Final Accounts of the China Securities Regulatory Commission (CSRC) 2012 1
Content Part I Profile of the CSRC I. Main responsibilities II. Composition of department budget entities Part II Final Accounts of the CSRC, 2012 I. Summary Final Accounts of Public Budget Income and Expenditure II. Final Accounts of Public Budget Income III. Final Accounts of Public Budget Expenditure IV. Final Accounts of Public Budget Fiscal Appropriation Expenditure V. Final Accounts of Government Fund Budget Expenditure Part III Explanations on the CSRC s final account of 2012 Part IV Explanations of Terminology 2
Part I Profile of the CSRC 3
I. Main responsibilities (1) To study and formulate policies and development planning on securities and futures markets; draft the relevant laws and regulations on securities and futures markets and propose recommendations on the adoption and revision of these laws and regulations; and adopt relevant rules and regulations on securities and futures markets. (2) To vertically manage all local securities- and futures-related regulatory authorities across China and assume centralized supervision on securities and futures markets. (3) To supervise the offering, listing, trading, custody and clearing of equities, convertible bonds, bonds of securities firms and bonds and any other securities determined by the State Council as being under the jurisdiction of the CSRC's responsibilities; supervise securities investment fund activities; approve the listing of corporate bonds; supervise the trading activities of listed treasury bonds and corporate bonds. (4) To supervise the securities market activities of listed companies and their shareholders that must fulfill relevant obligations pursuant to laws and regulations. (5) To supervise the listing, trading and clearing of domestic futures contracts; and oversee domestic institutions in engaging in overseas futures businesses pursuant to the applicable regulations. (6) To oversee securities and futures exchanges and the senior executives of securities and futures exchanges; and administer in a centralized manner the Securities Association of China (SAC), the China Futures Association (CFA), the Asset Management Association of China (AMAC) and the China Association for Public Companies (CAPCO). (7) To supervise firms that are engaged in securities- and futures-related business activities, securities investment fund management firms, securities depository and clearing corporations, futures clearing houses, securities and futures investment advisory firms, securities credit rating agencies; to review and approve the qualifications of fund custody institutions and supervise their fund custody services; to adopt and organize for the implementation of administrative rules on the eligibility of senior executives of relevant institutions; to guide the SAC, CFA and AMAC to engage in the eligibility management of practitioners engaged in securities-, futures- and wealth management fund-related activities. (8) To supervise the direct or indirect overseas stock issuance and listing by domestic enterprises and the overseas issuance of convertible bonds by companies listed overseas; to supervise the establishment of overseas firms that are engaged in securities- and futures-related business activities by domestic firms that are engaged in securities- and futures-related business activities; and to supervise the establishment of firms that are engaged in securities- and futures-related business activities in China by overseas institutions and their engagement in securities and futures businesses. (9) To supervise information dissemination in relation to securities and futures and be responsible for the oversight of market statistics and information resources. (10) In conjunction with relevant authorities, to license accounting firms, asset appraisal firms and their employees to engage in certain securities and futures intermediary businesses and to 4
supervise such relevant businesses of law firms, lawyers and qualified accounting firms, asset appraisal firms and their employees. (11) To investigate and impose sanctions on persons violating securities- and futures-related regulations. (12) To be responsible for liaison and international cooperation with foreign counterparts in the securities and futures industry. (13) Other functions as commissioned by the State Council. 5
II. Composition of department budget entities In terms of the composition of budget entities, the CSRC s budget includes: budget of the headquarters of the CSRC and budget of 36 regional offices. A total of 37 entities have been included in the scope of department budgeting of the CSRC in 2012 with details shown in the following table: No. Entity No. Entity No. Entity 1 CSRC headquarters 2 Beijing Bureau 3 Tianjin Bureau 4 Hebei Bureau 5 Shanxi Bureau 6 7 Liaoning Bureau 8 Jilin Bureau 9 Inner Mongolia Bureau Heilongjiang Bureau 10 Dalian Bureau 11 Shanghai Bureau 12 Jiangsu Bureau 13 Zhejiang Bureau 14 Ningbo Bureau 15 Shandong Bureau 16 Anhui Bureau 17 Henan Bureau 18 Qingdao Bureau 19 Hubei Bureau 20 Hunan Bureau 21 Jiangxi Bureau 22 Guangdong Bureau 23 Fujian Bureau 24 Guangxi Bureau 25 Xiamen Bureau 26 Shenzhen Bureau 27 Hainan Bureau 28 Chongqing Bureau 29 Sichuan Bureau 30 Guizhou Bureau 31 Yunnan Bureau 32 Tibet Bureau 33 Shaanxi Bureau 34 Gansu Bureau 35 Qinghai Bureau 36 Ningxia Bureau 37 Xinjiang Bureau 6
