30 JUN 2017

Audit Service Center of China National Audit Office for Foreign

Loan and Assistance Projects

Audit Report

' ikhrtk [2017) 25 -#7

AUDIT REPORT [2017) NO. 25

Project Name: China Economic Transformation and Institutional

Capacity Building Project Financed by the

World Bank

Ak A -LN8375-CHA

Loan No.: LN8375-CHA

Project Entity: International Financial and Economic Cooperation

Department of Ministry of Finance

2016

Accounting Year: 2016

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目 录

一、审计师意见，,.,.,.,,,.,．⋯，⋯，,.，⋯⋯，,.,.......．⋯⋯，.,,.．⋯，...．⋯⋯，..............．⋯⋯1

1 .Auditor&sOphiion.............. ．⋯⋯，一，⋯⋯，二，,.．⋯⋯，．⋯，，二，.．⋯，................ ．⋯⋯3

二、财务报表及财务报表说明．.........．⋯⋯，.,．⋯，二，,,,.,．⋯，,...................．⋯⋯5

11 .Financial St簸ements and NoteS to the Finallcial Statements 二，⋯，．⋯⋯，.5

（一）资金平衡表．...．⋯⋯，..．⋯⋯‘.....．⋯⋯，......．⋯⋯，二，,.,，⋯⋯，,，二，．⋯⋯，5

1 .Balaflce Sheet 二，．⋯，................................................................ ．⋯⋯5

（二）项目进度表．⋯⋯，.......................................................．⋯⋯，.,.,.6

11 .Summaly of Sources and Uses ofF切lds by Project COlllponent6

〔三）贷款协定执行情况表⋯，二，.，⋯，.，⋯，.，二，．⋯⋯，⋯⋯，二，,.,........．⋯⋯8

川 ．StatementofImplelnentationofLoanAgreement ⋯⋯，⋯，,....．⋯⋯8

（四）指定账户收支表．...............................................．⋯⋯，.....．⋯⋯9

iv.statement ofDesignatedAccount(DA)................................．⋯⋯9

（五）财务报表附注．．⋯，⋯⋯，二，．⋯⋯，⋯，....................................．⋯⋯H

v.Notes to the Financial Statements ⋯＿⋯，,,．⋯，,.,,．⋯，,.......．⋯⋯，..．⋯⋯13

三、审计发现的问题及建议．.............................................．⋯⋯‘.．⋯，．⋯，.,15nl.Atldit Findings and Reco~endations ，二，,．⋯⋯，,.,.,,，⋯，,,,....．⋯⋯，..．⋯⋯ 17

一、审计师意见

审计师意见

财政部国际财金合作司：

我们审计了世界银行贷款中国经济改革促进与能力加强项目2016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指定账户收支表等特定目的财务报表及财务报表附注（第 5页至第 14页）o

（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、会计制度和本项目贷款协定的要求编

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。蓉体列报。

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。

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（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款协定的要求编制，公允反映了世界银行贷款中国经济改革促进与能力加强项目2016年 12月 31日的财务状况及截至该日同年度的财务收支、项目执行和指定账户收支情况。

（四）其他事项

我们还审查了本期内报送给世界银行的第 2号提款申请书。我们认为，这份提款申请书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。

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地址：中国北京市丰台区金中都南街 17号邮政簖码：100073电话：86一10一50992718

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Auditor's OpinionAuditor's Opinion

To International Financial and Economic Cooperation Department ofMinistry of Finance

We have audited the special purpose financial statements (from page 5 topage 14) of China Economic Transfon-nation and Institutional CapacityBuilding Project Financed by the World Bank, which comprise theBalance Sheet as of December 31, 2016, the Summary of Sources andUses of Funds by Project Component, the Statement of Implementation ofLoan Agreement and the Statement of Designated Account (DA) for theyear then ended, and Notes to the Financial Statements.

Project Entity's Responsibility for the Financial Statements

Your entity is responsible for the preparation of the financial statementsmentioned above, which include:i, Preparing mid fair presenting the accompanying financial statements inaccordance with Chinese accounting standards and system, and therequirements of the project loan and grant 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 Auditig Standards of the People's Republic of China andInternational Standards on Auditm'g. 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.An audit 'involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the financial statements. The proceduresselected depend on the auditor's judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether dueto fraud or error. In making those risk assessments, the auditor considersinternal control relevant to the entity's preparation and fair presentation ofthe financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the entity's internal control. An audit also

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includes evaluating the appropriateness of accounting policies used andthe reasonableness of accounting estimates made by management, as wellas 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 ChinaEconomic Transformation and Institutional Capacity Building ProjectFinanced by the World Bank as of December 31, 2016, its financialreceipts and disbursements, the project implementation and the receiptsand disbursements of the designated account for the year then ended inaccordance with Chinese accounting standards and system, and therequirements of the project loan and grant agreement.

