发布文号: Order of the State-owned Assets Supervision and Administration Commission No. 18
The Interim Measures for the Management of Financial Budgets of Central Enterprises, which were deliberated and adopted at the 49th meeting of the directors of the State-owned Assets Supervision and Administration Commission, are hereby promulgated and shall come into force as of June 25, 2007.
Li Rongrong
Director of the State-owned Assets Supervision and Administration Commission
May 25, 2007
Interim Measures for the Management of Financial Budgets of Central Enterprises
Chapter I General Provisions
Article 1 For the purposes of strengthening the financial supervision over the enterprises for which the State-owned Assets Supervision and Administration Commission （hereinafter referred to as the SASAC） performs the duties of a capital contributor （hereinafter referred to as "enterprises"）, regulating the management of the financial budgets of the enterprises, these Measures are formulated in accordance with the Company Law of the People's Republic of China, the Interim Regulation on the Supervision and Administration of State-owned Assets of the Enterprises, as well as the relevant financial accounting rules of the state.
Article 2 The preparation, report, ution and supervision of the enterprises' annual financial budgets shall be governed by these Measures.
Article 3 The term "financial budget" as mentioned in these Measures refers to the reasonable forecast, measurement, financial control and supervision of the economic resources and business operations of an enterprise within the budgetary year carried out by the enterprise on the basis of forecast and decision-making and by centering around the strategic plan.
The term "financial budget report" refers to the documents which reflect the forecast information about the operation of capital, business operation benefits, cash flow and other financial items within the budgetary year of an enterprise.
Article 4 An enterprise shall set forth rules for the management of financial budgets, organize the preparation, ution, supervision and evaluation of its internal financial budgets, improve the working system for financial budgets and promote the management of budgets in all aspects.
Article 5 An enterprise shall, within the prescribed time limit and pursuant to the provisions of the state on financial accounting as well as the relevant requirements of the SASAC for the financial supervision, submit to the SASAC an annual financial budget report formulated according to uniform preparation standards, statement format and preparation rules.
Article 6 The SASAC shall supervise and administer the preparation, report and ution of financial budgets of enterprises, and urge and direct the enterprises to earnestly establish a level-by-level responsibility system centering around the goals of budgets.
Chapter II Working Organization
Article 7 An enterprise shall, under the relevant provisions of the state, make good financial budgets, be equipped with corresponding employees, clarify the relevant duties and powers, strengthen the internal coordination, improve the preparation procedures and methods, intensify the ution and supervision and actively promote to the management of budgets in all aspects.
Article 8 An enterprise shall, under the requirements for intensifying the financial supervision and improving the internal control mechanisms, establish a budget committee or set up a financial budget leading group to exercise the functions of a financial committee. If the enterprise has a board of directors, the members of the budget committee （financial budget leading group） shall include director（s） who is （are） familiar with the enterprise accounting business and have the corresponding organizing capability.
Article 9 The enterprise budget committee （financial budget leading group） shall perform the following main functions:
1. To work out the principle and aim of the preparation and management of enterprise financial budgets;
2. To deliberate the enterprise financial budget plan and the plan on adjustments to the financial budget;
3. To coordinate and solve the major problems arising in the preparation and ution of enterprise financial budgets; and
4. To put forward opinions on the evaluation, award and punishment according to result of ution of a financial budget.
Article 10 The enterprise financial management department shall be the financial budget management department. It shall, under the leadership of the enterprise budget committee （financial budget leading group） and in pursuance of the relevant provisions of the state and the pertinent working requirements of the SASAC, take charge of the preparation, reporting, ution and routine monitoring of enterprise financial budgets. The financial budget management department shall perform the following main functions:
1. To organize the preparation, examination, collection and submission of enterprise financial budgets;
2. To organize the distribution of financial budgets and supervise the ution of enterprise financial budgets;
3. To work out a plan on adjustments to the enterprise financial budgets;
4. To coordinate and solve the relevant problems arising in the preparation of enterprise financial budgets and in the ution thereof;
5. To analyze and evaluate the completion of the financial budgets of all internal business departments and all subsidiaries of the enterprise.
Article 11 All internal business departments and all subsidiaries of an enterprise shall be the financial budget ution units. The financial budget ution units shall, under the uniform guidance of the enterprise financial budget management department, organize the preparation of their respective financial budget, strictly ute the financial budget plans upon examination and approval. Each of the enterprise financial budget ution entities shall perform the following main functions:
1. To take charge of the preparation and reporting of financial budgets of this unit;
2. To take charge of the division of the indicators of the financial budget of this unit level by level, and ensure that they can be fully carried into effect by all departments, at all links and at all posts;
3. To strictly ute the budgets under the procedures for authorization, examination and approval, timely analyze the reasons for the differences in the ution of budgets and solve the problems arising during the ution of financial budgets;
4. To timely summarize and analyze the information about the preparation and ution of financial budgets of this unit, and organize the implementation of the tasks of evaluation, award and punishment; and
5. To help the enterprise budget management department to do well in the comprehensive balance and monitoring of the ution of the enterprise budgets.
