Audit Service Center of China National Audit Office for

Foreign Loan and Assistance Projects

Audit Report

1*F t 4k (2018) 40 -

AUDIT REPORT (2018) NO. 40

Project Name: The Promotion of Sustainable Cities in China Project

Granted by the GEF

9 tk #: TF0A0276

Grant No.: TF0A0276

Project Entity: Department of Climate Change, Ministry of Ecology and

Environment

2016 F 5 A 19 H -2018 * 4 A 30 H

Accounting Period: May19, 2016 -April 30, 2018

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⋯目 录 ’ContentS

一、审计师意见．.．⋯⋯，，二，....... ．⋯⋯，................................ ．⋯⋯，⋯，．⋯，二，.,．⋯⋯l

1 .Auditor&sQPininn 二，.．⋯，⋯，...........．⋯⋯，,.．⋯，...... ．⋯⋯，....．⋯⋯，... ．⋯⋯，，⋯⋯3

二、财务报表及财务报表附注．，二，......................................................．⋯⋯5

11 .Financial Statemenis and Notes to the Financial Stateme爪5.．⋯⋯，．⋯⋯5

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

1 .Balance Sheet.,.,., ．⋯，..............．⋯⋯，二，.．⋯，.....．⋯⋯，.....．⋯⋯，.，二，......．⋯⋯5

（二）赠款协定执行情况明细表．，⋯⋯，......．⋯⋯，.........................．⋯⋯6

11 .statement oflmPlemeniation of Grant Agreement......... ．⋯⋯，... ．⋯⋯ 6

（三）专用账户收支表．.................．⋯⋯，.,，二，,.,..............................．⋯⋯7

111 .Special Aeeount statement⋯⋯，........................... ．⋯⋯，二，．⋯⋯，... ．⋯⋯7

（四）财务报表附注．......．⋯⋯，⋯⋯，二，二，.......... ．⋯⋯，.............．⋯⋯，.,．⋯⋯8

iv. Notes tothe Financial StatementS二，二，．⋯，..．⋯⋯，二，.... ．⋯⋯，.....．⋯⋯，二10

三、审计发现的问题及建议．,.............．⋯⋯，.......．⋯⋯，..．⋯⋯，.........．⋯⋯，⋯13

nl.Audit Findings andRe。。mrnendations............ ．⋯⋯，..... ．⋯⋯，... ．⋯⋯，．⋯ 14

一、审计师意见

审计师意见

生态环境部应对气候变化司：一

我们审计了全球环境基金赠款通过国际合作促进中国清洁绿色低碳城市发展项目2018 年 4 月 30 日的资金平衡表及 2016 年 5 月 19 日至 2018 年 4 月 30 日期间的赠款协定执行情况明细表和专用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 12 页）。

（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、会计制度和本项目赠款协定的要求编制

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。

（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。

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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、会计制度和本项目赠款协定的要求编制，公允反映了全球环境基金赠款通过国际合作促进中国清洁绿色低碳城市发展项目2018 年 4月30 日的财务状况及2016 年 5 月 19 日至2018 年4月30 日期间的财务收支、项目执行和专用账户收支情况。

（四）其他事项

我们还审查了本期内报送给世界银行的第 1、001、第 2 至 7 号提款申请书及所附资料。我们认为，这些资料均符合赠款协议的要求，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。

审计瓢溉添月，务中心飞 刀映厂， 亡犷

丫 才龄 丫、 提 ～尹 尹

地址：中国北京市海淀区中关村南大街 4 号邮政簖码：100086电话：86一10一62 1 50750

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I. Auditor's Opinion

Auditor's Opinion

To Department of Climate Change, Ministry of Ecology and Envirom-nent

We have audited the special purpose financial statements (from Page 5 toPage 12) of the Promotion of Sustainable Cities in China Project Grantedby the GEF, which comprise the Balance Sheet as of April 30, 2018, theStatement of Implementation of Grant Agreement, the Special AccountStatement for the period from May 19, 2016 to April 30, 2018 and Notesto the Financial Statements.

Project Entity Responsibility for the Financial Statements

The preparation of the above financial statements is the responsibility ofyour entitywhich includes:i. Preparing and fair presenting the accompanying financial statements inaccordance with Chinese accounting standards and system, and therequirements of the project 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 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 to obtainreasonable assurance about whether the financial statements are free frommaterial 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 of therisks of material misstatement of the financial statements, whether due tofraud 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 the Promotionof Sustainable Cities in China Project Granted by the GEF as of April 30,2018, its financial receipts and disbursements, the project implementationand the receipts and disbursements of the special account for the periodfrom May 19, 2016 to April 30, 2018 in accordance with Chineseaccounting standards and system, and the requirements of the project grantagreement.

