3 0 JUN 2015Tl/ 07/

Hubei Provincial Audit Office of P.R.C.

Audit Report

?F' *# 4 C 2015) 74 HB REPORT C 2015 D No. 74

Project Name: Hubei Xiangyang Urban Transport Project Financed

by the World Bank.

:8152-CN

Loan No..: 8152-CN

Project Entity: Hubei Xiangyang Urban Transport Project

Management Office

4-&: 2014

Accounting Year: 2014

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

目 录ColltelltS

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

1 .Auditor&sOPinion.............．⋯⋯，.,......................................................．⋯⋯3

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

11 .Financial Statemeflts and Notes to the Financial Statements ........．⋯⋯ 5

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

1 .BalanCe Sheet ................. ．⋯⋯，............ ．⋯⋯，................................ ．⋯⋯ 5

（二）项目进度表．........．⋯⋯，.......．⋯⋯，..........．⋯⋯，.....................．⋯⋯7

11.Summary of Sources and Uses ofFunds by Project Colllponent．⋯7

（三）贷款协定执行情况表二，⋯，..............................................．⋯⋯，.9

111.Statement of 11llplementation ofLoan Agreement................... ．⋯⋯ 9

（四）专用账户报表．...............．⋯⋯，⋯，..........．⋯⋯，...................．⋯⋯10

iv,Special Account Statement ........................ ．⋯⋯，⋯，............. ．⋯⋯，，二10

（五）财务报表附注．...................................．⋯⋯，,．⋯，............．⋯⋯，二12/

v.NotestotheFinancialStatements........................................... ．⋯⋯ 15、 污 产

厂’ 三、审计发现的问题及建议．........................................．⋯⋯，.....．⋯⋯，．⋯18

n 工，Andit Findings and Rec 。～ endations ．⋯，.．⋯，⋯，.．⋯，.................. ．⋯⋯ 21

一、审计师意见

审计师意见

湖北省襄阳市利用世行贷款城市交通项目管理办公室：

我们审计了世界银行贷款湖北襄阳城市交通项目2014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 5页至第17 页 ）。

（一）项目执行单位及湖北省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湖北省财政厅的责任，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）市计责任

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

二 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。

l

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，公允反映了世行贷款襄阳城市交通项目2014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

我们还审查了本期内报送给世界银行的第003号至第 004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。

：一 ＿⋯ 。矛

地址：中国湖北省武汉市茶港东院一号邮政簖码：430071电话：86一027一87236025传真：86一027一87252502

2

I. Auditor's Opinion

Auditor's Opinion

To Hubei Xiangyang Urban Transport Project Management Office

We have audited the special purpose financial statements (from page 5 topage 17) of Hubei Xiangyang Urban Transport Project financed by theWorld Bank, which comprise the Balance Sheet as of December 3 1,20145 the Summary of Sources and Uses of Funds by ProjectComponent, the Statement of Implementation of Loan Agreement andthe Special Account Statement for the year then ended, and Notes to theFinancial Statements.

Project Entity and Hubei Provincial 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 is the responsibility of your headquarters, while thepreparation of the Special Account Statement is the responsibility ofHubei Provincial Finance Department, which includes:i. Preparing and fairly presenting the accompanying financial statementsin accordance with Chinese accounting standards and system, and therequirements of the project loan 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 theGoverninent 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.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,, whetherdue to fraud or error. In making those risk assessments, the auditor

3

considers internal control relevant to the entities' preparation and fairpresentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances, but not for thepurpose 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 HubeiXiangyang Urban Transport Project financed by the World Bank as ofDecember31, 2014, its financial receipts and disbursements, the projectimplementation and the receipts and disbursements of the specialaccount for the year then ended in accordance with Chinese accountingstandards and system, and the requirements of the project loanagreement.

Other Matter (s)

We also examined the withdrawal application No.003 to No. 004 and theattached documents submitted to the World Bank during the period. Inour opinion, those documents comply with the project loan agreementand 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.

