Central final accounts for 2004: the central financial revenue of 151.1127 billion yuan (after deducting the new export tax rebate target of 127.532 billion yuan), an increase of 129.112 billion yuan over the budget, the completion of the budget of 109.3%; the central financial expenditures of 183.040 billion yuan, an increase of 128.459 billion yuan over the budget, the completion of the 107.5% of the budget, of which. Central to local tax returns and subsidized expenditures of 1,040,796,000,000 yuan, 110.6% of the budget; the central financial deficit of 319,177,000,000 yuan, 653,000,000 yuan less than the budget; the national debt issued 702,135,000,000 yuan, of which 15 billion yuan on behalf of the local government issue, basically unchanged from the budget.
Third, the main problems found in special audits and audit investigations
2004, around the strengthening of macro-control, safeguard the fundamental interests of the masses, and improve the efficiency of the use of financial funds, the Audit Office of the unified organization of the part of the financial income and expenditure of colleges and hospitals, scientific and technological funds, water conservancy construction funds, funds for the prevention and control of water pollution in key watersheds, the return of pastures to grass, the project, the county and township highway reconstruction projects, as well as the grain The main problems found are: some funds management is not strict, the use of non-compliance, affecting the realization of the relevant policy objectives; some projects are slow, the use of funds is not efficient; some aspects of the implementation of the policy is not in place, damage to the public interests of the problem still exists.
(a) Audit and investigation of 18 central ministries and universities in 2003 annual financial income and expenditure situation shows that in recent years, the Ministry of Education and other departments and colleges and universities to conscientiously implement the education law, and continue to increase investment in education, and promote the reform of colleges and universities, higher education has shown a momentum of rapid development. However, irregularities and irregular fees still exist, capital construction liabilities grow faster, some institutions are more chaotic financial management. 2003, the 18 colleges and universities to collect unauthorized further training fees, MBA tuition fees, such as 644.27 million yuan, the state expressly prohibited the cost of 60.1 million yuan, to set up their own minor fees, auditing fees, such as 73.51 million yuan, exceeding the standard, exceeding the scope of the charges for tuition fees, accommodation costs 52.19 million yuan, mandatory collection of services, fees, and other fees, and the mandatory collection of the service, on behalf of the students. million yuan, mandatory collection of service and agency fees 32.84 million yuan, re-study fees, tuition fees for post-secondary education, etc. 5.54 million yuan, *** totaling 868 million yuan, an increase of 32% over the previous year, accounting for 14.5% of all fees in the year. From the audit situation analysis, some colleges and universities in the enrollment and admission of this link in the phenomenon of irregularities and irregular fees is particularly serious.
Many colleges and universities carry out large-scale capital construction, resulting in a heavy debt burden. As of the end of 2003, 18 colleges and universities total debt of 7.275 billion yuan, an increase of 45% over 2002. Among them, the debt formed by the capital construction accounted for 82%.
The audit also found that 14 colleges and universities did not research income, fees, investment income, such as 616 million yuan as revenue management, and some even stayed in the units owned by sitting on the income and expenditure. Some of the research project funds management is not standardized, as of the end of 2003, 13 universities have 17,397 research projects have been completed but not in accordance with the provisions of the accounts, the balance of funds 369 million yuan is still scattered in the completed project, did not play a role in the benefits. Part of the university-run enterprises management is lax, the problem of violation of laws and regulations is more serious. Such as Tsinghua University's Beijing Tsinghua Sunshine Energy Development Co., Ltd. former general manager in 1995 to March 2003, authorized the company's financial staff to conceal sales revenue, privately set up a "small treasury" 21.38 million yuan, and in the name of issuing bonuses, foreign investment and payment of dividends to partners to withdraw a large amount of cash.
