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Fushun Government Investment Construction Project Audit Approach

Original Language Title: 抚顺市政府投资建设项目审计监督办法

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Auditing of investment-building projects in municipalities

(The 40th ordinary meeting of the Municipal Government of 7 December 2012 considered the adoption of the Order No. 165 of 20 December 2012 concerning the implementation of 1 February 2013 by the Municipal People's Government)

Article 1. To strengthen the audit supervision of the Government's investment-building projects, to regulate the audit of government investment-building projects, to enhance the quality and effectiveness of government investment-building projects, to develop this approach in line with the relevant laws and regulations such as the National People's Republic of China Audit Act, the People's Republic of China Audit Act.

Article 2

Article 3. This approach refers to government investment-building projects that use the following funds (or assets) to account for more than 50 per cent of the total investment in the proposed budget or that the proportion of investments is less than 50 per cent of the total investment rate, but the Government has projects to build project construction and operational control.

(i) Funding for the current financial budget;

(ii) Specialized funding for the secondary sector;

(iii) National debt funds;

(iv) The sovereign external debt financing of Governments, such as international financial organizations and foreign government loans;

(v) Funding payments through government credit loans or government commitments;

(vi) The various grants and contributions issued by the Government;

(vii) Other governmental funds or assets.

Article IV is an administrative authority overseeing the Government's investment-building project, which is responsible for the audit of government investment construction projects.

The executive authorities, such as development and reform, finance, inspection, should, within their respective responsibilities, assist the auditing agencies in the audit of government investment-building projects.

The Government's investments in the construction of a major project implementation audit, which could establish a joint mechanism with sectors such as development and reform, finance, inspection.

Article 5 Construction projects for investment at the current level or mainly at the municipal level are audited by the municipal auditing authority; construction projects for investments in the district, area or mainly in the district and district governments are charged with audits by district, district audit bodies.

The municipal audit bodies can audit construction projects that are conducted by district and district audit bodies.

Article 6. The auditor, in accordance with the needs of its work, may engage persons with relevant expertise or specialized agencies in government investment-building projects.

The audit body should develop guidelines on work to enhance oversight of the hiring of personnel and institutions.

Article 7. Auditing agencies, auditors and personnel employed in government investment-building projects should be subject to the principles of objectivity, impartiality, integrity, integrity and confidentiality.

Article 8

The auditing authority shall not be charged to the auditor in any name.

Article 9. The audit body is responsible for the preparation of the annual audit plan for Government investment-building projects. The annual audit plan should determine the modalities of the audited units and the audit.

The Government's annual audit plan for investment-building projects, which was approved by the current Government, should be made public and informed by the auditor.

The audit body should conduct audit work in accordance with the Government's annual audit plan for investment-building projects.

Government investment-building projects that have not been included in the annual government investment construction project plan should be reviewed by the auditor.

Article 10. The auditor carried out a follow-up audit of government-focused investment projects and the construction and management of urban infrastructure, secure housing, schools, hospitals, etc.

Article 11. The audit body shall conduct an audit of the whole process of implementing the Government investment-building projects that track the audit. Key elements of tracking the audit:

(i) Implementation of the project approval process;

(ii) The scale, content, standards and estimates of project construction are in compliance with the request for approval;

(iii) The authenticity and legitimacy of the application of funds related to the work of the project for the ex-shipment, survey, design, administration and advisory services;

(iv) The performance of tenders for projects;

(v) The financial and balance of payments for project construction and the authenticity and legitimacy of the use of funds;

(vi) Project survey, design, construction, supervision, counselling, representation and fees standards;

(vii) Implementation of the project contract;

(viii) Quality management of project works;

(ix) The performance of the functions of the project's on-site managers and supervisors;

(x) The items covered on-site visas, design changes, procurement of equipment materials.

Article 12. The auditor may conduct an audit of the objective bottom-up control price during the tracking of the audit; the implementation of the construction of project design, construction of financial policies across the various components, the establishment and implementation of the project internal control system and the establishment of the project division's sub-engineering, and audit evaluation or audit recommendations.

Article 13. Follow-up to the audit of government investment construction projects, the audit body may entrust a quality monitoring unit with a measurement of the quality of the work.

Article XIV tracks the audit of government investment construction projects, which should be informed by the auditor in a timely manner when works, materials prices, equipment procurement prices and design changes that affect the construction of works.

Article 15. The auditor conducts a settlement audit and the auditor shall send the engineering settlement information within 30 days of completion of the work.