Other Matter

We also examined the withdrawal application No.2 submitted to theWorld Bank during the period. In our opinion, this application complieswith the project loan agreement and can serve as basis for loanwithdrawal.

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.

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Audit Service Center of China National Audit Office forForeig-Loan and Assistane ProjectsJune 3 72017

Address: No17Jinzhngdu South Street, Fengtai District, Beijing,P.R-ChinaPostcode: 100073Tel.: 86-10-50992718

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

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( V9 ) _WMP k3 *iv. Statement of Designated Account (DA)

VIUMP kt* ( - )STATEMENT OF DESIGNATED ACCOUNT (DA) I

2016 1- 12 A 31 Fl

For the period ended December 31, 2016

LN8375-CHA

Loan No: LN8375-CI-IA

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Depository Bank: Sales Department of Industry and Commercial Bank of China (ICBC) Head Office

A 01 * 1k: M 1, 19 Nf, M k If 1

Prepared by: International Financial and Economic Cooperation Department of Ministry of Finance

QK-9--0200049529200019464 Ait

Account No.: 0200049529200019464 Currency Na e and Unit. USD

PAPT A-ACCOUNT ACTIVITY FOR THE PERIOD AmountA-J,3 . 'IkK

Opening DA balance at beginning of reporting period (as of 1/ 1/2016) 428,362.81

Add M,)JH)

Total amount deposited by World Bank 500,000.002. * J01 Vt JA IN IT I _q * 11 111 4 jai

Total interest earned this period if dcposited in Designated Account 206 91

Total amount refunded to cover ineligible expenditures4. A -M T- -i" 4 k

Deduct

Total amount withdrawn 539,006.375. Z

Total sei-vice charges if not included in above amount withdrawn 95.526. * VJ 0- 9;, : -&. U-4 & t 1-1 (rJ A -YT E Lh

Total interest withdrawed this period of special accunt 11.2.20

Endingbalance (12131/2016) 399,355.63j 20 16. 12. 3 1

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PAPT B-ACCOUNT RECONCILIATIONBf,ll$: M-tii K)" U,1[V1

Amount advanced by World Bank 1,000,000.00I .11t*4:T*Bi V

Deduct (&k )

Total amount recovered by World Bank2.:-1YLtMHFi t Fl -MkkS

Present outstanding amount advanced to the Designated Account at 12/31/2016 1,000,000.00

Ending balance of Designated Account at 12/31/2016 389,355.634tWt'P iWj$4A1 (2016.1231)

Add (fM)JI-) :

Amount claimed and not yet credited at month/day/year

Amount withdrawn and not yet claimed 610,644.37

Service charges for the period (if not included in item 5. or 6.)

7.t -YJJ t (klI 1kE 5 511 64)

Deduct (Jk) :

Interest earnings for the period (if included in Designated Account)

Total advance to Designated Account accounted for at 12/31/2016 1,000,000.00

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（五）财务报表附注

财务报表附注

一、项目基本情况世界银行贷款中国经济改革促进与能力加强项目旨在通过一系

列子项目的实施，一方面对中国经济体制改革的重点难点问题开展深度研究，提出具体政策建议并付诸实施，以促进经济体制改革的深化和中镼期发展规划的制定及目标的实现；一方面配合国家人才发展战略的实施，开展机构与人员能力建设活动，促进相关领域人才培养与人力资源开发，提高相关政府部门和地方的改革及政策制定与执行能力。项目实施内容包括两方面：一是改革促进与政策研究；二是机构能力加强与人力资源开发。本项目于2014年 6月 13日与世界银行签籲了《贷款协定》，核定贷款额为 35,000,000美元，其中：类别 1额度为22,443,1 25粎元，类别2额度为 12,469,375美元，先征费为 87,500粎元。本项目指定账户开设在财政部，预计于2019年 12月 31日关账。二、会计核算原则1．本项目按照《世界银行贷款项目会计核算办法》进行会计核算。2．本项目会计核算按照权责发生制原则，采用借贷复式记账法，

