101293

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

. _._,. . ., ... ······· ·· ..... ~······ ·· ··· -··· ·· . ..... ... .. .. .................. . ········ ···• ..... -..

Contents

, 'ijI it YfP ;t: JTI.i ............................ ... .......................................... .......... ...... 1

I . Auditor's Opinion .................................................................................. 3

=-' Jilt ~tlt~&Jilt ~t&;t!Sft1i ................................................................. 6

II. Financial Statements and Notes to the Financial Statements ................ 6

( - ) ~~-3¥-~;t ............................................................................... 6

i. Balance Sheet ............. ........................................................................ 6

C =- ) R1Wf #~ t9J-Jt t)tAf ·I~ ?Jli aJJ ~ * ....................................................... 7

ii. Statement of Implementation of Grant Agreement ........................... 7

( -=- ) 1!t JfJ ~.P y5(5z:..*- ....................................................................... 8

iii. Special Account Statement .............................................................. 8

( izg ) Jib.i" ~ t&;t !Sft ji_ ......................................................................... 10

iv. Notes to the Financial Statements .................................................. 12

.=_ , 'ijI it~~~ I~ ~,&}{1.)(. ................................................................... 14

III. Audit Findings and Recommendations ............. .................................. 15

~ffi$#1~$•tt••~#~-~-*~1§~4~~*~1 }J ~~Iffi: I§ 2014 ~ 12 JJ 31 a E0:&i-1:-1¥-~*&~~i~ a~ -11=-&~• -~~~fi~~~~*~~m~P~~*~*~§~~~**&m ~{Jt~}ft.ii. ( ~ 6 Pi~~ 13 Pi).

-~~~m~•*~~*~~•*,••~~~ff~~~~*~ ~•fr~•~, -~~m•P~~*~m~~oo~m1:-~~~~• 1:t , :l~A~ • 1:1:,g tl5:

1. ~~~00~4#$~,4#~~~*~\§··~~~·*• ~J :rJi §] Jilt~ f~*' #{~;It.~~* Jtffi.. Bjc;

2. ~tt, ~fi~-~~4~~~~~' ~~~§Jilt~-*~# ~mf#~~•~w~~~•*•*·

~m~•*~~~tt•tt1~~£~~~m~•*~*•tt• ~.~ffi~~~®®*$#$~~00~$#$~~m~~fi!$#I ~'~~$~4*~fil-~$tt~~4*,#~~&fi$#I~~~ JJi~m~•*~~~#~•*••a•~~~fil.

~a•**~~-•~•~••~g~**fil•,~m~~r~ 4~*ttg~.~ili~m~~~~~~$ttg~,~~g~~M~~

f#~~-~~~~m~•*•*•*~~~w~.~*fi~~w~ ~,~1~tt~*~•ttg~,~ili~41~~~-*~*~~~~ ~u, 1s I§ ~#~F:xt~~~~u~*~'ti~*;t%. $it11t11~As1-t111 m~m4tt~•~~~~~~ili*tt~tt~~~tt,~&w111m~• *~ ,~,1f-J"u {~.

~fil$~, ~fila~~•*fil•~~~~,~~~,~~*** •%f>l1# J £~ 0

~ffi~~,•-am~~~~*~M*•*~w~~~oo~~* *~'~*~£~*~§••~~~~~m~,0~&~-r~~•fi ~*X0#j£~Jlt~t:*~ § t±~JXl~~lJ.a~h9t~~ m 2014.1f-12 JJ 31

a~w~~~~a~~a~.1f-£~~~~~,~§~fi~~m•~~ ~lt~~o

~ffi~$~J*M~-~~*~•fi~•oo%~*X*•~~m m*~·~filR~,~~~~~~~--~~~~~, ~~~~*·

~·~*·· ***~-%~~,#~~~·#·~~~*m~~~:N~~

*&N~~*m~~·*~~~MM~~~.

