The Ministry of Finance regulates the financial system of public institutions and clearly proposes the comprehensive implementation of performance management

Recently, the Ministry of Finance revised and promulgated the "Financial Rules for Public Institutions" (hereinafter referred to as the "Rules"), further standardizing the financial behavior of public institutions, strengthening the financial management and supervision of public institutions, and clearly proposing the comprehensive implementation of performance management, improving the efficiency of the use of funds, and ensuring the healthy development of public institutions.

According to the relevant person in charge of the Ministry of Finance, the revision of the "Rules" follows the principles of "adhering to inheritance and innovation, highlighting the problem orientation", "basing on the positioning of the system, ensuring wide application", and "combining with the development direction to reserve space for reform", and mainly made four revisions:

The second is to reflect the new requirements of the government's comprehensive financial reporting system. New provisions on the definition and composition of financial reports and final account reports have been added, provisions and annexes related to the content of annual financial reports, financial fact sheets, and financial analysis have been deleted, and provisions on the implementation of cost accounting by public institutions have been added.

The third is to connect the new requirements for the management of state-owned assets. In line with the "Regulations on the Administration of State-owned Assets of Administrative Undertakings", the contents of setting up accounts for state-owned assets, summarizing and compiling reports on the management of state-owned assets of administrative undertakings, regularly taking stock of assets, timely handling of asset ownership registration, using state-owned assets for foreign investment, and writing off losses of monetary assets have been added.

The fourth is to connect with the government accounting standard system. In the General Provisions, the general requirements for accounting have been added, and the "business fund" and the "repair fund" in the special fund are abolished.

The person in charge said that in recent years, the reform of state-owned asset management in the mainland has been deepening, and the newly promulgated "Regulations on the Management of State-owned Assets of Administrative Undertakings" has put forward new requirements for the financial management of public institutions, and in line with them, the "Rules" have added the requirements that public institutions should clarify the job responsibilities of asset users and managers, set up state-owned asset ledgers, summarize and compile administrative state-owned asset management reports, regularly inventory assets, and timely handle asset ownership registration. The procedural requirements for the use of state-owned assets for foreign investment have been added, and the equity formed by public institutions investing abroad has been included in the centralized and unified supervision system for operational state-owned assets, and the relevant contents of the work of sharing and sharing state-owned assets have been further improved.

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Relevant responsible persons of the Ministry of Finance answered reporters' questions on the revision and promulgation of the "Financial Rules for Public Institutions."

Recently, the Ministry of Finance promulgated the Financial Rules for Public Institutions (Order No. 108 of the Ministry of Finance, hereinafter referred to as the "Rules"), which revised the original Financial Rules for Public Institutions (Order No. 68 of the Ministry of Finance, hereinafter referred to as Order No. 68). In order to facilitate all parties to understand the relevant contents of the implementation of the "Rules", the relevant person in charge of the Ministry of Finance answered reporters' questions on the relevant issues of the "Rules".

Q: What is the background and significance of the revision of the Rules?

A: Since its implementation on April 1, 2012, Order No. 68 has played an important role in standardizing the financial behavior of public institutions, improving the level of financial management, and promoting the development of public institutions. However, with the in-depth advancement of the reform of public institutions, the introduction of new policies and measures for fiscal reform, and the gradual implementation of the new government accounting standard system, it is necessary to revise some provisions to connect with the various reform measures introduced in recent years.

The revision of the "Rules" actively implements the relevant arrangements of the Party Central Committee on strengthening the supervision of finance and accounting, reflects the new provisions of fiscal laws and regulations and the new achievements of fiscal reform and development, and connects the reform of the government's comprehensive financial reporting system and the new requirements of the government accounting standard system. The implementation of the new "Rules" will play a positive role in improving the financial system of public institutions, standardizing the financial behavior of public institutions, and ensuring the healthy development of public institutions.

Q: What are the basic principles of the revision of the Rules?

