付工程款费用。

 

4.4项目拨款合计

2014年12月31日余额为人民币333,497,849.81元，是市、县各级到位的配套资金。

项目计划配套资金总额人民币752,390,000.00元，截至2014年12月31日到位配套人民币333,497,849.81元，占计划的44.33%。

 

4.5 项目借（赠）款合计

2014年12月31日余额为折合人民币328,657,706.78元，其中：亚洲开发银行贷款为53,487,091.00美元，折合人民币327,287,509.82元；水融资赠款为223,924.98美元，折合人民币1,370,196.96元。

 

截至2014年12月31日，累计提取亚洲开发银行贷款资金53,487,091.00美元，占贷款总额的53.49%。其中：工程类累计提款37,759,993.30美元，占该类计划的56.06%; 货物类累计提款4,174,261.77美元，占该类计划的21.51%；培训类、咨询服务类累计提款681,898.10美元，占该类计划的37.88%；利息和承诺费类累计提款870,937.83美元，占该类计划的7.62%。

 

截至2014年12月31日，累计提取水融资赠款资金223,924.98美元，占赠款总额的89.57%。

 

4.6 应付款合计

2014年12月31日余额为人民币95,001,189.89元，主要是尚未支付的工程款和合同履约保证金。

 

4.7 留成收入

2014年12月31日余额人民币15,333.23元，主要是专用账户的存款利息收入。

 

5.专用账户使用情况

5.1 亚行贷款专用账户

本项目贷款专用账户设在建设银行沈阳融汇支行，账号为21014117200220102440，币种为美元。专用账户首次存款10,000,000.00美元。2014年年初余额为5,260,782.52美元，本年度回补15,522,539.92美元，利息收入为2,505.84美元，本年度支付16,863,765.38美元，本年利息转出1,051.99美元，年末余额3,921,101.91美元。

 

5.2 水融资赠款专用账户

水融资赠款项目未开设专用账户。北京能环科技发展研究中心于2013年4月向亚行提交了感兴趣函，5月递交了投标文件，经亚行评审最终确定北京能环发展研究中心为合格中标人，8月该公司同辽宁省项目办签署了咨询服务合同，并在9月正式开始投入工作。但此时距赠款关账日期只有3个月的时间，为了保证咨询服务合同的顺利执行和支付工作，亚行同意将该合同的支付方式改为直接支付，因此该赠款并未进入辽宁省财政厅的特别账户，所有的资金往来都是在北京能环发展研究中心与亚行之间进行的。该合同金额为237,925美元，在合同执行期内咨询公司共提交了5次支付申请，2014年支付额为179，140元，累计支付额为223,925美元（不可预见费未支付），其全部支付已在2014年完成。

 

6.汇率采用情况

按照中国人民银行2014年12月31日汇率，即USD1=人民币6.1190元。

 

7.其他需要说明的事项

项目资金平衡表中世界银行贷款期末数与期初数之差、项目进度表中相应本期发生额与贷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。

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

II. Notes to the Financial Statements

1. Project Overview

The Loan No. of Liaoning Small Cities and Towns Demonstration Sector Project financed by the ADB is 2550-PRC. Through the project implementation, it aims to help promote balanced and environmentally sustainable urbanization; narrow the urban–rural gap; and improve production, employment and living conditions in small cities and towns in Liaoning Province. The Project involves 7 project implementation agencies, and it is planned that includes: (i) roads, bridge and its associated services, drainage and wastewater treatment,  and river improvement and area upgrading in Donggang City; (ii) water supply component in the Kazuo Mongolian Autonomous County; (iii) construction and upgrading of roads and its associated services in Linhai City; and (iv) subsequent subprojects. The project Agreement was signed on March 30, 2010 and launched and implemented on July 1, 2010, of which the account will be closed before March 31, 2016. The total investment plan of the project was USD 210 million, which was equivalent to RMB 1,433,914,225.00 yuan, including the ADB loan of USD 100,000,000.00 equivalent to RMB 680 million and the water financing partnership facility grant of USD 250,000.00.

