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Translation - English Chapter Ten Golden Finance Project
Section One Construction of "Golden Finance Project": Goals, Plans and Principles
In accordance with the general requirements of the State Council on deepening reform of the financial system and setting up the framework for the public financial system under the system of socialist market economy, Ministry of Finance has, while advancing reform of the department's budget and concentrated payment of the national treasury, set about the plan to set up "the information system for government finance management" since the second half of 1999, and special work group was established in 2000. Based on review of the operational mode and construction experience of the information system for government finance management in countries with developed market economy and transitional countries in Eastern Europe, the work group finished tentative design at the beginning of 2001, and initiated the pilot project in the second half of the year. At the beginning of 2002, the State Council made the decision to name the information system for government finance management, which is planned and established by the Ministry of Finance, as "the Golden Finance Project", and classified “Golden Finance Project” as one of the 12 key projects of national E-government.
I. Goal and plan for construction of “Golden Finance Project”
“Golden Finance Project” is a comprehensive information system for government finance management, which utilizes advanced information network technique, supporting such core businesses as budget management, centralized receipts and payments of the national treasury and financial and economic trend forecast. “Golden Finance Project” is supported by three-level vertical and horizontal network of the financial system on the basis of itemized departmental budget. Its basic mode is that all financial revenue and expenditure enters the single account of national treasury with budget index, spending plan and purchase order as the main controlling mechanism for the budget enforcement. It is characterized by highly centralized cashier's links and actualization of the effective deployment of the national treasury fund. Its goal is to realize the supervision in the whole course of the financial revenue and expenditure and to improve the utilization benefit of the financial fund.
According to the system engineering plan and design, construction of “Golden Finance Project” is divided into three aspects, i.e., business application system, information network system and security system with application as the core, the network as the support and security as the guarantee. First, set up the financial business application system, including 12 business application systems such as budget management system, management system for concentrated payment of the national treasury and general ledger management system; Second, set up three-level vertical and horizontal network system, including the LAN of the current level, the WAN linking vertically the financial departments at all levels, and the city-wide network linking horizontally relevant functional departments such as all budget entities, national treasury, banks, taxation departments at the same level; Third, establish the security system, i.e., set up a unified security system with authentication center and data encryption as the core in order to guarantee that the application system of “Golden Finance Project” runs efficiently and steadily.
(1) Application system of financial business
The application system of financial business mainly refers to the 12 business management systems, that is, budget management system, national treasury payment management system, general ledger management system, cash management system, management system for unified salary disbursement, national debt management system, government procurement management system, fixed assets management system, revenue management system, financial and economic trend analysis system, standard code system and external interface system. As shown in Chart One:
1. Budget management system. 2. The national treasury payment management system. 3. Cash management system. 4. Management system for unified salary disbursement. 5. National debt management system. 6. Government procurement management system. 7. Fixed assets management system. 8. Revenue management system. 9. Financial and economic trend analysis system. 10. Standard code system. 11.External interface system. 12. General ledger management system
Chart One
1. Budget management system.
This system realizes the standardized and scientific management of budget making, budget verification, budget approval and budget readjustment of the departments at all levels utilizing financial funds and financial administrative departments at all levels. It supports budget making of departments with basic budget expenditure and project budget expenditure, and can finish budget control and budget approval. It supports the new budgetary account system. The system realizes data sharing with the national treasury payment management system, cash management system, revenue management system, government procurement system, and macro-economic forecast system, etc. through the database. Its subsystem is as follows:
① Departmental budget management system;
② Budget index management system;
③ Management system of staff's quota;
④ Management system of the Central authorities’ special appropriation to the locality;
⑤ Local budget summary management system;
⑥ Calculation management system in transfer payment;
⑦ National budget summary management system;
⑧ Management system of Non-trade, non-profit-making foreign currency.
