Interim Measures for the Management of Budget Review (Policy Forwarding)

annex

Interim Measures for the Management of Budget Review

Chapter I: General Provisions

         Article 1 In order to strengthen departmental budget management, promote scientific and standardized budget review, and improve the efficiency of financial resource allocation, these measures are formulated in accordance with the "Budget Law of the People's Republic of China" and its implementing regulations, the "Opinions of the State Council on Further Deepening the Reform of the Budget Management System" (Guo Fa [2021] No. 5) and other relevant provisions.

         Article budget review in these measures, refers to the financial departments at all levels of the departmental budget project capital needs, expenditure standards and other review activities, for budget preparation, budget performance management and other technical support.

         Third financial sector to carry out budget review work, should follow the following principles：

       （一)In accordance with laws and regulations. Carry out budget review in accordance with laws and regulations, policy documents, budget management systems, etc., and standardize review behavior.

       （二)Scientific and reasonable. Taking into account the level of economic and social development and the possibility of financial resources, scientifically and reasonably analyze and evaluate the necessity and feasibility of project implementation, and analyze the rationality of the capital demand plan.

       （三)Objectivity and impartiality. Promote the proceduralization, standardization, and standardization of budget review, and carry out the review work in a fair and just manner.

       （四）Performance-oriented. Implement the relevant requirements for the full implementation of budget performance management, effectively connect with prior performance evaluation and performance target management, implement the requirements of living a tight life, promote the optimization of resource allocation, and improve the efficiency of fund use.

Chapter II: Management Responsibilities

         Fourth main responsibilities of the financial sector：

       （一)Formulate work regulations such as business specifications and operating procedures for budget review at the same level, and improve the budget review system；

       （二)Clarify the scope of budget review projects at the same level, and select projects for review；

       （三)Responsible for organizing and supervising the specific implementation of the budget review, and organizing the use of the review results；

       （四)Guide the budget review work of the subordinate financial departments. Article 5 of the competent departments of the evaluation project, the reporting unit should actively cooperate with the financial sector to complete the budget review of the project of the department.

Chapter 3 Scope of Budget Review

         Article 6 The Ministry of Finance shall organize the review of the budget projects of the central departments。

      （一)Prioritize projects for review. Projects that meet one of the following conditions will be reviewed in batches in accordance with the principle of "evaluation as soon as available".

        1.Projects with a large total project expenditure refer to second-level projects with a total capital demand of more than 100 million yuan (inclusive) among specific target projects。

        2.Projects with large annual capital requirements refer to second-level projects with annual capital requirements of more than 100 million yuan (inclusive) for special operating expenses and operation projects. If the total annual capital demand of a second-level project of the same nature belonging to the same department is more than 100 million yuan (inclusive), it shall be reviewed as a project.

        3.Projects with strong specialization refer to second-level projects such as the establishment of new institutions, celebrations, exhibitions, maintenance and renovation and new buildings, halls and halls with a total capital demand of less than 100 million yuan and more than 50 million yuan (inclusive) in specific target projects.

        4.Technically complex projects refer to second-level projects such as inspection and monitoring, information construction, etc., with a total capital demand of less than 100 million yuan and more than 20 million yuan (inclusive) in specific target projects.

      （二)Randomly selected items for review. According to the needs of the annual budget review, the Ministry of Finance shall randomly select projects from a certain range of the project library for centralized review in combination with the budget review task. For projects that are found to have problems such as inspections, audits, financial and accounting supervision, and budget performance management, and for projects that need to be reviewed for the formulation of expenditure standards, and other projects that have a real need for review, a separate lottery may be arranged or the proportion of lottery selection may be increased. The results of the lottery shall be announced internally。

        Seventh local financial departments at all levels are responsible for organizing the review of budget projects of all departments at the same level, focusing on the selection of total project expenditures and annual capital needs, professional and complex projects. The specific scope and standards can be referred to the central financial review, which shall be stipulated by the local finance departments themselves。

        Eighth in accordance with the principle of economy and efficiency, financial departments at all levels do not need to carry out the review of the following projects in principle, and are not included in the scope of priority review and random selection：