2. Consolidation Scope of the Financial Statements                                                                                                                                                                    

Consolidation scope of the financial statements covers the financial statements of Donggang Project Office，Linghai Project Office, Goubangzi Project Office, Xifeng Project Office, Gaizhou Project Office, Kazuo Liming Water Supply Limited Company, water financing partnership facility grant project and the Special Account set in the Provincial Finance Bureau.

3. Major Accounting Policies

3.1 The financial statements of the project were prepared according to the requirement of Accounting Methods for World Bank Financed Project (Caijizi [2000]13]).

3.2 The accounting period was from January 1 to December 31.

3.3 The accruals basis and 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, 2014 of the People’s Bank of China, which is USD1=RBM 6.1190.

4. Explanation of Subjects

 

4.1 Total Project expenditures

The project expenditure in 2014 was RMB 230,532,027.28 yuan, and the cumulative expenditures were RMB 662,766,277.34 yuan, which accounted for 46.22% of the total investment plan.

 

4.2 Total Cash and Bank

On December 31, 2014, the balance was RMB 83,665,551.95 yuan with a increase of RMB 30,339,749.58 yuan compared with that of the last year. And the funds in the Special Account were converted to RMB 23,992,665.74 yuan.

 

4.3 Total Prepaid and Receivable

Its balance on December 31, 2014 was RMB 10,740,250.42 yuan, mainly the payment in advance.

 

4.4 Total Project Appropriation Funds

The balance on December 31, 2014 was RMB 333,497,849.81 yuan, which was the counterpart fund allocated by all levels including the city and the county.

The total planned counterpart funds of the project were RMB 752,390,000.00yuan. By the end of 2014, RMB 333,497,849.8 yuan of the counterpart funds had been allocated, which accounted for 44.33% of the plan.

 

4.5 Total Project Loan（Grant）

The balance on December 31, 2014 was RMB 328,657,706.78 yuan, including the ADB loan of USD 53,487,091.00 equivalents to RMB 327,287,509.82 yuan and the water financing partnership facility grant of USD 223,924.98 equivalents to RMB 1,370,196.96 yuan.

 

By the end of December 31, 2014, accumulated USD 53,487,091.00 of the ADB loan had been withdrawn, accounting for 53.49% of the total, among which the withdrawal for civil works was USD 37,759,993.30 accounting for 56.06% of the category plan; the withdrawal for goods was USD 4,174,261.77 accounting for 21.51% of the category plan; the withdrawal for training and consulting services was USD 681,898.10 accounting for 37.88% of the category plan; the withdrawal for the interest and commitment charges is USD 870,937.83 accounting for 7.62% of the category plan.

By the end of December 31, 2014, accumulated USD 223,924.98 of the water financing partnership facility grant had been withdrawn, accounting for 89.57% of the total.

 

4.6 Total Payable

The balance on December 31, 2014 was RMB 95,001,189.89 yuan, mainly payment in advance and the performance bond.

 

4.7 Retained Earning

The balance on December 31, 2014 was RMB 15,333.23yuan, mainly interest earned of the Special Account.

5. Special Account

5.1 Special Account of Loan Project

The Special Account of the loan is set in Shenyang Ronghui Branch, Construction of Bank with the account Number of 21014117200220102440, and USD as currency unit. The initial Deposit of the Special Account is USD 10,000,000.00. The beginning balance of 2014 was USD  5,260,782.52 and the reimbursement in the year was USD 15,522,539.92. This year the interest earned was USD 2,505.84， the disbursement was USD 16,863,765.38 and the interest withdrawn was USD 1,051.99. Thus, the ending balance was USD 3,921,101.91.

