NB/T 10145-2019Regulation for preparation of final account report for hydropower projects (English PDF)

Foreword

This document was issued on 4 June 2019 by the National Energy Administration of the PRC and takes effect on 1 October 2019.

It is a NB/T standard: recommended rather than compulsory, but it is the text a Chinese reviewer applies when assessing a submission.

It is classified under ICS 27.140, Chinese classification P 02.

This standard was drafted in accordance with the rules given in GB/T 1.1-2009 'Directives for standardization - Part 1: Structure and drafting of standards'.

This standard is under the administration of the National Energy Administration, was proposed by and is under the routine management of the China Renewable Energy Engineering Institute, and the Energy Industry Hydropower Engineering Technical-Economic Standardization Technical Committee is responsible for the interpretation of its specific technical content.

Any comments or suggestions arising during implementation should be sent to the China Renewable Energy Engineering Institute (address: No. 2 Liupukang Beixiaojie, Xicheng District, Beijing; postal code: 100120).

Drafting organizations of this standard: China Renewable Energy Engineering Institute (Kezaisheng Nengyuan Ding'e Zhan), PowerChina Huadong Engineering Corporation Limited, Technology Center of State Grid Xinyuan Company Ltd., and Fujian Xianyou Pumped Storage Co., Ltd.

Main drafters of this standard: Dai Honghui, Li Jiewen, Gong Kui, Luo Shuifang, Qiao Tianxia, Zhai Haiyan, Wang Yuan, Zhang Huabin, Jiang Xianyu, Zhao Mingzhi, Chen Shanglin, Zhang Ying, Zhang Yunfei, Xu Xumin, Li Dongwei, Wang Jianhang and Wu Xiaoyan.

Introduction

The final account report of a hydropower project is a summary document prepared by the project legal person after completion of the construction project, in accordance with relevant national policies and industry regulations, that comprehensively reflects all construction costs, construction results and the financial situation of the completed project. It is the written statement confirming the value of newly added fixed assets and of assets delivered for use, the analysis report used to check implementation of the design budgetary estimate and to reflect the actual cost and investment effect of the project, and an important component of the documents for final account acceptance and completion acceptance of hydropower projects.

The 'Measures for Acceptance Management of Hydropower Projects' (Guoneng Xinneng [2015] No. 426) state that completion acceptance of a project shall be carried out on the basis of acceptance of the key works, land acquisition and resettlement, environmental protection, soil and water conservation, fire protection, labour safety and industrial hygiene, project final account and project archives. In order to meet the needs of final account acceptance management, to standardize and unify the preparation of final account reports for hydropower projects, to improve preparation quality and efficiency, to complete the whole-process cost management system of hydropower projects and to summarize construction experience, this standard was formulated after thorough investigation and wide consultation within the industry, in accordance with relevant national policies and regulations and the requirements of the 'Notice of the National Energy Administration on Issuing the 2016 Plan for Formulation (Revision) of Energy Sector Industry Standards' (Guoneng Keji [2016] No. 238).

1 Scope

NB/T 10145-2019 governs the preparation of the final account report for a hydropower project - the closing statement that converts everything spent on building the scheme into the value of the assets handed over for operation. On a large hydropower project this is a substantial undertaking: several years of expenditure across civil works, electromechanical equipment, resettlement and land acquisition, owner's costs and interest during construction must be reconciled, allocated and capitalised. The regulation sets the scope, the terms and the general requirements, then the composition of the report, the conditions that must be met before it is prepared, and the stages of preparation from the collection of records through the closing of accounts to the drafting of the report. The core of the document explains how each of the twenty-two tables of the final account is compiled column by column - the project cost summary, the sources and uses of funds, the investment completed by item, the allocation of indirect costs using the defined rate formulas, the list of assets delivered by category, and the cross-checks that must hold between the tables. The treatment of unfinished works and reserved expenses, of surplus materials and of costs that cannot be capitalised is specified, and the regulation closes with the content of the explanatory narrative that accompanies the tables. It applies to hydropower projects in China.

This standard specifies the preparation method and the composition of the final account report of hydropower projects.

This standard is applicable to the preparation of final account reports of hydropower projects.

2 Normative references

The following documents are indispensable for the application of this standard. For dated references, only the edition cited applies. For undated references, the latest edition (including all amendments) applies.

GB/T 14885 Classification and codes for fixed assets.

Accounting Standards for Business Enterprises (Order No. 33 of the Ministry of Finance).

3 Terms and definitions

For the purposes of this standard, the following terms and definitions apply.

3.1 approved budgetary estimate: the design budgetary estimate document of a hydropower project that has been approved or examined and approved by the government at the feasibility study stage.