Answer: The revision of the "Rules" mainly follows the following principles: First, adhere to inheritance and innovation, and highlight the problem orientation. Practice has proved that the framework system of Order No. 68 is relatively reasonable and effectively regulates the financial activities of public institutions. Therefore, the revision maintains the existing chapter framework, focusing on reflecting the progress of fiscal reform, solving problems that are not connected with the new system, and revising some of the provisions that are not adapted. The second is to base on the positioning of the system and ensure its wide application. Considering the large and complex system of public institutions, the revision focused on building a general framework of universal application. The special requirements of a certain industry or a certain unit are intended to be regulated mainly through the financial system of the industry and public institutions, and the internal financial management measures of the public institutions. The third is to combine the development direction and reserve space for reform. Comprehensively considering the requirements of the reform of "decentralization and management of services" and the reform of public institutions, the "Rules" are mainly based on principle norms, and reserve space for the next step of budget management, debt management, asset management and other reforms.

Q: What are the main amendments to the Rules?

Answer: Four main revisions have been made: First, it reflects the new spirit of budget management reform. It is clearly put forward the requirements of fully implementing performance management, not arranging expenditure for income not included in the budget, implementing project library management, and truthfully reflecting the situation of borrowing debts in accordance with the law, making provisions for budget adjustment, and deleting the relevant content of the amount of funds used in the zero-balance account. The second is to reflect the new requirements of the government's comprehensive financial reporting system. New provisions on the definition and composition of financial reports and final account reports have been added, provisions and annexes related to the content of annual financial reports, financial fact sheets, and financial analysis have been deleted, and provisions on the implementation of cost accounting by public institutions have been added. The third is to connect the new requirements for the management of state-owned assets. In line with the "Regulations on the Administration of State-owned Assets of Administrative Undertakings", the contents of setting up accounts for state-owned assets, summarizing and compiling reports on the management of state-owned assets of administrative undertakings, regularly taking stock of assets, timely handling of asset ownership registration, using state-owned assets for foreign investment, and writing off losses of monetary assets have been added. The fourth is to connect with the government accounting standard system. In the General Provisions, the general requirements for accounting have been added, and the "business fund" and the "repair fund" in the special fund are abolished.

Q: How does the "Rules" connect with the "Regulations on the Administration of State-owned Assets of Administrative Undertakings"?

Answer: In recent years, the reform of state-owned asset management in the mainland has been deepening, and the newly promulgated "Regulations on the Administration of State-owned Assets of Administrative Undertakings" has put forward new requirements for the financial management of public institutions, which are linked to the "Rules", which adds the requirements that public institutions should clarify the job responsibilities of asset users and managers, set up state-owned asset ledgers, summarize and compile reports on the management of state-owned assets of administrative undertakings, regularly take stock of assets, and timely handle asset ownership registration, and increase the procedural requirements for using state-owned assets to invest abroad. It also stipulates that the equity formed by the foreign investment of public institutions shall be included in the centralized and unified supervision system of operational state-owned assets, and the relevant contents of the work of sharing and sharing state-owned assets shall be further improved.

Question: How to do a good job in implementing the Rules?

A: In order to ensure the implementation of the Rules, work will be carried out from the following aspects: First, widely publicize the Rules through multiple channels and at multiple levels, expand policy awareness, strengthen the policy publicity and interpretation of central departments and local financial departments, especially focus on the interpretation of the changes in the new and old financial rules involved. The second is to guide and urge the central departments and local financial departments to timely revise the financial systems of industry and public institutions in accordance with the provisions of the Rules and in combination with the actual conditions of work, and to clean up financial regulations or specific implementation measures that are inconsistent with the Rules, and do a good job in policy convergence and implementation. The third is to continue to pay attention to the new situations and new problems that have emerged in the implementation of the Rules, and to do a good job in studying the feedback from all relevant parties.

Comprehensive: Ministry of Finance, People's Daily

Source: China Finance and Economics News