The financial rules

    (February 7, 2012, the Ministry of Finance announced come into force on April 1, 2012, 68th) Chapter I General provisions

    First in order to further standardize the financial institutions, to strengthen the financial management and oversight, improve the efficiency of Fund utilization, guarantee institutions healthy development, these rules are formulated.

    Article II of these rules apply to all types of institutions (hereinafter referred to as institution) financial activities.

    Article III of the financial management principles are: implementation of relevant laws and regulations and the financial rules and regulations of the State; adhere to the frugal approach correctly handle the relationship between development needs and the supply of funds, the relationship between social benefit and economic benefit, benefit relationship between countries, institutions and individuals.

    Fourth article institutions financial management of main task is: reasonable prepared units budget, strictly budget implementation, full, and accurate prepared units accounts, real reflect units financial status; law organization income, efforts save spending; established sound financial system, strengthening economic accounting, implementation performance evaluation, improve funds using benefits; strengthening assets management, reasonable configuration and effective using assets, prevent assets loss; strengthening on units economic activities of financial control and supervision, prevention financial risk.

    Fifth, under the leadership of the financial activities of institutions in charge, centrally managed by the financial sector.

    Chapter II administration of budget

Sixth budget refers to the institution of public institutions under the career development goals and plan the preparation of the annual financial revenue and expenditure plan.

    Institutions budget consists of estimates of revenue and expenditure budget.

Seventh State institutions ' payments, fixed or approved grants, cost overruns in filling, closing and balances budget management approach adopted in accordance with the regulations. Quota or subsidy in accordance with relevant policies and financial might, combined with the characteristics, development goals and plans, budget and assets of public institution and so on.

Fixed or grants may be zero. Non-financial aid institution with more income than expenditure can be surrendered by the imposition of an income approach.

    Specific measures shall be formulated by the financial authorities and the competent authorities.

Eighth public institutions refer to a previous implementation of the annual budget, based on the factors and measures of change in income in the budget year, as well as closing and balances for previous years, budget calculation income; according to career development needs and financial resources could, estimates preparation of the expenditure budget.

    Institutions should seek to balance the budget, not prepared deficit budgets. Nineth institutions according to the annual business development objectives and provisions of the plan and budget, presenting budgetary recommendations, review summary report by the competent departments of Finance (first directly reported to the Finance Department budget unit, the same below).

    Budget control number assigned by the institutions based on the financial sector budget review summary report by the competent departments of finance, audited by statutory procedures implemented after approval. Tenth public institutions should strictly implement the approved budget. Budget implementation, the national grant from the State and financial account management general funds budget cannot be increased.

By higher authorities greatly the business plan adjustment, or according to national policy to increase or decrease spending, when greater impact on budget implementation, institution after the audit report shall be submitted to the competent departments of finance adjusted budget grant from the State and financial management budget needs outside funding increased or reduced, adjusted by the unit and submitted to the competent authorities and the financial sector for the record.

    Revised estimates of revenue, increase or reduce spending.

    The 11th accounts refers to the institution or institutions according to the annual report with the results of budget implementation.

    12th institutions shall prepare annual accounts in accordance with regulations, by the competent authorities after a review summary report and approval of the Department.

    Accounts auditing and analysis the 13th institution should be strengthened to ensure final accounts data is true and accurate, standardized accounts management.

    Chapter III income management

    Article 14th revenue refers to the institution in order to develop business and other activities shall be made of non-reimbursable funds. 

15th institution income included: (a) grant from the State, that is, institutions of various types of financial funding from the financial sector. (B) income from businesses and institutions to carry out specialized operations and ancillary revenue activities.

Of which: in accordance with the relevant provisions of the State funds should be turned over to the State Treasury or financial account, are not included in business income; allocated from financial institutions of money and not be handed over to the State Treasury or financial account of the approved funds, accounted for in the revenue.

(C) grant from the higher authority, namely institutions obtained from the authorities and parent unit non-grant from the State. 

(D) the subsidiary units to pay income, namely institutions affiliated independent accounting unit surrendered in accordance with the relevant provisions of the income.

(E) operating income, namely institutions in major business activities and supplementary activities carried out non-revenue accounting operations.

    (Vi) other income, that is outside the scope of the above provisions of this section of the income includes investment income, interest income, donations, etc.

    16th the income into the budget of the institution should be, unified accounting and management.

    Institutions in accordance with the provisions of article 17th turned over to the State Treasury or financial account capital should be paid timely and in full in accordance with Treasury centralized collection of relevant, not withholding the diversion, retention, retain, and support.