(2) Audit and investigation of the Ministry of Health and the Beijing municipal 10 hospitals belonging to the 2003 annual financial income and expenditure, and related drugs, medical equipment purchase and sale of the situation shows that the hospitals strive to overcome the impact of the SARS epidemic, and actively improve the financial situation, basically to ensure that the development of medical care needs, but the masses of people to see the expensive problem has not yet been properly resolved. However, the problem of the high cost of medical care for the public has not yet been properly solved. These 10 hospitals in 2003, the average charge per outpatient visit 307 yuan, an increase of 8.8% over the previous year; the average charge per bed day 1,006 yuan, an increase of 10.9%. The main reasons for this problem:
First, some pharmaceutical manufacturers misrepresented the cost, resulting in some drugs at inflated prices. According to the current regulations, the retail price of government-priced drugs by the relevant departments to the cost of production enterprises declared as the basis for the prescribed rate of markups approved. However, in a random sample of 46 medicines from five pharmaceutical companies, 34 manufacturing costs were inaccurately declared, with an average misstatement of more than one times. A random sample of 105 drugs sold to patients in 10 hospitals in 2003 found that patients were overburdened by 10.52 million yuan, or 28% of the 37.44 million yuan actually charged by the hospitals, due to false declarations by the companies of the manufacturing costs of some of these drugs.
Secondly, the distribution of medicines is characterized by price increases and profiteering. Sampling 6 types of 35 types of imported disposable medical devices, the final price sold to the hospital for the average customs price of 3.34 times. For example, for heart surgery, a specification balloon, the customs price of each 496 yuan, the first agent wholesale to the second agent to reach 3,600 yuan, the second agent and then sold to the hospital when the second agent suddenly rose to 7,000 yuan, the two hand over the price increase of more than 13 times.
Third, the phenomenon of receiving discounts and rebates in hospital procurement is relatively common, directly or indirectly increasing the burden on patients. It has been found that since 2001, 10 hospitals have received various discounts, rebates, etc. paid by manufacturers of drugs and medical equipment about 300 million yuan. Since the hospitals did not use these funds to offset the selling prices of drugs and medical devices, but instead used most of them as hospital profits or for expenditures such as the purchase of equipment, the burden on patients was ultimately increased. In addition to hospitals, the phenomenon of individuals soliciting and accepting kickbacks has also persisted.
Fourth, some hospitals are charging illegal fees, increasing the burden of medical expenses on the public. The audit sampled 10 hospitals from 2003 to August 2004, part of the medical fee program, found that irregularities to the patient overcharging 11.27 million yuan. Among them, the medical examination overcharging 8.25 million yuan, drug overcharging 3.02 million yuan.
(C) Audit of the Ministry of Science and Technology, the Chinese Academy of Sciences, the National Natural Science Foundation of China and 45 subordinate units, and extend the audit of the other nine scientific research units of science and technology funds management and use of the situation shows that, with the deepening of the reform of the science and technology system, the state financial increased investment in science and technology, scientific research institutions to enhance the overall strength, but the science and technology funds management and use of there are still some problems.
First, the transfer and misappropriation of scientific and technological funds is more prominent. 2 departments, 45 scientific research units to transfer, misappropriation of scientific and technological funds, such as 669 million yuan, mainly used for capital construction, foreign investment, personnel expenses. Among them, 13 units will be 327 million yuan of science and technology funds, such as illegal lending, foreign investment and into the stock market, some difficult to recover. 1998, the Ministry of Science and Technology, the former China Biotechnology Engineering Development Center project management irregularities, the use of 8 million yuan of scientific research funds, and private enterprises *** with the opening of the company, the company has accumulated a loss of 17.6 million yuan.
Second, some of the topics and projects budget preparation is not true, research cost accounting is not standardized. 13 units of the false subject budgets such as 363 million yuan; 16 units of false subject and project expenditure accounts 130 million yuan; 20 units of the completed subject is not in accordance with the provisions of the carry-over balance of funds 209 million yuan.