 

5.2 Special Account of Grant Project

The Special Account of the water financing partnership facility grant is not opened in Liaoning Provincial Finance Bureau (LPFB). Beijing Energy Environmental Science Development Center (BEESDC) submitted EOI to ADB in April 2013 and bidding document to ADB in May 2013. Through review of ADB, BEESDC was the final qualified bidder and signed a consultant service contract with Liaoning Urban Construction & Rural Project  Office (LUCRPO). The consultant service was formally started in September 2013. But this time away from the close time of the Grant Fund is only 3 months. In order to assure the smoothly implementation of the contract and speed the payment, ADB agreed to change the contract disbursement method as direct disbursement. Therefore, the Special Account was not opened in Liaoning Provincial Finance Bureau. The payment was made between ADB and BEESDC. The contract amount is USD 237,925.00. During the contract implementation, 5 withdrawal applications were made by BEESDC. The payment amount in 2014 was USD 179,140.00. The accumulative payment amount was USD 223,925.00. Contigency amount included in the contract was not paid. All payment has been completed in 2014

6. Exchange Rate Adopted

The exchange rate adopted in the financial was issued by the People’s Bank of China on December 31, 2014 of, which is USD1=RBM 6.1190.

7. Others Explanation for the Financial Statements

Due to the change of foreign exchange rate, there are discrepancies between the difference of the beginning and ending balance of the World Bank loan in the Balance Sheet, the current year’s loan received in the Summary of Sources and Uses of Funds by Project Component and the amount of current year’s withdrawals (disclosed in RMB) in the Statement of Implementation of Loan Agreement.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

三、审计发现的问题及建议

 

除对财务报表进行审计并发表审计意见外，审计中我们还关注了项目执行过程中相关单位国家法规和项目贷款协定遵守情况、内部控制和项目管理情况，项目绩效及上年度审计建议整改落实情况。我们发现存在如下问题：

 

（一）盖州子项目

1、未按施工进度支付工程款。截止2014年12月31日，东升路工程应配套项目资金3,115万元，2013年8月至2014年12月，市财政局实际拨付项目办3,164万元，但项目办只支付施工单位1,590万元工程款，占应拨款配套资金的51%，其余1，525万元在项目办结存，不符合《世界银行贷款项目财务管理与支付手册》财务管理部分3.94. “滞留资金:部分项目资金(包括世行和配套资金)经常滞留在财政系统或各级项目办，没有及时拨付给最终的贷款用户”的规定

审计建议，项目办要按照提款报账比例和项目合同，及时、足额支付施工单位工程款，避免出现项目工程质量的风险。被审单位已接受审计建议。

 

2、建设项目用地未办理土地使用证。至2015年审计日止，盖州市东升路道路工程建设项目未取得盖州市国土资源局核拨土地使用权的证明，不符合《中华人民共和国土地管理法》第一章第十一条“单位和个人依法使用的国有土地，由县级以上人民政府登记造册，核发证书，确认使用权”的规定。

依据《中华人民共和国土地管理法》第八十二条“不依照本法规定办理土地变更登记的，由县级以上人民政府土地行政主管部门责令其限期办理”的规定。审计建议，盖州市项目办要积极与市政府沟通协调，限期补办土地使用证手续。被审单位已接受审计建议。

 

3、未按规定办理安全监督手续和申领施工许可证。至2015年审计日止，东升路大清河桥梁和北段道路工程未按规定办理工程质量、安全监督手续和取得施工许可证，不符合《建设工程安全生产管理条例》（国务院令第３９３号）第十条“建设单位在申请领取施工许可证时，应当提供建设工程有关安全施工措施的资料。依法批准开工报告的建设工程，建设单位应当自开工报告批准之日起15日内，将保证安全施工的措施报送建设工程所在地的县级以上地方人民政府建设行政主管部门或者其他有关部门备案”。第四十二条“建设行政主管部门在审核发放施工许可证时，应当对建设工程是否有安全施工措施进行审查，对没有安全施工措施的，不得颁发施工许可证”和《建筑工程施工许可管理办法》（建设部令第18号）第三条“本办法规定应当申请领取施工许可证的建筑工程未取得施工许可证的，一律不得开工。任何单位和个人不得将应当申请领取施工许可证的工程项目分解为若干限额以下的工程项目，规避申请领取施工许可证”的规定。