      （一)Personnel projects and public funding projects；

      （二)Projects that have issued policies or documents that specify the amount of funding；

      （三)Projects that have undergone a budget review and have not increased their total project expenditures or annual funding requirements；

      （四)According to the expenditure standards and task volume stipulated or recognized by the financial department at the same level, the project can directly measure the demand for funds；

      （五)According to the regulations, the project department in charge (referring to the department responsible for the management of special funds and reviewing the projects declared by relevant units) is responsible for reviewing and approving projects such as project establishment, feasibility study report, task book and other documents；

      （六)Projects where the content of the project is sensitive and the scope of knowledge is strictly limited；

      （七)The total expenditure of the project is lower than the amount standard stipulated by the financial department at the same level；

      （八)Other projects that are not subject to review as stipulated by the financial department at the same level.

Chapter 4 Evaluation Content and Methodology

         Article 9 The budget review should focus on the necessity, feasibility, completeness, compliance, reasonableness, economy, performance objectives, and expenditure standards of the project, among which the review of the continuation of the project shall take the budget implementation and budget performance management of the previous year as an important reference。

       （一)The necessity, feasibility, completeness of the project。

         1.Necessity. The main reason is whether the basis for project approval is sufficient, and whether the project content is consistent with relevant national major decision-making and deployment, laws and regulations, relevant industry policies and development plans; whether it is closely connected with the responsibilities of the department; Whether there is cross-duplication with other items.

         2.Viability. The main thing is whether the project implementation plan is specific and feasible, whether the task is clear, whether the implementation conditions are met, whether the project budget scale matches the planned plan and target tasks, and whether the expected investment progress matches the expected work progress.

         3.Completeness. The main thing is whether the project is approved in accordance with the relevant procedures, whether the content scope, objectives and tasks, scale standards are clear and clear, and whether the budget application materials and related supporting materials are complete.

       （二)Compliance, reasonableness, and economy of the budget.

       1.Compliance. The main thing is whether the content of the project complies with financial laws and regulations.

       2.Rationality. The main thing is whether the project is compatible with the level of economic and social development and the level of financial resources at the same level, whether it belongs to the expenditure responsibility at the same level, whether the expenditure content is true, whether the basis for funding calculation is sufficient, and whether the method is appropriate.

       3.Economical. The main thing is whether the project implementation plan implements the requirements of tight days, strictly implements diligence and thrift, and whether it is conducive to reducing costs; Whether the capital requirements are calculated according to the standard and whether they are carefully calculated.

     （三)Performance Objective Review. It is mainly to review the completeness, relevance, appropriateness, feasibility, and matching with the project funding needs of the performance objectives.

     （四)Expenditure criteria review. The main purpose is to review the applicability of the expenditure criteria used in the preparation of the budget.

     （五)Other reviews focus on review. According to the needs of project implementation, the nature of the project and the source of funds shall be reviewed.

       Article 10 Focusing on the content of the project expenditure budget review, the comprehensive use of policy evaluation, comparative analysis, workload calculation, cost-benefit analysis, market inquiry, expert consultation, on-site verification and other methods to implement the review.

       Article 11 The basis for budget review includes:

     （一)Relevant national laws and regulations；

     （二)Policies and plans for national economic and social development；

     （三)The financial department or the financial department in conjunction with the relevant departments of the fund management, budget management, state-owned assets management measures, etc；

     （四)Department functions and responsibilities, medium and long-term career development plans, as well as annual work plans and key work arrangements；

     （五)Project approval basis documents, project implementation plans, contracts and related system documents, etc；

     （六)Relevant historical data, industry standards, planning standards, spending standards, etc；

     （七)Budget performance management for previous years；

     （八)Other project-related supporting materials.