(d) Audit and investigation of the Ministry of Water Resources and the Yangtze River Water Conservancy Commission and other seven basin agencies and Hunan, Hubei and other 15 provinces (autonomous regions and municipalities) water conservancy construction funds management and utilization, the audit funds totaling 71.646 billion yuan, accounting for the same period of the country's total investment in water conservancy construction of 77%; the detection of 3.5 billion yuan of stranded funds, other violations of the amount of nearly 1.4 billion yuan, accounting for the total amount of funds audited 7%. The audit shows that under the great importance attached by the CPC Central Committee and the State Council, the investment in water conservancy construction has increased significantly, and the flood and drought prevention capacity of large rivers has been significantly strengthened. However, the construction of some projects is less effective, illegal occupation of land and other issues that infringe on the interests of farmers are more prominent.
First, one-third of the project has not been completed on schedule, and some projects have hidden quality problems. Audit sampling 354 projects, of which 109 were not completed as planned; 21 have serious quality defects. Shanxi Province in 2003 should be completed 20 reservoir reinforcement project, due to local matching funds are not in place, the actual completion of only 8, and 7 of them did not meet the design requirements, difficult to achieve the flood control and water supply and other expected goals.
Second, part of the water conservancy construction funds were retained, misappropriation and loss of waste. Audit found that, as of the end of 2003, the Ministry of Water Resources and seven basin agencies retained funds of 1.385 billion yuan, 15 provincial water conservancy agencies retained funds of 2.2 billion yuan, which accounted for a total of 11% of the total water conservancy construction funds. The lower reaches of the Yellow River, Huaihong New River Renewal Project and other 10 water conservancy projects * * * deposit idle central water conservancy construction funds of 2.4 billion yuan, part of the funds idle for up to five years, the investment benefits are difficult to play. 1998 to 2003, Shaanxi Province, fiscal and taxation departments from the water conservancy fund raised to extract 122 million yuan of operating expenses, accounting for the province during the same period of the total amount of levied on the water conservancy fund of 10%, mostly used for the issuance of employee Subsidies and bonuses.
Third, the problem of illegal land acquisition, arrears in project payments and compensation for farmers' land acquisition is serious. Audit sampling 186 projects, there are 25 projects in violation of 287,000 acres of land acquisition, there are nine projects in arrears of land acquisition compensation and wages of migrant workers 371 million yuan. The land compensation, resettlement subsidies, and compensation costs for ground attachments and seedlings paid to farmers in some projects were significantly lower than the required standards. Some places also violated the law by allowing farmers to work without compensation to offset local government matching funds in the construction of projects. Such as the Huaihe River main stream Chen family Bay large port polder governance project estimates a total investment of 213 million yuan, the central and provincial funds are all in place, while the city and county supporting 10.7 million yuan, all let the farmers unpaid work against the top.
(E) Taihu Lake, Huaihe River, Haihe River, Liaohe River, the key watershed water pollution prevention and control funds audit. "Tenth Five-Year" period, the state for the benefit of the people, increased "three rivers and one lake" water pollution prevention and control efforts, **** arrangements for 1460 projects, total planned investment of 107.6 billion yuan. The audit found irregularities amounting to 2.368 billion yuan, accounting for 6% of the total audited funds. The salient issue is that the construction of water pollution control projects in some places is progressing slowly, and without improvement it will be difficult to realize the benefits as scheduled. By the end of 2003, the audit of 12 provinces (autonomous regions and municipalities) 856 projects in 425 have not started, accounting for 49%. Hebei, Anhui, Inner Mongolia, Shanxi, Jilin 5 provinces (autonomous regions) of the investment completion rate of less than 15%. 12 provinces have 1.566 billion yuan of key watershed water pollution prevention and control funds have been crowded out and diverted to other projects, run a business, lending or building a house to buy a car, etc., affecting the project construction. Sampling 78 completed sewage treatment plants, 60 due to supporting the construction of lagging behind or insufficient operating funds, can not operate at full capacity, sewage treatment capacity idle; 9 treated sewage long-term substandard.