3.2 adjusted budgetary estimate: the project investment document prepared according to national and industry preparation regulations for a hydropower project that has been approved and has started construction, when the original approved budgetary estimate can no longer meet the actual needs of the project because of national policy adjustments, price changes, design changes of the project or other reasons during construction.

3.3 settlement at completion: the document formed by the adjustment and confirmation of the final project price by the employer and the contractor, according to relevant national laws, regulations and the contract, after the contractor has completed all the work agreed in the contract.

3.4 final account: the summary document that, using physical quantities and monetary indicators as units of measurement, comprehensively reflects all construction costs, construction results and the financial status of a completed construction project.

4 General provisions

4.1 This standard is formulated according to relevant national regulations and the actual conditions of hydropower projects, in order to do well the preparation and management of final account reports of hydropower projects, complete the whole-process cost management system of hydropower projects, standardize and unify the principles, methods, contents and depth of preparation of final account reports and improve their quality.

4.2 Only one final account report shall ultimately be prepared for a hydropower project within the scope of one budgetary estimate.

4.3 The final account report is organized and prepared by the project legal person, who shall guarantee that its data are true, its basis is lawful and its content is complete. The design, supervision, construction and land acquisition and resettlement implementation organizations shall cooperate.

4.4 The final account report of a hydropower project is an important economic archive; attention shall be paid to confidentiality, and it shall be properly kept and preserved in accordance with relevant regulations.

4.5 In addition to complying with this standard, the preparation of final account reports of hydropower projects shall also comply with the provisions of the current relevant national standards.

5 Composition of the final account report

5.1 Contents of the final account report: the final account report consists of the cover and table of contents, photographs of the completed project, the final account description, the final account statements and important documents related to the final account.

5.2 Cover of the final account report: the cover shall include the name of the construction project, the project legal person, the nature of construction, the final account base date, the date of preparation, the head of the organization and the head of finance. The cover format is given in Annex A.

5.3 Photographs of the completed project: the photographs shall reflect the general view of the key works structures, the main structures of the project and the main resettlement sites.

5.4 Final account description: the final account description is the document that summarizes the construction results and experience of the completed project and comprehensively analyses the investment management of the project; it is an important component of the final account report. Its main contents are: a) project overview; b) basis of preparation; c) settlement of project works payments; d) project cost accounting management; e) project fund management; f) implementation of the capital construction procedure and construction management; g) implementation and analysis of the project budgetary estimate; h) assets delivered for use; i) investment benefits of the project; j) other matters requiring explanation; k) chronicle of major events.

5.5 Final account statements: the final account statements of a hydropower project mainly include: a) general information table of the completed project; b) final account lists of the completed project: 1) summary table of the final account list of the completed project; 2) final account list of construction auxiliary works; 3) final account list of building works; 4) final account list of special works for environmental protection and soil and water conservation; 5) final account list of electromechanical equipment and installation works; 6) final account list of hydraulic steel structure equipment and installation works; 7) final account list of compensation for land acquisition and resettlement; 8) final account list of independent costs.

5.5 (continued) c) tables of assets delivered for use: 1) summary table of assets delivered for use; 2) detailed list of fixed assets delivered for use (structures, buildings); 3) detailed list of fixed assets delivered for use (equipment requiring installation); 4) detailed list of fixed assets delivered for use (equipment not requiring installation); 5) detailed list of assets delivered for use (current assets); 6) detailed list of assets delivered for use (intangible assets, long-term deferred expenses).

5.5 (continued) d) final financial account statement; e) detailed list of funds received by year; f) detailed list of remaining works and reserved costs; g) detailed list of investment to be allocated; h) allocation calculation table of investment to be allocated; i) detailed list of capital construction expenditures pending write-off; j) detailed list of transferred-out investment. The formats of the final account statements of hydropower projects are given in Annex B.

5.6 Important documents related to the final account: these mainly include a) copies of the documents approving the project, the feasibility study report and budgetary estimate, and the adjustment of the budgetary estimate; b) copies of special examination and approval, acceptance and filing documents related to the project; c) copies of documents issuing the annual investment plans and fund budgets of the project over the years; d) other materials related to the final account.

6 Preparation of the final account report

6.1 Basis for preparation: the basis for preparation of the final account report mainly includes a) relevant national laws, regulations and rules; b) the approved feasibility study report, the approved budgetary estimate and adjustment documents; c) annual investment plans and project expenditure budgets; d) accounting and financial management materials; e) bidding documents, project contracts or agreements and contract price adjustment documents; f) project settlement at completion documents; g) other relevant materials.