Chapter 5 Evaluation Organization and Management

       12th financial departments at all levels in accordance with the budget management authority and the scope of budget review, comprehensive consideration of prior performance evaluation, performance evaluation, expenditure standards and other task requirements, reasonable determination of budget review tasks, and clear the relevant project review principles, basis, focus, time limit, etc., issued to the evaluation body。

       13th financial departments at all levels to make overall arrangements for prior performance evaluation and budget review. If a clear opinion has been issued on the project's funding requirements in the prior performance evaluation, the budget review shall be deemed to have been carried out。

       Article 14 The general procedures for carrying out budget review are:：

     （一)Preparation. After the financial department determines the budget review task, it shall notify the project department in charge to prepare for the review. The competent department of the project and the applicant shall actively cooperate with the evaluation agency, provide relevant information within the specified time limit as required, and be responsible for the authenticity, legality and completeness of the information provided.

     （二)Develop a plan. The evaluation agency formulates the evaluation plan according to the requirements of the evaluation task. The review plan should include the basic information, the key focus of the review, the review method 7 and basis, the members of the review working group, the review time and schedule, etc.

     （三)Conduct reviews. The evaluation agency implements the project review according to the review plan. Strengthen information communication during the review, and after the preliminary review conclusion is formed, it should be fed back to the financial department that organizes the review in a timely manner, and the financial department or the financial department authorizes the review agency to formally exchange views with the project department in charge or the reporting unit. The evaluation agency shall improve the review conclusions according to the relevant opinions and issue a review report. If there is a large controversy over the review report or serious problems are found in the quality of the review, the review agency shall conduct a review or the financial department shall select other review institutions for re-evaluation.

     （四)Reporting and archiving. The review report should include the basic information, the basis for the review, the review conclusions, the questions and suggestions, if there are opinions signed by the project applicant or special explanations are required, which shall be reflected in the report. After the report is issued, the review body shall promptly sort out the review materials, establish a review file, and store the review requirements in the file.

       Article 15 The financial departments at all levels shall strengthen the confidentiality management of the budget review work, strictly control the scope of knowledge of secret-related items, and strictly manage the use, preservation, reproduction and destruction of confidential materials. Units, intermediaries, and experts participating in the review of confidential projects must have the qualifications required by national laws and regulations on secrecy, meet the corresponding conditions for site, personnel, equipment, file management, etc., and perform confidentiality management procedures such as signing confidentiality agreements or confidentiality commitments in accordance with relevant regulations. The entrusted intermediary reviewers and review experts shall not disclose the relevant information of the units and projects involved in the review work.

Chapter VI Evaluation Institutions and Expert Management

        Article 16 The Budget Review Center of the Ministry of Finance, as the central financial review body, undertakes the review tasks organized and issued by the Budget Department of the Ministry of Finance, and accepts the guidance of the Budget Management Department of the Ministry of Finance on the relevant policies and operations of the review project. The central financial review agency should focus on carrying out the review work objectively and fairly, improve the professional ability of the review, and improve the efficiency of the review. In principle, the review agency shall issue a review report within 15 working days after receiving the review task, and for the review task issued centrally, the review report shall be issued within 45 working days after receiving the review task. The central financial review agency is responsible for the review report, and interprets the review report and provides audit and other supervision departments as required. The Department of Budget Management of the Ministry of Finance is responsible for using the results of the review and explaining the budget arrangements formed by using the results of the review, and shall not transfer the main responsibility for budget review to the review body.

        17th local financial departments at all levels according to the establishment of institutional functions, may be set up by the financial sector, with the review function of the subordinate units to undertake the review task, or commissioned with relevant qualifications of intermediary agencies, organization of experts, etc. to carry out the review. Local financial review agencies should improve their budget review capabilities, strictly enforce review work discipline, and be objective and fair.

        18th financial sector or evaluation agencies entrusted by intermediaries to engage in the review, should be in strict accordance with government procurement, government procurement of services system and requirements, public bidding, invitation to tender, competitive negotiations, single-source procurement and other ways to select outstanding professional ability, institutional management norms, good reputation of the intermediary agencies to participate in the evaluation work, pay to intermediaries should comply with the relevant provisions. The intermediary institution accepting the entrustment shall independently carry out the review work under the guidance of the entrusting party. If the intermediary agency has an interest relationship with the project applicant, or the review project may affect the interests of the intermediary agency, it shall take the initiative to avoid and shall not participate in the relevant project review. After the intermediary agency participates in the relevant project review, it shall not contract the design, cost, bidding agency, supervision, audit and other business with interests to the project application unit. The same intermediary institution must not accept the entrustment of different entities to carry out work such as demonstration and review of the same project.

