Xinjiang Uygur Autonomous Region Audit Office of the People's Republic of China Audit Report SWR (2018) 55 XINJIANG AUDIT REPORT (2018) NO.55 Project Name: Xinjiang Technical and Vocational Education and Training Project Financed by the World Bank H & H: 8510-CN Loan No.: 8510-CN Project Entity: Xinjiang Education World Bank Loan Project Management Office 4 : 2017 Accounting Year: 2017 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
20
Embed
World Bank Documentdocuments.worldbank.org/curated/en/... · Xinjiang Uygur Autonomous Region Audit Office of the People's Republic of China June 25,2018 Address: No. 186 Jianshe
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Xinjiang Uygur Autonomous Region Audit Office of the
People's Republic of China
Audit Report
SWR (2018) 55
XINJIANG AUDIT REPORT (2018) NO.55
Project Name: Xinjiang Technical and Vocational Education and
Training Project Financed by the World Bank
H & H: 8510-CNLoan No.: 8510-CN
Project Entity: Xinjiang Education World Bank Loan Project
To Xinjiang Education World Bank Loan Project Management Office:
We have audited the special purpose statements of Xinjiang Technicaland Vocational Education and Training Project financed by the WorldBank, which comprise the Balance Sheet as of December 31, 2017, theSummary of Sources and Uses of Funds by Project Component , theStatement of Implementation of Loan Agreement and the Special AccountStatement for the year then ended, and Notes to the Financial Statements(from page6 to page IS) .
Project Entity and Autonomous Regional Finance Department'sResponsibility for the Financial Statements
The preparation of the Balance Sheet, the Summary of Sources and Usesof Funds by Project Component and the Statement of Implementation ofLoan Agreement are the responsibility of your office, while thepreparation of the Special Account Statement is the responsibility ofXinjiang Uygur Autonomous Regional Finance Department, whichincludes:i. Preparing and fair presenting the accompanying financial statements inaccordance with Chinese accounting standards and system, and therequirements of the project loan agreement;ii. Designing, implementing and maintaining necessary internal control toensure 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 statementsbased on our audit. We conducted our audit in accordance with theGovernment Auditing Standards of the People's Republic of China andInternational Standards on Auditing. Those standards require that wecomply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether the financial statements arefree from material misstatement.
3
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'sinternal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimatesmade by management, as well as evaluating the overall presentation of
the financial statements.We believe that the audit evidence we have obtained is appropriate andsufficient to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements identified in the first paragraphpresent fairly, in all material respects, financial position of XinjiangTechnical and Vocational Education and Training Project financed by theWorld Bank as of Dec 31,2017, its financial receipts and disbursements,the project implementation and the receipts and disbursements of thespecial account for the year then ended in accordance with Chineseaccounting standards and system, and the requirements of the projectloan agreement.
Other Matter
We also examined the withdrawal application (No.WCP006 toNo.WCP011) and the attached documents submitted to the World Bankby Autonomous Regional Finance Department during the period. In ouropinion the withdrawal applications comply with the project loanagreement and can serve as basis for loan withdrawal.The audit report consists of the Auditor's Opinion and two more partshereinafter: Financial Statements and Notes to the Financial Statements,Audit Findings and Recommendations.
4
Xinjiang Uygur Autonomous Region Audit Office of the People'sRepublic of ChinaJune 25,2018
Address: No. 186 Jianshe Road, Urumqi, Xinjiang Uygur AutonomousRegion, P. R. ChinaPostcode: 830002Tel : 86-0991-2815503Fax: 86-0991-2815503
The English translation is for the convenience of report users; Please takethe Chinese audit report as the only official version.
5
― 一― ----~~~~~........