(F) 16 provinces (autonomous regions and municipalities) inter-county and rural road reconstruction project audit investigation. Inter-county and rural road reconstruction is a concrete measure taken by the Party and the government to promote the socio-economic development of rural areas and improve the basic conditions of agriculture. The audit investigation found that some places have included national and provincial road projects in the scope of rural road reconstruction, such as Xinjiang, Guizhou, Sichuan, Shanxi, Anhui, five provinces (autonomous regions), the central subsidy of 4.102 billion yuan for more than 9,000 kilometers of national and provincial road reconstruction. The investigation also found that in the construction of the project, arrears of project payments and land requisition compensation fees to the detriment of the interests of the public is more prominent, and some local governments have not paid land requisition compensation fees to farmers in accordance with the provisions of the regulations. Some provinces (autonomous regions) in the highway construction beyond their own capacity, a large number of borrowing from the bank, debt repayment difficulties.
In addition to the above, in 2004, the Audit Office also organized 5 provinces (districts) back to grass projects, 8 provinces (districts), food risk fund, 7 provinces (districts), the management and use of central subsidies for the 88 closed bankruptcy enterprises, etc. Audit investigations, and found that the salient issues are: some of the back to grass projects are not reasonable arrangements for the construction of the content of the investment is not effective; there are subsidies for the issuance of fodder and grain Some of the subsidized feed grains were not distributed in a timely manner, jeopardizing the interests of farmers and herdsmen. In some places, the implementation of the grain reserve system is not in place, and there is a serious shortage of grain reserves; the financial debts of grain enterprises are slow to be absorbed, and the amount of such debts remains high. National policy measures on the closure of bankruptcy enterprises in some places have not been fully implemented, some of the implementation of the closure of the bankruptcy of the coal and non-ferrous metal mining enterprises are still continuing to mine, there are serious safety hazards; part of the closure of the bankruptcy of the enterprise staff resettlement is not in place, the transfer of social functions in accordance with the provisions of the transfer.
Fourth, the main problems found in the audit of financial asset management companies
In 2004, the Audit Office of the unified organization of China Huarong, the Great Wall, the Orient, the Cinda four asset management companies and their various branches of the assets and liabilities of the profit and loss situation of the audit, **** sampling of the acquisition of financial non-performing assets acquired by these asset management companies 554.4 billion yuan, accounting for 39% of the total amount of their acquisitions. On the whole, asset management companies have played a positive role in promoting the revitalization of banks' non-performing assets and in preventing and resolving financial risks, but there are also some problems of violations of the law and irregularities in operation and management. According to relevant statistics, by the end of 2004, the four asset management companies had disposed of a total of 675 billion yuan of non-performing assets, with a disposal progress of 53.9%; the cumulative cash recovery amounted to 137 billion yuan, with a cash recovery rate of 20.2%. The audit*** identified various types of violations, management irregularities and case clues amounting to 71.549 billion yuan, accounting for 13% of the amount sampled in the audit.
(a) illegal divestiture and acquisition of non-performing assets. Some commercial banks and asset management companies in the process of divestiture and acquisition of non-performing loans, the review of the gatekeeper is not strict, resulting in a number of loans do not meet the conditions of divestiture was divested to the asset management company, not only resulting in a considerable portion of the financial debt is difficult to implement, but also due to the formation of non-performing loans, the reasons for the responsibility has not been held accountable for the loan process, to cover up a number of irregularities in the process of the problem and the case of financial crime. The audit*** found that the non-performing assets divestment link irregularities and irregularities of 16.918 billion yuan. 4 commercial banks took the opportunity of divesting non-performing loans to cover up the irregularities of previous years, and shifted the operating losses of 2.121 billion yuan. For example, in June 2000, the Industrial and Commercial Bank of China (ICBC) asked its Guangdong branch to issue a loan of 328 million yuan to replace the losses incurred by four of its investment funds, such as Yincheng, Yinhai, Wanli, and Beijiang, and then divested the principal and interest of the loan as non-performing assets to the Guangzhou, Shenyang, and Harbin offices of the Huarong Asset Management Company (HARMCO). Illegal divestiture also resulted in the loss of state-owned assets, and the personnel concerned took the opportunity to make false statements for personal gain. in June 2000, the Zaoyang Sub-branch of the China Construction Bank in Hubei Province, under the manipulation of the then president and vice-president of the bank, teamed up with the local government and the court to prepare false information on loans, and illegally divested 18.44 million yuan of the principal and interest on the loans of 29 enterprises that did not meet the conditions for divestiture as bad debts. For 18 of these enterprises, Zaoyang City Court issued false civil rulings on final execution, all of which were made by CCB Zaoyang Sub-branch, stamped by the court, and the case number, time, and content were all forged; for the other 11 enterprises, Zaoyang City Government issued false closure approvals, etc., and the confirmation of CCB Zaoyang Sub-branch's claims were also forged. Before and after the stripping of these 29 enterprise loans, CCB Zaoyang Sub-branch recovered more than 7.2 million yuan in cash and physical assets, of which 6.9 million yuan hidden off the books, 5.02 million yuan was transferred to the name of the individual.
