1. Environmental Auditing on the Yellow River Basin Liu Huibo from CNAO 5/7/2015 Penang, Malaysia

2. Contents Get to know the Yellow River Get to know the Yellow River Audit plan (topics, objectives, scopes and criteria) Audit plan (topics, objectives, scopes and criteria) Audit findings and recommendations Audit findings and recommendations Follow-up Follow-up Lessons learned Lessons learned

3. Get to know the Yellow River 5,464 km The cradle of Chinese civilization

4. Major environmental risks   Flood Ice, rainstorm and silt   Water shortage 58 billion m 3   Soil and water erosion 35kg/m 3   Water pollution Organic pollutants

5. Governments’ Countermeasures Governments’ Countermeasures Flood control Protection of water resources Soil and water conservation Prevention and control of water pollution

6.  Preliminary assessment on the performance of countermeasures Identification of risks Audit topics, … Risk based approach

7. Audit topics Pollution prevention and control Soil and water conservation Fees related to water resources

8. Objectives: compliance and performance 1. 1. to evaluate to what extent the Yellow River Plan has been implemented, 2. 2. to assess the efficiency and effectiveness of construction of projects for the prevention and control of soil and water erosion, 3. 3. to examine the management and use of fees related to water resources.

9. Scopes Implementation of the Yellow River Plan Construction and operation of major projects concerned Fees related to water resources

10. Auditee Governments Finance, environment and water resource authorities Project contractors

11. Criteria the Law on Prevention and Control of Water Pollution the Law on Soil and Water Conservation the Regulations on Waterway Management the Yellow River Plan the Environmental Quality Standards for Surface Water, the Standards on Pollutant Discharge for Urban Sewage Treatment Plants

12. Audit findings Against objective 1: to evaluate to what extent the Yellow River Plan has been implemented, 56 out of 253 sewage treatment plants--not completed timely 10 out of 96 sewage treatment plants – pollutant discharge over the standard limits

13. Audit findings A fund shortfall of 277 million Yuan Recovery of water and soil erosion was affected Against objective 2: to assess the efficiency and effectiveness of construction of projects for the prevention and control of soil and water erosion,

14. Audit findings Failed to collect Did not pay water resources fee 216 million charges of wastewater treatment 35 million 19 million charges of garbage disposal 573 thousand 90 million charges of pollutant discharge 817 thousand 206million Against objective 3: to examine the management and use of fee of water resources and other funds. Against objective 3: to examine the management and use of fee of water resources and other funds.

15. Audit findings 980 ha. of riverbed was illegally occupied 980 ha. of riverbed was illegally occupied No assessment on the impact of flood prevention was made. No assessment on the impact of flood prevention was made. No project was approved by the competent authority in charge of riverbed. No project was approved by the competent authority in charge of riverbed.

16. Audit recommendations To enhance pollution prevention and control in key areas, enterprises and industries To enhance pollution prevention and control in key areas, enterprises and industries To increase the investment in severely water-eroded areas and supervise the allocation of funds and efforts To increase the investment in severely water-eroded areas and supervise the allocation of funds and efforts No permission granted to reduction/exemption/postponement/suspension of fees No permission granted to reduction/exemption/postponement/suspension of fees To intensify the punishment on illegally occupation on the riverbed To intensify the punishment on illegally occupation on the riverbed

17. Follow-up Increased the investment, speeded up the construction and updated sewage treatment plants Increased the investment, speeded up the construction and updated sewage treatment plants Funds used on soil conservation were raised Funds used on soil conservation were raised Collected and handed in 42 million Yuan Collected and handed in 42 million Yuan Formulated rules and conducted punishments Formulated rules and conducted punishments

18. Lessons learned Risk based approach Extensively used in EA Follow up To increase the effectiveness of audit report To assist the legislature To evaluate SAI’s performance Compliance and performance audit Common type of EA

19. Thank you