Chapter III Preparation of Financial Budgets
Article 12 An enterprise shall, in the preparation of financial budgets, stick to the orientation of strategic plan, correctly analyze and judge the market situation and policy direction, scientifically forecast the annual business operation goal, reasonably allocate its internal resources and realize the balance and control of the total volume.
Article 13 An enterprise shall, in the preparation of financial budgets, list all the business operations of its business departments, subsidiaries, public institutions and construction projects into the scope of preparation of financial budget, forecast the financial incomes and expenses and business operational fruits in an allround manner.
Article 14 An enterprise shall, in the preparation of financial budgets, regard the assets, liabilities, incomes, costs, expenses, profits and capital as the core indicators, reasonably design a basic system of indicators and lay an emphasis on the coherence of budgetary indicators.
Article 15 An enterprise shall, according to different budgetary items, prepare financial budgets by reasonably choosing the approaches such as fixed budgets, flexible budgets, rolling budgets, zero-based budgets and probability budgets, and actively compare them with the advanced level of the industry and the international advanced level.
Article 16 An enterprise shall, in the preparation of financial budgets, strengthen the risk assessment and budgetary control of the external investments, acquisition and merger, investments in fixed assets and stocks, authorized financial management, futures （options） and derivatives thereof, as well as other investment businesses according to the relevant provisions of the state. It shall intensify the elimination of investments to non-main businesses and invalid investments and strictly control the budget of investments to non-main businesses.
An enterprise whose asset-liability ratio is too high, solvency decreases or return on investments is low shall strictly control its investment scale. If the enterprise which does not meet the requirements for engaging in businesses of high risks or which suffers any serious investment losses shall not arrange any budget for investment in businesses of high risks.
Article 17 To prepare a financial budget, an enterprise shall correctly forecast the annual incomes, expenses, balance and shortfall in cash, reasonably plan the incomes, expenses and allocation of cash, intensify the control of the budget for payables, enhance the cash guarantee and solvency and promote the efficient use of the fund.
Article 18 To prepare a financial budget, an enterprise shall make standards on the costs and expenses, strictly control the scope and scale of costs and expenses and strengthen the budgetary control of the inputs and outputs.
For an enterprise of which the increase of costs and expenses is higher than the increase of incomes, the profit rate decreases or the business yields decrease, the financial budget shall lay an emphasis on lowering costs and increasing benefits, and properly reduce the budget of costs and expenses. For an enterprise whose business yields decrease, it shall not expand the scale of budget for the total amount of wages.
Article 19 An enterprise shall, in the preparation of financial budgets, pay attention to the prevention of financial risks, strictly control the scales of guaranties, mortgages and financial liabilities.
For an enterprise whose the asset-liability ratio is higher than the average level of the industry concerned or which is under great pressure of debts, it shall appropriately shrink the budget of financial debts. For an enterprise whose balance of guaranties exceeds 50% of its net assets or which suffers serious losses due to the liability for performing the guaranty contracts （an investment or guaranty enterprise shall be governed by other provisions）, it shall not arrange any new guaranty budget as is the general principle. No enterprise may arrange any guaranty budget for any non-subsidiary enterprises irrelevant to its businesses.
Article 20 To prepare a financial budget, an enterprise shall regard the check and disposal of overdue guaranties, overdue debts, bad investments and bad credits as important contents, shall actively eliminate the potential losses on the account, reasonably forecast the asset impairment provision. It shall not have any new hidden loss.
Article 21 An enterprise shall, under the procedure of "combining the superior level with the inferior, preparing by each level and making consolidations level by level", organize its subsidiaries at all levels to do a good job in the preparation of financial budgets.
Article 22 An enterprise shall establish a system for the preparation of financial budgets. The enterprise's functional departments of internal planning, production, marketing, investment, materials, technologies, human resources and enterprise management shall be helpful in preparing good financial budgets. The following working procedures shall be observed in the preparation of enterprise financial budgets:
1. The enterprise budget committee and the financial budget management department shall, prior to the end of September of each year, put forward the general budgetary goal of the enterprise for the next year;
2. Prior to the end of October of each year, all budget ution units under the enterprise shall, according to the enterprise's general budgetary goal and by taking into account their respective situation, submit their respective budgetary goal for the next year;
3. The enterprise financial budget committee and the financial budget management department shall examine and consolidate the budgetary goals of the budget ution units at all levels and put forward adjustment opinions, which shall be distributed to the budget ution units at all levels upon deliberation at the meeting of the board of directors or at the meeting of general managers;
4. Each of the enterprise's budget ution units at all levels shall, under the financial budget goal distributed to it, submit its financial budget prior to the end of each year; and
5. The enterprise shall, on the basis of examining and adjusting the budget plans of all budget ution units, prepare a general financial budget.
