(July 24, 2025)

JDFB D [2025] No. 2

Attention: all relevant departments in the District:

In order to standardize the financial supervision of the government investment projects in this District and enhance the operational efficiency and effectiveness of the fiscal funds, this Bureau had formulated the Financial Supervision and Management Measures for the Jing'an District Government Investment Projects. These Measures were deliberated and approved at the 139th Routine Meeting of the District People’s Government and are hereby issued to you for your compliance and implementation.

Financial Supervision and Management Measures for the Jing'an District Government Investment Projects

Chapter I  General Provisions

Article 1

In order to further improve the operational efficiency and utilization efficiency of the fiscal funds, and effectively regulate the financial (investment) supervision work of the government investment projects in this District (hereinafter referred to as the "financial supervision"), these Measures were formulated in accordance with the Budget Law of the People's Republic of China, the Government Investment Regulations, the Financial Rules for Basic Construction, the Management Measures for the Financial Supervision of the Municipal-level Construction Financial Projects in Shanghai and the Management Measures for the Government Investment Projects in Jing'an District, and in the light of the actual circumstances of this District.

Article 2

The financial supervision system shall be implemented for the fixed assets investment projects arranged with the district budgets.

The financial supervision system mentioned in these Measures refers to the professional social intermediary institutions (hereinafter referred to as "financial supervision institutions") selected by the District Finance Bureau, project management departments, project units and the other units in accordance with laws and rules, to provide the professional services such as full-process fund monitoring, financial management, investment control for the District Government investment projects in accordance with the relevant laws, rules, regulations and the other provisions.

For the special projects such as the information technology projects and pure equipment procurement projects in the investment projects of the District Government, the financial supervision system may not be implemented with the approval of the District Finance Bureau.

Article 3

The financial supervision institutions shall strictly carry out the financial supervision work in accordance with the relevant national laws, rules, feasibility study report approvals, preliminary design budget approvals, etc., following the principles of legality, impartiality, and objectivity, and assume the corresponding review and legal responsibilities.

Article 4

The District Finance Bureau shall be the functional department in charge of the implementation of the financial supervision system for the government investment projects in this District, responsible for the management of the commission, guidance, supervision and assessment of the financial supervision institutions.

The project management departments shall assist the District Finance Bureau in entrusting, guiding, supervising, and assessing the financial supervision institutions, and undertake the corresponding financial management responsibilities such as fund utilization and investment control.

The project units shall cooperate with the financial supervision institutions to carry out their work, provide the relevant documents and necessary conditions for the on-site offices to the financial supervision institutions in a timely manner, and shall have the right to propose the reasonable work suggestions and requirements to the financial supervision institutions, and participate in the assessment of the financial supervision institutions.

Chapter II  Contents of Financial Supervision

Article 5

The financial supervision institutions shall be responsible for the monitoring of the funds, financial management, and investment control (including the review of project price settlement) throughout the entire process of the district-level government investment projects after accepting the commission.

Article 6

The work of monitoring the funds by the financial supervision institutions shall mainly include the following:

1. assisting the project units in preparing the annual and monthly funding plans；

2. assisting the project units in managing the construction funds for the designated purposes, supervising the project units to strictly implement the approved project budgets, and prohibit misappropriation;

3. reviewing the expenditure of the various expenses, ensuring that all the expenses comply with the relevant national provisions, and preventing the loss and occupation of the construction funds; and

4. reviewing the project advance payments, progress payments, reserve payments, project change visas, and providing their written opinions.

Article 7

The financial management work of the financial supervision institutions shall mainly include the following:

1. assisting the project units in correctly setting the accounting subjects in accordance with the provisions of the basic construction financial management, establishing and improving the basic construction financial management system and internal control system of the project units;

2. assisting the project units in separately accounting for the projects based on the approved budgets in accordance with the government accounting systems and the other provisions, and guiding the preparation of the relevant financial statements;

3. reviewing the overall budgets and the annual infrastructure expenditure budgets of the projects, and promptly issuing written audit reports；

4. verifying the monthly expenditure of the projects and submitting the annual reports on the completion of the investment execution. After the completion of the projects, reviewing all the expenses, auditing the total project costs, analyzing the actual project costs against the total budgets, and issuing the project summary audit reports;

5. assisting the project units in carrying out management and financial accounting for the procurement, storage and requisition of the materials during the project construction processes; and

6. assisting the project units in correctly preparing the final financial accounts for the completion of the projects, and cooperating in the relevant work of auditing and approving the final financial accounts for completion.

Article 8

The investment control work of the financial supervision institutions in the early stage shall mainly include the following:

1. reviewing the preliminary expenses of the projects and providing the corresponding written opinions；and

2. assisting the project units in conducting their preliminary reviews of the preliminary design estimates, proposing the technical and economic analysis and optimization suggestions for the preliminary designs, especially making specific analysis and revisions for the main factors affecting the costs, and providing the corresponding written opinions for the reference of the project units.