审计建议，盖州市项目办要积极与市政府沟通协调，限期补办安全监督和申领施工许可证手续。被审单位已接受审计建议。

 

4.工程监理未实行招投标。盖州市公用事业与房产局与营口市交通工程技术监督咨询中心签订“东升路桥南段道路工程” 3,735万元和“东升路大清河桥梁工程” 3,196万元的两份监理合同，未实行招投标，不符合《工程建设项目招标范围和规模标准规定》中华人民共和国国家发展计划委员会令第3号 第六条“使用国际组织或者外国政府资金的项目的范围包括：(一)使用世界银行、亚洲开发银行等国际组织贷款资金的项目；”第七条“本规定第二条至第六条规定范围内的各类工程建设项目，包括项目的勘察、设计、施工、监理以及与工程建设有关的重要设备、材料等的采购，达到下列标准之一的，必须进行招标：　(四)单项合同估算价低于第(一)、(二)、(三)项规定的标准，但项目总投资额在3,000万元人民币以上”的规定。

审计建议，项目办要认真执行国家政策，严格按照程序办事，杜绝工程监理不履行招投标手续问题的发生。被审单位已接受审计建议。

 

5、监理人员履职不到位。2014年“东升路北段道路工程”由盖州市建设监理事务所负责工程项目监理，存在如下问题。

（1）监理日志仅记录本封面写有记录人，每日监理记录无记录人、审核人签字确认；（2）工程建设未见监理单位提供的监理规划、月报监理总结等监理档案资料。不符合中华人民共和国住房和城乡建设部、国家质量技术监督局联合发布《建设工程监理规范》7.1.2“项目监理机构应及时、准确、完整地收集、整理、编制、传递监理文件资料”的规定。

 审计建议，项目办要督促监理单位限期提出整改措施，严格履行监理工作流程，进一步规范施工现场监理工作。被审单位已接受审计建议。

 

（二）喀左子项目

1、出借项目配套资金1，550万元。2014年5月喀左县项目办将A-KZ2合同输水管线土建工程子项目配套资金，出借给喀左县财政局1，550万元，喀左县财政局于2015年5月26日归还此项借款，占用项目配套资金达一年之久。不符合财政部《国际金融组织和外国政府贷款赠款管理办法》（2006年财政部第38号令）“第二十八条  贷款资金的使用应当符合贷款法律文件的规定，……不得以任何理由和形式滞留、截留、挪用贷款资金或者擅自改变贷款资金用途”的规定。

审计建议，项目办高度重视项目资金的完整性，从严执行国家的政策，坚决杜绝擅自出借项目资金的问题。被审单位已接受审计建议。

 

2、配套项目资金未及时到位517万元。2014年A-KZ1项目共提款报账2次，完成建安工程投资1，535.4万元，应配套项目资金737万元，县财政局实际拨到项目办配套资金220万元，项目配套资金未到位517万元，喀左县财政局于2015年5月拨入县项目办配套资金517万元。不符合《国际金融组织贷款赠款项目财务管理暂行办法》（财际〔2011〕10号）第十一条“各出资部门应按照协议约定履行出资责任。项目单位应当按照有关协议以及项目评估报告的要求，及时足额筹集配套资金”的规定。

审计建议，项目办要积极协调财政部门及时拨付配套资金，保证项目工程的顺利实施。被审单位已接受审计建议。

 

