Review the use of project funds?

foreign loan project funds are mainly used for project construction, equipment and materials procurement, personnel training fees and expert service fees. Among them, foreign capital is mainly used for investment in fixed assets, procurement of imported equipment and materials, employment of foreign experts, training of overseas personnel and other expenses that must be paid in foreign exchange; Domestic matching funds are mainly used for domestic expenses such as civil engineering construction, project area resettlement, project management, prepayment of project funds, etc., which do not need to be paid by foreign exchange. They are the main contents of project financial management and accounting. Examining the truthfulness, legality and efficiency of the use of project funds is the core task of the audit of foreign loan and aid projects. The contents of the review mainly include the following aspects:

1. Project expenditure. The expenditure classification of foreign loan projects is quite special, usually divided into two categories. One category is classified according to domestic capital construction expenditure projects, including projects under construction, other expenditures and assets delivered for use. Among them, "construction in progress" reflects the investment expenditure of construction and installation engineering, equipment investment expenditure, deferred investment expenditure and other investment expenditure; "other expenditure" refers to all expenditures except capital construction; "assets delivered for use" reflects the actual total cost of all assets that have been purchased and built at the end of the accounting period and have been delivered or carried forward to the user after acceptance. According to this classification, the project schedule in the project financial report comprehensively reflects the use of project loans and domestic matching funds. The other category is the "approved allocation amount" of project loans determined according to foreign loan project agreements, including civil engineering, equipment procurement, goods procurement, training and inspection, consulting services, etc. The "Project Loan Withdrawal Table" in the project financial report reflects the use of project loan funds according to this classification. Both categories record and reflect project expenditures, which have their internal relations and differences caused by different accounting scopes. During the audit, it is necessary to check whether the expenditures are used for the purpose and scope stipulated in the project agreement, whether the supporting documents are compliant and complete, and whether the accounting treatment is in line with the relevant accounting system. At the same time, it is necessary to verify the connection between the expenditure items caused by the two classifications. Focus on checking the compliance and authenticity of the contract and settlement procedures, whether there is illegal subcontracting of the project, or raising the settlement quota; The authenticity and compliance of engineering labor service expenditure, material cost, indirect cost and deferred investment, and whether there is any expansion of expenditure scope, improvement of expenditure standard, false report of expenditure and calculation error; Compliance of delivery procedures of completed projects, and compliance and correctness of bidding, procurement, acceptance and accounting treatment of equipment and materials. Violation of rules and regulations, such as changing the use of foreign capital without authorization, bribery and fraud in bidding and procurement, should be punished according to law.

2. Physical assets. A considerable part of the funds of foreign loan projects are occupied in physical assets, including: foreign aid materials, various fixed assets delivered to production units after completion and acceptance, purchased equipment, materials and equipment, and securities purchased for dispatching funds. During the audit, it is necessary to check whether the expenditure is true, whether the valuation is correct, whether the accounting treatment is compliant, whether the accounts are consistent, and whether the management of collecting, allocating and counting losses is complete. Unauthorized transfer, exchange and sale of imported equipment and materials, illegal trading of securities and other violations should be investigated and dealt with according to law.

3. Prepayment, receivables (payables). This kind of fund income and expenditure is mainly reflected in the prepayment of material preparation, project payment and large-scale equipment payment, loan interest receivable (payable) at home and abroad, commitment fee, capital occupation fee and other receivables (payable). For this kind of funds, we must first check whether it is true and whether the expenditure documents are compliant and complete. It is necessary to check whether the calculation of accrued foreign loan interest and commitment fee is correct and whether the principal and interest are repaid in time. For units that are in arrears with the repayment of principal and interest, it is necessary to find out the reasons and promote repayment. It is necessary to focus on investigating and dealing with violations of laws and regulations that use such current accounts to transfer or misappropriate project funds or adjust project construction costs.