30 JUN 2016

Audit Service Center of China National Audit Office for

Foreign Loan and Assistance Projects

Audit Report

1WA t1R Lt2016) 32-#

AUDIT REPORT C 2016J NO. 32

Project Name: Capability Building of Evaluation of China's Health

System Reform Pilot Project Granted by the World Bank

P #: TF013943

Grant No.: TF013943

Project Entity: Center for Project Supervision and Management,National Health Family Planning Commission of the

People's Republic of China

tiYt fo: 2015 * 1 A 1 H H 2016 # 2 A 29 H

Accounting Period: January 1, 2015 - February 29, 2016

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Contents

0 it "M............................................. ................... 1.

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

................................................S

II. Financial Statements and Notes to the Financial Statements...........5

( -) ~... ......................................................... S

i. Balance Sheet.. ................ 5..... ............. 5

....)....................................... 6

ii. Statement of Implementation of Grant Agreement . ............ 6

( --= )i- x CO.... t..................................................... 7

iii. Special Account Statement ............................... 7

( vg ) 4-,............................................................. 8

iv. Notes to the Financial Statements........... ............ 10

III Auditin1dins A ................... ..... 13

1II. Audit Findings and Recommendations .................................. 14

一、审计师意见

审计师意见

国家卫生计生委项目资金监管服务中心：

我们审计了世界银行赠款中国医改试点效果评价能力建设项目2016年 2月 29日的资金平衡表及截至该日同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．悠体列报。

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、会计制度和本项目赠款协定的要求编制，公允反映了世界银行赠款中国医改试点效果评价能力建设项目2016年 2月29日的财务状况及截至该日同期间的财务收支、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 6号至第 10号提款申请书 （其中第 7、8 号提款申请书已作废）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。

贫 ：

镼少钾勺审计籲感哪 援款碑目审姆⋯乏务中心

’吩＿⋯岁／地址：中国北京市丰台区金中都南街 17号邮政簖码：100073电话：86一10一50992785

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I . Auditor's Opinion

Auditor's Opinion

To Center for Project Supervision and Management, National HealthFamily Planning Commission of the People's Republic of China

We have audited the special purpose financial statements (from Page 5to Page 12) of Capability Building of Evaluation of China's HealthSystem Reforrn Pilot Project Granted by the World -Bank, whichcomprise the Balance Sheet as of February 29, 2016, the Statement ofImplementation of Grant Agreement and the Special Account Statementfor the period 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 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 controlto ensure that the financial statements are free from materialmisstatement, 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 fi-om material misstatement.An audit involves performing - cedures 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, whetherdue to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity's preparation and fairpresentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances, but not for the

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purpose of expressing an opinion on the effectiveness of the entity'sinternal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of accounting estimatesmade by management, as well as evaluating the overall presentation ofthe 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 CapabilityBuilding of Evaluation of China's Health System Reform Pilot ProjectGranted by the World Bank as of February 29, 2016, its financialreceipts and disbursements, the project implementation and the receiptsand disbursements of the special account for the period then ended inaccordance with Chinese accounting standards and system, and therequirements of the project grant agreement.

Other Matter

We also examined the withdrawal applications from No.6 to No.10(No.7 and No.8 have been canceled) and the attached documentssubmitted to the World Bank during the period. In our opinion, thosedocuments comply with the project grant agreement and can serve asbasis for grant 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 Recommendatis.tj

Audit Service Center of Chid&7NAtional A&dit i9f.e forForeign Loan and Assistance R46jects/;June 29, 2016

Address: No. 17 Jinzhongdu South t-etongtai District, Beijing,P.R.ChinaPostcode: 100073Tel.: 86-10-50992785

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

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II. Financial Statements and Notes to the Financial Statements

(-) *t*Jfli. Balance Sheet

BALANCE SHEET2016 4 2 A 29 ]i

(As of February 29, 2016)

Project Name: Capability Building of Evaluation of China's Health System Grant No.: TF013943Reform Pilot Project Granted by the World Bank

Prepared by: Center for Project Supervision and Management National Health Currency Unit: RMB YuanFamily Planning Commission of the People's Republic of China

Application of Fund Sources of Fund

Subject Name Beginning Ending Subject Name Beginning Ending BalanceBalance Balance Balance

Cash in Bank 164,753.16 0.00 Grant Received 1,315,221-90 1,636,300.00

A tn of Grant 0.00 0.00 Counterpart 0.00 160.29Appropriation Fund

1,150,573.19 1,636,460.29Project Expenditure

& rp4 i A A A-VT *871,553.03 1,237,739.54

Independent Evaluationof the ReformPilots(Goods, M-49VAA 0.00 0.00Consultants' Services) Payable

279,020.16 398,720.75Capability Building(Training)

0.00 0.00Receivable

1 01 3 [10.00 215.86 104,45 215.86Interest Expenditure Interest received

Total Application of 1,315,326.35 1,636,676.15 Total Sources of 1,315.326,35 1,636,676.15Fund Fund