2. The national treasury payment management system.
In accordance with the request of reforming management system of concentrated receipts and payments of the national treasury, this system achieves planned management of monthly spending, payment management, purchase order management, account management and budget execution and analysis management etc. in the course of utilizing financial funds. It realizes data sharing with cash management system, budget management system, revenue management system, national debt management system, government procurement system, and macro-economic forecast system, etc. Its subsystem is as follows:
① Management system of concentrated payment of the national treasury;
② Management system of general ledger;
③ Management system of planned monthly spending;
④ Management system of financial fund payment of budget entities.
3. Cash management system.
This system manages the cashbook of national treasury in real time, and realizes data sharing with national treasury payment management system, revenue management system, national debt management system, government procurement system, etc. Its main function module includes payment account checking system and cash flow predicting system, which is connected with the National Treasury Office of the People's Bank and commercial banks. It can realize payment authorization under the overall control of the cash flow.
4. Management system for unified salary disbursement
The management system for unified salary disbursement stores basic information and wage structure of the finance-fended personnel, manages and disburses everybody's salary by single account of national treasury. Through internal controlling mechanism of the system and verification by finance & personnel departments and the establishment organization, the phenomenon of falsely increasing individual’s salary can be prevented effectively. With the function of salary adjustment and calculation, and having interface with the bank, the system can disburse salary to the personal account directly through the agent bank. This system will also be expanded for use in direct payment of housing allowance, provident housing fund and individual medical fee as well as authorized online inquiry of individual salary information.
5. National debt management system.
This system has the functions of managing national debt issuance planning, national debt issuance and liquidation, national debt risk assessment, economic benefit analysis of the national debt, etc. It realizes data sharing with budget management system, national treasury payment management system, cash management system, and macro-economic forecasting system, etc. This system consists of the following 4 subsystems:
① National debt issuance planning system;
② National debt issuance and liquidation management system;
③ National debt risk assessment system;
④ National debt economic benefit analysis system.
6. Government procurement management system
This system provides support to the government procurement business with advanced technological means such as the Internet and e-commerce, linking government procurement budget in budget management and purchase order in national treasury payment, and realizes data sharing with fixed asset management system, etc. The core of the government procurement management system is made up of four parts:
① Procurement project management system;
② Government procurement information issuing system;
③ Government procurement order management system;
④ Government procurement auditing and monitoring system.
7. Fixed assets management system
This system sets up the general ledger of fixed assets, supports management work such as acquisition, depreciation, re-estimation and scrapping of fixed assets, etc., upgrades and maintains the fixed assets database in real time, and realizes data sharing with the general ledger of national treasury and government procurement system, etc.
8. Revenue management system
This system mainly manages budgetary revenue and extra-budgetary non-tax revenue, and realizes data sharing with budget making system, national treasury payment management system, cash management system, macroeconomic forecasting system, etc. The budgetary revenue system of this system will be connected with the taxation and the customs and has the function of tax refund management. The extra-budgetary non-tax revenue system is to carry out "separation between revenue and expenditure", and is the key to realize comprehensive budget. It is also the main part of the revenue management system.
9. Financial and economic trend analysis system.
Based on the data of the financial database, this system integrates domestic and overseas macro-economic data to set up analysis and forecast model for financial revenue and expenditure, early warning model for financial monitoring, policy analysis model, macroeconomic forecast model and macroeconomic trend monitoring model for the purpose of grasping the factors for increase and decrease in macroeconomic and financial revenue and expenditure in an all-round way, control the debt scale rationally, and provide auxiliary decision-making basis for government's financial budget making, financial expenditure management and financial policy adjustment.
10. Standard code system.
In order to realize the information sharing among all the systems of the "Golden Finance Project", the first step is to set up standard and unified data criteria. Further expand and improve "financial information classification and code", standardize the index system of the basic data, set up theme data list of every link of the financial business. Give scientific definition and decomposition to basic data for finance application according to themes (meta datumization), and set up the key data model of “Golden Finance Project” on this basis.
11.External interface system.
“Golden Finance Project” needs to have information exchange and business connection with taxation, customs, national treasury of the People's Bank, agency commercial banks and bank clearing system. It needs to link up with comprehensive economic departments such as the National Development and Reform Commission, social insurance, hygiene, civil administration, statistics, etc., and provide relevant information to the State Council, the Finance and Economics Committee of the National People's Congress and all comprehensive economic administrative departments through the external interface.
