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

Management Office

4 : 2017

Accounting Year: 2017

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Contents

..... ................................................................................... 1

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

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

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

....................................................................................

ii.Summary of Sources and Uses of Funds by Project Component .............. 8

.......... A10

iii.Statem ent of Im plem entation of Loan Agreem ent....................10

( ) th ............................................................................. 1 1

iv.Special Account Statem ent ............................................................... 1 1

v.Notes to the Financial Statem ents...................................................16

At F i ................................................................ 19

III.Audit Findings and Recom m endations ......................................... 21

一 一 一 一 一 一 一 一 － -~......

一、审计师意见

审计师意见

新疆教育外资项 目办公室：

我们审计了世界银行贷款新疆职业教育项目2017 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 6 页至第 18页）。

（一）项目执行单位及自治区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办的责任，簖制专用账户报表是新疆维吾尔自治区财政厅的责任，这种责任包括：_l．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。

⋯一 钾表发表审计意执行 了审计工审计工作以对

我们实施 了必程序包括对由进行风险评估相关的内部控

口自口自自自自口自口自自自自自自

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款协定的要求编制，公允反映了世界银行 、贷款新疆职业教育项目2017 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

我们审查了本期内由自治区财政厅报送给世界银行的第 006 号至

011 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。

中华人民共和国新疆维吾尔自治区审计厅 ～二 0 一八年六月二十五 日

地址：、国新疆维吾尔自：台区鸟鲁木齐市建设路 1 86 、 ⋯中卜咚簖码：830002{巴贾’&6一099，一28,5503}’ 具 ’ 86一0991 一28 1 550&2 ⋯

1. Auditor's Opinion

Auditor's Opinion

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

175,152,650.00 94,496,597 36 53,95 % 310,0o0,000.00 116,868,422.4 1 3770%World Bank I-oun

MýPIÅ4" 123,260,500 00 47,6275911 57 38,64% 297,600,000 00 107,962,525.60 36.29%Counterpart Fwancý ng

17,486,500 00) 7,117>026.55 40 70% 62000,000 00 25,658.557 05 41 3^Prefeelýival level Couliterpm fund

2. :ýYI H 2 -

County Couriterpari 105,774,000.00 4P,510,885.02 38 3n% 235,600,000.00 82,303,968 55 34,93%

Total Application ofFunds 298,663,150.00 121,528,748.26 405.69% C7,600,000 00 18 1,718,718 V 29.91%

U - It, fl JU,

School Enterprise 2,317,000,00 286,489.50 12.36% 4>400,00,00 560,72250 12749/8Cooperalinn Innovation

2.

1,1hU FvaluafloiiýtndReforrn of 15,977,250 00 1,798,639.50 11 26% 3 1,9775000.00 2,578,979 99 8.07%Teaching

ý ý - ý T ää T 4,'z i t] l ýk 41 `N; i IPUJ Sk

To crelite a high leve] tcael-nrig 11,9115ö00 00 3,352,305.53 28 14% 76>501,0f)0.00 9,310,429 13 12 17%

tearn and

4, ffi * F7 t-A

Service Area Society 5,555,000.00 2,029,072 70 36 5 3% 15,950,000.00 8ý350,774.96 52.36%

I

IMPrOve the Conditions for 259,636,400 00 115,911,488 51 44ý64% 448,3?6,000 00 154,697,098.65 34.50%Running Gol loge

6- 4.-L3,266,500,00 -1,849,247 48 -56.6101o 30,396,000M 6,220,723 17 2047%

Differc:nce 20,595,760.67 43,112,229 61 -

Change, in Reecivable -1,536,824 49 3,979,934 00 -

y-ii-, f UKK -ii, i- -41EClicinge in PayaIlle 13,176,708 25 18,601,692 80

7-1741T M 1'ýk ýkChange in Cash and Batik 35,380ý964 86 57,851,865.93

4 412

--Other 71,671.45 116,87742

8

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V9iv. Special Account Statement

P -1 A

SPECIAL ACCOUNT STATEMENT*MAY 2017 4- 12 A 31 F

(For the period ended Decernber 3 1, 2017)-4 J'A

A& 4,11, -k 1A q E

Project Name.Xinjiang Technical and Vocational Education and'rraining Project Financed by the World Ban

8510-CN Loan No. 8510-CN

)"III Ix nlf J )-T

Prepared by: The Finance Departynentof Xinjiang UygurAutonotnous Region

3 ,p R 11 - # : J "4 A 4, & A f 4TKb - T z',- ,I - t /- - ?F )- b

Depository Bank: Shang hai Pudong Developentent Bank Urumqi Branch

A 108260843377

Account No. 108260843377

-, A : it I

Currency: USD

A 41 r)"

Part A- Account Activity for the Period Amount

29,232.95

Beginning Balance

: 0 t

Add:

14,660,651.24

Total Amount Deposited by World Bank

k A% J,*', qk Aj I,-n (:j A fj yK p Ig 535 92

Total Interest Earned this Period if (deposited in Special Account)

* A ; -H- )--I 4-F ;t in

Total Amount Refunded to Cover Ineligible Expenditures

A a

Deduct:

Total Amount Withdrawn this Period 9.689,850.55

Total Service Charges i not included in Above Arnount Withdrawn

M * + Nf 5,000,569.56

Ending Balance

Part B-Account Reconeiflation

Arnount Advanced by World Bank 5,000,000.00

Deduct:

4, -11FRTBR%ý 0Total Amount Recovered by World Bank

5, 4 M i * -VI ÅK P,00YK,000.00Outstanding Amount Advanced to the Special Account 5,000,000.00

Ending Balance of Special Account 5,000,569,56

Add:

Amount Claimed but not yet Credited at the End of this Period

Amount Withdrawn but not yet Clained

Cumulative Service Charges(if not Included in Item 5 or 6)S Deduct:- - -- - - -

8, rR A [k A ( - 595

Interest Faned (if Included in Specal Account) 569.56

Total Advanced to Special Account accounted for at the End of this Period 5,0 00.00

12

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尹．.....~~~~~ ～一－一 －－一 ．...............

元。

4，报表科 目说明4.1 项目支出2017 年 项 目支 出人 民币 121,528,748.26 元 ， 累 计 支 出人 民 币

181,718,718.40 元，占总投资计划的 29.91％。

4.2 货币资金2017 年 12 月 31 日货币资金余额为人民币 57,851,865,83 元。其中专用

账户存款余额折合人民币32,674,721.62 元。

4.3 预付及应收款2017 年 12 月 31 日余额为人民币 3,978,934.00 元。主要是已申请提款报

账，实际尚未收到资金。

4.4 项目拨款2017 年 12 月 31 日，余额为人民币 107,962,525.60 元，是 自治区及各院

校项目办到位的配套资金。项目计划配套资金总额人民币 297,60仇000 元，截至 2017 年 12 月 31

日到位人民币 107,962,525.60 元，占计划的 36.28％。

4.5 项目借款___20钾年 12 月 31 日，项目借款余额为人民币 116,868,422.41 元，其中：粤际复兴开发银行贷款额为，7,885,651.24美元，折合人民币116,868,422.4,兀 。

⋯一1 日余额为人民币 18,6m,692.80 元，主要是学校已垫付自治区项目办年末未及时拨付给项目学校的提款报账

工日，余额为人民币 116,877.42 元，主要是银行存款利

14

一 切 ． ‘ ■ ‘ .. ． 豳

。 〕

VNotes to the Financial Statements

Notes to the Financial Statements

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,