Chapter IV Report of Financial Budget
Article 23 An enterprise shall, on the basis of organizing and carrying out the internal management of preparation of financial budgets of its subsidiaries, prepare and submit the annual financial budget report according to the format of the statement and the requirements for the preparation thereof uniformly printed and distributed by the SASAC. The annual financial budget report of the enterprise shall consist of the following parts:
1. The annual financial budget statement;
2. The notes for the preparation of annual financial budget; and
3. Other relevant materials.
Article 24 The annual financial budget statement of an enterprise shall focus on the following contents:
1. The expected assets, liabilities, and the scale, quality and structure of the owners' interests within the budgetary year of the enterprise;
2. The expected business operational fruits within the budgetary year of the enterprise and the distribution of profits;
3. The inflow and outflow of cash expected to occur in the business operation, investment and financing activity within the budgetary year of the enterprise;
4. The expected production, sale or business scale within the budgetary year of the enterprise, the incomes therefrom, and the costs and expenses to be incurred;
5. The expected combination of property right, long term and short term investments, scale of investment to fixed assets and source of fund within the budgetary year of the enterprise; and
6. The expected overall scale and distributional structure of external financing within the budgetary year of the enterprise.
Article 25 An enterprise shall prepare financial budget statements by adopting the consolidated criterions. The consolidation scope shall include:
1. Its subsidiaries at home and abroad;
2. The pubic institutions subordinated to it;
3. All types of construction projects or construction-oriented finance; and
4. Its subsidiaries, which ute the financial accounting system under the relevant provisions; and
5. Other economic organizations of independent accounting, which are subordinated to it.
Article 26 An enterprise shall analyze and explain about the preparation of annual financial budgets and about the management of financial budgets. The explanation about the preparation of a financial budget shall cover the following aspects:
1. The information about the organization of preparation of the budget;
2. An analysis of and explanation about the main budgetary indicators of production and business operations within the budgetary year;
3. The basis for the preparation of budget, basic hypotheses, and the important accounting policies and estimations adopted;
4. The measures for ensuring the ution of budget and an explanation about the budgetary indicators; and
5. Other information to be explained.
Article 27 An enterprise shall organize its subsidiaries to carry out the tasks of gathering, examination and consolidation for the financial budget report and timely submit the financial budget report. Besides the submission of consolidated financial budget, the enterprise shall attach to it the electronic documents of the headquarters and of its second-grade subsidiaries. The financial budget data of third-grade subsidiaries and below shall be consolidated into the second-grade subsidiaries and be submitted.
The grades for the submission of financial budget reports of an enterprise conglomerate divided into special grades shall be separately provided for by the SASAC.
Article 28 An enterprise shall, under the following procedures, submit to the SASAC its financial budget report in the form of formal documents:
1. The financial budget report of a wholly state-funed enterprise or company with a board of directors shall be deliberated by the board of directors and shall, together with the deliberation resolution, be submitted to the SASAC.
2. The financial budget report of a wholly state-owned enterprise or company with no board of directors shall be deliberated at the meeting of general managers and shall be submitted, together with the deliberation resolution, to the SASAC; and
3. The financial budget report of a state controlling company shall be submitted to the SASAC upon deliberation of the board of directors and upon approval of the general meeting of shareholders.
Article 29 The enterprise financial budget report shall bear the official seal of the enterprise and shall bear the signature and seal of the major person-in-charge, chief accountant （officer in charge of the finance） as well as the person-in-charge of the financial management department.
Article 30 The SASAC shall adopt a classification management system for the financial budgets of enterprises. The financial budgets of wholly state-funded enterprises and companies with no board of directors shall be subject to the system of examination and approval. The financial budgets of wholly state-funded companies and enterprises with a board of directors as well as the state controlling enterprises shall be subject to archival filing.
Article 31 The SASAC shall, according to the requirements for the management financial budgets, establish quality evaluation system for the financial budget reports of enterprises. The evaluation shall cover the following aspects:
1. Whether or not they conform to the relevant laws and regulations of the state;
2. Whether or not they conform to the macro-control policies and industrial policies and plans of the state;
3. Whether or not they are in line with the strategic plan or the direction of development of the main businesses of enterprises;
4. Whether or not they objectively reflect the economic situation and the trend of development of production and business operation of the enterprises within the budgetary year;
5. Whether or not they conform to the requirements for the management of preparation of financial budgets;
6. Whether or not the changes of financial budget indicators of different years are reasonable; and
7. Whether or not the measures for ensuring and supervising the ution of budgets are effective.
Article 32 The SASAC shall, according to the quality evaluation result and within the time limit as required, put forward its opinions on the examination of the financial budget of an enterprise and inform the enterprise. If there is any quality problem, it shall require the enterprise to make a rectification in a timely manner. If the relevant budgetary indicators seriously are extremely impractical and are inconsistent with each other, it shall require the enterprise to prepare and submit a new financial budget report.