本期核算期间为 2016年 1月 1 日至2016年 12月31日，以人民币为记账本位币，粎元为辅助记账货币。

3．期末外币折算汇率按照中国人民银行2016年 12月31日公布的粎元兑人民币中间价 6.9370折算，并计算汇兑损益。三、项目执行情况1．提款情况截至2016年 12月 31日，累计从世界银行提款 l,087,500美元，

其中 1，。00，。00粎元为预存款，87,500美元为世界银行直接扣除的先征费。

2．支出情况截至2016年 12月31日，贷款累计支出698,1料37 美元，其中

先征费支出87,500美元。四、会计报表主要科目说明1．银行存款

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20 16年 12月31日银行存款余额 389,355.63美元，折合人民币2,700,960.01 元 。

2．项目支出本项目本期支出539,006.37粎元，折合人民币3,809,648.97元。3．世界银行贷款本期从世界银行提款 500,000粎元，累计提款 1,087,500美元。4．其他应付款项该科目主要反映指定账户存款利息，截至2016年 12月31日利

息收入余额为。美元。五、指定账户使用情况本项目指定账户开设在中国工商银行总行营业部，账号为

0200049529200019464，币种为美元。指定账户期初余额 428,362.81粎元，本期存入 500,000粎元，本期支出539,006.37美元，利息收入206.91粎元，银行手续费 95,52粎元，利息收入转出1 1 2.20美元，期末余额 389,355.63美元。

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v. Notes to the Financial Statements

Notes to the Financial Statements

1. Basic situation of the projectChina Econornic TransfonTiation and Institutional. Capacity BuildingProject Financed by the World Bank is designed to support a series ofsub-projects. By implementing these sub-projects, on the one hand,in-depth research on priorities of China's economic reform was carriedout, and specific policy recommendations were made on that basis, whichwill promote the deepening of economic system reform and thefulfillment of mid-and-long term development plan. On the other hand "by supporting the national talent strategy, institutional and humancapacity-building activities were carried out to promote personneltraining and human resource development in related areas, and theimplementation capacity of relevant government departments andlocal-level policy-making institutions were improved. There are twoaspects in TCC6 implementation: firstly, to promote reform and policyresearch; secondly, to strengthen institutional capacity and humanresources development. The World Bank signed the Loan Agreement onJune 13 2014 with the approved quota of USD35 million, in which:category I and category 2 were USD 22,443,125 and USD 12,469,375respectively, and the front-end fee was USD 87,500. The designatedaccount of this project was opened in the Ministry of Finance, and wasexpected to be closed on Deceinber 31, 2019 as planned.

2. Accounting principles2.1 The accounting method of this project is in accordance withAccounting Method of the World Bank Loan Project.

2.2 The project accounting follows the principle of accrual basis, withmethods of double-entry bookkeeping adopting RMB as base currencyand USD as supplementary bookkeeping currency. This accountingperiod was from January 1, 2016 to December 31, 2016.

2.3 By the end of the accounting period, the exchange rate adopted themiddle exchange rate on December 31, 2016 of the People's Bank ofChina, which was USD 1==RMB 6.9370 yuan, and accordingly recordsthe exchange gain or loss.

3. Project implementation3.1 Withdrawals

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As of December 31, 2016, the project has already withdrawn USD1,087,500 from the World Bank, including amount advanced withdrawnfrom the World Bank USD1,000,000 and front-end fee USD 87,500which was deducted directly.

3.2 ExpendituresAs of December 31, 2016, the accumulative expenditures was USD698,144.37, including the front-end fee USD87, 500.

4. Explanation of Subject4.1 Cash in BankBy the end of 2016, the balance of bank deposit was USD 389,355.63,equivalent to RMB 2,700,960.01 yuan.

4.2 Project ExpenditureThe project has spent USD 539,006.37 in the current period, equivalent toRMB 3,809,648.97 yuan.

4.3 World Bank LoanThe project has withdrawn USD 500,000 from the World Bank in thecurrent period and totally withdrawn USD 1,087,500.

4.4 Other PayablesThis subject is about deposit interest of the designated account. ByDecember31, 2016, the balance of interest income was USD 0,

5. Usage of designated accountThis project's designated account was opened in the sales department ofIndustry and Commercial Bank of China (IC3C) head office. The accountnumber was 0200049529200019464 and the deposit currency is USD.The initial balance of designated account was USD428,362.81 withwithdrawn USD500,000 from the World Bank and expenditureUSD539,006.37 in the current period. The interest income wasUSD206.91 which deducted bank service charges of USD 95.52, andinterest income USD 112.20 has been transferred. The ending balancewas USD389,355.63.

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