Part II Final Accounts of the CSRC, 2012 7
Department: the CSRC Item I. Summary Final Accounts of Public Budget Income and Expenditure Income Line Final account Item (by function) Expenditure Public Table 01 Unit: RMB 10,000 yuan Line Final account Column 1 Column 2 I. Fiscal appropriation income 1 97,077.90 II. Other incomes 2 13,638.07 Sum of current-year income Recovery of deficits using the reserve funds of public institutions Carryover and balance from the previous year I. Administrative on financial supervisory affairs II. Expenditure of housing security 3 11 4 110,715.97 Sum of current-year 9 89,017.31 10 5,201.78 12 94,219.09 5 306.41 Balance allocation 13 11,782.07 6 41,410.63 Year-end carryover and balance 7 15 14 46,431.85 Sum 8 152,433.01 Sum 16 152,433.01 Note: This table reflects total income, and year-end carryover balance (excluding government funds). Line 4 = Lines (1+2); Line 8 = Lines (4+5+6); Line 12 = Lines (9+10); Line 16 = Lines (12+13+14). 8
II. Final Accounts of Public Budget Income Public Table 02 Department: the CSRC Unit of measurement: RMB 10,000 yuan Code Item Description Sum of current-year income Fiscal appropriation income Income of allowances from higher government Administrat ive revenue Operatin g revenue Payment from affiliated entities Other incomes Column 1 2 3 4 5 6 7 Sum 110,715.97 97,077.90 13,638.07 217 21701 Administrative on financial supervisory affairs Administrative regarding financial sectors 104,222.61 90,814.16 13,408.45 73,317.43 61,639.22 11,678.21 2170101 Administrative operations 66,588.95 54,910.74 11,678.21 2170102 General administrative affairs 6,728.48 6,728.48 21702 2170205 2170206 2170207 2170299 21799 2179901 Supervisory regarding financial sectors Financial investigations and case handling IT application for financial sectors Qualification examinations of practitioners Other supervisory s regarding financial sectors Other Administrative s on financial supervisory affairs Other Administrative s on financial supervisory affairs 28,425.18 26,994.94 1,430.24 5,500.00 5,500.00 2,500.00 2,500.00 13,500.00 13,550.00 6,875.18 5,444.94 1,430.24 2,480.00 2,180.00 300.00 2,480.00 2,180.00 300.00 221 Housing security 6,493.36 6,263.74 229.62 22102 Housing reform 6,493.36 6,263.74 229.62 2210201 Housing fund 2,049.57 1,863.19 186.38 2210202 Rent increase allowance 96.36 96.36 2210203 Home purchase allowance 4,347.44 4,304.19 43.25 Note: This table reflects various items of current-year income. Column 1 = Columns (2+3+4+5+6+7). 9
III. Final Accounts of Public Budget Expenditure Public Table 03 Department: the CSRC Unit: RMB 10,000 yuan Code Item Description Sum of current-year Basic Project Expenditure of payment to higher authorities Operating Expenditure of allowances to affiliated entities Column 1 2 3 4 5 6 Sum 94,219.09 57,611.44 36,607.65 217 21701 Administrative on financial supervisory affairs Administrative regarding financial sectors 89,017.31 52,409.65 36,607.65 59,120.29 52,409.65 6,710.64 2170101 Administrative operations 52,409.65 52,409.65 2170102 General administrative affairs 6,710.64 27,230.91 21702 Supervisory regarding financial sectors 27,230.91 5,396.34 2170205 Financial investigations and case handling 5,396.34 2,498.77 2170206 IT application for financial sectors 2,498.77 13,550.00 2170207 Qualification examinations of practitioners 13,550.00 5,785.81 2170299 21799 2179901 Other supervisory s regarding financial sectors Other Administrative s on financial supervisory affairs Other Administrative s on financial supervisory affairs 5,785.81 2,666.10 2,666.10 2,666.10 2,666.10 221 Housing security 5,201.78 5,201.78 22102 Housing reform 5,201.78 5,201.78 2210201 Housing fund 1,863.19 1,863.19 2210202 Rent increase allowance 89.80 89.8 2210203 Home purchase allowance 3,248.8 3,248.8 Note: This table reflects various items of current-year. Column 1 = Columns (2+3+4+5+6). 10
