Measures for the Management of Project Expenditure Performance Evaluation (Policy Forwarding)

annex

Measures for the Management of Project Expenditure Performance Evaluation

Chapter I: General Provisions

Article 1   These measures are formulated in accordance with the "Budget Law of the People's Republic of China" and the "Opinions of the Central Committee of the Communist Party of China and the State Council on the Comprehensive Implementation of Budget Performance Management" and other relevant provisions in order to fully implement budget performance management, establish a scientific and reasonable project expenditure performance evaluation management system, and improve the efficiency and use of financial resources.

Article 2   Project expenditure performance evaluation (hereinafter referred to as performance evaluation) refers to the financial departments, budget departments and units to objectively and impartially measure, analyze and judge the economy, efficiency, effectiveness and fairness of project expenditure according to the set performance objectives.

Article 3   These measures shall apply to the performance evaluation of general public budgets, government fund budgets, and state-owned capital operating budget project expenditures. Performance evaluation involving budget funds and related management activities, such as government investment funds, sovereign wealth funds, public-private partnerships (PPPs), government procurement of services, and government debt projects, may be implemented with reference to these measures.

Article 4 Performance evaluation is divided into three ways: unit self-evaluation, departmental evaluation and financial evaluation. Unit self-assessment refers to the self-evaluation of the completion of the project performance objectives approved by the budget department and the subordinate units at the same level and subordinate units. Departmental evaluation refers to the performance evaluation carried out by the budget department on the project organization of the department according to the relevant requirements and the use of scientific and reasonable performance evaluation indicators, evaluation standards and methods. Financial evaluation is the performance evaluation of the project organization carried out by the financial department on the budget department.

Article 5 Performance evaluation should follow the following basic principles：

（一)Scientific and impartial. Performance evaluation shall use scientific and reasonable methods and follow standardized procedures to objectively and fairly reflect the performance of the project.

（二)Making a comprehensive plan. Unit self-evaluation, departmental evaluation and financial evaluation should have clear responsibilities, each with its own focus, and connect with each other. The self-assessment of the unit shall be carried out independently by the project unit, that is, "who spends and who self-evaluates". Departmental evaluation and financial evaluation shall be carried out on the basis of unit self-assessment, and may be entrusted to a third-party agency when necessary.

（三)Incentives and constraints. The results of performance evaluation should be substantively linked to budget arrangements, policy adjustments, and management improvements, reflecting the orientation of rewarding the good and punishing the bad and the compatibility of incentives.

（四)Be transparent. The results of performance evaluations shall be disclosed in accordance with laws and regulations, and shall be consciously subject to social supervision.

Article 6   The main basis for performance evaluation：

（一)Relevant national laws, rules and regulations；

（二)Major decisions and deployments of the Party Central Committee and the State Council, economic and social development goals, and key tasks and requirements of local Party committees and governments at all levels；

（三)Provisions on the responsibilities of the department；

（四)Relevant industry policies, industry standards and professional technical specifications；

（五)Budget management systems and methods, project and fund management methods, financial and accounting information；

（六)The policy basis and objectives of the project establishment, the implementation of the budget, the annual final account report, the final account of the project or the acceptance report and other relevant materials；

（七)The report on the results of the examination, the audit report and the decision of the people's congress at the same level, the financial supervision and audit report, etc；

（八)Other relevant information.

Article 7   The performance evaluation period includes annual, mid-term and after the end of the project implementation period; For projects with an implementation period of 5 years or more, mid-term and post-implementation performance evaluations should be carried out in a timely manner。

Chapter 2 The object and content of performance evaluation

Article 8   The object of unit self-assessment includes all project expenditures included in the government budget management.

Article 9   According to the needs of the work, the evaluation objects of the department should give priority to the major reform and development projects performed by the department, and randomly select general projects. In principle, a five-year cycle should be used to achieve full coverage of key departmental evaluation projects.