12. General ledger management system
General ledger management system is the core for data storing and management for the “Golden Finance Project”. It manages not only the revenue account but also the expenditure account. With this system, the detailed account of each department and each budget entity can be decomposed. The general ledger account shall keep an intact record of detailed information on every revenue and expenditure of the single account of national treasury, thus realizing one-account management of one-level finance.
(2) Information network system
Set up a three-level vertical and horizontal network that covers financial departments at all levels and departments using financial funds in the whole country. Vertically, build first-level backbone network connecting the Ministry of Finance with Departments (Bureaus) of Finance of all provinces (autonomous regions, municipalities directly under the central government), second-level backbone network connecting financial departments at provincial level with financial departments of all cities (regions, states), and third-level backbone network connecting the financial department of all cities (regions, states) with financial department at county level; Horizontally, realize connection between financial departments at all levels and budget entities at the same level, the People's Bank and agency banks. Set up the operation basis for the government finance management information system so as to support the application of key business of finance. The network structure is shown in Chart (2).
Chart (2)
Ministry of Finance; National treasury of the Central Bank; National Treasury Distant Branch of Payment; Payment agent bank; Frame Relay; first-level backbone network; Relevant functional departments; Budget entities of the central finance; Finance Department at provincial (county) level; National treasury of the Central Bank at provincial level; Payment agent bank; Budget entities of provincial-level finance; Relevant functional departments;
Second-level backbone network; Financial Bureau at regional (city) level;
Third-level backbone network; Finance Bureau at county (district) level
In order to guarantee that the "Golden Finance Project " operates in a highly efficient, stable and reliable mode, it is necessary to provide measures to effectively manage and monitor the network, system and data, and realize two-level centralized management of the computer system hardware, the operating system and database platform of the network center of Ministry of Finance and the network center at provincial level.
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(3) Security system
It is an important aspect of “Golden Finance Project” construction to establish unified security system. For the purpose of realizing unified management of application security, system security, network security and physical security of the whole system, priority shall be given to the construction of application security platform with the authentication center and data encryption as the core, and to make corresponding security management system so as to provide effective security for “Golden Finance Project”.
Set up a sound backup and recovering system with high dependability and high-standard trouble recovering ability. Do a good job in on-site backup, backup within the same city and backup from different cities. When "electronic signature", etc. possesses legislative authority and paperless online payment is realized, set up a highly reliable and highly applicable system using disaster recovering technology in a real-time mode.
“Golden Finance Project” is a large-scale construction project with high security requirements, long cycle of implementation, and involving a wide range of aspects. It is necessary to organize meticulously and coordinate all quarters concerned. The following principles shall be followed during the process of implementation:
1. Adhere to the principle of serving financial business
It is the starting point and end-result of informatization construction is to serve financial business, especially financial reform and development. Financial informatization construction is only necessary and can only function by serving financial business. Meanwhile, financial business can get strong support and realize great change in management style with the aid of modernized measures. The development and construction of “Golden Finance Project” can only follow financial business demand, and incorporate information technology with financial work to realize scientific and standardized financing. It should be established in the current financial policy and management system, meanwhile allowing some leeway for the financial reform and business development in future.
2. Adhere to the principle of " five unifications "
“Golden Finance Project” is complicated system engineering with very strong technology demand. It involves every aspect of the financial reform and management. Only by strictly following the principle of " five unifications ", i.e., " unified leadership, unified plan, unified technical standard, unified systematic platform, and unified organization & implementation ", could the “Golden Finance Project” play its anticipated role, avoid repeated construction and reduce loss and waste.
3. Adhere to the principle of combining advanced nature with practicability
Financial business reform shall be carried out step by step in proper sequence. This reality shall be taken into consideration in construction of “Golden Finance Project”. Formulate scientific process and schedule for implementation, and deal with the relationship between advanced nature and practicality correctly. While taking into consideration the actual situation of financial business, take a long-term view and stick to high-standard, leave the interface so as to lay foundation for software upgrading in the future according to the latest trend of the information technology development and the need of financial business development.