IV. Final Accounts of Public Budget Fiscal Appropriation Expenditure Public Table 04 Department: the CSRC Unit: RMB 10,000 yuan Code Item Description Sum Basic Project 217 Column 1 2 3 Sum 92,499.87 57,179.27 35,320.60 Administrative on financial supervisory affairs 87,298.09 51,977.49 35,320.60 21701 Administrative regarding financial sectors 58,688.13 51,977.49 6,710.64 2170101 Administrative operations 51,977.49 51,977.49 2170102 General administrative affairs 6,710.64 6,710.64 21702 Supervisory regarding financial sectors 26,397.65 26,397.65 2170205 Financial investigations and case handling 5,396.34 5,396.34 2170206 IT application for financial sectors 2,498.77 2,498.77 2170207 Qualification examinations of practitioners 13,550.00 13,550.00 2170299 21799 2179901 Other supervisory s regarding financial sectors Other Administrative s on financial supervisory affairs Other Administrative s on financial supervisory affairs 4,952.55 4,952.55 2,212.31 2,212.31 2,212.31 2212.31 221 Housing security 5,201.78 5,201.78 22102 Housing reform 5,201.78 5,201.78 2210201 Housing fund 1,863.19 1,863.19 2210202 Rent increase allowance 89.8 89.8 2210203 Home purchase allowance 3,248.80 3,248.8 Note: This table reflects various items of current-year. Column 1 = Columns (2+3). 11
V. Final Accounts of Government Fund Budget Expenditure Department: the CSRC Item Carryover and Current balance from year Code Description the previous income Sum year Current year Basic Public Table 05 Unit: 10,000 yuan Project Year-end carryover and balance Column 1 2 3 4 5 6 Sum Note: This table reflects the actual income,, carryover and balance of the department under government fund budget. Column 6 = Columns (1+2-3); Column 3 = Columns (4+5). Note: since the CSRC does not have government fund income and did not use any under the arrangement of government fund, this table contains no data. 12
Part III Explanations on the CSRC s final account of 2012 13
I. General explanations on the final accounts of public budget income and of the CSRC in 2012 The CSRC s total income in 2012 stands at RMB 1,524,330,100 yuan and total reaches RMB 1,524,330,100 yuan. Compared with 2011, total income and increased by RMB 71.5264 million yuan, up 4.92%. Figure 1: Final accounts of income and Unit: RMB 10,000 yuan Final accounts of total income and II. Explanations on the final accounts of public budget income of the CSRC in 2012 The CSRC s current year total income is RMB 1,107,159,700 yuan, specifically: 14
Figure 2: Final account of income 1. Fiscal appropriation income: RMB 970,779,000 yuan, accounting for 88% of current year total income, including: Administrative on financial supervisory affairs (category-level): RMB 908,141,600 yuan, accounting for 93.55% of fiscal appropriation income. This includes administrative regarding financial sectors (sub-category-level) of RMB 616,392,200 yuan, supervisory regarding financial sectors (sub-category-level) of RMB 269,949,400 yuan and other administrative s on financial supervisory affairs (sub-category-level) of RMB 21.8 million yuan. Housing security (category) and housing reform (sub-category-level) is RMB 62.6374 million yuan, accounting for 6.45% of fiscal appropriation income. 2. Other incomes: RMB 136,380,700 yuan, accounting for 12% of current year total income. This includes on financial supervisory affairs (category-level) of RMB 134,084,500 yuan and housing security (category-level) of RMB 2.2962 million yuan. 15
III. Explanations on the CSRC s final account of department budget of 2012 The CSRC s current year totals RMB 942,190,900 yuan, specifically: 1. Basic : RMB 576,114,400 yuan, accounting for 61% of current year total, including: Administrative on financial supervisory affairs (category-level) and Administrative regarding financial sectors (sub-category-level): RMB 524,096,500 yuan, which is mainly used to cover basic of the CSRC headquarters and 36 regional offices. Housing security (category-level) and housing reform (sub-category-level): RMB 52,017,800 yuan, which is mainly used by the CSRC to distribute housing fund, rent increase allowance and home purchase allowance to employees pursuant to national policies. 2. Project : RMB 366,076,500 yuan, accounting for 39% of current year total. Of which: Administrative on financial supervisory affairs (category-level) and administrative regarding financial sectors (sub-category-level): RMB 67,106,400 yuan, which is mainly used to cover the administrative of the CSRC headquarters and its 36 regional offices. Administrative on financial supervisory affairs (category-level) and supervisory regarding financial sectors (sub-category-level): RMB 272,309,100 yuan, which is mainly used for project of the CSRC headquarters and 36 regional offices for financial supervisory activities. Administrative on financial supervisory affairs (category-level) and other s on financial supervisory affairs (sub-category-level): RMB 26.661 million yuan, which is mainly used for project of the CSRC headquarters and 36 regional offices for other financial supervisory affairs and infrastructures construction. 16
IV. Explanations on the CSRC s final account of budget fiscal appropriation of 2012 (I) Overall situation of final account of fiscal appropriation Fiscal appropriation of the CSRC in 2012 is RMB 924,998,700 yuan, accounting for 98% of current year total. Compared with 2011, fiscal appropriation reduced by RMB 21,483,100 yuan, down 2.27%. The reasons include: first, the CSRC system entities enhanced budget management and financial management and tightened financial review, which effectively saved daily public fund ; second, the number of candidates for securities and futures practitioner qualification exam reduced in 2012, resulting in a smaller exam. Figure 4: Final account of fiscal appropriation - 1 Figure 5: Final account of fiscal appropriation - 2 (Unit: RMB 10,000 yuan) 17