Hubei Provincial Audit Office of the People's Republic of ChinaJune 30, 2015

Address: No. 1 Chagang Road, Wuhan City, Hubei Province, P.R. ChinaPostcode: 430071Tel.: 86-027-87236025Fax: 86-027-87252502

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

4

II. Financial Statements and Notes to the Financial Statements

i. Balance Sheet

BALANCE SHEET2014 - 12 A 31 H

(As of December 31, 2014)

Project Name: Hubei Xiangyang Urban Transport Project Financed by the World Bank

Prepared by: Hubei Xiangyang Urban Transport Project Management Office Currency Unit: RMB YuanFIO i At * f 4' ) il

5 17 TLine V]1 Rua RLineApplication of Fund No. Beginning Balance Ending Balance Sources of Fund No Beginning Balance Ending Balance

Total Project Expenditures 144,042,826.66 241,846,490.03 o nFect 28 50,810,270.90 73,877,649.16Appropriation Funds

Fixed Assets Transferred 2 Project Capital and Capital 29 -Fixe Assts TansfrredSurplus

2. WPkTtt u t:wkConstruction Expenditures 3 - Including: Grants 30 -

to be Disposed

3. $911lA3 4 - - 31 136,288,650.07 200,279,271.52Investments Transferred-out Total Project Loan

4. 7 TEW 1. 9H4B &HConstruction in Progress 5 144,042,826.66 241,846,490.03 Total Project 32 236,288,650.07 200,279,271.52

Investment Loan ____6 _3 6285.

-, _ ii~t1$:(1) 4AInvestment Loan Receivable 6 Foreign Loan 33 136,288,650.07 200,279,271.52

Ah It " <{t-. Tik*R lJff2k It r:n % M 34T f KJIncluding: World Bank 7 - Including: IDA 34Investment Loan Receivable

Appropriation of Investment 8 - - i 35 136,288,650.07 200,279,271.52Loan IBRD

Including :Appropriation of 9 Technical 36 -

World Bank Investment Loan Cooperation

4K# E 10 - -W 37--Equipment Co- Financing

A1 P: *t4*M * - (2) P-9 38 fnOIncluding: Equipment Losses I - Domestic Loan 38in Suspense

3 12 65,029,879.55 61,672,562.95 2. I#, $" 39 -Total Cash and Bank Other Loan

1. 4T4RCash in Bank 13 65,029,879.55 61,672,562.95 Appropriation of 40 -

Investment Loan

Including: Se14 6,0981,880.86 61,230,440.59 Including: World Bank 41Including: Special Account Loan

2 I! 15 42Cash on Hand Bond Fund

)pMA (To be continued)

5

Total Prepaid and Receivable 11,349,600 2,760,000,00 Constrion Expenditures 43 -

Including: World Bank Loan 17 - Total Payable 31,317,776.98 30,082,284.26Interest ReceivableToaPybl

World Bank Loan 18 - - Including: World Bank 45cmitment Fee Loan Interest Payable

World Bank Loan Service- 19 - World Bank Loan 46 - -

Fee Receivable Commitment Fee. Payable

Marketable Securities 20 - - World Bank Loan 47Service Fee Payable

As I E rg FAHi 21 A ;r .1-11 i 48Total Fixed Assets 18,350.00 33,070.00 Other Payables 2,011,077.40 2,032,477.45

ME P W22 I M A 49 - -Fixed Assets, Cost 18,350.00 33,070.00 Appropriation of Fund

Less: Accumulated 23 - - Retained Earnings 50 12,880,86 40,440.59Depreciation .

W. Z P& ,M 24 - -Fixed Assets, Net 18,350.00 33,070.00

Psst 25Fixed Assets Pending Disposal

Fixed Assets Losses in Suspense

T lik Appi]'Alit 27 220,440,656.21 306,312,122.98 51 220,440,656.21 306,312,122.98Total Application of Fund Total Sources of Fund

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

SUMMARY OF SOURCES AND USES OF FUNDSBY PROJECT COMPONENT I

,J -R 2014 4 12 A 31 H

(For the period ended December 31, 2014)

Project Name: Hubei Xiangyang Urban Transport Project Financed by the World Bank$44*fk: L*Ikt' AI4J ,RtifJPrepared by: Hubei Xiangyang Urban Transport Project Management Office Currency Unit: RMB Yuan

Current Period Cumulative

Current Period Current Period Current Life of PAD Cumulative Cumulative %Budget Actual Period % Actual Completed

Completed303,979,999.90 87,057,999.71 28.64% 1,377,110,900.00 274,156,920.68 19.91%

Total Sources of Funds1' r*IVT§II11W11t 150,537,030.00 63,990,621.45 42.51% 640,000,000.00 200,279,271.52 31.29%

International Financing1. KFTII Tf'&#Vff 150,537,030.00 63,990,621,45 42.51% 640,000,000,00 200,279,271.52 31.29%

