1. ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN
Environmental Performance Audit on Water Pollution Control Project on the Valley of Haihe River
ladies and gentlemen, i feel honored to be here to make this presetation which is concerning about an environemtal audit project we v just finished last month: "title"
Jerry Yan
National Audit Office of the P.R.C
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

2. Presentation Overview
Background
Audit Objective & Scope
Auditee Selection
Audit Standard
Audit Project Organization
Audit Findings
Conclusions & Recommendation
let's have a look at the structure of this presentation. this is presentation includes seven parts. in part one, i will give you some background info. part two is about the objective and scope of this audit projet. followed by part three, auditee selection process. part four is about audit standard we use. in part five, i m gonna talk about organization of this project. part six is audit findings. in the last part i will discuss the auditor's conclusion and recommendations.
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

3. Background (1) Water Pollution Control Project
on the Valley of Haihe River
1. Environmental Condition
in the Valley of Haihe River
ok, let's start. part one, background.
firstly, let's have a look at the environmental condition in this area.
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

4. ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN
( BEIJING )
( TIANJIN )
1. Middle east of China;
2. Takes 3.3% of the total land area and
fosters 10% of the population of the
country;
3. Due to technical and cost reasons,
some small-sized plants could not meet
the waste discharge requirement;
4. Result in great water shortage
and pollution;
5. Therefore, china government decided
to carry out the water pollution control
Project.
( SHIJIAZHUANG)
( TAIYUAN )
haihe valley is in the middle-east of china, cover 6 provinces and municipalities, which take about 3.3% of the total land area and fosters about 10% of the population of the country. the volume of annual rainfall in this area is relative small
( JINAN )
( ZHENGZHOU)
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

5. Background (2) Water Pollution Control Project
on the Valley of Haihe River
2. Project Objective
Control the discharge
of water pollutant to
improve the water
quality of Haihe valley
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

6. Background (3) Water Pollution Control Project
on the Valley of Haihe River
3. Main components of the project
Construction of sewage treatment plants
Promoting cleaner production techniques
Controlling Industrial contamination sources
etc…
4. Investment: About 5 billion USD
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

7. ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN
Background (3)
Topic identification
1. One of the Key valleys for water pollution control in China
2. Starting point to explore our model on environmental auditing
3. International experience available
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

8. Survey Result on Water Audits by WGEA INTOSAI (1993-2000)
2. Types of water audits
1. Topics chosen on water audits
Performance
River and lakes
3. Types of performance audits of water
Implementation of
environmental programs
Sources: “Auditing Water Issues-Experiences of Supreme Audit Institutions”, WGEA INTOSAI
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

9. Audit objective and Scope
To evaluate the achievement of stage objective
of the pollution control project by the end of 2003
2. Audit Scope:
Restricted to the project
Fulfillment of environmental
responsibility of relative bodies
eg. Implementation of the
pollution control measures
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

10. Auditee Selection(1) Environmental Responsibility
Water pollution
Control project
Environmental Responsibility
1. Examination and approval of projects;
2. Transfer payment to local
government and etc…
Central
Government
1. To Raise fund in time;
2. Monitoring progress of the project;
3. Implementation of pollution
control measures;
4. Truthfulness, legality and efficiency
of the use of fund and etc…
Environmental
Responsible
bodies
Local
Government
1. Keep waste discharge under limit;
2. Make investment or payment to
pollution control according to the
“polluters pay” principle and etc…
enterprises
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

11. ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN
Auditee Selection(2)
Environmental
Protection
Department
Government
(central & local)
Public Finance
Department
Auditee
Other
departments
State own
enterprises
enterprises
private sector
Enterprises
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

12. ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN
Audit Standard
1. Law and Regulation
“Environmental Protection law of the P. R. China”
“Water Pollution Control Law of the P. R. China” and etc…
2. Environmental Standard
“General Sewage Discharge Standard”(GB )
“National Surface Water Environmental Quality Standard” (GB ) and etc…
standard we used in this audit project could be divided into three main categories:
firstly....
3. Other Standard
“10th Five Year( ) Plan on Water Pollution Control on the Valley of Haihe River” and etc…
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

13. Audit project organization
Time: Feb – Feb (12 months)
Combination of
Concurrent Audit and Joint Audit
Cycle of audit project
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

14. Audit Cycle (Project Organization)
Joint
Audit
Stage 5:
Report Finalizing
Stage 1:
Pilot Audit
(2 months)
(2 months)
Audit Cycle
(Project Organization)
Stage 2:
Implementation
Plan Drafting
Stage 4:
Team Report
(2 months)
Concurrent
Audit
(1 months)
Stage 3:
Formal Audit
(5 months)
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

15. ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN
Audit Findings(1)
Achievement
Positive effect achieved
Total volume of waste discharge decrease
Adjust Industrial structure
to reduce contamination
sources
Charge sewage treatment
fee and waste discharge fee
according to the “polluters
pay” principle
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

16. ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN
Audit Findings(2)
Problem existed
More than 50% of the construction projects not started
Examination and approval process of some construction projects is relative slow
Inadequate environmental monitoring capacity at local level
Lack of sufficient and reliable environmental statistic information
Some enterprises’ waste discharge exceed limit
two main reasons could be attributed to this problem:
for governments:some environmental protection departments at local level are lack of technician and equipments.
for enterprises:just a small number of eterprises are equipped with pollutant on-line monitoring equipments.
for example:in one region, there are about 400 enterprises with heave pollution, according to relevant regulation, each enterprise should install at least one on-line monitoring equipment, but auditors found that just 4 of them have been equipped with the equipment and just only two of them could work regularlly.
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

17. Conclusion and recommendation(1)
Consciousness improved
Relevant laws and regulations followed
Construction funds raised
Problems still exist and much room for improvement
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

18. Conclusion and recommendation(2)
Expedite examination and approval process
Appropriate fund in time
Adopt various financing methods
Increase environmental monitoring capacity
Improve environmental statistical method
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

19. Conclusion and recommendation(3)
3. Follow up
Recommendation adopted
The Ministry of Public Finance appropriated pollution control fund(about 15 million USD) to relevant provinces and municipalities.
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN

20. ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN
Thank You !
December 6, 2019
ASOSAI SEMINAR ON ENVIRONMENTAL AUDITING WUYISHAN