6.2 Conditions for preparation: the final account report shall be prepared when a) the construction project has been completed and can be put into use, or has passed trial operation; b) construction funds have been secured according to plan; c) remaining works and reserved costs do not exceed 5% of the total investment of the approved budgetary estimate or adjusted budgetary estimate; d) settlement at completion of the main works (except remaining works) has been basically completed; e) matters involving litigation and project quality have been dealt with, and the compensation investment for land acquisition and resettlement has been basically determined; f) other major problems affecting the preparation of the final financial account have been resolved.

6.3 Preparation procedure: the procedure mainly includes formulation of the preparation plan, collection and arrangement of relevant data, determination of the base date, financial clearing for the final account, preparation of the final account statements and preparation of the final account description.

6.4.1 The project legal person shall formulate a preparation plan for the final account report to guide and standardize the preparation work in detail.

6.4.2 The preparation plan should specify the organization, leadership and division of responsibilities, the final account base date, the specific preparation contents, the schedule and work steps, technical difficulties and their solutions.

6.4.3 Responsibilities for preparing the final account report shall be broken down and assigned to departments and persons; work involving several departments shall be detailed and implemented in the plan.

6.5 Collection and arrangement of data: the data to be collected and arranged mainly include a) the approved budgetary estimate and its adjustment documents; b) documents on project design, preparation, approval, commencement and construction management; c) bidding materials for works, equipment and main materials, contract performance and use of contingency costs; d) accounting vouchers, account books and accounting reports; e) internal management rules; f) documents on settlement of project payments; g) annual investment plans, budget documents and documents on their implementation.

6.5 (continued) h) approval documents for remaining works and reserved costs; i) materials on payment of compensation funds for land acquisition and resettlement; j) lists of main construction quantities and material consumption; k) project acceptance results and benefit materials; l) audit, inspection and financial check conclusions and rectification materials; m) meeting minutes, project briefings, work summaries and other related materials.

6.6.1 The final account base date shall be determined by comprehensively considering the progress of the construction project, the time when funds were received, the status of settlement at completion and bookkeeping, and the financial clearing.

6.6.2 The final account base date should be set at the end of a month.

6.6.3 Accounting transactions associated with project construction costs and asset values shall be entered in the accounts before the final account base date.

6.7.1 Financial clearing for the final account mainly includes contract clearing, clearing of claims and debts, clearing of surplus funds and clearing of assets delivered for use.

6.7.2 Contract clearing shall include a) listing contracts by number or by category; b) clearing the settlement and payment of each contract; c) confirming the results of contract performance; d) sorting out the correspondence between contract items and budgetary estimate items; e) determining the estimated settlement amount, performance time limit and measures for contracts not yet fully performed.

6.7.3 Clearing of claims and debts shall include a) checking claims and debts; b) clearing accounts payable and receivable.

6.7.4 Clearing of surplus funds shall include a) counting and verifying item by item and filling in the physical inventory making up the surplus funds; b) determining the method of disposal and completing the disposal procedures.

6.7.5 Clearing of assets delivered for use shall include a) listing the book inventory of assets to be delivered according to accounting data; b) taking a physical inventory on site to form the inventory list of assets delivered for use; c) analysing and comparing the book list and the inventory list; d) adjusting differences to form the catalogue list of assets to be delivered for use.

6.8.1 Principles for confirming values in the final account statements: a) the budgetary estimate value in the final account adopts the amount of the approved budgetary estimate or, where there is an adjusted budgetary estimate, the amount of the adjusted budgetary estimate; b) the actual value in the final account adopts the book data of the accounts and shall include remaining works and reserved costs; c) plan indicators adopt the plan data approved and issued by the higher authority; d) technical and economic indicators and actual consumption of main materials adopt the actual statistical data of the project.

6.8.2 General information table of the completed project: this table reflects the scale, construction period, investment, quality, technical and economic indicators and characteristics of the hydropower project at completion; its format is given in Table B.1 of Annex B. The columns shall be filled in as specified below.

6.8.2 a) 'Nature of construction' is divided into new construction, reconstruction, extension, etc.; b) the department approving the budgetary estimate, the document number and the date are filled in according to the final approval or examination and approval document.

6.8.2 c) The design organization is the design organization of the main works; where two or more design organizations undertake the design of the main works of one project, only the design organization with overall responsibility shall be filled in; d) the supervision organization is the organization undertaking supervision of the main works.

6.8.2 e) The construction organization is the construction enterprise undertaking construction of the main works; where several organizations take part in construction of the main works, the main construction enterprises may be listed according to the actual situation.

6.8.2 f) The main characteristics of the project are filled in according to the design report; where major design changes were made during actual construction, the modified design is filled in; g) comprehensive benefits are filled in according to the design report; where major adjustments occurred when the project was actually put into production, the actual benefits formed are filled in.