（三）沟帮子子项目

1、项目工程交付使用后，未报送同级财政部门审查确认。

2014年已办理第一标段2 # ～10 # 路4，036.9万元的项目工程竣工决算手续，未报送同级财政部门审查确认，不符合财政部《国际金融组织贷款赠款项目财务管理暂行办法》（财际〔2011〕10号）第四十条 “ 项目完工后，项目单位应进行各项资产清理造册，编制项目竣工报告、清理期间收支报表，报送同级财政部门审查确认”的规定。

审计建议，项目办要严格执行国家政策，抓紧做好各项资产清理造册等工作，限期报送同级财政部门审查确认。被审单位已接受审计建议。

 

 2、设备采购未到位，项目工程拖期。2013年10月9日项目办与辽宁交通建设集团有限公司（以下称施工单位）签订第二标段老城区巷道改造11条道路及雨水泵站项目工程价值为5，860万元的承包合同，施工期为2015年4月9日。至2015年审计日止，该项目相关设备尚未到位,造成项目工程拖期，不符合财政部《外国政府贷款采购工作管理办法》（财金〔2009〕157号）第七条“项目单位应当按照国家法律法规、贷款法律文件和本办法，组织实施贷款项目，开展贷款采购和合同执行工作；保证采购内容与可行性研究报告等批复以及经贷款方确定的采购清单一致”的规定。

审计建议，项目办要严格执行项目工程承包合同，采取有效措施，督促施工单位积极履行合同，限期实施雨水泵站项目安装调试作业，保证项目如期完成。被审单位已接受审计建议。

 

（四）东港子项目

、目拨款规定述问题想辽宁省发改委部分工程进展缓慢。新城路、青年北路和迎宾西大街道路工程由于涉及动迁问题受阻，造成部分工程施工进度缓慢。距离项目关账时间还有近1年时间，如不抓紧施工，很难按期完成有关工程项目。

审计建议，项目办要采取有效措施，积极协调政府相关部门，依法加大拆迁力度，推动项目如期施工，有效发挥亚行贷款建设资金的应有作用。被审单位已接受审计建议。

 

III. Audit Findings and Recommendations

 

Audit Findings and Recommendations

 

Not only auditing the financial statements, but also we reviewed the compliance and the implementation of the national regulations, Loan Agreement, project internal control and management, project benchmarking, and the settlement of the problems occurred in the previous auditing year. The findings are as following:

 

3.1 Gaizhou Subproject

 

(1) The contract was not paid based on the engineering progress

 

Up to up to 31^st Dec, 2014, the payment of domestic counterpart funds for the construction of Dongsheng Road shall be 31.15 million RMB.  From Aug 2013 to Dec 2014, the municipal finance bureau allocated 31.64 million RMB counterpart fund, but the PMO only allocated 15.90 million RMB to the contractor, accounting for 51% of the total counterpart fund. The rest 15.26 million RMB counterpart fund was hold by the PMO. This practice was not complying with Article 3.94.of financial part of World Bank Loan Financial Management and  Payment Handbook, “retain funds: part of project funds, include world bank loans and counterpart funds, be retained by finance system or project office, and were not timely allocated to final loan users.”

 

The auditor recommends that PMO shall pay the contractor timely and adequately according to the withdraw percentage and the contract in order to avoid risk of construction quality. The audited entity has accepted the auditing recommendations.

 

(2) The construction land was not equipped with Land Use Permit

 

Till audit day of 2015, the Gaizhou Dongsheng Rd project did not obtain any land use right that issued by Gaizhou National Land Resource Administration Bureau. It is not complied with the Article 11 of Section 1 of Land Administration Law of People’s Republic of China, “County or above level government is responsible for registering, issuing certificate, confirming use right to state owned lands which be lawfully used by entities or individuals.” 

 

According to the Article 82of Land Administration Law of People’s Republic of China, “If the land modification was not be applied according this law, the land administration of county or above level government shall order a deadline for applying the land use right.” The auditor recommends that Gaizhou project office shall actively negotiate with municipal government, reapply the land use permit. The audited entity has accepted the auditing recommendations.

