Circular on Issuing the Administrative Measures for the Financial Affairs relating to Loan and Grant Projects from International Financial Institutions and Foreign Governments
Circular on Issuing the Administrative Measures for the Financial Affairs relating to Loan and Grant Projects from International Financial Institutions and Foreign Governments
Circular on Issuing the Administrative Measures for the Financial Affairs relating to Loan and Grant Projects from International Financial Institutions and Foreign Governments
Cai Guo He [2017] No. 28
May 2, 2017
Relevant ministries and commissions and institutions directly subordinate to the State Council, finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and municipalities with independent planning status (excluding Tibet), finance bureau of Xinjiang Production and Construction Corps, relevant central state-owned enterprises, and financial institutions,
In order to implement the Administrative Measures for Loans and Grants from International Financial Organizations and Foreign Governments (Order No.85 of the Ministry of Finance), improve the financial management system for loan and grant projects from international financial institutions and foreign governments, and enhance the efficiency in the use of the loan and grant funds, the Ministry of Finance has formulated the Administrative Measures for the Financial Affairs relating to Loans and Grants Projects from International Financial Institutions and Foreign Governments, which are hereby issued to you for your implementation accordingly. Please inform the Ministry of Finance of any issues encountered during the implementation.
Administrative Measures for the Financial Affairs relating to Loan and Grant Projects from International Financial Institutions and Foreign Governments
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Administrative Measures for Loans and Grants from International Financial Institutions and Foreign Governments (Order No.85 of the Ministry of Finance) and other relevant provisions, in order to regulate the financial management of loan and grant projects from international financial institutions and foreign governments (hereinafter referred to as "Loan and/or Grant"), use the Loan and Grant in a reasonable and compliant manner, and improve the efficiency in the use of the funds.
Article 2 The financial management of Loan and Grant projects shall be governed by these Measures.
Article 3 The financial management of Loan and Grant projects shall follow the principle of unified administration, division of responsibility and cooperation, normalization and effectiveness, and risk prevention.
Article 4 The main tasks of financial management of Loan and Grant projects are to implement the relevant national laws and regulations and the rules and regulations of the Loan or Grant providers, establish and improve the financial management system on the projects, carry out financial evaluation on Loan and Grant projects, develop the fund use plan and budget and final account for Loan and Grant funds, strengthen the statistical accounting of projects, regulate project expenditures and control the project costs, strengthen financial supervision, and prevent and control debt risks.
Article 5 Finance departments at various levels shall include the incomes, expenses, debt service in respect of loans to be repaid by the government under repayment obligation and the part of loans which the government would need to repay under guarantee obligation pursuant to law or an agreement, into general public budget administration according to relevant budget administration rules.
Grants shall be included into central general public budget administration, among which: earmarked grants for specific purposes by the Grant providers, after being approved pursuant to budget administration procedures, shall be included into the budget of the central government or the central government's transfer payment to local governments, as applicable; and non-earmarked grants shall be subject to financial coordination and arrangements.
Chapter II Institutions and Responsibilities
Article 6 Finance departments shall perform the following responsibilities:
1. To develop financial management and accounting and other systems and rules for Loan and Grant projects, guide the drafting of financial management manuals for the projects, and conduct operational guidance, training and supervision in respect of the financial management of the projects by project implementation units at the same level and finance departments at lower levels;
2. To organize the financial evaluation on Loan projects;
3. To conduct budget management and the government's debt ceiling management on loans which are to be repaid by the government under repayment obligation, and implement regulation and supervision on loans for which the government assume guarantee obligation in accordance with the requirements on the management of the government's contingent liabilities;
4. To carry out the budget management of Grants;
5. To implement management and supervision in respect of fund payment and use, costs and expenditures, debt confirmation and repayment;
6. To communicate and coordinate with Loan or Grant providers in respect of the financial management in connection with the implementation of the Loan and Grant projects;
7. To organize or cooperate with relevant departments on the inspection and audit of Loan and Grant projects; and
8. Other responsibilities which shall be performed by the finance departments.
Article 7 Project implementation units shall perform the following responsibilities:
1. To establish and improve the financial management system and rules for the Loan or Grant project implemented or organized by them, and draft the financial management manual of the project in accordance with relevant rules of the Loan or Grant provider and relevant domestic regulations;
2.
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