Instructions on Financial Audit Report of SEE Preparation Period

http://www.sina.com.cn 2005/06/29 10:39

　　Yang Ping, Deputy Director of Preparation Group

　　To all charter members:

　　Empowered by Preparation Group, I hereby present the instructions on financial audit of the preparation period to you.

　　Audit on the financial affairs of SEE during preparation period was carried out by Beijing Zhongtianheng Certified Public Accountant Firm, the auditor entrusted by Preparation Group on May.10, 2004. Following is an excerpt from the audit report prepared by Beijing Zhongtianheng Certified Public Accountant Firm:

　　Ⅰ. Capital source

　　It has been confirmed that up to May.10, 2004, the amount of contributions Alxa SEE has received was RMB￥2,400,000.00 in total.

　　Ⅱ. Capital use

　　It has been verified that up to May.10, 2004, the capital used by SEE was RMB￥600,876.35. More details are hereby given as follows:

　　1 Use in fixed assets: RMB￥180,247.00；

　　2 Overhead expenses: RMB￥420,713.93；

　　3 Financial expenses RMB￥-84.58。

　　Ⅲ. Balance

　　Overall balance was RMB￥1,799,123.65, among which:

　　1 Balance of currency capital was RMB￥1,785,588.65；

　　2 Balance of other accounts payable was RMB￥1,465.00, used for employees’ compensation and withholding of personal income tax；

　　3 Other accounts receivable were RMB￥15,000.00.

　　Ⅳ. Appraisal

　　Throughout the whole audit process, we have conducted comprehensive and systematic examination and verification on account books, vouchers, contracts and relevant materials provided by SEE, as well as the source and use of project capital. Result shows that SEE has earnestly implemented Accounting Law, as well as relevant laws and regulations of the state on financial management, and achieved a legitimate and effective use of capital.

　　Instructions involve the following three aspects:

　　Ⅰ. Major items of capital use

　　1 The purchase of an SUV by Project Office at the price of RMB￥94000；

　　2 One year of rent: RMB￥180000；

　　3 Production fee for promotional items: RMB￥68000；

　　4 Payroll: RMB￥54000；

　　5 Purchase expenses on official equipment and project equipment: RMB￥86000.

　　Ⅱ. Major items of impending expenses

　　1 Meeting and conference expenses；

　　2 Transportation fee for meetings (of invited guests and personnel)；

　　3 Moon Lake environment protection project

　　Ⅲ. In consideration of the increasing working pressure after the middle ten days of May, we conducted the audit on May.10 without covering financial affairs during the whole preparation period. A complete report will be submitted to such administration departments as the elected Standing Council and Supervisory Committee after the meeting ends.

　　May.25, 2004