4. Adhere to the principle of simultaneous construction and application
Networking and network application are two closely linked aspects of the financial information construction that complement each other. The computer network that extends in all directions can lay good foundation for network application, and create conditions for realizing information resource-sharing and scientific management measures. Doing a good job in network application can make network resources fully utilized, and give play to the benefit of the network as soon as possible. Hold the core of " application " firmly during the process of building “Golden Finance Project”, improve efficiency of applying information system of every business and computer network in an all-round way so as to make “Golden Finance Project” function as soon as possible.
The planned construction period of the “Golden Finance Project” is from 2003 to 2008. The construction is in two stages according to the principle of "the pilot project goes ahead of the rest, and advance steadily". The first stage, which is from 2003 to 2006 and mainly determined by the progress of financial reform, shall finish development and operation the budget management system, the national treasury payment management system, non-tax revenue management system in the revenue system, management system for unified salary disbursement and part of financial and economic trend forecast and analysis system, and partly finish the development of the supporting platform for financial business application. Meanwhile, build the environment such as network, security and operation maintenance etc. which is essential for the system operation; The second stage is from 2007 to 2008, during which all construction items of the “Golden Finance Project” shall be finished.
Section Two Significance of the Construction of “Golden Finance Project”
“Golden Finance Project” is the inevitable requirements for the informationization of financial work and modernization of financial management. Upon completion, it will manage more than 20% of national GDP capital flow, and have a very important significance for accelerating the establishment of the socialist market economic system and promoting the modernization of the national economic management, standardizing financial budget management, improving the fund service efficiency of national treasury, strengthening scientific financial decision-making and transparency of the financial work, and realizing financing in accordance with the law, etc.
First, construction and implementation of the “Golden Finance Project” is the requirement for China’s financial management to progress with the time and operate in a high-efficient mode.
Informationization is an important characteristic and inevitable requirement for the modernized social development. Presently, the information system for government finance management is one of the cores in the government's information management system of major market-economic countries in the world. Except for national defense expenditure, in 2000, national treasury payment system of the federal government of the United States Department of the Treasury made the payment of 900 million sums of government expenditure including social security fund and refund of tax, with a total value of 1,200 billion dollars of financial fund through the single account by the management information system (70% of them are by way of electronic payment). Therefore, the establishment and implementation of the information system for government finance management is in accordance with China’s development in line with the market economy and the requirement of China’s accession to the WTO, and helps to gear China’s financial management mode to international conventions as soon as possible. The establishment and implementation of “Golden Finance Project” adapts to this development trend by setting up the nationwide electronic information-based system between every place and every department, and realizing the transmission of electronic information and sharing of all information, thus greatly improves the efficiency of the whole financial work.
Second, the establishment and implementation of “Golden Finance Project” helps to standardize the management of the financial revenue and expenditure and increase the transparency of budget making and execution.
As the financial revenue and expenditure plan of the government, the budget is an important distribution lever for the government to raise and use centralized financial fund. It reflects financial distribution relationship centralized by the government, and is an important tool for government to realize its functions. According to the law of the market economic system and requirement for setting up public financial system, budget making and execution must be true, unified and public. The establishment and implementation of “Golden Finance Project” will keep a detailed record of the operation state of all financial fund revenue and expenditure of every money-spending entity, and will greatly reduce random budget execution. Therefore, it is not a general financial system that can only keep accounts "afterwards" in the traditional meaning, but the "resource type" management system of government finance with controlling mechanism "in advance". It is also a highly automatic system for financing in accordance with the law. Its establishment and implementation can prevent the financial fund from external circulation and precipitation fundamentally. It can standardize the management of the financial department, and conduct effective supervision over the budget execution activity of the expenditure department.
Third, the establishment and implementation of “Golden Finance Project” is the need of improving the country’s macroeconomic decision-making level.