Article 16 shall be subject to auditing of single works within 45 days from the date of the receipt by the auditor of the information on the settlement of the works.

Article 17 The construction unit shall, when signing construction contracts relating to the Government investment construction project, provide for the settlement of the outstanding engineering value of the amount of 20 per cent of the total contract price (including the quality assurance fund).

Article 18 The auditing authority shall conduct the accounting audit after the completion of the completion of the work of the audit cell. Key elements of the audit:

(i) The authenticity and legitimacy of the completion statement and the completion of the statement of work;

(ii) The scale of project construction and overall investment control, the availability of funds and the impact on construction projects;

(iii) Removal, relocation costs and management;

(iv) The authenticity, legitimacy and legitimacy of the use of funds, the transfer, appropriation, misappropriation of funds and the inviolation of pools, assessments, fees;

(v) The actuality and legitimacy of the project construction operation accounting, the investment accounting of equipment, the value of the investments to be assessed and the assessment and other investments;

(vi) The authenticity, legitimacy and integrity of the delivery of assets;

(vii) Sources, distribution, authenticity and legitimacy of project base income;

(viii) The reality of the project end-of-work works and the retention of the construction price.

Article 19 The auditor conducted the completion of the project and should have an audit concluded instrument within 45 days of the date on which the auditor was sent to the completed works.

Article 20 should conduct performance audits on the basis of the tracking of audits, the settlement of audits or the accounting of accounts, an analysis of the economic, efficiency, effectiveness, evaluation and audit recommendations for construction projects.

Article 21, the auditing body consists of an audit team based on the annual audit plan of the Government's investment-building project, and should send an audit letter to the auditing unit by three years of implementation; and, with special circumstances, with the approval of the Government of the current level, the audit body may conduct a direct audit letter of audit certificates.

The letter of audit should clarify the authenticity and legitimacy of the project funds for the design, construction, treasury, and supplying units directly related to the Government's investment construction project.

Article 2 Information includes:

(i) Approval documents, rationales and start-up procedures for projects;

(ii) Design of information - design of notes, construction maps (including standard maps and summary records);

(iii) A full set of solicitation documents (concluding tender documents, containing tenders or budgetary controls, the list of works, the summary of the solicitation responses, etc.), the letters of credit, the full set of tender documents for the subsidiaries, contracts (including technical and commercial tenders, consolidated single price analyses, construction organization designs, etc.);

(iv) The engineering budget, engineering calculations prepared by the relevant units;

(v) Determination, formulation and accompanying adjustments;

(vi) The construction organization design or technical measures programme prepared by side B and approved by the construction units;

(vii) Technical norms designed, constructed and collected;

(viii) Market information and purchase contracts for materials, equipment;

(ix) Authorized proposals for estimates;

(x) Approval of the engineering settlement of the project settlement or of submissions submitted by the BAU (confirmation by the construction and owner);

(xi) The completion map (e.g., the completion of the work map shall be submitted to the original design of construction maps, the summary of the construction map and the summary of the on-site meetings);

(xii) Designating a notice of change and its accompanying map;

(xiii) On-site visa and claim documents endorsed by both A and B;

(xiv) A list of recognized prices for materials and equipment used in the engineering process (i.e., unpredictable material, equipment prices);

(xv) A supply material, purchase contract and settlement list;

(xvi) Supplementary contracts or agreements for construction;

(17) The table of progress in the work, the list of works and the list of concealed engineering records, as declared by the third party and reviewed by the institution;

(xviii) The relevant price adjustment documents issued by the engineering price management;

(xix) Accreditation material;

(20) The quality of the construction unit and the evidence obtained;

(xxi) Other information relating to the construction price;

(xii) Accounting financial information for the work: accounting information (account books, accounting statements, bank accounts, accounting vouchers, engineering material desk accounts and counts and other relevant information);

(xxiii) List of major equipment, including equipment names, specifications, manufacture plants, quantity, value, orders, arrivals, receipts, credits and bank accounts;

(xiv) No installation of equipment, manuals, office furniture inventories (including names, specifications, stereotypes, values, maintenance, and subsectors);

(25) Other information.

Article 23, when auditing and auditing investigations are conducted by the auditor, the authentic, complete paper-based and electronic information relating to construction projects shall not be denied or hindered by the auditing authority from the law.

The audit team's audit reports should be sent to the audit team for comments by the auditor following the audit of the Government's investment-building project. The auditor shall receive written feedback within 10 days from the date of receipt of the audit report of the Audit Group, which exceeds 10 days without feedback from the written opinion, without objection.