(ii) Unauthorized disposal of non-performing assets at low prices. Some asset management companies in the process of non-performing asset disposal, there are violations of procedures, falsehoods, the phenomenon of backdoor operation, resulting in part of the assets were disposed of at a low price, resulting in varying degrees of loss of state-owned assets. The audit*** found violations and irregularities in the asset disposal process amounting to RMB 27.215 billion. The main manifestation of this is that the evaluation and auction process was not managed strictly, and went through the motions, and some even operated falsely and deliberately disposed of at a low price. For example, in December 2001, the Changsha office of Cinda Asset Management Company, when disposing of 130 mu of land assets located in Nanhai City, Guangdong Province, first collected the price from Nanhai Yu Dong Long Co., Ltd. before conducting the evaluation, issuing the disposal announcement and holding the auction, and Nanhai Yu Dong Long Co., Ltd. was the only bidder. The benchmark price of the land was RMB 340,000 per mu, and the auction appraisal price was RMB 116,300 per mu, while the actual transaction price was only RMB 50,000 per mu. Ltd. purchased the above land, in order to obtain a mortgage loan re-commissioned appraisal, the appraisal price of 65.23 million yuan, the auction appraisal price of more than 4 times, the auction price of more than 10 times. The Guangzhou office of the Oriental Asset Management Company "packaged and disposed" the 4.475 billion yuan of claims involving 90 enterprises to the Guangdong Zhongding Group Company at a price of 318 million yuan, and then entrusted by Zhongding to carry out the disposal, and charged a service fee of 4.35% of the amount of the disposal proceeds, and as of the end of April 2004, the service fee was 7.535 million yuan, which the office had already collected. As of the end of April 2004, 7.535 million yuan had been collected, and the staff of the Office received 360,000 yuan per person. Audit sampling of two of the claims found that the Guangzhou Office of Oriental Company was sold to Zhongding Company at zero price at that time, but the price was 75 million yuan and 27 million yuan respectively when it was resold and re-disposed of. The former general manager of the Chengdu office of Huarong Asset Management Company, in the course of disposing of a claim of 87.3 million yuan, knew that the claim had been auctioned by the court and that he could obtain 33.28 million yuan from the auction, but still disposed of it to a private enterprise at a low price of 11 million yuan, and the relevant person was suspected of committing an economic crime. Some asset management companies took the opportunity of disposing of non-performing assets to seek undue benefits for their own organizations or individuals. For example, the Changchun office of the Great Wall Asset Management Company organized an auction of 33 sets of debt-bonded commercial housing, the transaction price of 54% lower than the market price, of which 80% of the bidders for the office staff, and most of the others are also relatives of employees.
The audit also found that due to the intervention of local governments and courts, some local enterprises have evaded financial debts through irregular bankruptcy. For example, in Hubei Province, 475 local enterprises have gone bankrupt due to irregularities, resulting in a total claim of 5.453 billion yuan from three asset management companies, Huarong, Great Wall, and Cinda, and only 18.03 million yuan has been compensated, a compensation rate of only 0.33%.
