Sit theThe schematic simply makes no sense at all. The 4017 is a 10-stage Johnson counter which is completely useless in this application and is wired wrongly according to the schematic anyway. I suspect it should be a different IC type altogether, where did you find the schematic?
The pin numbers suggest the IC might be a CD40174 but even then it is wired incorrectly.
The PCB should have clearly defined copper areas with gaps between the tracks. From the photograph it looks like the board is only partly etched so there will still be conductive copper between the connections. Does the LED light up when the battery is connected?