 

(3) Safety Supervision Procedures and Construction Permission Certificate have not been completed in accordance with the relevant regulation

 

Till audit day in 2015, two construction projects, Dongsheng Road South Section, Daqinghe River, and Dongsheng Road North Section,  did not obtained the construction quality and safety supervision procedures and construction permission certificates. This practice was against Article 10 Safety Production and Management Regulation of Construction Project (the State Council order 393),” When a construction entity applying the construction permission, the entity shall provide the construction security related documents the project. If the starting report is approved, the construction entity shall provide the security measures to local construction administration of county or above level government or other authorities for filing purpose within 15 days since the report be approved.” And Article 42 “When verifying or issuing the Construction Permission, the construction administration shall examine whether there is any security measures for construction. If there is not any measure, the administration shall not issue the permission.” Also against Article 3 of Construction Project Management Regulations (Order18, National Construction Bureau), “If a project should apply the construction but did not, the project will not be started. Any entity or individual shall not split the construction project that shall apply construction permission for into some below-norm projects to avoid applying the permission.”

 

We suggested that the project office shall actively negotiate with municipal government to obtain safety supervision license and construction permission. The audited entity has accepted the auditing recommendations.

 

(4) Bidding process was not be implemented for selecting construction supervision company

 

Gaizhou Public Utility and House Property Bureau signed two construction supervision contracts with Yingkou City Traffic Engineering Technology Supervision Center. In 2012, the construction supervision contract was signed for Dongsheng Road South Section (CNY37.35 million), and in 2013 for Daqinghe Bridge (CNY31.96 million). There were not any bidding process be performed for selecting the construction supervision company. This practice was not against Article 6 of Bidding Scope and Size for Constructional Projects (NDRC Order 3), “The Scopes of using the funds from international organization or foreign government are: (1) the projects which using the loan funds of international organization such as World Bank, Asian Development Bank, etc” ,and Article 7 “All sorts of construction project which be regulated by article 2 to 6 of this provision, include including the survey, design, execution, and supervision, as well as construction related equipment, and   procurement of relevant major equipment and materials, shall be carried out through bidding procedures if satisfied any following conditions: contract estimation price of single sub project is lower than the requirement of (1),(2),or (3), but the investment of total project is more than RMB 30000 thousand Yuan”.

 

We suggested that the project office shall seriously implement national policy and necessary procedures to aforesaid problem. The audited entity has accepted the auditing recommendations.

 

(5) Supervision staff’s work was not satisfied

 

In 2014, the Gaizhou Construction Supervision Institute implemented the supervision responsibility on Dongsheng Road North Section project .  There were some problems:

 

（I）Supervision logs are with a name only on cover sheet. There were not any signatures of writer and reviewer.（II）There were not any supervision design, monthly supervision report for the construction. This practice was not complying with Article 7.1.2 of Supervision Regulations for Constructional Projects, published by National Construction Bureau and National Quality Supervision Bureau jointly, which states that “Project supervision entity shall timely, exactly, completely collect, reorganize, prepare, and deliver the supervision documents.”.

 

It is recommended that the project office shall urge the supervision institute submit correction methods in a specified period, seriously implement supervision procedures, and further regulate the on site supervision work. The audited entity has accepted the auditing recommendations.

3.2 Kazuo Subproject

(1) Lent 15.5 million yuan of counterpart funds out

 

On May 27th, 2014 Kazuo PMO has lent 15.5 million yuan,which is the counterpart fund for A-KZ2 (Raw water pipeline), to Kazuo Finance Bureau. Kazuo Finance Bureau repaid the money during final settlement of the contract package. Kazuo Finance Bureau repaid this fund on May 26, 2015. The finance Bureau has occupied the funds for almost one year. This practice was not comply with Article 28 of Measures on Financial Management of Loans & Grants from International Financial Organizations And Foreign Government " (Finance Department (2011) No.10), “The usage of loan shall in accordance with loan related lawsuits……any entity or individual shall not defraud of funds by making fraudulent application and claim or by other means, and shall not retain, withhold, misappropriate or change the usage of the funds for any reason.”