'BRDE 153,442,969.90 23,067,378.26 15.03% 737,110,900.00 73,877,649.16 10.02%

Counterpart Financing

1 M&TIt 153,442,969.90 23,067,378.26 5.73% 737,110,900.00 73,877,649,16 10.02%

LSitffififi (~XlTlt) 289,002,195.00 97,818,383.37 33.85% 1,377,110,900.00 241,879,560.03 17.56%Total Application of Funds (byProject Component)

1, ±VTWR Civil works 168,907,800.00 87,635,030.00 51.88% 722,929,000.00 180,552,806.98 24.98%

2 , I NYA M Construction 2,258,925.00 2,246,830.00 99,46% 14,379,000.00 2,246,830.00 15.63%

supervision

3, rz*XrYv! Equipment and 47,269,600.00 2,865,897.05 6.06% 94,012,200.00 - 20,465,897,05 21.77%

Facilities purchasing

4, IJlIR&W9 Training and 2,375,000.00 676,327.70 28.48% 35,300,000.00 676,327.70 1.92%

Studies

5, IJVMRt Other 68,190,870.00 2,934,888.67 4.30% 435,665,900.00 35,614,573.98 8.17%

construction Costs

6, T7Jj1M Contingency fee 19,471,200.00 - 0.00% 74,824,800.00 - 0.00%

7, ZtiER Front-End Fee 1,600,000.00 1,524,225.00 95.26%

8, AIL Others - 14,720.00 - - 33,070.00 -

9, tFE 3M1IM Exchange gains and 1,444,689.95 765,82932

lossesA Difference - -10,760,383.66 - 32,277,360.65 -

1. AMMEiki - -8,589,600 -- 2,760,000.00 --

Change in Receivables2. N - 1,235,492.72 - -30,082,284.26 -

Change in Payables3. fi r4 - -3,357,316.60 - 61,672,562.95 -

Change in Cash and Bank.4. Ri Other -48,959.78 - -2,072,918,04 -

7

一 ！ 徐

一：:！〕州 一～ 閃

l、l 勰一 ：悶

．戶口

V9iv. Special Account Statement

- M AK P A ASPECIAL ACCOUNT STATEMENT

*MAI 2014 * 12 A 31 H

(For the period ended December 31, 2014)

A f, 'J': t ik ff At A d L A F H A -6Project Name: Hubei Xiangyang Urban Depository Bank: Provincial Sub-braneb,

Transport Project Financed by World Bank Wuhan Branch, China Construction Bank

91PA -9r: 8152-CN V : 42014861000220501909

Loan No. 8152-CN Account No. : 42014861000220501909

A#Wk: AkiWAF R'r # A: A tPrepared by: The Finance Deparunent of HuBei Currency: USD

Province

AMW

Part A-Account Activity for the Current Period Amount

10,002,112.69Beginning Balance

Add:

10,376,957.56Total Amount Deposited this Period by World Bank,

4,516.33Total Interest Earned this Period if Deposited in Special Account

Total Amount Refunded this Period to Cover Ineligible Expenditures

Deduct:

10,376,957.56Total Amount Withdrawn this Period

20Total Service Charges this Period ifnot Included in Above Amount Withdrawn

M*1+19 10,006,609.02Ending Balance

(,rp t To be continued)

10

B ;'V tfY %-)il9kPil-1i'7 j 1Part B-Account Reconciliation Amount

A-ffA MYXISM10,000,000.00Amount Advanced by World Bank

Deduct:

Total Amount Recovered by World Bank

3. Ib0,000,000.00Outstanding Amount Advanced to the Special Account at the End of this Period

4. t10,006,609.02Ending Balance of Special Account

Add:5. M A M @RREi$W A

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

Application No. Amount

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

7. flK-WtAll (LIlJ, 5 $1i 6 41i) 50Cumulative Service Charges (If not Included in Item 5 or 6)

Deduct:

8. 1P IkA (#At fikPE3) 6,659.02Interest Eamed (If Included in Special Account)

9.* ffilt X 4# 10,000,000.00Total Advance to the Special Account Accounted for at the End of this Period