6.8.2 h) Fund sources include project capital, capital construction appropriations, capital construction loans and other funds. Project capital refers to the capital contributed by each investor; capital construction appropriations refer to financial appropriations at all levels; capital construction loans refer to loans from banks or other financial institutions; other funds refer to accounts payable, taxes not yet paid, etc. Each amount is filled in according to the corresponding amount in the 'Fund sources' column of Table B.16 of Annex B.

6.8.2 i) Actual investment includes assets delivered for use, capital construction expenditures pending write-off, transferred-out investment and input VAT. Each amount is filled in according to the corresponding item of Table B.16 of Annex B, and the input VAT amount according to the total of the 'Input VAT' column of Table B.2 of Annex B.

6.8.2 j) The items and amounts of remaining works and reserved costs are filled in according to the corresponding amount in the 'Total' column of estimated uncompleted investment in Table B.18 of Annex B.

6.8.2 k) The 'Commencement date' column is filled in with the date of the first main works item commenced in the building and installation works, according to the commencement report approved by the higher authority; the 'Completion date' column is filled in according to the actual situation of the project; l) main work quantities and main material consumption shall be filled in with the statistical quantities within the scope of the main works; m) the overall quality evaluation is filled in according to the appraisal opinions of the special completion acceptance committees.

6.8.3 Final account lists of the completed project: these reflect the implementation of the budgetary estimate of the completed project. Table B.2 of Annex B is the summary of Tables B.3 to B.9; the formats are given in Tables B.2 to B.9 of Annex B. The project breakdown shall be consistent with the approved budgetary estimate or adjusted budgetary estimate, and the 'Item name' column shall be filled in the order of the unit works listed in the approved or adjusted budgetary estimate.

6.8.3 a) Construction auxiliary works, building works, special works for environmental protection and soil and water conservation, and independent costs may be grouped by second-level items, and equipment and installation works should be grouped by third-level items; the formats are given in Tables B.3 to B.9 of Annex B.

6.8.3 b) In Table B.2 of Annex B, the budgetary estimate value columns of 'Basic contingency' and 'Price contingency' are filled in with the budgetary estimate figures, and the actual value columns are listed according to the actual situation.

6.8.3 c) Input VAT refers to the input VAT incurred during project construction that the project legal person can deduct; the 'Input VAT' column shall be filled in according to accounting data.

6.8.4 Summary table of assets delivered for use: this table reflects the composition of assets used by the production unit or receiving unit to which they are delivered; it is the summary of Tables B.11 to B.15 of Annex B and its format is given in Table B.10 of Annex B. The columns shall be filled in as specified below.

6.8.4 a) The 'Asset name' column is classified into fixed assets, current assets, intangible assets and long-term deferred expenses and ordered according to the items of the detailed lists of assets delivered for use; the corresponding amounts are filled in according to the total amounts of the 'Asset value' column of Tables B.11 to B.15 of Annex B.

6.8.4 b) Fixed assets are mainly divided into four items: structures, buildings, equipment requiring installation and equipment not requiring installation.

6.8.4 c) Current assets are mainly divided into current funds, inventory materials transferred to the production unit, inventory equipment transferred to the production unit, monetary funds transferred to the production unit, spare parts, etc.

6.8.4 d) Intangible assets mainly include software, patents, copyrights, non-patented technology, trademarks, land use rights acquired by transfer, etc.

6.8.4 e) Long-term deferred expenses mainly include training costs of production staff and production preparation costs in the nature of early entry into the plant.

6.8.4 f) Expenditures of operating projects that cannot form assets, such as river obstacle clearing and dredging, waterway regulation, aerial seeding afforestation, returning farmland to forest (grassland), closing hills (sand) for afforestation (grass), soil and water conservation, repair of damaged roads, slope protection and clearing, as well as expenditures incurred for items not approved or before a project was cancelled or scrapped, are treated as investment to be allocated.

6.8.4 g) Special facilities built to support the project, including special roads, special communication facilities, special power facilities, underground pipelines and special wharves, whose property rights do not belong to the organization, are treated as intangible assets.

6.8.4 h) Land for which land transfer rights have been obtained is treated as an intangible asset; land acquisition costs for which land transfer rights have not been obtained are treated as investment to be allocated.