J:~ttt: ~ oo~~~w~##i$i*1ir 4 % lb~ j£~f$ij ~I!J: 100086

t 1! : 86-10-82199990

w•: 86-10-82199887

2

I . Auditor's Opinion

Auditor's Opinion

To Social Development Department of National Development and Reform Commission

We have audited the special purpose financial statements (from Page 6 to Page 13) of Capacity Building for Mainstreaming Social Risk Management in Development Policy and Public Investment Project Granted by the World Bank, which comprise the Balance Sheet as of December 31, 2014, 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 and International Financial and Economic Cooperation Department of Ministry of Finance's Responsibility for the Financial Statements

The preparation of the Balance Sheet, the Statement of Implementation of Grant Agreement is the responsibility of your entity, while the preparation of the Special Account Statement is the responsibility of International Financial and Economic Cooperation Department of Ministry 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 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

3

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 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 inte1nal 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 Capacity Building for Mainstreaming Social Risk Management in Development Policy and Public Investment Project Granted by the World Bank as of December 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 grant agreement.

Other Matter

We also examined the withdrawal application No.00 and the attached documents submitted to the World Bank during the period. In our opinion, those documents comply 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

Address: No. 4 Zhongguancun South Avenue, Beijing, P.R.China Postcode: 100086 Tel.: 86-10-82199990 Fax:86-10-82199887

The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version.

5

_, ~ ~**ll.Ylt ~**ffl-~i. II. Financial Statements and Notes to the Financial Statements

( - ) jtt-~JJZ-~* i. Balance Sheet

*" ~ 311- {jf * BALANCE SHEET

2014 ~ 12 JJ 31 s (As of December 31, 2014)

:rffi: f3 ~ *: i!t !t--~ fj ~ ~ -0-# iEJdfl ~ t: * :rffi: 1§ {± % JXl. rt't l!l ij~ h ~19:. :i;t 1§ Project Name: Capacity Building for Mainstreaming Social Risk Management in Development Policy

and Public Investment Project Granted by the World Bank

~*~~: 00*~~~~~~~4~4~~~ d bv: Social Develooment Deoartment of National Develooment and Reform C

J

'!Ji~Sffl Application of Fund

:f4 El~~ W:IW~Wl JIJl*~Wi ;fl!.§~~ Subject Name Beginning Balance Ending Balance Subject Name

tfHj-ff~ -21,898.52 1j}.~~ - Grant Received Cashin Bank

:t-2Hil,J~ - - J.fl21t~IC~ Aoorooriation of Grant Account Payable

19! § :x::e 96,898.52 -

Project Expenditure

~ :& i!i JfHH.t - 75,000.00 ~:&*W-$-1.t Total Application of Fund Total Sources of Fund

6

~~*iW Sources of Fund

MW~Wi

)W~%: TF014490 Grant No. : TF014490 ~ if5 ~1ft: ~jt Currencv Unit: USD

J

M**"Wl Beginning Balance Ending Balance

- 75,000.00

- -

- 75,000.00

< -=- ) Jt' 19:. ]b. >t ~tAf 11't ?JL afHlil * ii. Statement of Implementation of Grant Agreement

~ ~ t9J- Jt ~ :ft ·ti ?Jti a)l ~ * STATEMENT OF IMPLEMENTATION OF GRANT AGREEMENT

-il~ 2014 ~ 12 J1 31 s (For the period ended December 3 I, 2014 )

J;9.l J§ ;g ~: -ill: Jf..W. ff~~*# ~)it J:j :t * :ryr J§ {± %-JXl llt~ ~ ~~ }J }{i~ :ryr J§

Project Name: Capacity Building for Mainstreaming Social Risk Management in Development Policy and Public Investment Project Granted by the World Bank

~*~~: W*££~~~~~%-~%-££~ - - - ..... -~-- - . ~ - ---- - - . ---1-"------- - -'t""-- -------- -- - ·-----~---- - - . --- t-'------- ~-- - -------- - --------------

~JEW! ;;$:~U]~~J& (Wj)

~um Grant Amount Amount of Current Withdrawals

tlJ.iX'.:b'l ffi A.~ffi tl1' i5Cb'i: ffi A.~ffi Category Grant Currency RMB Grant Currency RMB