The audit team's audit reports were contested by the auditor and the audit team should conduct a review. An objection was established and the audit team should revise the audit reports.

When the audit reports were sent, the written observations of the audit cell should be sent to the auditor.

Article 25. The audit body shall review the audit reports of the audit team and the observations of the auditor, and, after the review of the audit operations meeting, submit the audit reports; require the handling, punishment, audit decisions to be taken; and the need for the transfer of the authority concerned and shall be transferred to the law.

The auditing authority shall make audit reports and audit decisions within 60 days of the closure of the audit team, and shall be sent to the auditing units, accompanied by the construction of units and other relevant departments.

Article 26 The auditor shall, within 30 days of the date of the audit report and the audit decision, reclassify the issues identified in the audit report and report in writing on the implementation of the audit decisions.

The audit body shall examine the implementation of the audit decisions within 60 days of the date of entry into force of the audit decision.

Over the prescribed period, the auditor refused to implement the audit decision, and the auditing authority should apply to the Government of the people at this level to promote implementation or to apply for enforcement by the People's Court.

Article 27 should report to the current Government on the results of the Government's investment-building project audit and make audit recommendations in a timely manner, as well as on the relevant sectors.

The results of the Government's investment-building project audit should be included in the performance audit report for the current budget.

Article 28 does not carry out the project approval process, in violation of the project approval documents, unauthorized expansion of the scale of construction, improvement of the acquisition standards for construction and equipment, and construction of outside-planning works, and the auditor shall recommend that the relevant departments give administrative disposal to the competent and other direct responsibilities that are directly responsible.

Article 29, owing to the failure of the project budget and the significant investment losses caused by the failure of the design cell, should report on the liability of the Government of the current level to hold the construction units in compliance with the law and design units; in the event of a serious nature, it should be recommended that the relevant authorities reduce their qualifications or revoke their credentials.

Article 33 Construction units and construction units shall be responsible for adjusting them in the context of the settlement of the construction, and shall be responsible for the duration of the construction units or for direct collection.

The construction unit was hiding, hitting the larger amount of work and was treated in accordance with the preceding paragraph and recommended that the relevant departments hold administrative responsibility for the responsible units or those directly responsible.

In the Government's investment-building project audit, the auditor found that financial and income-generating acts in violation of State-mandated income and expenditure were entitled to be stopped; to stop invalidity, the financial sector should be notified of the suspension of payments or the suspension of funds by construction units. Payments or disbursements have been made, and the construction units should fully recover funds of violations, which are the prior financial sectors of financial funds.

The auditing authority should promote repayments, repayments and processing in accordance with the relevant laws, regulations.

Article 32, in violation of article 17 of this scheme, provides that construction units have not been retained or do not fully reserve the remaining construction price, which is warned by the auditor and may be fined by more than 3,000 dollars; that work prices have been paid more than the results of the audit, and that they have been recovered in part by the auditor's responsible units; and, with serious consequences, the auditing authority should recommend that the relevant departments give administrative disposal to the supervisors and direct responsibilities.

In violation of article 23 of this approach, the auditor is provided with information that is not authentic, incomplete or obstructed by the auditor, which is warned by the auditor to correct the order; the rejection of the correctness of a fine of up to 50,000 United States dollars for the auditor and other direct responsibilities that are directly responsible, may impose a fine of up to 20,000 dollars, and the auditor considers that the disciplinary action should be given to the relevant authorities, units.

In the Government's investment-building project audit, the audit body found that issues that were not dealt with under the statutory purview of the audit body should be transferred to the relevant departments and made audit recommendations, which should be addressed by law and communicated to the auditor in writing.

Article 35: The auditor has one of the following acts in the audit of the Government's investment-building project, which is governed by the law:

(i) Be aware of the interest of the auditor or the auditing matter without the initiative to avoid and have adverse consequences;

(ii) Solid, bribery or complicity to accept inappropriate interests;

(iii) Concluding the question of the violation of the law of property by the auditor;

(iv) Disclosure of State secrets or commercial secrets of the auditor;

(v) The issue of the receipt of the complaint reports is not carefully investigated and the disclosure of the information to the author;

(vi) The lack of full compliance with oversight responsibilities for the auditing of professionals employed, resulting in serious consequences;

(vii) Streamlining corruption with the auditor, the professional staff employed and social intermediaries;

(viii) There are other abuses of authority, provocative fraud, and observation.

Article 36 of this approach is implemented effective 1 February 2013.