Other Matter

We also examined the withdrawal application No.1, No.00 1 and No.2 to

No.7 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 partshereinafter: FinaJ Statements and Notes to the Financial Statements,Audit Findingnd o endations.

Audit S en CeitZo fChiffaNational Audit Office for Foreign Loan andAssistand ject`y -Septembet '08

Address: No. 4 zhongguancun South Avenue, Haidian District, Beijing,P.R.ChinaPostcode: 100086Tel.: 86-10-62150750

The English translation is for the convenience of report users. Please take

the Chinese audit report as the only official version.

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iv. Notes to the Financial Statements

Notes to the Financial Statements

1. Basic InformationThe grant number of The Promotion of Sustainable Cities in China ProjectGranted by the GEF is TFOA0276. The project aims to explore the mostsuitable low-carbon development model and path for different types of cities,by analyzing the advantages, disadvantages, development needs anddevelopment potential of green low-carbon development in different cities,and put forward practical policy recommendations for the government toformulate and promulgate guidance documents on deepening the pilot work oflow-carbon provinces and cities, and provide better guidance to low-carbonconstruction at the city level.

The Ministry of Finance signed the project grant agreement with the WorldBank on May 19, 2016. On August 12, 2016, a transfer agreement was signedwith the National Development and Reform Commission. The approved grantamount was USD 2,000,000.00, in which the consulting services were USD1,900,000.00, and the project operating costs were USD 100,000.00. Afteradjustment, the final approved grant amount of consulting services was USD1,970,217.34, and the final approved grant amount of project operating costswas USD 29,782.66. The special account of this project was set up in theservice center of the National Development and Reform Commission, whichwas closed on June 30, 2018.

In April 2018, due to institutional reforms, the name of the project executionunit was changed from the former Department of Climate Change of theNational Development and Reform Commission to the Department of ClimateChange of the Ministry of Ecology and Environment.

2. Accounting Principles2.1 The project shall be accounted in accordance with the Interim Measuresfor the Financial Management of Projects Financed by Loans and Grants of

International Financial Organizations.2.2 In the accounting practice, the Gregorian calendar year is adopted as theaccounting year, i.e. from January I to December 3 1. The accounting period

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was from May 19, 2016 to April 30, 2018.2.3 The accrual basis and the debit/credit double entry bookkeeping methodare adopted. RMB is used as the recording currency of bookkeeping.2.4 The middle exchange rate on April 30, 2018 of USD I =RMB 6.3393 yuanwas adopted as the exchange rate of the project.

3. Implementation of the ProgramAs of April 30, 2018, the total amount of USD 2,000,000.00 (equivalent toRMB 12,678,600.00 yuan) had been withdrawn, which accounted for 100% ofthe total grant amount. The total expenditure was USD 1,997,771.91(equivalent to RMB 12,664,475.47 yuan), which accounted for 99.89% of thetotal grant amount.

4. Description of the main subjects of financial statement4.1 Cash in BankThis subject mainly records the income, expenditure and balance of specialaccount.By April 30, 2018, the ending balance of Cash in Bank was USD 2,387.89,equivalent to RMB 15,137.55 yuan on.4.2 Project ExpenditureThis subject mainly records all the qualified expenditure of projects financedby World Bank funds.The actual project expenditure in this period was USD 1,997,771.91,equivalent to RMB 12,664,475.47 yuan (include exchange gain or loss). TheProject Expenditure in this period mainly included consulting services andoperating costs.4.3 Grant ReceivedThis subject records the world bank grant which was actually used andreceived. The ending Grant Received in Bank was USD 2,000,000.00(equivalent to RMB 12,678,600.00 yuan).4.4 PayablePayable mainly records the interest earned in special account. By the end ofthis period, the interest earned was total USD 159.80 (equivalent to RMB1,0 13.02 yuan).

5. The Income and Expenditures of the Special AccountThe special account of the project was set up in the Service Center of theNational Development and Reform Commission from May 2016 to April 2018.The Depository Bank is XiCheng Branch, Beijing of China Everbright Bank,

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with the account number of 75071488000007521, and the currency unit of USDollars. The initial deposit of the Special Account was USD 450,000.00. Thereimbursement in this period was USD 2,000,000.00 and the disbursementwas USD 1,997,771.91 for the current period. The accumulated interest wasUSD 159.80, and the ending balance was USD 2,387.89 in the specialaccount.USD 2,278.09 was disbursed for consulting service fees on May 2, 2018,among which USD 50 was the settlement of interest. The accumulated interestUSD 113.53 was transferred to the National Treasury on June 4, 2018, and thebalance of the special account was USD 0.00.

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