    The fourth chapter of expenditure management

    18th spending refers to institutions operating and capital costs and losses resulting from other activities. 19th institutions ' expenditure includes: (a) expenditure, namely professional operations and support activities of public institutions expenditures and project expenditures. Basic expenditure refers to the institution in order to maintain its normal operation, complete daily tasks and personnel expenditure and public spending.

Project expenditure refers to the institution in order to complete specific tasks and career development objectives, in addition to the basic expenditure incurred expenditures.

(Ii) operating expenses, namely institutions in major business activities and supplementary activities carried out non-independent expenditure incurred from operating activities. 

(C) to grant to the auxiliary organization expenses, namely institutions other than using a grant from the State of income grant to the auxiliary organization of expenditure.

(D) the payment to the higher authority, namely the institutions in accordance with the financial sector expenditure provisions and authorities turned over to the parent unit.

    (E) other expenditures, the expenditures outside the scope of the preceding provisions of this article, including spending on interest payments, donations, etc.

    20th all expenditures should be included in the budget of public institutions, establish and improve expenditure management systems. 21st the expenditure of institutions should strictly implement the relevant provisions of the financial rules and regulations of the State spending scope and expense standards stipulated by the relevant financial rules and regulations of the State there is no uniform, specified by the institution, reported to the competent Department and financial department.

    Systems in violation of the provisions of the law and national policy of the institutions, the competent authorities and the financial sector should be ordered to correct.

22nd institutions in non-accounting business activities should be correctly collecting the actual costs incurred; unable to collect, shall, in accordance with the ratio of a reasonable apportionment.

    Operating expenses and operating income ratio.

    23rd institution from financial sectors and departments have achieved the specified projects and the use of special funds should be earmarked, separate accounts, and submit to the financial sector or the competent Department in accordance with the provisions of the special use of the funds; after the project is completed, shall be submitted to special funds spending accounts and written report of the results and accept inspections, acceptance of the financial sector or the competent Department.

    24th public institutions should strengthen economic accounts, based on the actual needs of the business and other activities, internal cost accounting approach.

    25th institutions shall strictly enforce the centralized payment system and provisions such as the Government procurement system.

    26th institutions should strengthen expenditure management, improve the effectiveness of the use of funds.

    27th institution shall strengthen all kinds of bills to ensure that bills from legitimate sources, is true, correct, and may not use a false instrument.

    Fifth chapter closing and balance management

28th closing and balance refers to the institution the annual income and expenditure balance netting. Carry-over funds refers to the year the budget is implemented but not yet completed, or for some reason did not perform, next year needs to continue with the original purposes of the use of funds.

Balance refers to the current year's budget targets have been completed or terminated for some reason, then the remaining funds.

    Business closing and the balance of income and expenditure should be separately disclosed.

    29th financial management of appropriations carried over and the balance should be in accordance with the regulations of the financial sector. Non-financial appropriations carried over in accordance with the provisions of article 30th closing next year, continue to use it.

    Non-appropriation balances in accordance with the relevant provisions of the State workers ' Welfare Fund and the rest as a unit of utility funds used to cover in future annual balance; otherwise provided by the State from its provisions.

    31st institutions should strengthen funds management, follow the principles of balance, overall arrangement and rational use, expenditures may not go beyond the size of the Fund.

    The sixth chapter-specific funds management

32nd Special Fund refers to the institution in accordance with the provisions of or set up a special-purpose funds.

    Private fund management should be followed after the first use, the principle of a balanced budget, earmarks, spending may not go beyond the size of the Fund.

33rd special funds, including: (A) the purchasing Fund, in accordance with the percentage of revenue and operating income extraction and in accordance with the acquisition and renovation of the subject would be covered by provisions in the corresponding (50%), and in accordance with other provisions, for maintenance of fixed assets and the acquisition of funds.

Revenue and operating income less can not extract the purchase funds in public institutions, the institution does not extract purchase of fixed asset depreciation Fund.

(B) the employees ' Welfare Fund, according to a certain proportion of non-appropriation balances extracted in accordance with other provisions, for staff of collective welfare facilities, collective welfare funds.

    (C) other funds, that is, in accordance with the relevant provisions of the other extract or set up a private fund.

    The proportion of the Fund and the management of the 34th article, unified provisions of the State, in accordance with the uniform regulations; the absence of such provisions, determined by the competent authorities and the financial sector.

