Ministry of Finance Internal Accounting Control Standards - Monetary Funds (Trial Implementation)

Issued: June 22 2001
Effective: as of date of issue
Interpreting authority: Ministry of Finance
Applicability: These Standards are applicable to State organs, social organizations, companies, enterprises, institutions and other economic organizations (hereafter, the "work unit") (Article 3).

Main contents: The Standards require the work unit to set up a sound system for internal control of monetary funds (Article 5). This system involves division of responsibilities and authorities, cash management, control of cash-related instruments and seals, and regular and random inspection. Specifically, no individual in the work unit shall be authorized to handle the entire process of a monetary fund business (Article 6). No individual may handle a monetary fund-related activity beyond his or her authority (Article 9). The amount of cash at hand must be kept within the limit and the scope of cash expenditures must be controlled (Articles 13 and 14). Books must be kept to record the use of all monetary fund-related instruments and the seals for bank account operation shall remain in the custody of specially designated persons (Articles 21 and 22). The work unit shall carry out regular and random inspections of these arrangements and operations and take prompt remedial measures if any flaw is discovered (Articles 24 and 25).
Related legislation: PRC, Accounting Law (Revised), 31 Oct 1999, CLP 2000 No.1 p4 and Internal Accounting Control Standards - Basic Standards, Jun 22 2001, CLP 2001 No.7 p4