Article 10   According to the needs of the work, the financial evaluation object should give priority to the implementation of the major policies and policies of the Party Central Committee and the State Council, and the project with wide coverage, great influence, high social concern and long implementation period. Performance evaluation should be carried out periodically for key projects.

Article 11   The content of the unit's self-assessment mainly includes the overall performance objectives of the project, the completion of various performance indicators and the implementation of the budget. For projects that have not completed the performance objectives or deviated from the performance objectives greatly, it is necessary to analyze and explain the reasons, and study and propose improvement measures.

Article 12   The contents of the financial and departmental evaluations mainly include：

（一）Decision-making situation；

（二）Management and use of funds；

（三）The soundness and implementation of the relevant management system and measures；

（四）Outputs achieved；

（五）Benefits achieved；

（六）Other related content.

Chapter III: Performance Evaluation Indicators, Evaluation Standards, and Methods

Article 13   The unit self-assessment indicators refer to the performance indicators determined when the budget is approved, including the quantity, quality, timeliness, and cost of the project's output, as well as economic, social, ecological, sustainable impact, and customer satisfaction.

The weight of the unit self-assessment index shall be determined by each unit according to the actual situation of the project. In principle, the budget implementation rate and the weight of the first-level indicators are set as follows: 10% of the budget implementation rate, 50% of the output index, 30% of the benefit index, and 10% of the satisfaction index of service users. In case of special circumstances, the weight of the first-level indicator can be appropriately adjusted. The second- and third-level indicators shall be comprehensively determined based on factors such as the importance of the indicators and the stage of project implementation, so as to accurately reflect the outputs and benefits of the project.

Article 14 The determination of financial and departmental performance evaluation indicators shall meet the following requirements: closely related to the evaluation object, and comprehensively reflect project decision-making, project and fund management, output and efficiency; Priority should be given to selecting the most representative core indicators that can most directly reflect output and efficiency, and streamline and apply them; The connotation of indicators should be clear, specific and measurable, and data and supporting materials should be collectible and available; The performance evaluation indicators and standards of similar projects should be consistent and facilitate the comparison of evaluation results.

The weight of financial and departmental evaluation indicators is determined according to the importance of each index in the evaluation system, and the result orientation should be highlighted, and in principle, the weight of output and benefit indicators shall not be less than 60%. When the same evaluation object is in different stages of implementation, the weight of the indicators should reflect the differences, among which, the evaluation during the implementation period pays more attention to decision-making, process and output, and the evaluation after the implementation period pays more attention to output and benefit.

Article 15   Performance evaluation criteria typically include program standards, industry standards, historical standards, etc., which are used to compare the achievement of performance indicators.

（一)Program Criteria. It refers to the evaluation criteria based on pre-established goals, plans, budgets, quotas, etc.

（二)Industry standards. Refers to the evaluation criteria formulated with reference to the industry index data published by the state.

（三)Historical criteria. It refers to the evaluation criteria formulated with reference to historical data, and in order to reflect the principle of performance improvement, a relatively high evaluation standard should be determined under achievable conditions.

（四)Other standards confirmed or approved by the finance and budget departments.

Article 16   The unit self-assessment adopts a comparative method combining quantitative and qualitative evaluation, and the total score is formed by summarizing the scores of various indicators.

The quantitative index score is evaluated according to the following method: compared with the index value at the beginning of the year, if the index value is completed, the full part of the value assigned to the index will be recorded; If the completion value is higher than the index value, the reason should be analyzed, and if it is caused by the obvious low indicator value setting at the beginning of the year, the score should be appropriately adjusted and reduced according to the deviation; If the indicator value is not completed, the score shall be scored according to the ratio of the completed value to the indicator value.

The qualitative index score is evaluated according to the following method: according to the completion of the index, it is divided into three grades: achieving the annual target, partially achieving the annual target and having a certain effect, and failing to achieve the annual target and the effect is poor, and the score is reasonably determined according to the corresponding score range of the indicator 100%-80% (inclusive), 80%-60% (inclusive), and 60%-0%.