6.8.4 i) Auxiliary works or facilities built or purchased for construction of the key works, such as buildings, permanent roads, auxiliary roads, bridges, vehicles and office equipment, are financially treated at project completion as follows: where the assets are delivered directly to the user, self-used fixed assets depreciated during construction are delivered at purchase cost less accumulated depreciation, and the depreciation charged during construction is allocated to the relevant asset values as investment to be allocated; where the assets are sold at public price before delivery, the depreciation charged during construction and the net loss from clearing of fixed assets (the difference between the public sale price and the net asset value after depreciation) are included in investment to be allocated; for items not depreciated as self-used fixed assets, the difference between the public sale price and the purchase cost is allocated to the relevant asset values as investment to be allocated.

6.8.4.1 Detailed list of fixed assets delivered for use (structures, buildings): this table reflects the structures and buildings used by the production or receiving unit; its format is given in Table B.11 of Annex B. a) The 'Item name' column is filled in by reference to the asset registration objects of GB/T 14885; where the fixed asset catalogue does not include an item, construction costs that can be recognized as a single fixed asset may be added according to the Accounting Standards for Business Enterprises, and construction costs that cannot form a separate fixed asset are included in investment to be allocated. The asset value of structures and buildings includes the building works cost and the allocated investment to be allocated, excluding deductible input VAT.

6.8.4.1 b) Each row of 'Building works cost' shall be filled in, row by row for structures and buildings, according to the actual amounts in the accounts; supporting equipment in buildings, such as elevators and central air conditioning, is included in the building investment.

6.8.4.1 c) 'Investment to be allocated' is the amount to be allocated to the building works cost, calculated by beneficiary object according to Table B.19 'Detailed list of investment to be allocated' of Annex B.

6.8.4.1 d) The totals in the last row of the 'Building works cost', 'Investment to be allocated' and 'Asset value' columns are entered respectively in the 'Building works cost', 'Investment to be allocated' and 'Total' columns of the 'Structures' and 'Buildings' rows of Table B.10 'Summary table of assets delivered for use' of Annex B.

6.8.4.2 Detailed list of fixed assets delivered for use (equipment requiring installation): this table reflects the equipment installed by the production or receiving unit, mainly electromechanical equipment and hydraulic steel structure equipment requiring installation; its format is given in Table B.12 of Annex B.

6.8.4.2 a) The 'Equipment name' column is filled in by reference to the registration objects of GB/T 14885, and items not included in GB/T 14885 may be added. The value of fixed assets such as equipment requiring installation includes the purchase cost of the equipment, the installation works cost and the allocated investment to be allocated, excluding deductible input VAT.

6.8.4.2 b) Each row of 'Equipment purchase cost' shall be filled in according to accounting data, including the original price of the equipment, transport and miscellaneous charges and procurement and storage charges; imported equipment shall also include customs duties, handling fees and related costs. Pipes, grounding, cables (busbars), primary wiring, rails and penstocks shown as installation works costs in the budgetary estimate are also included in installation works costs in the final account. Cables (busbars), primary wiring and penstocks are delivered as assets; pipes, grounding and rails are included in the related equipment and are not delivered as separate assets.

6.8.4.2 c) In the 'Installation works cost' column, installation costs are first listed by unit works according to accounting data, and installation costs forming fixed assets are registered separately; installation costs that cannot separately form fixed assets, such as insulation, painting, equipment lighting and metal testing, are allocated to the related unit works; where a unit works consists of different equipment, its installation cost shall be allocated among the equipment, generally in proportion to the actual equipment costs.

6.8.4.2 d) The totals in the last row of the 'Equipment purchase cost', 'Installation works cost', 'Investment to be allocated' and 'Asset value' columns are entered respectively in the 'Equipment purchase cost', 'Installation works cost', 'Investment to be allocated' and 'Total' columns of the 'Equipment requiring installation' row of Table B.10 of Annex B.

6.8.4.3 Detailed list of fixed assets delivered for use (equipment not requiring installation): this table reflects the equipment not requiring installation of the production or receiving unit, mainly transport equipment, maintenance equipment, test equipment, tools and instruments, furniture, and observation and monitoring equipment; its format is given in Table B.13 of Annex B. a) The value of equipment not requiring installation shall be filled in according to the registration ledger of the asset management department and relevant accounting data, excluding deductible input VAT; b) the amount in the 'Asset value' column of the 'Total' row is entered in the corresponding column of the 'Equipment not requiring installation' row of Table B.10 of Annex B.

6.8.4.4 Detailed list of assets delivered for use (current assets): this table reflects the current assets of the production or receiving unit; its format is given in Table B.14 of Annex B. a) The value of current assets shall be filled in according to the registration ledger of the asset management department and relevant accounting data, excluding deductible input VAT; b) the amount in the 'Asset value' column of the 'Total' row is entered in the corresponding column of the 'Current assets' row of Table B.10 of Annex B.