Macroeconomic analysis and decision-making is the analysis conducted to the overall operation conditions of national economy and corresponding finance and monetary policy adopted. It is the foundation for making the overall macroeconomic policy, and also a prerequisite for carrying on macroeconomic management. The finance is an important component part of the functions of the state, and the financial policy is an important tool for the state to conduct macro adjustments and controls. The establishment and implementation of “Golden Finance Project” can keep the data of macroeconomic analysis and budget execution of various fields, provide accurate and timely financial information for the whole financial management, thus promotes the establishment of early warning model of the macro-economy, revenue and expenditure calculation model, cash prediction and analysis model, etc., not only providing guarantee of the data for scientific decision-making but also the basis for scientific analysis of various financial management.
Section Three Vigorously Advance the Construction of “Golden Finance Project”
First, improve the organization setup and rules and regulations
In order to guarantee that the construction of “Golden Finance Project” is under unified leadership and coordinated management, the Ministry of Finance has established the leading group of construction of the Golden Finance Project. And the office of the leading group of the Golden Finance Project has also been established at the same time.
All financial departments at provincial level have, according to unified requirement of Ministry of Finance, established the leading group of construction of the “Golden Finance Project” and working body in succession, and have formulated concrete duties of the leading group and the working body.
In order to strengthen the management of construction of “Golden Finance Project”, unify the standard and standardize the construction, Ministry of Finance has successively formulated "Interim Measures for the Administration of System Software Development and Application of the Golden Finance Project", “Measures for the Administration on the Use of Construction Funds of the Golden Finance Project”, and “Technical Standard of Network Construction of the Information System for Government Finance Management”. In addition, tentative examination and approval of “Examination and Access System on Application Software of Financial System” and "Coding Standard of the Golden Finance Project" has basically been finished, and is to be issued for implementation after further improvement.
Second, vigorously carry on the development and popularization of the software for key business
Application software development and popularization is a main thread of construction of “Golden Finance Project”. Since 1999, in order to support financial reform, Ministry of Finance has been advancing the development of the application software for key business, and has organized popularization and implementation in right time, and has made staged achievement.
(1) Budget management system
The development of the central department's budget management system is organized by Ministry of Finance, and has been upgraded and revised many times according to itemized budget making and budget calculation and analysis. Overall information-based processing has been basically achieved from budget formulation and submission by the grass-roots budget entities to examination and verification by competent authorities, examination and verification by Ministry of Finance, quota calculation, project budget management and budget approval. Meanwhile, " the budget index management system " has been introduced to realize the information-based management of the increase and decrease of the index in the course of budget execution. By the end of October 2004, the central department's budget management system has already covered all central departments. With regard to the popularization of the application of local budget management system, except that Hebei and Shanghai adopt the system developed on their own, all other financial departments at provincial level have adopted the software designated by Ministry of Finance to conduct information-based management of departmental budget. The application has been popularized to 223 financial departments at city level.
(2) National treasury payment system.
The management system for concentrated payment of the national treasury mainly solves the following problems: working out, verifying, gathering and submitting money-spending plan and payment application by departments and budget entities, supervising departmental expenditures, exchanging information between Ministry of Finance and departments such as the People's Bank, agency banks, and budget departments, etc., as well as online verification by many parties and account checking, etc. By the end of 2004 the application of the central management system for concentrated payment of the national treasury has already been expanded to 135 departments and 2573 budget entities.
Regarding the local management system for concentrated payment of the national treasury, Ministry of Finance has organized and developed the local management system for concentrated payment of the national treasury of new edition. For the first time engineering-based operation mode has been used on a trial basis in the development of large-scale software. The functions of concentrated payment management by the local financial department, concentrated payment management by agency banks and account management by the local financial department, etc., have been realized, which covers the business demand for financial fund payment management by the local financial departments, the People's Bank, and agency banks.