(II) Composition of final account of fiscal appropriation The CSRC s fiscal appropriation of 2012 is mainly used in the following aspects: administrative on financial supervisory affairs (category-level) of RMB 872,980,900 yuan, accounting for 94%; housing security of RMB 52,017,800 yuan, accounting for 6%. Figure 6: Final account of fiscal appropriation - 3 (III) Specific final account of fiscal appropriation The CSRC s fiscal appropriation in 2012 completed 95.28% of the budget, of which: 1. Administrative on financial supervisory affairs (category-level). (1) Administrative regarding financial sectors (sub-category-level). Of which: Administrative operation (item-level) has a budget of RMB 549,107,400 yuan and final account of of RMB 519,774,900, representing 94.66% of the budget. Final account is smaller than budget due to the following reasons: the CSRC entities enhanced budget and financial management and reduced relevant pursuant to the central government s requirement of cost saving. General administrative affairs (item-level) have a budget of RMB 67,284,800 yuan and final account of RMB 67,106,400 yuan, representing 99.73% of the budget. Final account is roughly consistent with budget. (2) Supervisory regarding financial sectors (sub-category-level). Of which: Financial investigation and case handling (item-level) has a budget of RMB 55 million and final account of is RMB 53,963,400 yuan, representing 98.12% of the budget. Final account is roughly consistent with budget. IT application of financial sector (item-level) has a budget of RMB 25 million yuan and final account of is RMB 24,987,700 yuan, representing 99.95% of the budget. Final account is roughly consistent with budget. 18
Qualification examination for practitioners (item-level) has a budget of RMB 135.5 million yuan and final account of is RMB 135.5 million yuan, representing 100% of the budget. Other supervisory s regarding financial sectors (item-level) has a budget of RMB 54,449,400 yuan and final account of is RMB 49,525,500 yuan, representing 91% of the budget. Final account of is smaller than budget due to the following reasons: first, pursuant to the needs of supervisory activities, fewer on-site inspection activities were scheduled in 2012; second, in order to ensure project quality, final payment and warranty payment of certain fit-out projects are not yet made; and third, under the campaign of restriction of government fleet vehicles, the CSRC has suspended purchase of any government fleet cars during the campaign. (3) Other administrative s on financial supervisory affairs (sub-category-level) and other financial supervisory affairs (item-level) have a budget of RMB 21.8 million yuan and final account of is RMB 22.1231 million yuan, representing 101.48% of the budget. Final account of is higher than budget due to the following reasons: in order to increase the efficiency of fund use, no fiscal appropriation was applied for in regards of certain other financial supervisory affairs at the beginning of the year and such financial supervisory affairs have been financed by carryover of fiscal appropriation from the previous year and the balance at the year-end of the previous year. 2. Housing security (category-level) and housing reform (item-level). Budget is RMB 62.6374 million yuan and final account of is RMB 52.0178 million yuan, representing 83.05% of the budget. Of which: Housing fund (item-level) has a budget of RMB 18.6319 million yuan and final account of is RMB 18.6319 million yuan, representing 100% of the budget. Rent increase allowance (item-level) has a budget of RMB 963,600 yuan and final account of is RMB 898,000 yuan, representing 93.19% of the budget. Final account of is smaller than budget mainly due to the following reason: the number of employees who received rent increase allowance in 2012 reduced over the previous year, so this dropped accordingly. Home purchase allowance (item-level) has a budget of RMB 43,041,900 yuan and final account of is RMB 32,488,000 yuan, representing 75.48% of the budget. Final account of is smaller than budget mainly due to the following reason: home purchase allowance distribution scheme of some regional offices is still in the stage of further specification and review and relevant funds are not yet paid. 19