6.8.4.5 Detailed list of assets delivered for use (intangible assets, long-term deferred expenses): this table covers the intangible assets and long-term deferred expenses delivered to the production unit; its format is given in Table B.15 of Annex B. a) The 'Item name' column is filled in by asset or expense item; the actual value in the 'Intangible assets' column shall be filled in according to the relevant accounting data of the finance department, excluding deductible input VAT; b) the 'Remarks' column is used, for asset management purposes, to explain the documents and agreements relating to the formation of intangible assets and the delivery of assets or transfer of funds; c) the totals of 'Intangible assets' and 'Long-term deferred expenses' are entered in the corresponding columns of the 'Intangible assets' and 'Long-term deferred expenses' rows of Table B.10 of Annex B.

6.8.5 Final financial account statement: this statement reflects the sources and uses of funds of the construction project as at the final account base date; its format is given in Table B.16 of Annex B. It takes the form of a fund balance sheet, in which total fund sources equal total fund uses. Loan interest is included in the corresponding item, and interest income on fund deposits is deducted from loan interest.

6.8.5 a) Each item of fund sources is filled in according to the amount in the 'Total' column of the corresponding item of Table B.17 of Annex B; b) each item under 'Total assets delivered for use' in the fund uses column is filled in according to the amount of the corresponding row of the 'Asset value' column of Table B.10 of Annex B; c) the amounts of 'Capital construction expenditures pending write-off' and 'Transferred-out investment' are filled in according to the totals of the 'Amount' column of Tables B.21 and B.22 of Annex B respectively; d) the 'Input VAT' amount is filled in according to the total of the 'Input VAT' column of Table B.2 of Annex B.

6.8.6 Detailed list of funds received by year: this table reflects the annual fund sources of the hydropower project; its format is given in Table B.17 of Annex B. Fund sources are listed in four categories: project capital, capital construction appropriations, capital construction loans and other funds. Project capital is listed by the capital contribution ratio of each investor, the nature of the funds and the time of receipt. Capital construction appropriations refer to financial appropriations at all levels and are listed by funding organization and nature of funds. Capital construction loans refer to bank loans and are listed by lending bank, currency, term and interest rate. Other funds are sources other than the above three, generally accounts payable, taxes not yet paid, etc.

6.8.7 Detailed list of remaining works and reserved costs: this table reflects the small amount of remaining works and the completion acceptance and similar costs still outstanding after the final account base date; its format is given in Table B.18 of Annex B. a) The 'Item name' column shall be filled in according to the approved budgetary estimate items; building works may be filled in by second-level items and equipment and installation works by third-level items; b) the estimated remaining works and reserved costs shall be filled in according to the investment required by the plan, stating the completed investment and the estimated uncompleted investment of the reserved items.

6.8.8 Detailed list of investment to be allocated: this table reflects all items containing investment to be allocated; its format is given in Table B.19 of Annex B. The columns shall be filled in as specified below.

6.8.8 a) Investment to be allocated refers to expenditures incurred by the project legal person according to the approved construction content that shall be allocated to the value of the related assets. The cost items include construction auxiliary works; river regulation works for navigation structures and slope protection and clearing works for treatment of near-dam bank slopes within the building works; special works for environmental protection and soil and water conservation; compensation for land acquisition and resettlement; independent costs; interest during construction; and other costs.

6.8.8 b) Other costs include losses of fixed assets, losses on disposal of equipment and materials, equipment inventory losses and damage, losses on scrapped works, repair of damaged roads and other expenditures in the nature of investment to be allocated.

6.8.8 c) Budgetary estimate figures are filled in according to the amounts of the approved budgetary estimate, and actual figures according to accounting data. Where the actual figures include parts that directly form fixed assets, current assets, intangible assets or long-term deferred expenses, the amounts of those parts shall be filled in separately, and investment to be allocated is filled in as the remaining investment after deducting the assets directly formed; the asset attribute may be determined by reference to Table C.1 of Annex C.

6.8.9 Allocation calculation table of investment to be allocated: this table reflects the results of the allocation calculation of all investment to be allocated actually incurred; its format is given in Table B.20 of Annex B. Investment to be allocated may be allocated by the step-by-step method or the one-time method, generally using the actually completed workload of the project as the calculation base for allocating each cost; where the actual workload is difficult to use, the budgetary estimate workload may be used as the base. Equipment not requiring installation, current assets and intangible assets generally do not receive allocations; building works of houses only receive the related compensation for land acquisition and resettlement.