 

We suggested that the project office shall pay attention on the integrity of project fund, seriously implement nation policies, and strictly preclude the phenomena. Your office has accepted this suggestion. The audited entity has accepted the auditing recommendations.

 

(2)          5.17 million yuan counterpart fund is not in place duly

 

There are two withdrawals for A-KZ1 in 2014, 15.354 million yuan of investment on construction and installation were completed. A counterpart fund of 7.37 million yuan shall be allocated to the project, while the county finance bureau allocated only 2.2 million yuan to the PMO, 5.17 million yuan is not in place duly. Kazuo County Finance Bureau allocated residual of 5.17 million yuan to the PMO at May, 2015. This practice was not complying Article 11 of Interim Measures on Financial Management of Loans & Grants from International Financial Organizations And Foreign Government which stipulated that each party shall fulfill financing contribution responsibility according contract. Project entity shall timely and adequately raise counterpart funds in accordance with relevant agreement and evaluation report.

 

We suggested that, to ensure the project be carried out smoothly, the project office shall actively implement coordination action, help financial departments to allocate counterpart funds. The audited entity has accepted the auditing recommendations.

 

3.3 Goubangzi subproject

 

(1)    The project was not submitted to the finance department for review confirmation after delivery.

 

The completion accounting of project “No. 2, 3, 4, 5, 6, 7, 8, 9, 10 Roads”, whose worth was 40.369 million yuan, has been implemented in 2014, but the project was not submitted to the finance department for review confirmation after delivery, which does not meet Article 40 of Interim Measures on Financial Management of Loans & Grants from International Financial Organizations And Foreign Government (Finance Department (2011) No.10)   which stipulated that When the project is completed, project entity shall prepare asset clearance handbook, completion report, and revenue and expenditure statement during clearing period to related financial department for confirmation

 

Audit recommendations: Goubangzi PMO shall strictly implement the national policy, immediately perform booking for asset liquidate, and submit relevant documents to the finance department for review confirmation before deadline. The audited entity has accepted the auditing recommendations.

 

(2)    Equipments are not in place in time, causing delay of the project.

 

Contract for A-GBZ4 (Pump station, No 1 Road, Road Rehabilitation) was signed with Liaoning Communications Construction Group Co., Ltd. (hereinafter referred to as the Contractor) on October 10, 2013. The contract value is 58.6 million yuan and the construction deadline is April 9, 2015. Till the audit day of 2015, relevant equipments of the project was not ready, and the project therefore be delayed. This practice has breached Article 7 of Procurement Management Approach of Foreign Government Loan (Treasure Financing [2009] No. 157),” Project entity shall organize loan project, implement purchasing and contract by complying national law, legal loan documents and this method to ensure that the purchasing content are consistent with approval documents like feasible, and purchasing list which be confirmed by loan lender”.

 

Audit recommendations: the PMO shall strictly implement the project contract and take effective measures to urge the contractor to perform the contract. The installation and commissioning of the storm water pump station shall be constructed before the deadline to ensure the project can be completed on schedule. The audited entity has accepted the auditing recommendations.

 

3.4 Donggang Subproject

 

Part of the project has been slowly progressing.

 

Xincheng Road project, Qingnianbei Road Project, and Yinbinxidajie Street Project were delayed due to removal and reallocation, the working process of some parts of aforesaid projects was slow. There is only less than one year left before the project be closed, it will be difficult to complete the project on schedule if the construction doesn’t speed up.

 

We suggested that the project office shall actively implement effective methods and coordinated with relevant departments to make the project be constructed timely, make the ADB funds be applied adequately. The audited entity has accepted the auditing recommendations.