(USD) (USD) L ~~

Goods 15,000.00 91,785.00

2, ~iJiJXllJ}-Consultants' Services

143,000.00 875,017.00

3 ' :!ti i}il ' %-iX. ~ 92,000.00 562,948.00

Training and Workshops

4, -t JfJ j!~jr 1:-fPi 75,000.00 458,925.00 - -

Initial Deposit of Special Account

,g..it ( TOTAL ) 250,000.00 1,529,750.00 75,000.00 458,925.00

7

~.#).:.%: TF014490 Grant No.: TF014490 ~rr~1ft: ~ft/A~ rr ft -------- ----- ~-~·-- · -~

~it~~~ <WD ----

Accumulated Amount of Withdrawals

tl1' i:'ll.~ ffi A.~ffi Grant Currency RMB

CUSD)

75,000.00 458,925.00

75,000.00 458,925.00

(.::.) -tJfJY*.? t&.:l* iii. Special Account Statement

{-J-fJ*?~* SPECIAL ACCOUNT STATEMENT

*-.M~~ 2014 .1f- 12}] 31 13

(For the period ended December 31, 2014)

J9igJ~f~: i!t!f.ill-tr~~*#ifk~~i::k:i:9i fl ;f±~J'A.Fftfl!~~}J}ti~:i;9i gJ Project Name: Capacity Building for Mainstreaming Social Risk Management in Development

Policy and Public Investment Project Granted by the World Bank

ff f'iflff~~: i:f1~iflff,~,ff'f~-'$ ~~X.%: TF014490 Depository Banlc Head Office of China CITIC Bank

. .\it%: 7111011482600007959

~,irua lf!.1ft: 9!ti£Jc-'$ ~ ~ffi 9!t ~t ~

Grant No. : TF014490

Account No.: 7111011482600007959

~rr*~: ~it Prepared by: International Financial and Economic Cooperation

Department ofMinistiy of Finance Currency: USD

A 'S!l7t: ;f;:}Ql~fflY!lC?tl.lc5i:·tilfi£ ~ Wi Part A-Account Activity for the Current Period Amount

WJ:W:;i'tWi 0.00 Beeinning Balance

°!t:JJll: 75,000.00 Add:

-*Wlili.:tr@l.fr ,~wi 75,000.00 Total Amount Deposited this Period by World Bank

-*AA*tl.m.i&A..~Wi Cff:A. ~fflD!lCf'rul7t ) -Total Interest Earned this Period if Deposited in Special Account -*AA-1'-&l-*!3tl±IY3~.~.W! Total Amount Refunded this Period to Cover Ineligible -Exoenditures

~Y: 96,898.52 Deduct:

-*AA3t1t.~Wi Total Amount Withdrawn this Period

96,898.52

-*AA*i!!nit£3t11Wit:fta9nfl*:#l3ttl:l Total Service Charges this Period if not Included in Above -Amount Withdrawn

AA*:;i'tWi Ending Balance

-21 ,898.52

()§-~To be continued)

8

B $?t: "'!?JU!kftfnJ~ ~ ~

Part B-Account Reconciliation Amount

1. t!tfr§{~{ijfj\,~,®f 75,000.00 Amount Advanced bv World Bank

~&: Deduct: -

2. t!tJ)!.@1f@Jt&,~,®f Total Amount Recovered by World Bank -

3 . .<fi:WHt'J*"'!?fflY!~ftfri~fijfj\~@i Outstanding Amount Advanced to the Special Account at the 75,000.00 End of this Period

4. ~fflY!lkf'AA*~W! -21,898.52 Ending Balance of Special Account ;l;\)f:/JU: Add; -

5. mE~.<fi:MM* B $iJ!HIU~ffiiiU*@J;1J,~®l Amount Claimed but not yet Credited at the End of this Period -

lf!W/451% ~W! -Application No. Amount

-

-6. ~~.<fi:WlM*B3t1t@il1U*lfltilH~Y!((~W!