Article 9

The investment control work of the financial supervision institutions during the bidding stage shall mainly include the following:

1. participating in the bidding work such as the engineering survey, design, construction, engineering supervision, equipment procurement, etc., reviewing the bidding documents, maximum bid prices and bills of quantities, and providing the written review opinions;

2. participating in contract negotiations and providing the written review opinions on the reasonableness of the clauses related to the contract prices, payments, changes, claims, etc. in the contracts;

3. predicting the possible uncertainties in the projects, such as price increases, design changes, unforeseeable expenses, etc., and providing the relevant written opinions; and

4. participating in the inquiries and reviews related to the engineering projects, and providing the corresponding written opinions for the reference of the project units.

Article 10

The investment control work of the financial supervision institutions during the construction phases shall mainly include the following:

1. developing the on-site cost control steps and measures, and assisting the project units in developing the cost control implementation rules that are in line with the project characteristics;

2. coordinating and cooperating with the engineering supervision units in the (quality and progress control) work to strictly implement the visa systems.

3. attending the engineering meetings and the other work meetings related to the projects as requested by the project units, keeping abreast of the actual progress of the projects, and implementing the cost control tracking management;

4. reviewing the monthly completed workload reports submitted by the construction units and approved by the engineering supervision units, and providing the payment proposals for the current month. After being approved by the project units, they shall serve as the basis for making the monthly progress payments;

5. collecting the relevant information on the engineering construction, understanding the construction processes, assisting the project units in timely reviewing the design changes, on-site visas, and the other expenses incurred, calculating the resulting increase or decrease in the engineering costs, and adjusting the budget control targets accordingly to avoid unreasonable cost expenditures;

6. determining the costs of the various changes on the basis of the monthly workload and payment during the construction phases, and working together with the project units to handle the project summary calculation;

7. timely warning of the potential engineering cost claims by the project units, providing professional evaluation opinions, estimation reports, and anti-claim consulting services to ensure the interests of the project units in the contracts, providing the consulting opinions such as confirmation and feedback on the claims to the project units when the relevant contracting parties make claims;

8. assisting the project units in checking the performance of the various contracts, preparing contract execution status, and collecting and organizing the entire sets of contracts, settlement reports, and summary tables of various expenses;

9. reviewing the construction drawing budgets, calculating and reviewing the contract quantities on the basis of the construction drawings, and adjusting the quantities of work that exceed the contract scopes or changes in a timely manner;

10. promptly inquiring about or reviewing the materials, equipment, etc. that need to be purchased or priced for the projects in accordance with the contracts and the relevant provisions, and providing their written review opinions;

11. doing a good job in calculating and reviewing the engineering steel bars and embedded parts; and

12. regularly inspecting the execution of the procurement materials and equipment contracts.

Article 11

The investment control work of the financial supervision institutions during the completion settlement stage shall mainly include the following:

1. timely reviewing the settlement of the partial or overall project prices approved by the project units and submitted by the construction units, fairly and reasonably determining the costs of the individual projects, issuing written reports on the review results, and submitting complete project completion settlement reports; and

2. timely reviewing the final settlement amounts of the materials, equipment procurement contracts, and service contracts, and submitting their written reports on the review results.

Article 12

The financial supervision institutions shall promptly submit their written opinions to the project units and project management departments in accordance with the requirements of the above provisions for their reference in strengthening their management.

Article 13

The financial supervision institutions shall regularly submit their written reports to the project units, project management departments and the District Finance Bureaus. The project units shall copy the reports to the relevant departments such as the District Development and Reform Commission and the District Audit Bureau, etc. The written reports shall promptly reflect the results of the financial supervision work and the problems that exist or need to be coordinated during the project construction processes, including the dynamic analysis reports on the project investment, special reports on the over-investment, annual summary reports on the financial supervision work, summary reports on the financial supervision work, project summary and audit reports (including preliminary expenses, second-class expenses, and project price settlement), as well as the various written reports formed to reflect the other matters.

Chapter III  Access and Selection of Financial Supervision

Article 14

The main body of the financial supervision institutions may be a cost consulting company, an accounting firm, or a consortium composed of the cost consulting companies and accounting firms. The undertaking of the engineering price settlement consulting services shall be carried out in accordance with the relevant provisions of the Interim Measures for Construction Project Price Settlement (FC [2004] No. 369).