V. Explanations on the CSRC s final account of travel, vehicle and reception expenses budget appropriation of 2012 Unit: RMB 10,000 yuan Budget of 2012 Final account of 2012 Sum Cost of overseas business travels Purchase and daily cost of fleet vehicles Cost of business receptions Sum Cost of overseas business travels Purchase and daily cost of fleet vehicles Cost of business receptions 3252.68 747.16 1,683.60 821.92 2,819.07 737.35 1,342.78 783.94 Note: budget of 2012 refers to the current year budget of travel, vehicle and reception expenses and final account of 2012 includes current year fiscal appropriation budget and actual s using carryover from the previous year and the balance at the year-end of the previous year. (I) Explanations on the final accounts of travel, vehicle and reception expenses using fiscal appropriations In 2012, the CSRC s fiscal appropriation budget for travel, vehicle and reception expenses is RMB 32,526,800 yuan and the final account of annual is RMB 28,190,700 yuan, representing 86.67% of the budget. This includes: final account of RMB 7,373,500 yuan for overseas business travels, representing 98.69% of the budget; final account of RMB 13,427,800 yuan for fleet vehicles purchase and daily cost, representing 79.76% of the budget; and final account of RMB 7,389,400 yuan for business reception cost, representing 89.90% of the budget. The reason that the final account of travel, vehicle and reception expenses of 2012 is smaller than budget is due to the following reasons: first, budgetary entities have practiced conservation and further improved management systems on overseas business travels, use of fleet vehicles and business receptions, standardized relevant fund management systems and review procedures, enhanced budgetary restraint and strictly controlled travel, vehicle and reception expenses ; second, during the campaign of restriction of government fleet vehicles, the CSRC suspended the purchase of new fleet vehicles in 2012. (II) Explanations on the final account of fiscal appropriation for travel, vehicle and reception expenses In the final account of fiscal appropriation for travel, vehicle and reception expenses in 2012, final account of overseas business travel cost is RMB 7,373,500 yuan, accounting for 26% of the total travel, vehicle and reception expenses ; final account of fleet vehicles purchase and operating cost is RMB 13.4278 million yuan, accounting for 48% of the afore-mentioned total costs; and final account of business reception cost is RMB 7.3894 million yuan, accounting for 26% of the afore-mentioned total costs. Specifically: 20
Figure 7: Fiscal appropriation for "travel, vehicle and reception expenses Fleet vehicles purchase and operating cost accounts for 48% 1. Expenditure of overseas business travels is RMB 7,373,500 yuan. In 2012, fiscal appropriation fund has been used to send 114 delegations from the CSRC headquarters and 36 regional offices for overseas business travel. 34 delegations were also organized for overseas business travels organized by entities other than the CSRC headquarters and regional offices. A total of 267 person/overseas trips were organized. Scope of : First, to fulfill the roles and responsibilities in the IOSCO and participate in the research studies and development of the IOSCO s regulatory standards and working meetings of various committees: participation in the IOSCO s Spain Conference and hosting China-Germany High-level Dialogue on Securities Regulation, participation in Thailand Conference of Asia-Pacific Regional Committee, Canada Conference of Evaluation Committee, France Conference of the 7 th Permanent Committee, Brazil Conference of the 3 rd Permanent Committee and Australia Conference of the 5 th Permanent Committee, participation in the Annual Conference of Emerging Market Committee, participation in the Joint Conference for Advisory Members of Executive Committee, Technical Committee and Emerging Market Committee, and participation in conferences of CPSS-IOSCO Standard Evaluation Project Steering Group. Second, multilateral financial exchange and cooperation and negotiations on regulatory cooperation with overseas regulatory bodies, which mainly include: participation in the 7 th China-Europe Financial Dialogue, the 8 th Deputies Meeting of China-US Joint Economic Committee, the 8 th Round of Negotiation on China-US Bilateral Investment Agreement, the 7 th Round of Negotiation on China-Switzerland Free Trade Area and the 6 th International Auditor Oversight Workshop of PCAOB for discussion with the SEC and PCAOB over such topics as China-US cooperation on cross-border audit oversight and law enforcement, and signing of relevant agreements organized by the Ministry of Commerce, etc. Third, conducting exchange and cooperation with regional economic organizations and international organizations, which mainly include: participation in the Corporate Governance Committee Meeting of the OECD, the 13 th OECD-Asian Roundtable on Corporate Governance, the 24 th and 25 th XBRL International Conference, board meeting of the IIFA, 68 th Technical Committee (TC68) Annual Conference of 2012 and relevant meetings of the ISO, APEC Financial Analysis, Legal Affairs Meeting and Auditing Special Workshop of Asian Development Bank, etc. 21