(3) Some asset management companies have chaotic financial management, illegally misappropriating the funds recovered from asset disposal for the benefit of their employees or storing public funds privately, resulting in the loss of the recovered funds; and lax management of debt-bonded assets, with a large number of them being stored off the books or illegally utilized for their own purposes. For example, since 2001, the Xi'an office of Great Wall Asset Management Company has retained 20.93 million yuan of recovered funds from the disposal of assets, and has illegally occupied debt-bonded land for the construction of office buildings and employee residences. The audit found that the Orient Asset Management Company had misrepresented the number of employees to the Ministry of Finance by 3,983 from 2000 to 2003***, causing the Ministry of Finance to overdistribute personnel costs by 198 million yuan, of which 133 million yuan was overdistributed for salaries alone.
V. Major problems found in the audit of the tenure of economic responsibility of the former leaders of 10 central enterprises
In 2004, commissioned by the Ministry of Organization and the State-owned Assets Supervision and Administration Commission (SASAC), the Audit Commission audited the tenure of economic responsibility of the former leaders of 10 central enterprises, such as the State Development and Investment Corporation (SDIC). The total assets of these 10 enterprises amounted to 1,422.1 billion yuan, and the audited funds accounted for 51%. The main problems found are:
(a) the problem of unrealized gains and losses is more prominent. The audit found that five enterprises overstated their profits by 4.6 billion yuan, mainly caused by business leaders considering the business performance or in order to complete the profit assessment targets of their superiors, artificially undercounting costs and expenses; five enterprises understated their profits by 3 billion yuan, mainly caused by overcounting costs and expenses. Some enterprises falsified, evaded taxes or cheated financial subsidies. For example, Changzhou Lanxiang Machinery General Factory, by misreporting the number of laid-off workers, cheated the central government of basic livelihood protection subsidies for laid-off workers by 11.1 million yuan, accounting for 35% of the actual amount of subsidies received. In order to obtain the Cinda Asset Management Company's exemption of its 84.51 million yuan financial debt, the factory's legal representative made an unauthorized decision to use 1 million yuan of public funds for bribery, and the relevant personnel are suspected of committing a crime.
(ii) Decision-making errors caused more serious losses. The audit found that 10 enterprises external investment, borrowing, guarantee and other losses caused by 14.5 billion yuan. Mainly due to non-procedural decision-making, irregular decision-making and mismanagement. For example, in August 1997, the State Development and Investment Corporation provided guarantees for a 20 million yuan bank loan to a private enterprise, Beijing Sanming Bioengineering Company Limited, even though it was unable to repay a 20 million yuan loan. Since Sanming had ceased operations, NDIC repaid the bank loan principal and interest of 22.26 million yuan on behalf of the company. The above loans, guarantees *** formed a loss of 42.26 million yuan.
(C) the illegal disposal of assets, related party transactions to make profits, illegal operation and other state-owned assets loss of 2 billion yuan. For example, from 1998 to April 2002, Shenhua Power Company, a subsidiary of Shenhua Group, handed over its decommissioned generating units to its multi-business enterprise without compensation
Beijing Huaming Thermal Power Engineering Company to operate and incorporate them into the main production plan for on-line power generation, crowding out the profit space of the main business, Huaming Thermal Power Engineering Company made a profit of 88.25 million yuan, and used some of the profits to generate a loss of 42.26 million yuan. 8.25 million yuan, and used 40.92 million yuan of it to purchase commercial housing for Guohua Power Company's middle and upper level cadres.
The audit also found that a small number of business leaders and subordinate business management personnel abuse of power, the use of power for personal gain is also relatively prominent. The audit **** found irregular transfer of state-owned assets, misappropriation of public funds, embezzlement and bribery and other suspected economic crimes 9 cases, involving an amount of 1.6 billion yuan.