The financial supervision institutions shall be also required to meet the following conditions:

1. being equipped with the professional technical personnel engaged in engineering budget estimation, preliminary (final) calculation, and completion financial settlement review work, and equipped with the professional personnel who have obtained qualifications such as the first-class registered cost engineers and registered accountants;

2. having no violation of disciplines or rules in the past 3 years, with good social reputations and professional qualities, and complete and perfect technical file management system, quality control system, financial management system and the other systems; and

3. the professional personnel entrusted to undertake the project financial supervision work complying with the national laws and rules, having high professional qualities, good professional ethics, and having not engaged in illegal or irregular practices in the past 3 years.

Article 15

According to the investment methods of the government investment projects, the entrusted entities of financial supervision institutions shall be divided into the following:

1. For the government investment projects that are invested through capital injection and investment subsidies, the project management departments and the project units shall jointly entrust the financial supervision institutions.

2. For the government investment projects that are directly invested, if the approval of feasibility study report specifies that the total investment amount (excluding land costs) is less than 10 million yuan, the project management departments and the project units shall jointly entrust the financial supervision institutions and report to the District Finance Bureau for filing. When the approval of the feasibility study report specifies that for the projects with a total investment amount (excluding land costs) of 10 million yuan or more, the District Finance Bureau and the project management departments shall jointly entrust the financial supervision institutions.

Article 16

The selection of financial supervision institutions for the projects where the financial supervision fee reaches the government procurement limit shall be carried out by the commissioning parties in accordance with the relevant provisions of the Government Procurement Law of the People's Republic of China, the Tendering and Bidding Law of the People's Republic of China, and the government procurement management of Shanghai Municipality and Jing'an District.

Article 17

The financial supervision institutions shall implement an avoidance system. If the financial supervision institutions have already participated in the project initiation review and evaluation, design, bidding agency, construction agency, engineering supervision and the other work, or have a controlling or subordinate relationship with the units undertaking the above work, or if the persons in charge are the same ones, the financial supervision institutions shall avoid and shall not undertake the financial supervision work of the projects again. The financial supervision institutions shall also implement the principle of avoidance when assigning their specific financial supervision personnel.

Chapter IV  Fees for Financial Supervision

Article 18

The fee standards for financial supervision shall be implemented in accordance with the relevant "financial supervision fee expenditure standards" in the Management Provisions of Part Professional Service Fee Expenditure Standards for the Municipal-level Construction Financial Projects in Shanghai (SMDRC D [2016] No. 70). The specific contract amounts shall be determined on the basis of the evaluation results.

Article 19

The financial supervision fees shall be subject to the total amount control and included in the project construction costs. For the projects implementing the financial supervision system, the cost control expenses for the entire construction process shall no longer be included.

Article 20

The financial supervision contracts shall stipulate the methods of payment, payment terms, and the proportion of assessment retention money. The assessment retention money shall be linked to the quality of the financial supervision work and paid according to the assessment situations. Obligations not stipulated in the procurement documents and contracts shall not be used as the conditions for payment to the financial supervision institutions.

The financial supervision commission contracts shall generally be the close-end contracts. After the implementation of the projects, if the budget adjustment occurs due to the changes in the construction contents or scales, resulting in the changes in the approved budget amounts for the financial supervision services, the relevant provisions such as the government procurement regulations may be followed.

Article 21

The financial supervision fees shall be disbursed in accordance with the relevant provisions on centralized payment by the national treasury as stipulated in the contracts.

Chapter V  Assessment and Supervision of Financial Supervision

Article 22

The quality assessment of the financial supervision work shall be conducted by the commissioning entities via a combination of the annual assessment and final assessment, that is, the quality of financial supervision work shall be evaluated regularly once a year, and the final assessment shall be conducted after the projects have passed the audit and the approval for the financial settlement of completed project.

Article 23

The assessment contents shall include the work attitudes about financial supervision, the completeness of the data management, the presence of the personnel, the completeness and deviation degree of the "three calculations" review, the accuracy of the fund monitoring, the standardization of the financial management, investment control, the timeliness and authenticity of the financial supervision reports, the timeliness and professionalism of the major issue warnings, etc.

Article 24

The financial supervision contracts shall specify the above-mentioned assessment methods and contents, and shall specify that if the financial supervision institutions fail to fulfill their contractual obligations or fail to fulfill their obligations in accordance with the agreements, the financial supervision institutions shall bear the liquidated damages and compensate for the losses.

Chapter VI  Supplementary Provisions

Article 25

For the other government investment projects in this District, these Measures may be followed for implementation.

Article 26

These Measures shall be interpreted by the District Finance Bureau.

Article 27

These Measures shall be effective as of July 24, 2025 and be valid until July 23, 2030. After the implementation of these Measures, the management of financial supervision of this District shall be subject to these Measures. In the event of any significant policy changes at the national or Shanghai municipal level, these Measures shall be adjusted accordingly, and the updated national or Shanghai policies shall prevail.