Article 17 The methods of financial and sectoral evaluation mainly include cost-benefit analysis, comparative method, factor analysis method, lowest cost method, public evaluation method, benchmarking method, etc. Depending on the specific situation of the person being evaluated, one or more methods may be used.

（一）Cost-benefit analysis. It refers to the method of analyzing the correlation between inputs, outputs, and benefits.

（二)Comparative Law. Refers to a method of comparing implementation with performance targets, historical situation, and similar expenditures in different sectors and regions.

（三)Factor analysis. It refers to the method of comprehensively analyzing the internal and external factors that affect the achievement and implementation of performance goals.

（四）Least-cost method. It refers to the method that the lowest cost is the best under the premise of setting performance goals.

（五)Public Judgment Law. It refers to the method of evaluation through expert evaluation, public questionnaires and sample surveys.

（六)Benchmarking method. It refers to the method of judging by the high performance level of the same industry at home and abroad as the benchmark.

（七）Other evaluation methods.

Article 18 The results of the performance evaluation are a combination of scoring and rating, and the specific score and grade can be set according to different evaluation contents. The total score is generally set at 100 points, and the grades are generally divided into four grades: 90 (inclusive)-100 points are excellent, 80 (inclusive)-90 points are good, 60 (inclusive)-80 points are medium, and below 60 points are poor.

Chapter IV: Organizational Management and Implementation of Performance Evaluation

Article 19   The financial sector is responsible for the development of performance evaluation system measures, to guide the departments at the same level and the lower levels of the financial departments to carry out performance evaluation work; In conjunction with relevant departments, conduct spot checks and reviews of the results of unit self-assessment and departmental evaluation, and urge departments to fully apply the results of self-assessment and evaluation; Organize and implement performance evaluation as needed, and strengthen the feedback and application of evaluation results.

Article 20   Each department is responsible for formulating its own performance evaluation methods, organizing the department and its subordinate units to carry out self-assessment work, summarizing the self-assessment results, and strengthening the review and application of the self-assessment results; Specifically organize the implementation of departmental evaluation work, and strengthen the feedback and application of evaluation results. Actively cooperate with the financial evaluation work and implement the evaluation and rectification opinions.

Article 21   The department and its subordinate units are specifically responsible for the self-assessment work in accordance with the requirements, and are responsible for the authenticity and accuracy of the self-assessment results, and the problems found in the self-assessment should be rectified in a timely manner.

Article 22   The financial and departmental evaluation work mainly includes the following links：

（一）Determine the object and scope of performance evaluation；

（二）Issuance of performance appraisal notices；

（三）Study and formulate a work plan for performance evaluation；

（四）Collect data related to performance evaluation, and conduct on-site research and discussions；

（五）Verify the relevant situation, analyze and form preliminary conclusions；

（六）Exchange views with the evaluated departments (units).；

（七）Synthesis of the analysis and the formation of a final conclusion；

（八）Submit a performance appraisal report；

（九）Establish a performance evaluation file.

Article 23   Financial and departmental evaluations may entrust third-party institutions or experts in related fields (hereinafter referred to as third parties, mainly refers to units and individuals that have no direct interest in the use of funds) to participate as needed, and strengthen the guidance of third parties, supervise and manage the quality of third-party work, and promote the improvement of the objectivity and fairness of evaluations.

Article 24   Where the department entrusts a third party to carry out performance evaluation, it should reflect the principle of separating the client from the project implementation entity, and it is generally entrusted by the institution in charge of finance to ensure the independence, objectivity, and fairness of the performance evaluation.

Chapter V: Application and Disclosure of Performance Evaluation Results

Article 25   The results of the unit self-assessment are mainly reflected in the form of the project expenditure performance self-assessment form, so that the content is complete, the weight is reasonable, the data is true, and the results are objective. The results of financial and departmental evaluations are mainly reflected in the form of performance evaluation reports, which should be based on sufficient evidence, thorough analysis, clear logic, and objective and fair.