Amount Withdrawn but not yet Claimed at the End of this 96,898.52 Period

7. nfl~HUHrxtl:l (:$10*~1'£ 5 *il 6 ~tp) -Cumulative Service Charges (If not Included in Item 5 or 6)

~:'.!>: -Deduct:

8. %U,~l&A CfiA ~fflYl*ft$?t) -Interest Earned (Iflncluded in Special Account)

9 . .<fi:MM*"'!? fflY!((f' 1"1.XfiiJil\~®i Total Advance to the Special Account Accounted for at the End 75,000.00 of this Period

9

1. ~13£*-·tt~

~~•tt••~#~-~-*~§J~~~~*~~h~~~§J 9t#~% ~ TF014490, ·#~tdJ-t)(tbJi#iEJz-$~~~-fif 2013 ~ 6 JJ 28

s~~,w•w~mJiJt~*13oo~~~oo*~~*1~~~~~~~~~ ~ -t 2013 ~ 7 JJ 16 a ~iT, ~ § t.9lit-t 2016 ~ 6 JJ 27 8 #Jil!L i~

~§J~~---~~25E~it, ~§J~fi~~7J00*~~*1~-~ l7l ~{±~~~ ~L ~~.i.~Jtl-f~#J' ?tWJ~l~7f!J~-J,)(*~'I D ~ §1 Ef-1

.i.~§~~~~~~~-j~*#*•*1:t*~§J~~~~*JJ.• h,~~~~*~*1~#·~~-~~*~,~~•±*~-~~~o ~ §1 Ef-1 .i.~ffei*~t~ f£JfXiJ~#IEJz•*1:t*~ 13 i±%-~~~J!*iJ1I~ #, *J,Xf 200 ~ 2L;t:IEf-J~Al~-~ ;Jt.I1tAPJ. 7f ~~#IE5c.*1:t:k~ §1 ;f±~]Xl~~J!--J,jl]~D

2. ~it~~~JnU ( 1) *~ §1 #:P.~ «Ji#IEJc-$00~ffei¥j1f ll~·#~~ §1 %-itt~•trzr

VJ)i)) :i&-fr4it{~jto

c 2 ) *~ 12 ~it* Pi~ ~x 1t~t & ~u lffi inu , * lfX.1t-~ ~ :tiiEJi!loi ic

3. J:Yi § tkff'tt~ ~~ 2014 ~ 12 JJ 31 8 ' J it~ I§ x ill 96,898.52 ~JG, !t if:

~WJ~l~.Xlli 64,624.36 ~jt, 4i)(*1Jtl.Xlli 32,274.16 ~JGo

4. • • tdl-Jt t)Lfi 'tt ~ ~~ 2014 .1f- 12 JJ 31 8' *~ §1Jit~#~75,000.00 ~jt, ~·

~ ,~, $Ji Ff-J 3 0% 0

5. %-itt~At.i.~~'413 iJt aJJ

( 1) 4N.1-T1f$X _,,

20141!=- 12 JJ 31 8 -t )fJ Jl.? ~lli JJ-21,898.52 ~JG 0

10

2014 ~lt, IS;i-~ m tr#~ 15,ooo ~Jt1~, ,mtiF,k.-1113 oo ~ff-Jilt ~4-1t ~ * rfiJ i!t ~ iR -11· tf1 it~~ ~l.U*.' 5t IE1 * l' * ~' ,mt J£5<. ~ 00 ~ff- Jilt ~~rt ~ rti:J~ ~ lf!.1il it.X1t 96,898.52 ~Jt, !t~ 21,898.52 ~5t{51!.JtJi~~1f

*?~~!t~~~~*~:t##~m'mo C2) Jjjim:tlli

t\ti: 2014 ~ 12 !J 31 s' 00 ,~Z,~£*1~it~9l %{±%-~£ ~ l it~m:tlli 96,898.52~5t, !tif: ?§.WJA!l~J(lli 64,624.36~Jt, % 1,J.*-Vll j( ili 32,274.16 ~Xo