Fourth, participation in the survey and research activities on securities- and futures-related law enforcement programs, regulatory patterns and conduct of business in overseas markets. 2. Purchase and operating cost of fleet vehicles: of RMB 13.4278 million yuan. Of which: Purchase cost of fleet vehicles is RMB 1,574,900 yuan. In 2012, pursuant to fleet vehicles purchase and use standards for administrative agencies, the CSRC and regional offices including those of Hebei, Dalian, Jiangsu, Hubei and Sichuan provinces discarded fleet vehicles that have become unserviceable and purchased seven fleet vehicles, including one minibus and six sedan cars (including one for ministerial officials) with an average per fleet vehicle of RMB 225,000 yuan. Operating cost of fleet vehicles is RMB 11,852,900 yuan. This includes costs of fuel, maintenance, toll fee and insurance for fleet vehicles used for transportation of confidential documents, business travel in cities, investigation and case handling in respective jurisdictions, on-site inspections, etc. In 2012, the CSRC headquarters and 36 regional offices had 380 fleet vehicles (including vehicles for ministerial officials and other fleet vehicles) with an annual operating cost of RMB 11,852,900 yuan or RMB 31,200 yuan per fleet vehicle. 3. Business reception cost is RMB 7,389,400 yuan. This is mainly used for the CSRC headquarters and 36 regional offices to conduct external cooperation and exchange on securities- and futures-related regulatory and supervisory activities, engage in regulatory cooperation and business exchange with relevant domestic entities and cover costs of reception for inspectors from relevant authorities, including per diem, conference venue rent, vehicles rent, etc. VI. Statistics of administrative of the CSRC in 2012 Total administrative of the CSRC to perform general administrative functions and maintain day-to-day operation reached RMB 749,214,800 yuan. 22
Part IV Explanations of Terminology 23
I. Fiscal appropriation income: funds appropriated by the central government in current year. II. Other incomes: refers to incomes other than fiscal appropriation income, income from undertakings of public institutions and operating revenue of public institutions. III. Recovery of deficits using the reserve funds of public institutions: refers to the use of reserve funds of public institutions accumulated over the previous years (i.e. surplus funds set aside by public institutions as reserve pursuant to national regulations to cover the subsequent years deficits) under the condition that current-year fiscal appropriation income, carryover and balance of fiscal appropriation from the previous year, income from undertakings of public institutions, operating revenue and other incomes are insufficient to cover current-year. IV. Carryover and balance from the previous year: refers to the unspent funds of the previous year carried over to be used in current year pursuant to relevant rules V. Expenditure of financial regulation affairs (category-level): refers to the on affairs such as securities- and futures-related regulation. Administrative regarding financial sectors (sub-category-level): refers to the day-to-day s for the agency to ensure normal operations, including staff cost, overheads, property lease cost, etc. Expenditure of administrative operation (item-level): refers to the basic to ensure normal operation of affiliated entities, including staff cost such as remuneration and allowances, office cost, printing cost, utilities cost, travel expenses, meeting costs, cost of office equipment purchase and any other day-to-day overheads. Expenditure of general administrative affairs (item-level): refers to the lease of office premises by entities that do not have proprietary office premises or with office premises insufficient to meet office needs, specific subject matter research, and project s such as international financial exchange and regulatory cooperation. Supervisory regarding financial sectors (sub-category-level): refers to s for securities- and futures-related investigation and case handling, on-site inspection, IT application, and organization of professional qualification examinations, etc. Expenditure of financial investigation and case handling (item-level): refers to the on such activities as investigation and handling of violations in the securities and futures markets. IT application for financial sectors (item-level): refers to the for such activities as the installation and maintenance of securities- and futures-related regulatory information system. Qualification examinations of practitioners (item-level): refers to the on such activities as organizing national qualification examinations for securities- and futures-related practitioners. Other supervisory s regarding financial sectors (item-level): refers to the related to on-site inspections on entities under supervision, recruitment of capital market experts and consultants, purchase and construction of office premises, and maintenance, etc. 24