6.8.9 a) When the step-by-step method is used, the beneficiary objects of each cost to be allocated shall first be analysed, and a first allocation of each cost shall be made by reference to Table D.1 of Annex D: costs that can be directly identified as benefiting a single works item may be allocated directly to that item; cost items identified as benefiting the major categories of buildings, structures works or equipment requiring installation works are assigned to that major category; cost items jointly benefiting the major categories of buildings, structures works and equipment requiring installation works shall be apportioned between the two major categories according to a ratio derived from the workloads of the two categories. The sum of the costs to be allocated to each major category is then obtained, and a second allocation is made to the detailed items of the individual works within the category according to the workload ratio of each individual works.

6.8.9 b) When the one-time method is used, the actual (budgetary estimate) allocation rate is calculated according to the total workload of building works, installation works and the value of equipment requiring installation, and the allocation is made directly to the detailed items of each individual works.

6.8.9 c) The allocation rate of investment to be allocated may be calculated by the following formulas: actual allocation rate = (balance of costs to be allocated minus the portion that can be directly allocated) divided by (balance of building works plus balance of installation works plus balance of equipment requiring installation); budgetary estimate allocation rate = (investment to be allocated in the budgetary estimate minus the portion that can be directly allocated) divided by (balance of building works in the budgetary estimate plus balance of installation works plus balance of equipment requiring installation).

6.8.9 d) After the allocation rate has been calculated, the investment to be allocated to a given asset may be calculated as follows: building works investment to be allocated = total building works cost of the fixed asset multiplied by the allocation rate; installation works investment to be allocated = total installation works cost of the fixed asset multiplied by the allocation rate; investment to be allocated for equipment requiring installation = total cost of equipment requiring installation of the fixed asset multiplied by the allocation rate. e) The allocated amounts of each detailed works item shall be entered in the same works items of the 'Investment to be allocated' column of Tables B.11 and B.12 of Annex B.

6.8.10 Detailed list of capital construction expenditures pending write-off: this table reflects the details of capital construction expenditures pending write-off incurred by the project; its format is given in Table B.21 of Annex B.

6.8.11 Detailed list of transferred-out investment: this table reflects the details of transferred-out investment incurred by the project; its format is given in Table B.22 of Annex B.

6.8.12.1 Relationship between Table B.1 and Tables B.2 to B.22 of Annex B: a) the total of the budgetary estimate figures in fund sources of Table B.1 is consistent with the total of column 6 of Table B.2, and the total of the actual figures is consistent with the total fund sources of Table B.16; b) the total of assets delivered for use in actual investment of Table B.1 is consistent with the total of assets delivered in column 7 of Table B.10; c) capital construction expenditures pending write-off, transferred-out investment and input VAT in actual investment of Table B.1 are consistent with the totals of the corresponding items of Table B.16; d) the total of remaining works and reserved costs of Table B.1 is consistent with the total of column 14 of Table B.18.

6.8.12.2 Relationship between Table B.2, its sub-tables and Tables B.10 to B.20 of Annex B: a) the 'Budgetary estimate value', 'Actual value' and 'Actual (including input VAT) compared with budgetary estimate' columns of the rows 'Construction auxiliary works', 'Building works', 'Special works for environmental protection and soil and water conservation', 'Electromechanical equipment and installation works', 'Hydraulic steel structure equipment and installation works', 'Compensation for land acquisition and resettlement' and 'Independent costs' of Table B.2 are filled in from the totals of the corresponding items of Tables B.3 to B.9; b) the total of column 11 of Table B.2 is consistent with the total asset value of column 7 of Table B.10; c) the total of column 13 of Table B.2 is consistent with the total fund uses of Table B.16; d) remaining works and reserved costs of Table B.2 are consistent with the total of column 14 of Table B.18.

6.8.12.3 Relationship between Table B.10, its sub-tables and Tables B.17 to B.20 of Annex B: a) the 'Building works cost', 'Investment to be allocated' and 'Asset value' columns of the 'Structures' and 'Buildings' rows of Table B.10 are filled in from the totals of the corresponding items of Table B.11; b) the 'Equipment purchase cost', 'Installation works cost', 'Investment to be allocated' and 'Asset value' columns of the 'Equipment requiring installation' row of Table B.10 are filled in from the totals of the corresponding items of Table B.12; c) the 'Equipment purchase cost' of the 'Equipment not requiring installation' row of Table B.10 is filled in from the total of the 'Asset value' column of Table B.13; d) the 'Directly formed assets' column of the 'Current assets' row of Table B.10 is filled in from the total of the 'Asset value' column of Table B.14.