二、财务报表及财务报表附注11,Financial Statements and Notes to the Financial Statements
一 一 ⋯
- ·…
컫 !:-
ii. Summary of Sources and Uses of Funds by Project Component
SUMMARY OF SOURCES AND USES OF FUNDSBY PROJECT COMPONENT I
2017 -ý 12 A 31 H(For the period ended December 31, 2017)
7r 5 t f,ý: tu- JY- 4K j7 *0 9 9 a e lik ýÄ -t ljýI 9Iroject Na= Xirijäng Technical and Vocational Education and'fraining Project Financed by the World Banký IK _ý 4,1: 9 ca 4k ý., ý1- ,P IK P 5epared by: Xinjiang Education World Bank Currency Unit: RMB Yvtan
Loan Project Managernent Office
MFICiujent Pend Clininlativc
M K lp Ii, PA yý 1ýý bý 4 h tý J ku 9' hk PI, it U
LL
Curl elit tieriod Currelut Curnulmi-
C ient Pråed Budget NýiDd % Life of P4, D Curnulitti- Actual %coinpleted COMPleted
il Total SOUrces of 998413, 150 00 142,124,508.9.3 47.63% 607ý600,000 00 224,830,948 01 3700%Funds
t. Project OverviewWorld Bank Loan Xinjiang Technical and Vocational Education and Training
Project's loan number is 8510-CN. According to the current status of Xinjiang
,echnical and vocational education development, this project was carried out in
Five project schools: Xinjiang Institute of Engineering, Xinjiang Agriculture
Vocational and Technical College , Xinjiang Institute of Light Industry
rechnology, the College of Xinjiang Uyghur Medicine and Urumqi Vocational
University. In order to reach the project development targets of improving
-ducational quality, achieving pertinent cultivation and meeting the needs of
technical skills in the Xinjiang labor market. These five project schools have
been working on the construction in following 6 aspects: school-industry
,,ollaboration; update curriculum, pedagogy and assessment; building up high
quality teaching and management teams; improve exterDal support to other
schools and local communities; upgrade facilities and equipment and provincial
events. At the same time, Xinjiang higher vocational education system and
education level should be further improved by summarizing and popularizing
the results of this program.The total investment of the Project is RMB607.6 million yuan, including World
Bank loan of USD 50 million (equivalerit to RMB 310 million yuan); and
domestic counterpart fund of RMB 297.6 million yuan(including Assurance
Charge and Interest Incurred during Construction). The Project Loan Agreement
and ProNct Agreement were signed officially on July 11, 2015 and came into
effect on October 9, 2015. The Ministry Finance and Xinjiang Uygur
Autonomous Region signed re-loan Agreement on December 25, 2015,
Autonomous Regional Finance Department and Autonomous Regional
Education Department signed re-loan Agreement on January 25, 2016,
Autonomous Regional Education Department signed re-loan Agreement on
Feburary 15, 2016 with 5 project schools respectively.
2. Consolidation Scope of the Financial Statements
Consolidation scope of the financial statements covers the financial statements
of Autonomous Regional Project Management Office, five project colleges as
well as the Special Account set in Autonomous Regional Finance Department.
3. Accounting Policies3.1. The Financial Statements of the project were prepared according to the
requirements of Accounting Methods for the World Bank Financed Projects
(Caijizi [2000] No. 13) issued by the Ministry of Finance and the Notification
about Distributing "Financial Management Method of WB-financed Xinjiang
16
Technical and Vocational Education Training Project" (Xincaiwai [2015] No. 13)issued by Autonomous Regional Finance Department.
3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscalyear from January 1 to December 3 1.
3.3 The accrual basis and the debit/credit double entry bookkeeping method areadopted. RM13B is used as the recording currency of bookkeeping,
3.4 The exchange rate adopted in the financial statements was the exchangerate on December 31, 2017 of the People's Bank of China, which is USD7RMB6.5342 yuan.
4. Explanation of Subjects4.1 Project expendituresThe total project expenditure of 2017 was RMB121,528,7 4 8 .2 6 yuan, thecumulative expenditure was RMB181,71,718. 4 0 yuan, which accounted for29.9 1% of total investment plan.
4.2 Cash and BankOn December 31, 2017, the balance was RMB57,851,865. 8 3 yuan. Amongthem special account deposit balance is equivalent to RMB32,674,72 1.62 yuan.
4.3 Prepaid and ReceivableThe balance on December 31, 2017 is RMB3,978,934.00 yuan. Mainly becausewithdrawals have been requested and funds have not actually been received.
4.4 Project Appropriation FundsThe balance of the project appropriation funds on December 31, 2017 was RMB107,962,525.60 yuan, which was the counterpart fund allocated by the PMO andPlus.The planned counterpart fund totals up RMB297,600,000 yuan, on December 31,2017, the fulfilled counterpart fund was RMBl07,962,525.60 yuan and accountedfor 36.28% of total planned amount.
4.5 Project LoanOn December 31, 2017, the balance of foreign loan was RMB116,868,422.41yuan, including the World Bank loan of USD17,885,651.24 equivalent toRMB116,868,422.41 yuan.
4.6 PayableThe balance on December 31, 2017 was RMB18,601,692.8
0 , mainly due to thefact that the school had advanced the outstanding withdrawals and that the
17
autonomous region project office had not paid the withdrawal to the projectschools in time at the end of the year.
4.7 Retained EarningsThe balance of the retained earnings on December 31, 2017 was RMB116,8 77.42 yuan, mainly interest earned of bank deposit.
5. Special AccountThe Special Account of this project is set Shang hai Pudong DevelopementBank Urumqi Branch, the account number is 108260843377, and USD ascurrency unit. The initial Deposit of Special Account is USD28,23295 Theamount reimbursed in 2017 was USD4,660,65 2 4 This year the interestearned was USD535.92 and the disbursement was USD9,688,8 5 5 Theending balance was USD5,000,56 9 .5 6 .
6. Other Explanation for the Finacial StatementsDue to the rounding oft the total project loan of the Balance Sheet and theSummary Sources and Uses of Funds by Project Component are not the same asthe total withdrawal in the Statement of Implementation of Loan Agreement,