        19th financial sector or evaluation institutions to organize expert review, should be established according to the needs of the work of the budget review expert database, in principle, should be randomly selected from the expert pool to meet the relevant professional requirements of the expert review, clear expert selection, evaluation, exit and other mechanisms. Strengthen the management of experts' participation in the review, strictly enforce work discipline and work requirements, and the entrusted experts shall carry out their work objectively and fairly, and be responsible for the review opinions issued. If there is a relationship between the expert and the project applicant that may affect the fairness of the review, such as employment and cooperation, he or she shall take the initiative to avoid it and shall not participate in the relevant project review. The same expert must not accept the entrustment of different entities to participate in the demonstration and review of the same project.

Chapter VII Application of Results

         20th financial departments at all levels should strengthen the use of budget review results, the results of the use of methods include：

       （一)Apply the results of the review to the budget arrangement. The financial department shall use the results of the review as a reference for the review of the budget application. The amount of the budget arrangement of the project to be reviewed shall generally not exceed the evaluation results, and if it is necessary to exceed the budget of the evaluation results, it shall be strictly demonstrated by the relevant departments and financial departments, and 10 key explanations shall be made in the process of budget review and calculation of departments and units.

       （二)Improve the quality of departmental budget preparation. According to the problems found in the budget review, the financial department shall put forward suggestions for improving the budget preparation to the budget reporting department. For departments and units that are found to have falsely reported basic data or capital needs during the review, the financial department may reduce the budget of the department or unit as appropriate. For departments and units with a low budget review rate and high quality of budget declaration, the financial department can provide incentives in terms of budget arrangements and performance appraisals.

       （三)Improve the quality of departmental budget preparation. According to the problems found in the budget review, the financial department shall put forward suggestions for improving the budget preparation to the budget reporting department. For departments and units that are found to have falsely reported basic data or capital needs during the review, the financial department may reduce the budget of the department or unit as appropriate. For departments and units with a low budget review rate and high quality of budget declaration, the financial department can provide incentives in terms of budget arrangements and performance appraisals.

       （四)Support the construction of the budget performance standard system. Financial departments at all levels should strengthen the review and analysis of common project performance objectives, and give full play to the role of budget review in supporting the construction of budget performance standard system.

Chapter VIII: Implementation of Safeguards

        21st budget review required funds in accordance with the principle of "who entrusts who pays", by the organization of the review of the financial department. The evaluation institutions and experts shall not charge any fees to the assessed unit.

        22nd financial departments at all levels shall be in strict accordance with the laws, administrative regulations and system provisions to organize the budget review. The financial sector within the institutions and staff shall not be in violation of the rules designated review body, shall not interfere with the results of the budget review in violation of regulations, shall not be to the review body such as the reduction rate of directive requirements, there is a violation of the provisions of these measures, as well as other abuse of power, dereliction of duty, favoritism and other violations of laws and regulations, in accordance with laws and regulations to pursue the corresponding responsibility. Where there are violations of laws and regulations such as dereliction of duty, abuse of power, favoritism, etc., the review body and its staff, experts participating in the review, and personnel of intermediary agencies shall be held accountable in accordance with laws and regulations.

Chapter IX: Supplementary Provisions

       23rd provinces, autonomous regions, municipalities directly under the Central Government, the financial departments of cities specifically designated in the state plan may issue implementation rules in accordance with these measures. The budget review carried out by each department on its own can refer to the relevant principles of these measures, clarify the division of labor, standardize the review procedures, and strengthen the use of results. The budget review and management of the funds of the Chinese People's Liberation Army and the armed police force shall be carried out with reference to these Measures.

       Article 24: These Measures shall come into force on January 1, 2024. The existing provisions of the financial departments at all levels are inconsistent with these measures, in accordance with these measures.