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中，一 ＇ 。編

一戶州

iii. Special Account Statement

* A * P #1 -tSPECIAL ACCOUNT STATEMENT

*JN A 12016 * 2 A 29 N

(Forthe period ended February 29, 2016)

RNUIJ-1: *1Mffro I,+ ME FAM14AA;9-R&*&) tWAV ftPiRfit# :

Project Name: Capability Building of Evaluation of China's Depository Bank: Head Office of Bank

Health System Reforrn Pilot Project Granted by the World Bank of China

TF0139,43 778350126512

Grant No.: TFO 13943 Account No. 77 8' ) 50126512

AfWk: 11 'r # A-1 : G

Prepared by: Center for Project Supervision and Management, Currency Unit: USD

National Health Family Planning Commission of the People's

Republic of China

Item Amount

1 26,924.85Beginning Balance

)JH. 2.*QVJF-14 r)j 35,049.34Add.- Amount Deposited this Period by World Bank

3. f-9, L11 V, A 15.91Interest Earned this Period

4. T, -inl- 4:5 11 P ilk , PQ i

Total Amount Refunded this Period to Cover 0.00Ineligible Expenditure

A. 5.*JWj -440) 61,957.12Deduct: Amount Withdrawn this Period

6. V, I j -T-- R VBank Service Charges this Period

7. * JUJ *q& *e th N 32.98Interest Transferred this Period

8. 1W * k & 0.00Ending Balance

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（四）财务报表附注

财务报表附注一、项目概况“世界银行赠款中国医改试点效果评价能力建设”项目，经原卫生部

国际司申请，由世界银行提供总额为 250,000.00美元的世界银行机构发展基金（l DF）赠款支持，赠款号为TF01 3943，国家卫生计生委项目资金监管服务中心为项目执行单位。该项目旨在通过支持对改革试点的独立评价以及通过提供影响评价方法的培训来加强国家卫生计生委和国内专家对当前医改试点评价的能力。项目协议于 2013年 5月 24日生效，项目的关账日为 2016年 2月29日。

二、报表编制范围财务报告包括：资金平衡表、赠款协定执行情况明细表、专用账户收

支表。

三、主要会计政策1．会计核算年度采用公历年制，即每年的 1月 l 日至 12月 31日。

因本项目于 2016年 2 月 29日关账，经世界银行同意，本期核算期间为20 15年 l 月 1日至2016年 2月 29日。

2，本项目依据 《财政部国际司管理的赠款项目会计核算暂行办法》（财际函〔2001〕195号文）、《国际金融组织贷款赠款项目财务管理暂行办法》（财际〔2011〕10号文）和本项目执行协议的要求进行财务管理和会计核算。

3．会计核算以 “权责发生制”作为记账原则，以人民币为记账本位币，同时设籮外币（美元）辅助账。

四、项目执行情况1．项目活动开展情况：本期主要项目活动包括进行了货物采购，共

14,556.34粎元。培训研讨会 l 次，42人参加，共 15,3 19.06美元。咨询服务合同付款 l 次，共犯，116.21美元。

2．赠款执行情况：截至 2016年 2月 29日，项目执行单位累计向世

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界银行申请提款8次，提取赠款共250,000.00美元，占项目总计划的100％。赠款协定执行情况表按照世界银行要求从世界银行角度编报。

3．本项目专用账户由国家卫生计生委项目资金监管服务中心管理，设在中国银行总行营业部，账号为 778350126512，币种为美元。本期期初余额 26,924,85粎元，本期世行回补 35,049.34美元（不含中国银行纽约总部收取 10.00粎元的汇款手续费），利息收入 15.91美元，本期支付61, 957.12粎元 （含银行手续费 106.21美元），利息转出32.98美元，期末余额为零。

五、财务报表项目注释1．银行存款：核算收到的世界银行赠款、利息及相关项目支出，专

用账户期末余额为零。2．项目支出：核算项目总支出，主要包含货物、国内外培训、研讨

会、咨询服务等。期末余额为250,024.49美元，将美元采用 2016年 2月29日人民币兑粎元汇率中间价 （l 粎元＝人民币6.5452元）折算为人民币I,636, 460.29 元 。

3．利息支出：核算项目转出的利息，期末余额为 32.98美元，将美元采用 2016年 2月 29日人民币兑粎元汇率中间价 （1 美元＝人民币6.5452元）折算为人民币215.86元，己全部转至财政部账户。

4．拨入赠款：核算项目收到世界银行赠款金额，期末余额为250,000.00粎元，将粎元采用 2016年2月29日人民币兑美元汇率中间价(l 粎元二人民币6,5452元）折算为人民币 l,636,300,00元。

5．利息收入：核算项目收到的利息，期末余额为咒．98美元，将美元采用 2016年 2月29日人民币兑粎元汇率中间价 （1美元＝人民币6.5452元）折算为人民币215,86元。