Chapter V Execution and Supervision of Financial Budgets
Article 33 An enterprise shall timely dismember the key financial budget indicators of all business departments and its subsidiary enterprises at all levels. All budget ution units shall divide the annual financial budget indicators, which are distributed to them, into quarterly and monthly budgets and clarify the responsibility for the ution of financial budgets level by level.
Article 34 An enterprise shall strictly ute the annual financial budgets upon examination and approval, earnestly intensify the tracking and supervision of the important events such as investments, financing, guaranties, transfer of fund, procurement of materials and sale of products, as well as the tracking and supervision of the budget for costs and expenses, and shall clarify the examination and approval procedures and powers for adding extra-budgetary funds.
Article 35 An enterprise shall track and monitor the information about the ution of financial budgets, timely analyze the reasons for the differences between the budgets and ution thereof and timely take corresponding measures to solve the problems.
Article 36 If an enterprise is under any of the following circumstance during the ution of a financial budget and causes any major change to the basic hypotheses for the preparation of budget, it may adjust the budget:
1. Natural disasters and other factors of force majeure;
2. Drastic changes to the market environment;
3. Important adjustments to the national economic policies; or
4. Split-up, combination or any other asset restructuring act of the enterprise.
Article 37 An enterprise shall timely report the adjustments to its financial budget to the SASAC for archival purposes. The archival filing shall include
1. The adjustments to the main financial indicators;
2. The reasons for the adjustments; and
3. The expected ution information and the guarantee measures.
Article 38 An enterprise shall establish a system of evaluation of the results of ution of financial budgets. It shall integrate the information about the ution of the goals of financial budgets into the scope of evaluation, awards and punishments.
Article 39 An enterprise shall, by the end of each budgetary year, timely draft a report on the summary of the budgetary work, carefully summarize the experiences of the budgetary work and the existing shortcomings, analyze the differences between the financial budget and the actual ution result, as well as the factors which cause such differences, and seek to set forth improvement measures.
Article 40 The SASAC shall, on the basis of monthly financial reports, establish a classified monitoring and feedback system for the financial budgets of enterprises. It shall track and monitor the information about the ution of the key financial budget indicators on the basis of classification, forecast and assess the business operation risks, timely feed back the monitoring and assessment results to the enterprises and urge the enterprises to intensify the supervision and control of ution of their budgets.
Article 41 The SASAC shall, by the end of each budgetary year, check the information about the ution of the financial budgets according to the annual final accounts of enterprises, analyze the differences between the actually accomplished values of the key financial budget indicators and the budgetary goals, as well as the factors which cause such differences, and shall regard the results of check and analysis as an important part of the evaluation of the quality of the financial budget reports of enterprises.
Chapter VI Punishment Provisions
Article 42 The person-in-charge and chief accountant （officer in charge of the finance） of an enterprise shall be responsible for the preparation, reporting, ution and supervision of financial budgets. The chief accountant （officer in charge of the finance） and the person-in-charge of the financial department of an enterprise shall be responsible for the compliance, reasonableness and completeness of the financial budgets prepared.
Article 43 The SASAC will regard the information about the management of financial budgets of an enterprise as an important content in the evaluation of the performances of the chief accountant.
Article 44 If an enterprise fails to timely submit the financial budget report or submits any financial budget report, which does not meet the uniform preparation requirements or in which there is any quality problem, or if an enterprise fails to effectively ute its financial budget, the SASAC shall order it to make a correction.
Article 45 If an enterprise commits any fraudulent act in the management of financial budgets, or if an enterprise submits any financial budget report which is different from its internal financial budget, the SASAC will criticize it by circulating a notice.
Article 46 If there is a large gap between the main indicators of the annual financial budget prepared by an enterprise and the actually accomplished value, the SASAC will require the enterprise to make a special explanation. The SASAC will give it a warning if it has no justifiable reason.
Article 47 Where a functionary of the SASAC neglects his duties in the supervision and management of financial budgets of enterprises, which leads to any serious work-related fault, or divulges any business secret, he shall be given an administrative sanction in light of the seriousness of the circumstance.
Chapter VII Supplementary Provisions
Article 48 An enterprise shall formulate working rules on the management of its financial budgets.
Article 49 The state-owned assets supervision and administration organs of all provinces, autonomous regions and municipalities directly under the Central Government shall formulate relevant working norms for their respective jurisdiction.
Article 50 These Measures shall come into force as of June 25, 2007.