The performance evaluation work and results shall be consciously subject to audit supervision in accordance with the law.

Article 26 All departments shall, in accordance with the requirements of the departmental final accounts, submit the results of the performance self-assessment to the financial departments at the same level.

Departments and units should earnestly strengthen the collation and analysis of self-assessment results, and use the self-assessment results as an important basis for improving policies and management in their own departments and units. For projects with low budget implementation rates and poor self-assessment results, the reasons should be explained separately and corrective measures should be proposed.

Article 27   The financial department and the budget department shall, after the completion of the performance evaluation work, timely feedback the evaluation results to the evaluated department (unit), and clarify the time limit for rectification; The evaluated department (unit) shall, as required, report to the financial department or the competent department on the implementation of rectification.

All departments shall, as required, submit the results of the departmental evaluation to the financial department at the same level, and the evaluation results shall be used as an important basis for the department to arrange the budget, improve policies and improve management; The results of financial evaluation serve as an important basis for arranging government budgets, improving policies, and improving management. In principle, those with excellent or good evaluation grades are to be supported according to the circumstances; For those with medium or poor evaluation grades, it is necessary to improve policies, improve management, and reduce budgets according to the situation. For those who do not carry out rectification or the rectification is not in place, the budget shall be reduced accordingly according to the situation or arrangements will be made after the rectification is in place.

Article 28   Finance departments and budget departments at all levels shall, in accordance with the requirements, compile the results of performance evaluations into the final accounts of the government and the final accounts of their own departments, submit them to the standing committee of the people's congress at the corresponding level, and make them public in accordance with law.

Chapter VI: Legal Responsibility

Article 29   Those responsible for the serious inefficiency and ineffectiveness of the use of financial funds and causing major losses should be held accountable in accordance with relevant regulations. The financial violations of units and individuals found in the process of performance evaluation shall be investigated in accordance with the relevant provisions of the Budget Law of the People's Republic of China and the Regulations on the Punishment and Punishment of Financial Violations; Where leads on violations of discipline or law are discovered, they shall be promptly transferred to the discipline inspection and supervision organs.

Article 30   Financial departments at all levels, budget departments and units and their staff in the performance evaluation management of violations of these measures, as well as other abuse of power, dereliction of duty, favoritism and other violations of law and discipline, in accordance with the People's Republic of China Budget Law, the People's Republic of China Civil Servants Law, the People's Republic of China Supervision Law, the Regulations on the Punishment of Financial Violations and other relevant provisions of the State to pursue the corresponding responsibility; and where a crime is suspected, it shall be transferred to the judicial organs for handling in accordance with law.

Chapter VII Supplementary Provisions

Article 31   All regions and departments may formulate specific management measures and implementation rules in light of actual conditions.

Article 32   These measures shall come into force on the date of issuance. The "Interim Measures for the Management of Fiscal Expenditure Performance Evaluation" (Cai Shui [2011] No. 285) shall be repealed at the same time.

attach：1. Project expenditure performance self-assessment form

2. Framework of project expenditure performance evaluation index system (reference)

3. Project Expenditure Performance Evaluation Report (Reference Outline)

附1

P.S. 2

Framework of project expenditure performance evaluation index system (reference)

P.S. 3

Project expenditure performance evaluation report

(Refer to the outline)

一、Basic information

（一）Project Overview. Including project background, main content and implementation, capital investment and use, etc.

（二）Project performance goals. It includes overall goals and milestones.

二、Performance evaluation work

（一）The purpose, object and scope of the performance evaluation.

（二）Performance evaluation principles, evaluation index system (table description), evaluation methods, evaluation standards, etc.

（三）The process of performance evaluation.

三、Comprehensive evaluation and evaluation conclusions (with relevant score sheets)

四、Analysis of performance evaluation indicators

（一）Project decision-making.

（二）The status of the project process.

（三）Project outputs.

（四）Project benefits.

五、Analysis of main experiences and practices, existing problems and causes

六、Recommendations

七、Other issues that need to be clarified