(3) Non-tax revenue collection management system
Ministry of Finance has developed non-tax revenue collection management system of both the central and local editions, and has tentatively solved the problem of account linking with the concentrated payment system of the national treasury. By the end of 2004, the application of the central edition of non-tax revenue collection system has been popularized to 26 central departments and 327 units in charge of collecting fees. 22 provinces and cities have also successively adopted the non-tax revenue collection management system.
In order that the non-tax revenue collection management system covers all financial revenues except tax revenue, Ministry of Finance has, on the basis of local financial department's opinions, readjusted the business demand, re-planned and redesigned the database foundation. A pilot project for the new non-tax revenue collection management system was launched in some financial departments at provincial level in November 2004. Integration with the peripheral information exchange platform and account handling of the national treasury payment management system at the central and local level was conducted at the same time.
(4) Unified salary disbursement system
Unified salary disbursement system of government departments and institutions at the central level is developed by Ministry of Finance independently. The central financial authorities have used that system in salary disbursement for 26,000 civil servants of 107 ministries and commissions for four years in succession. Ministry of Finance has organized the development of six versions of the management systems, which has basically met the requirement of salary disbursement management. By the end of 2004, the system has been successfully popularized to 19 provinces and cities.
Third, strengthen construction of network and security
With popularization of the application of the key business software, the requirements for network environment and security of relevant software are higher and higher. The financial departments at all levels have made preliminary effect in network and security construction in recent years.
(1) Network construction
By October 2004, Ministry of Finance, 31 provinces and cities and 5 cities under direct planning by the state have already set up LAN of the current level, and 288 districts and cities nationwide have finished the construction of LAN. The LAN of departments of Ministry of Finance is made up of three parts, i.e., Intranet, Extranet and Budget Network. The three parts are physically isolated, with each part establishing its own system. The Intranet mainly operates the office automation system, internal information websites, information system for ministerial leaders inquiry, information system for departmental heads inquiry, various information management systems and part of key business system of “Golden Finance Project” of some departments or bureaus, etc.; Via its connection with Internet, the Extranet mainly provides service for the external website of Ministry of Finance, Chinese government’s procurement website, non-tax revenue collection management system etc.; The special-purpose Budget Network mainly provides service for particular groups of the budget department and the departmental administration department. It is used in online verification, calculation and approval of the central department's budget so as to ensure the security of the information of the central budget.
In order to realize the information sharing and information exchange within the financial system and to meet the need for coordinated online handling of government affairs, financial departments at all levels have launched construction of WAN in right time according to the real business need. Among them, the WAN from Ministry of Finance to Financial Departments at provincial level has already realized the connection via special line in an all-round way, and has networked with 35 commissioner’s offices via special lines. The use of this network has realized sharing of internal information websites and information exchange such as dynamic financial news, E-mail, statement of revenue and expenditure. The local finance at all levels has also made great progress in construction of WAN. According to the preliminary statistics, over 24 provinces (autonomous regions, municipalities directly under the Central Government) and 3 cities under direct planning by the state have finished connecting with the areas under their jurisdiction via special lines, and the other 9 provinces and cities has partially finished connecting with the areas under their jurisdiction via special lines.
(2) Security construction
With the key business system of the finance running online progressively, network security is becoming more and more important. In order to realize the nationwide unified planning and supervision of the network security, Ministry of Finance has, on the basis of summarizing experience of pilot construction project of the network security conducted by the Financial Departments of Sichuan Province, strengthened the guidance over the construction of local network security, organized model selection and bidding of safety products for the “Golden Finance Project”, selected the online security products of seven varieties and many models, and has put forward clearer requirements for the network security construction of every province. By the end of 2004, 26 provinces and cities have submitted the list of local network security contractors after primary selection. Among them, 24 have already obtained approval.
“Golden Finance Project” is not merely a software project, but extensive system engineering, which involve not only information technology but also financial management. In addition to working hard in such aspects as the organization for implementation, standard system, software development, network and security, it is also necessary to constantly improve construction mode and management style in the course of construction, strengthen management of project bidding, commercial negotiation, contract management, expert's consultation, staff training and establishment of service system, and gradually find out the way of financial information construction with Chinese characteristics.
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