For the problems found in this year's audit, the Audit Commission has solicited the views of the audited units in accordance with the law, and adopted the reasonable opinions they put forward. On this basis the Audit Commission made a decision to deal with the matter. The collection of financial irregularities in accordance with the law to be collected funds; the correction and rectification of the problem, the relevant units are instructed to correct and rectify; the responsibility of the person concerned, according to the circumstances and the nature of the transfer of the judicial organs, disciplinary inspection and supervision departments and relevant units. 2004, the Audit Commission through the various audits **** to the judicial organs to transfer all types of cases 83 cases involving 233 people involved in the case of the amount of 4.82 billion yuan , and has recovered economic losses of more than 1 billion yuan. The Audit Office has made special reports and requests to the State Council on important issues relating to policies and regulations. Various departments and units have attached great importance to this audit, and many units, in conjunction with the activity of maintaining the advanced character of ****-production party members, have begun to rectify the problems revealed by the audit in the course of the audit. At present, preliminary statistics show that 2.93 billion yuan of funds should be turned over to the treasury, and 604 million yuan has been turned over; 6.155 billion yuan of funds that have been misappropriated and squeezed have been returned to the original channels, and 363 million yuan has been returned to the original channels; 114 cases should be held accountable to the personnel concerned, and 57 people have been arrested or prosecuted, and 159 have been subjected to administrative penalties; 80 departments and units have responded to the problems reflected in the audit by establishing and improving 116 relevant rules and regulations. In response to the problems reflected in the audits, 80 departments and units have established and improved 116 relevant rules and regulations. For example, the Ministry of Health decided to carry out in-depth activities for the Hospital Management Year in medical institutions of all levels and types throughout the country, and issued the Circular on Opinions on Further Strengthening and Improving the Economic Management of Hospitals under the Ministry and the Provisions on Strengthening the Management Functions of the Financial Departments of Medical Institutions and Standardizing the Management of Economic Accounting and Distribution. The Ministry of Foreign Affairs has organized the drafting of the Measures for the Management of Infrastructure Projects and the Interim Provisions on the Use and Management of Subsidies to Local Foreign Affairs Reception Expenses. The Ministry of Construction has formulated the Implementing Rules for the Management of Bank Accounts, the Measures for the Management of Special Funds and the Implementing Rules for the Management of Government Procurement. The Ministry of Science and Technology took timely measures in response to the problems identified in the audit and urged its subordinate units to recover 8 million yuan of funds illegally invested in the company. The State Bureau of Material Reserves has attached great importance to the problems identified in the audit, and has set up a special clean-up team, which has called for the repayment of 138 million yuan of various arrears of payments and materials. In view of the problems identified in the audit and the characteristics of the newly formed units, the ERC has determined to implement the system of responsibility of the head of financial management, and organized an internal audit inspection within the system during the year, so as to promote conscientious compliance with the financial laws and regulations. State Environmental Protection Administration and the relevant local governments to take active measures to rectify the water pollution prevention and control funds audit found that the project construction progress has been significantly accelerated, the relevant departments in accordance with the audit of the problems reflected in the relevant departments have been arranged for the allocation of funds of 120 million yuan, specifically for the 21 industrial pollution control and water conservation projects in Shanxi Province, Shandong, Inner Mongolia and other places to seriously pursue the responsibility of the relevant personnel. By the end of April, the relevant provinces (autonomous regions and municipalities) have corrected the audit identified irregularities of 201 million yuan. 4 asset management companies attach great importance to the audit of the problems identified, specifically sent a working group to audit the problems found to be seriously verified, and has been 110 responsible for the treatment of the person. The Ministry of Finance, the People's Bank of China and the China Banking Regulatory Commission have jointly issued a document setting forth standardized requirements for the divestment of non-performing loans by state-owned commercial banks, and have taken measures to increase the supervision of asset disposal by asset management companies. As a next step, the State Council will continue to urge the relevant departments and units to seriously rectify the situation. Comprehensive rectification, the State Council will make a special report to the Standing Committee of the National People's Congress before the end of this year.