    The seventh chapter of the asset management

    35th assets referring institution occupied or used in a monetary unit of economic resources, including property, claims and other rights.

    Article 36th institution assets include current assets, fixed assets, construction in progress and intangible assets and investments, and so on.

    37th institutions shall establish a comprehensive asset management system, strengthen and standardize the configuration, use and disposition of assets management, maintain asset security and integrity to ensure healthy development.

    38th institutions shall, in accordance with scientific standards, strict control, ensure reasonable asset allocation principles of career development needs. 

39th liquidity refers can be realized within one year or amount of assets, including cash, deposits and more than 0 over the account limit, accounts receivable and prepayments, inventories, etc.

Stock referred to in the preceding paragraph refers to the institutions in conducting business activities and other activities for the consumption and storage assets, including materials, fuel, packaging, and low-value consumables. Institutions shall establish a sound internal management system of cash and all kinds of deposits, to regular or irregular stock inventory to ensure consistent accounts. 

    Inventory overage, shortage should be processed in a timely manner. 40th article refers to the use of fixed assets for more than a year, unit values of more than 1000 Yuan (including: special equipment units in more than 1500), and used in the process remain assets of the original physical form.

Unit value, but did not reach the required standard, but durable time in more than a year, a large number of similar material, as a fixed asset management. Fixed assets can be divided into six categories: houses and structures; special equipment general purpose equipment artifacts and exhibits; books, archives, furniture, utensils, equipment and plant and animal.

    List of fixed assets details of the industries and institutions shall be formulated by the competent departments, financial departments of the State Council for the record. 41st institution should be fixed periodically or occasionally inventory.

    Should be carried out before the end of the year a comprehensive inventory to ensure consistent accounts.

42nd construction refers to the necessary expenditures that have occurred, but have not yet reached the delivery status of the construction project.

    Construction intended use State, shall, in accordance with provisions of works final financial accounts and asset use. 

43rd intangible assets refers to does not have a physical form can be used to provide certain rights to those assets, including patents, trademarks, copyrights, land-use rights, non-patented technologies, goodwill, and other property rights. Transfer of intangible assets of public institution, shall, in accordance with the relevant provisions of the asset valuation, income made in accordance with the relevant provisions of the State.

    Institution obtains intangible assets expenditure incurred, shall be included in the expenditure.

The 44th foreign investment refers to the institution in accordance with the use of monetary funds, physical, intangible assets, such as investments in other units. Institutions shall strictly control the investment. In ensuring the normal operation and development of the subject, in accordance with the relevant provisions of the State foreign investment shall fulfil the relevant approval procedures.

Financial allocation shall not be used in public institutions and their balances with foreign investment may engage in investments such as shares, futures, funds, bonds, except as otherwise provided.

    Foreign investment institutions to non-monetary assets, assessment should be carried out in accordance with the relevant provisions of the State assets to determine asset values.

45th assets disposal should follow open, fair, just and the principle of competition, strictly carry out the relevant approval procedures.

    Lease or loan assets of public institution, should be in accordance with the relevant provisions of the State examination and approval by the competent departments reported that financial departments at the same level for approval.

    Article 46th institutions shall improve the efficiency of asset usage, in accordance with the relevant provisions of the State asset sharing, shared.

    Eighth chapter liability management

    47th of liability is borne by the institution under article can be in monetary units needed asset or service debts. 

48th institution's liabilities include borrowing money, payment, staged payments, dues, etc.

    Dues include public institutions charge should be turned over to the State Treasury or financial account funds, tax payable, as well as other funds in accordance with the relevant provisions of the State should be turned over to.

    49th institutions shall on classified management of different types of debt, clean and in a timely manner in accordance with the provisions of the settlement, guarantee the liabilities in the return within the prescribed period.

    50th institutions shall establish a comprehensive financial risk control mechanisms, norms and strengthening the management of borrowing money, strict implementation of the approval process, shall not violate the provisions of debt and borrowing guarantee.

    Nineth institution liquidation

    51st institution when there is a transfer, dissolution, merger, Division, liquidation shall be carried out.

    52nd liquidation of public institutions shall be under the supervision of the authorities and the financial sector, the unit property, credits and debts for comprehensive cleanup, preparation of the inventory and the list of credits and debts, property valuation basis, claims and debt treatment, transfer, receive, transfer and management of assets, and properly handle the remaining problems. 

The 53rd after the liquidation of public institutions, examined by the competent authority and submitted to the approval of the financial sector, whose assets were in accordance with the following approaches: (a) the affiliation change, system transfer institution, free transfer of all assets and corresponding indicators of transferred funds. (B) to business management institution, all the assets after deducting all its liabilities, to be used for the national capital.