Expenditure on other financial supervisory affairs (sub-category-level) and other financial supervisory affairs (item-level): refers to the on remote disaster recovery center and upgrade of machine rooms, etc. XI. Housing security (category-level) and housing reform (sub-category-level): refers to the relating to housing reform for payment of the housing fund, rent increase allowance and home purchase allowance, etc. pursuant to national policies. Housing fund (item-level): long-term housing reserve funds contributed respectively by employer and current employees pursuant to respective percentage of the employee remuneration pursuant to the Regulation on the Management of the Housing Fund and other relevant regulations. The contribution base for administrative institutions includes public servant position salary, rank salary, institutional worker position salary and technical rank (title) salary, year-end one-off bonus, special position allowance, standardized work allowance and living allowance, etc. pursuant to unified national standards; the contribution base for public institutions includes position salary, pay grade salary, performance salary and special position allowance, etc. pursuant to unified national standards. The ratio of contribution to the housing fund should be no less than 5% and no higher than 12% for both employers and employees. Rent increase allowance (item-level): refers to the allowance paid since 2000 to offset increasing rents of public housing for employees of central government institutions in Beijing, which is 90 yuan/month per person. Home purchase allowance (item-level): refers to the allowance fund under monetized housing reform that ended housing allocation system in 1998 paid to employees without homeownership or inadequate housing based in regions where housing price-income ratio is more than four times pursuant to the Circular of the State Council on Further Intensifying the Reform of Urban Housing System and Accelerating Housing Construction (the State Council Document No.23 [1998]). Currently, central government institutions based in Beijing follow the standards spelled out in the Circular of the CPC Central Committee General Office and the State Council General Office on Releasing the Opinions on Improving the Housing System for Central and National Institutions Based in Beijing on behalf of the Ministry of Construction (General Office No.8 [2005]). Central institutions outside Beijing shall follow the policies and standards of local people s government on the monetized reform of housing allocation. VII. Balance distribution: refers to staff welfare fund, reserve funds of public institutions and income tax set aside by public institutions pursuant to the applicable regulations, as well as balance after completion of infrastructure construction projects that should be returned by project owner as required. VIII. Year-end carryover and balance: refers to the funds the disbursement of which must be postponed and used in the following year pursuant to relevant rules due to changes in objective conditions that prevent current-year or previous-year budget arrangements to be followed as planned. IX. Basic : refers to staff and public required to maintain normal operation and complete daily work activities. 25
X. Project : refers to the required to complete specific administrative tasks and development targets other than basic. XI. Travel, vehicle and reception expenses : refers to the for overseas travel on business using fiscal appropriation funds, for the purchase and daily costs of fleet vehicles, as well as the for business receptions. Specifically, for overseas travel on business includes the costs of round-trip air tickets, accommodations, meals and training fees, etc. incurred by the overseas business travel of government employees; for the purchase and daily costs of fleet vehicles includes the purchase of fleet vehicles and the costs of rental, fuel, maintenance, toll fees and insurance fees, etc. incurred by the use of such vehicles; and of business reception includes spending on various types of business reception (including reception of foreign guests) pursuant to relevant standards XII. Administrative : refers to the required for administrative institutions (including public institutions administered pursuant to the Law on Public Servants) to perform general administrative functions and maintain their day-to-day operations, including basic and project. Basic includes staff cost for the payment of staff remuneration, allowances and bonuses and overheads for offices and utilities. Project includes spending on general administrative affairs such as the maintenance and rental of office premises, investigation and case handling, on-site inspection, development of electronic information system, etc. 26