( 3) ~A.~#X

2014 ~-tltJf.ilfi~1t~ ;(f #x 75,000.00 ~]to

6. %itM I~: #WJ%it~l*fA. 2014 ~ 1 !J 1 S i: 2014 ~ 12

fl 31 s 0

7 • * r,m § {- JfJ Pl* ? tE if 1~ ~ 1f I~' tr f _ill:. -$ 7f ir. ) * % ;{] 1111011482600001959 0 Jilt j£Jz.-$ oo ~if .mt ~4-1t ~ 1~Jb Ii JJ. -v m Pl*?# ffi- -~*~-VJtJP*? ~:t*, -tltJ.-ilff~1f#x 75,ooo.oo ~7Go til-Ti~ *%~*~+:rjji§-~,~g5t**r,m§·~~-, ~~~mM~~ * if * .xt #r,m m -*tl ,~, :Itt 1-r tJ< • 0

11

iv. Notes to the Financial Statements

Notes to the Financial Statements

1. Basic introduction of the project The Grant Number of Capacity Building for Mainstreaming Social Risk Management in Development Policy and Public Investment Project Granted by the World Bank isTF014490. The Ministry of Finance signed the grant agreement with the World Bank, which came into effect on June 28, 2013, and signed a donation agreement with the National Development and Reform Commission on July 16, 2013. The project is expected to be closed on June 27, 2016. The project grant totals USD 250,000.00 and the Social Development Department of National Development and Reform Commission is responsible for the project execution. The fund under the project is mainly used for goods, consulting services and workshops and training. The objective of the project is to strengthen technical and policy-guiding capacity of the Social Development Department of National Development and Reform Commission in mainstreaming social risk management in the development policy and public investment in China, establishing and improving the long-term training system. The project consists of the following parts: (a) develop a training cmTiculum and materials on social development tailored to the training needs for guiding social risk management in public policy, investment planning and implementation. (b) a tailored training program on social accountability, inclusion and cohesion is developed and adopted as a regular institutional capacity development toolkit; pilots of this training program are carried out for about 200 provincial and municipal National Development and Reform Commission officials.

2. Accounting principles (1) The annual Financial Statement is prepared in accordance with the

Provisional Accounting Regulation of Grant Project Managed by International Department, Ministry of Finance.

(2)The project adopts the accrual basis of accounting, and uses the debit and credit double entry bookkeeping method to record accounting transaction.

(3) In the accounting practice, the Gregorian calendar year is adopted as the accounting year, i.e. from January 1 to December 31 .

3. Implementation of the program As of December 31, 2014, the accumulative project expenditure was

12

USD 96,898.52, including: USD 64,624.36 for consulting services, and USD 32,274.16 for workshops and training.

4. Grant Agreement Implementation As of December 31, 2014, the accumulative withdrawal was USD

75,000.00, accounting for 30% of the total grant.

5. Description of the main subjects of financial statement (1) Bank Deposit The balance of special account was USD-21,898.52 on December 31,

2014. In 2014, except for the USD 75,000 of initial deposit, there was no

application for withdrawal by the International Financial and Economic Cooperation Department of Ministry of Finance and no deposit from the World Bank. USD 21,898.52 of the accumulative project expenditure which is USD 96,898.52, was paid by the Inte1national Financial and Economic Cooperation Department of Ministry of Finance using the funds pertaining to other project included in the same bank account.

(2) Project expenditure As of December 31, 2014, Social Development Department of

National Development and Reform Commission expensed USD 96,898.52, including: USD 64,624.36 for consulting services, and USD 32,274.16 for workshops and training.

(3) Grant Received The reimbursement of 2014 was USD 75,000.00 from World Bank,

which was the initial deposit.

6. The accounting period of this year is as follows: from January 1, 2014 to December 31, 2014.

7. The project special account is opened at the Head Office of China CITIC Bank, and the account number is 7111011482600007959. The International Financial and Economic Cooperation Department of Ministry of Finance manages the project special account and is responsible for the preparation of the special account statement. The initial deposit by World Bank was USD 75,000.00. Since several funds pertaining to other projects are included in the special account, it is impossible to account the interest separately for individual project. Therefore, the interest of this project was not accounted in the project financial statements.

13