6.8.12.3 (continued) e) The 'Directly formed assets' column of the 'Intangible assets' and 'Long-term deferred expenses' rows of Table B.10 is filled in from the totals of the corresponding 'Asset value' column of Table B.15; f) the 'Asset value' figures of the 'Fixed assets', 'Current assets', 'Intangible assets' and 'Long-term deferred expenses' rows of Table B.10 are consistent with the amounts of the corresponding items of Table B.16; g) the total of 'Investment to be allocated' of Table B.10 is consistent with the total of column 3 of Table B.19; h) the total of 'Investment to be allocated' of Table B.10 is consistent with the total of the 'Investment to be allocated' row of Table B.20, and the 'Investment to be allocated' columns of Tables B.11 and B.12 are filled in from Table B.20.

6.8.12.4 Relationship between Table B.16, its attached tables and Tables B.18 to B.20 of Annex B: a) the total amount of fund sources of Table B.16 is consistent with the total of the 'Total' column of Table B.17; b) Table B.16 has no cross-check relationship with Tables B.19 and B.20; c) the amounts of 'Capital construction expenditures pending write-off' and 'Transferred-out investment' of Table B.16 are consistent with the totals of Tables B.21 and B.22 respectively.

6.8.12.5 Relationship between Tables B.19 and B.20 of Annex B: Table B.20 is the attached table of Table B.19, and the total of the 'Investment to be allocated' column of Table B.19 is consistent with the total of the 'Investment to be allocated' row of Table B.20.

6.9 Preparation of the final account description: the description of the final account report shall be prepared according to the following requirements.

6.9 a) Project overview: mainly describes the project objectives and benefits, the reasons for construction, the historical background, the project legal person, the project design process, the construction process of the main structures, and compensation for land acquisition and demolition and resettlement.

6.9 b) Basis and methods of preparation of the final account: mainly describes the basis, principles and methods of preparation of the final account, the project composition and its breakdown.

6.9 c) Settlement of project works payments: mainly describes the signing and settlement of contracts and agreements, the comparison of unit and individual works costs with the cost level of similar works in the same period, and remaining works and reserved costs.

6.9 d) Project cost accounting management: mainly describes the method of accounting for construction costs; whether there are expenditures exceeding the approved construction content, expenditures not complying with contracts or agreements, expenditures with incomplete invoices or without invoices, expenditures without approval procedures or signatures of responsible persons, losses on scrapped works and expenditures not belonging to the project; the accounting treatment, the clearing of property and materials and the settlement of claims and debts; the expenditures to be allocated and their allocation; and capital construction expenditures pending write-off and transferred-out investment.

6.9 e) Project fund management: mainly describes the raising of construction funds, control of financing costs, budgets, plans, receipt and use of construction fund expenditures, capital construction income and distribution of surplus funds.

6.9 f) Implementation of the capital construction procedure and construction management: mainly describes the project decision-making procedure, the pre-feasibility study, feasibility study and approval, major design changes and adjustment of the budgetary estimate, project design management, construction management, bidding and equipment procurement management, plan and contract management, rationalization proposals, application of advanced scientific methods and technologies, and experience and lessons learned.

6.9 g) Implementation and analysis of the project budgetary estimate: mainly describes whether the project was implemented according to the approved budgetary estimate content, whether there was construction exceeding standards, scale or budgetary estimate, the audits, inspections, examinations and checks carried out during construction and the implementation of rectification, remaining works and reserved costs, the differences between the actual completed investment and the budgetary estimate and their causes, and the use of contingency costs.

6.9 h) Assets delivered for use: mainly describes the assets formed by the project, whether the actual cost of assets delivered for use is complete, whether the delivery conditions are met, and the organizations receiving the assets.

6.9 i) Investment benefits of the project: mainly describes the analysis and calculation of the main technical and economic indicators such as the investment payback period (static and dynamic), financial net present value and internal rate of return, the analysis of loan repayment capacity, and the evaluation of economic, social and environmental benefits of the project.

6.9 j) Other matters requiring explanation: explanation of the treatment and methods that have a major influence on the data during preparation; k) chronicle of major events: mainly the historical record, compiled in chronological order, of major events of project construction management such as relevant activities during preparation and construction and construction milestones.

Annexes

Annex A (normative) gives the cover format of the final account report for hydropower projects (Figure A.1).

Annex B (normative) gives the formats of the final account statements for hydropower projects, Tables B.1 to B.22: general information of the completed project, the final account lists of the completed project by works category, the summary and detailed lists of assets delivered for use, the final financial account statement, the detailed list of funds received by year, the detailed list of remaining works and reserved costs, the detailed list and allocation calculation of investment to be allocated, and the detailed lists of capital construction expenditures pending write-off and of transferred-out investment.

Annex C (informative) gives the reference table for asset composition and classification of investment to be allocated of hydropower projects (Table C.1).

Annex D (informative) gives the reference table for allocation objects of investment to be allocated of hydropower projects (Table D.1).