6．配套资金：核算项目超预算支出，由项目单位配套资金安排支出，期末余额为 24.49粎元，将粎元采用 2016年2月29日人民币兑美元汇率中间价 （I 粎元＝人民币6.5452元）折算为人民币 160.29元。

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iv. Notes to the Financial Statements

Notes to the Financial Statements

1. Project overviewThe Institutional Development Fund (IDF) of USD 250,000.00 for CapacityBuilding of Evaluation of China!s Health System Reform Pilots Projectgranted by the World Bank (Grant No. TF013943) was applied by theDepartment of International Cooperation of former Ministry of Health (MOH)and designated to Center for Project Supervision and Management NationalHeath Family Planning Commission of the People's Republic of China(CPSM). The objectives of the project are through supporting independentevaluation of the pilot reform and providing training of affecting evaluationmethod to strengthen the ability of the National Health and Family PlanningCommission and domestic experts to affect the current health reform. Theproject agreement was signed on May 24, 2013. The closing date of the grantaccount will be February 29, 2016.

2. The scope of financial statementsThe financial statements consist of Balance Sheet., Statement ofImplementation of Grant Agreement and Special Account Statement.

3. Main accounting policies3.1 In accounting practice, the Gregorian calendar year is adopted as theaccounting year, i.e. from January I to December 3 1. The project was closedon February 29, 2016. Approved by the World Bank, the current accountingperiod is from January 1, 2015 to February 29, 2016.3.2 Financial management and accounts recording is based on the TemporalMethods on Financial Accounting of the Projects Financed by Grants underthe Administrative of Department of International Cooperation of Ministry ofFinance (Caijizi [20011 No.195), Interim Financial Accounting Methods ofthe Projects Financed by International Financial Organizations Loan/Grant(Caiji [2011] No.10), and Project Implementation Agreement.3.3 'Fhe accrual basis and the debit/credit double-entry bookkeeping methodare adopted in project accounting. RMB yuan is used as the main currency ofbookkeeping and USD is used as a secondary currency in the project grantaccount.

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4. Implementation status of the project4.1 The project activities: As of February 29, 2016, the main project activitiesincluded Procurement of goods with amount of USD 14,556.34, 1 training (42people attended) with the amount of USD 15,319.06, consulting servicescontract with amount of USD 32,116.21.4.2 The Implementation of grant: As of February 29, 2016, project entityapplied to the World Bank for withdrawals for eight times, and the amount ofgrant disbursement is USD 250,000.00, which accounted for 100% of the totalgrant. Required by the WB, the Statement of Implementation of GrantAgreement was compiled from the WB perspective.4.3 The Special Account is managed by the Center for Project Supervision andManagement, National Health Family Planning Commission of the People'sRepublic of China, which is set in Head Office of Bank of China, with theaccount number of 778350126512, and USD as currency unit. The beginningbalance in this period was USD 26,924.85 and the reimbursement in thisperiod by World Bank was USD 35,049.34(not including USD 10.00 transferservice fee charged by Bank of China (New York)). During this period, theinterest earned was USD 15.91, and the disbursement was USD 61,957.12(including bank service charge of USD 106.21), interest expenditure was USD32.98. Thus, the ending balance was USD 0.00.

5. Notes to the main items of the financial statements5.1 Cash in Bank: The subject of Cash in Bank represents the World Bankgrant received, interest and related project expenditures. The ending balanceof Cash in Bank was USD 0.00.5.2 Project Expenditures: It represents the expenditures of this project,including the disbursement of domestic training, overseas training, workshopsand consulting services. The ending balance of Project Expenditures was USD250,024.49, which was converted to RMB 1,636,460.29 yuan, using a middlerate of USD 1= RMB 6.5452 yuan on February 29, 2016.5.3 Interest Expenditure: The subject of Interest Expenditure represents theinterest transferred to the account of Ministry of Finance. As of February 29,2016, the ending balance of the subject was USD 32.98, which was convertedto RMB 215.86 yuan, using a middle rate of USD 1= RMB 6.5452 yuan onFebruary 29, 2016.5.4 Grant Received: The subject of Grant Received represents the grantdeposited in the Special Account by the World Bank. As of February 29, 2016,the ending balance of the subject was USD250,000.00, which was convertedto RMB 1,636,300.00 yuan, using a middle rate of USD 1= RMB 6.5452 yuanon February 29, 2016.

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5.5 Interest received: The subject of Interest Received represents interestreceived. The ending balance was USD32.98, which was converted to RMB215.86 yuan, using a middle rate of USD 1= RMB 6.5452 yuan on February29, 2016, which was paid to account of Ministry of Finance.5.6 Counterpart: The subject of Counterpart represents over budgetexpenditure covered by project entity's own funds. The ending balance wasUSD 24.49, which was converted to RMB 160.29 yuan, using a middle rate ofUSD 1= RMB 6.5452 yuan on February 29, 2016.

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