11

（五）财务报表附注

财务报表附注

1．项目基本情况世行贷款城市襄阳城市交通项目贷款号为 8152一CN，该项目包括公共

交通、城市道路、交通管理、机构发展和能力建设四个子项目，是襄阳城市交通体系中最为核心的骨架道路系统的重要组成部分。建成后在分离城市过境性交通、提高跨江通道和城市道路系统容量，支撑城市用地拓展和引导城市发展，提升城市品质和品位等方面具有十分重要的作用和深远的影响。项目协议于 2012年 8月 7 日签订，2012年 n 月27日生效，预计20 17年 9月30日前关闭。项目计划总投资为人民币 1,377,110,900元，其中世界银行贷款总额为 100,000,000美元，折合人民币640,000,000元。项目从 2012年 8月开始建设，计划总工期为 48个月。

2，财务报表编制范围本财务报表的簖制范围包括湖北省襄阳市世行贷款城市交通项目管

理办公室财务报表及省财政厅专用账户报表。

3．主要会计政策3,1本项目财务报表按照财政部 《世界银行贷款项目会计核算办法》

一（财际字 〔2000〕13号）的要求编制。

3.2会计核算年度采用公历年制，即公历每年 1月 1日至 12月31日。

3.3本项目会计核算以 “权责发生制”作为记账原则，采用借贷复式记账法记账，以人民币为记账本位币。

3.4按照中国人民银行 2014年 12月 31 日汇率，即 USD卜人民币6 .1 1 90 元 。

l2

4．报表科目说明4.1项目支出截止 2014年 12月 31 日，项目累计支出人民币241,579,560.03元，

占总投资计划的17.56％。其中：用于土建工程费用为人民币1 80,552,806.98元；工程监理费用为人民币2,246,830元；设备采购即公交车、13路樊城交管设备、交通宣传教育基地、交通信号机等购置费用为人民币20,465,897.05元；培训及研究费即2个批次境外考察和 1个批次国内考察费用为人民币� 676,327.7元；用于管理费用、咨询与勘探设计费及征地补偼费为人民币36,413,473.30元；世行先征费为人民币 1,524,225.00元。

4.2货币资金20 14年 12月31日货币资金余额为人民币61,672,562.95元，其中专

用账户存款余额折合人民币61,230,440.59元。

4.3预付及应收款截止 2014年 12月 31 日，项目预付工程款支出人民币 2,760,000.00

元，为道路子项镼虹路改造工程预付款 2,660,000.00元和经开区公交停车保养场监理费 100,000,00元。

4.4项目拨款项目计划配套资金总额人民币737,110,900元，截至 2014年 12月 31

日到位配套人民币73,877,649.16元，占计划的 10.02％。

4.5项目借款2014年 12月 31日项目借款余额为人民币200,279,271.52元，其中：

国际复兴开发银行贷款额为 32,730,719.32美元，折合人 民币200,279,271.52 元 。

截至 2014年 12月 31日，累计提取世界银行贷款资金 32,730,719．犯粎元，占贷款总额的 32.73％。其中：工程类累计提款 1,9454,81 1.63美元，占该类计划的23.64%；货物和咨询服务类累计提款 3,025,907.69美元，占该类计划的 17.31%；世行先征费为 250,000美元；专用账户周转金

l3

10,000,000 美 元 。

4,6应付款2014年 12月 31日应付款余额为人民币 30,052,284,26元，主要是应

付道路子项目内环路东南段的工程款和闸口二路工程款。

4.7未交款合计2014年 12月31日未交款余额为人民币2,032,477.45元，主要是以前

年度没收的投标保证金。

4.8留成收入2014年 12月31日留成收入余额为人民币40,4 40.59元，为专用账户

银行存款利息收入扣除银行手续费后的余额 6,609.02美元折合人民币金额。

4.9 专用账户使用情况本项 目专用账 户设在建 设银 行 武汉省 直支行 ，账 号为

420 1 4861000220501909，币种为美元。专用账户首次存款 10,000,000.00粎元。20 14年年初余额 10,002,1 12.69美元，本年度回辛l·10,376,957.56美元，利息收入 4,5 16.33粎元，本年度支付 10,376,957.56美元，银行手续费支出20粎元，年末余额 10,006,609.02美元。

14

(V) Notes to the Financial Statements

Notes to the Financial Statements

1. Project Overview

The loan No. of Xiangyang Urban Transport Project is 8152-CN. It includes 4subprojects, which are Xiangyang Public Transportation Project, Urban Roads,Traffic Management as well as Institutional Development and CapacityBuilding. It is an important part of the skeleton road stem which is the core ofXiangyang Urban Transport System. It plays a very important role and hasfar-reaching influence on separating urban through-traffic, improving thecapacity of cross-river passageway and urban roads system, supporting urbanland'use and guiding city development, and improving city quality. Theproject agreement was signed on Aug. 7, 2012, come into effect on Nov. 27,2012,1 and will be closed by Sep. 30, 2017. The estimated total investment isRMB 1,377,110,900.00 yuan, and the loan form World Bank was USD100,000,000.00 dollar, equivalent to P04B 640,000,000.00 Yuan. The projectconstruction began from August 2012, and the duration is 48 months.