Assets assessment needs, in accordance with the relevant provisions of the State. 

(C) the revocation of public institutions, all assets approved by the authorities and the financial sector. 

(D) the merged institution, receiving unit or the transfer of all the assets of the newly formed unit, the combined surplus assets approved by the authorities and the financial sector.

    (E) separate institutions, after the Division of the transfer of assets in accordance with the relevant provisions of public institutions, and a corresponding transfer of funds index.

    The tenth chapter, financial reporting and financial analysis 

The 54th a period of financial reports to reflect the institution's financial situation and career summary of the outcome of a written document. 

    Institutions should regularly to the competent authorities and the financial sector and other users of financial statements related to the provision of financial reporting.

    55th institutions submit annual financial reports, including balance sheets, income and expense statement funding statement of revenues and expenditures, investment in fixed assets accounting statements, and main table, related schedules and financial condition explanatory memorandum.

    56th financial condition explanatory memorandum, major State institutions revenue and expenditures, closing, balance and allocation, asset and liability changes, foreign investment, asset leasing and lending, asset disposal, fixed assets investment, performance evaluation, in the current period or the next major matters affecting financial position, as well as other things to note. 

57th financial analysis including budgeting and implementation, assets, income and expenses, and so on. Financial analysis indicators include completion rates of income and expenditure of the budget, staff expenditure and public expenditure total expenditure ratio, rate of per capita expenditures, assets and liabilities, etc.

    Authorities and public institutions can be increased according to the characteristics of its business financial indicators.

    The 11th chapter of financial supervision

    Article 58th institution financial monitoring including budget management, revenue management, expenditure management, closing and balance management, facility management, asset management, debt management, and oversight.

    59th financial supervision of public institutions should carry out ex ante supervision, supervision, supervision combines, combines daily supervision and special supervision.

    60th institution shall establish and perfect internal control system, economic system, financial information disclosure and supervision, disclosure of financial information in accordance with law.

    61st institution shall accept the authority and the supervision of the finance and auditing Department.

    12th chapter supplementary articles

    62nd financial management of capital construction investment in public institutions shall conform to these rules, but otherwise provided by the financial management system of State capital investments from its provisions.

    63rd application management of the financial system of the civil service law, stipulated by the financial Department of the State Council separately.

    64th national recurrent subvention of the social forces organized by public service organizations and community groups, in accordance with these rules; other social forces organized by public service organizations and community groups, can refer to the implementation of these rules.

65th following institution or institution-specific projects, implementation of the corporate financial system, instead of these rules:

(A) included in the financial management system of enterprises and institutions and affiliated independent production and management of public institution units;

(B) institutions operated by accepting units require a return on investment projects; 

    (C) approved by the authorities and financial sector conditions of other institutions.

66th article prominent features, industry the financial management systems need to be developed, by the financial Department of the State Council in conjunction with the competent authorities in accordance with this rule-making.

    According to the needs of cost accounting and performance management in some industries can be introduced in the financial management system in the industry of accrual.

    67th of provinces, autonomous regions and municipalities can be made under the rules of the financial sector combined with the actual situation of the region specific measures of financial management in public institutions.

    68th of the rules come into force on April 1, 2012. Annex: financial indicators 1. budget revenue and expenditure rate, measure the total budget income and expenditure in public institutions and budget levels.

Calculation formula is:

Completion rate = annual Executive budget income ÷ (earlier budgeted ± mid-year budget adjustments) x100%

Year-end number excludes income in the previous year's carry-over, and balances executed

Completion rate = annual Executive budget expenditures ÷ (earlier budgeted ± mid-year budget adjustments) x100%

    Year-end number excludes spending in the previous year's carry-over, and balances executed 2. the ratio of personnel expenditures and public spending as a share of expenditure, measuring the structure of expenditure in public institutions.

Calculation formula is:

Personnel expenses ratio = ÷ expenditure staff expenditure x100%

    Public = public expenditure ratio expenditures ÷ expenditure x100% 3. per capita expenditure, measuring the average number of institutions according to the actual preparation of the basic expenditure level.

Calculation formula is:

    = Per capita expenditures (spending-spending retirees) ÷ number of actual preparation 4. ratio of assets and liabilities, measure business activities in the institutions funded by creditors, and reflects the extent of creditors providing financial security.

Calculation formula is: Asset-liability ratio = total liabilities divided by total assets x100%