2. Consolidation Scope of the Financial Statements

Consolidation scope of the financial statements covers the financial statementsof Xiangyang Urban Transport Project Management Office, as well as theSpecial Account set in the Provincial Finance Department.

3. Accounting Policy

3.1 The Financial Statements of the project were prepared according to therequirements of 4ccounting Methods for the World Bank Financed Project

(Caijizi[2000]No.13) .

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 methodare adopted. RMB is used as the recording currency of bookkeeping.

15

3.4 The exchange rate adopted in the financial statements was the exchangerate on December 31, 2014 of the People's Bank of China, which was USD1=RMB 6.1190 yuan.

4. Explanation of Subjects

4.1 Total Project expendituresUp to December 31, 2014, the project cumulative expenditure was RMB241,879,560.03 yuan, which accounted forl7.56% of the total investment plan.Among which, the expenditure of civil work was RMB 180,552,806.98 yuan;the expenditure of project supervision was RMB 2,246,830 yuan; theprocurement expenditure of equipment procurement namely bus purchase, thetraffic management equipment of Route 13 in Fancheng District, trafficdissemination and education base and traffic signal controller wasRMB20,465,897.05 yuan; the training and study expenditure namely 2overseas study tour and 1 domestic study tour was RMB676,327.7 yuan; theexpenditure of project management, consultant, designing and landresettlement compensation was RMB36,413,473.30 yuan; and the World Bankfront-end fee was RMB1,524,225.00 yuan.

4.2 Total Cash and BankOn December 31, 2014, the balance was RMB 61,672,562.95 yuan, and thefunds in the Special Account were converted to RMB 61,230,440.59 yuan.

4.3 Total Prepaid and ReceivableBy December 31, 2014, the prepaid project payment was RMB 2,760,000.00yuan. Among which, the payment for reconstruction of Changhong Road wasRMB2, 660,000.00 yuan, and the supervision expenditure for bus depots inJingkai District was RMB 100,000.00 yuan.

4.4 Total Project Appropriation FundsThe total planned counterpart funds of this project were RMB737, 110,900.00yuan. By the end of 2014, RNB 73,877,649.16 yuan of the counterpart fundshad been allocated, which accounted for 10.02% of the plan.

4.5 Total Project LoanOn December 31, 2014, the balance was RMB200,279,271.52 yuan, includingthe IBRD loan USD32,730,719.32, equivalent to RMB200,279,271.52 yuan.As of December 31, 2014, the accumulated amount of USD 32,730,719.32 of

16

the World Bank loan had been withdrawn, accounting for 32.73% of the total.Disbursements by Category are as follows: USD19,454,811.63 disbursed forcivil works, accounting for 23.64% of the category plan; USD3,025,907.69disbursed for goods and consulting service, accounting for 17.31% of thecategory plan; USD250,000.00 of the front-end fee; and the special accountworking fund USD 10,000,000.00.

4.6 Total PayableOn December 31, 2014, the balance was RMB30,082,284.26 yuan, mainlypayable for the project payments in southeastern part of Inner Ring Road andthe Zhakou Second Road.

4.7 Other PayablesOn December 31, 2014, the balance was RMB2,032,477.45 yuan, mainly theconfiscated tender bond of the previous years.

4.8 Retained EarningsOn December 31, 2014, its balance was RMB40,440.59 yuan, equivalenttoUSD6,609.02, the interest income of the special account after deduction ofthe bank charges.

4.9 Special Account

The Special Account of this project is set in the Provincial Sub-branch, WuhanBranch, China Construction Bank, with the account number of42014861000220501909, and USD as currency Unit. The initial Deposit ofthe Special Account is USD10,000,000.00. The beginning balance of 2014was- USD10;0021l2.69 and the fund reimbursement in this year wasUSD10,376,957.56; the interest earned was USD4,516.33, the disbursementwas USD10,376,957.56 and the payment for bank charges was USD20.00.Thus, the ending balance was USD10,006,609.02.

17