Contents
Chapter I General Provisions
Chapter II Financial Management Entities and Responsibilities
Chapter III Budget and Final Accounts Management
Chapter IV Fundraising and Debt Management
Chapter V Investment Management
Chapter VI Credit Management
Chapter VII Monetary Fund Management
Chapter VIII Land Compensation and Resettlement Fees Management
Chapter IX Asset Management
Chapter X Income and Expenditure Management
Chapter XI Profit Distribution Management
Chapter XII Supervision and Management
Chapter XIII Supplementary Provisions
Chapter I General Provisions
Article 1 These Measures are established to strengthen the financial management of rural collective economic organizations, standardize their financial practices, consolidate the achievements of rural collective property rights reform, promote the construction of a clean and efficient local governance system, protect the legitimate rights and interests of rural collective economic organizations and their members, and promote the development of rural collective economies. The Measures are based on the Rural Collective Economic Organization Financial System (Cai Nong [2021] No. 121), the Regulations on Asset Management of Rural Collective Economic Organizations in Guangdong Province, the Regulations on the Management of Rural Collective Economic Organizations in Guangdong Province, the Implementation Rules for the Financial System of Rural Collective Economic Organizations in Guangdong Province (Yue Cai Nong [2022] No. 102), and the Financial Management Measures for Rural Collective Economic Organizations in Guangzhou Municipality (Sui Cai Gui Zi [2023] No. 1), and are tailored to the specific conditions of Baiyun District.
Article 2 These Measures apply to the financial activities of rural collective economic organizations within the administrative boundaries of Baiyun District.
Article 3 The financial activities of rural collective economic organizations must adhere to the principles of democratic management, transparency, member benefit, and support for public welfare.
Article 4 Financial activities of rural collective economic organizations shall be subject to oversight and guidance by the township people’s governments or subdistrict offices (hereinafter referred to as “town or subdistrict authorities”), as well as the District Bureau of Agriculture and Rural Affairs and the District Finance Bureau, in accordance with applicable laws and regulations. They will also be monitored by other relevant supervisory departments, including the audit departments.
Article 5 A robust system for auditing the term of office and departure of the heads of rural collective economic organizations shall be established. Special focus will be placed on auditing newly generated credits and debts. The District Bureau of Agriculture and Rural Affairs, or relevant town or subdistrict authorities, will be responsible for organizing these audits.
To meet the supervisory needs, the District Bureau of Agriculture and Rural Affairs and town or subdistrict authorities may commission third-party audit agencies to conduct audits of asset management, financial operations, and other relevant matters of rural collective economic organizations in accordance with the law.
Chapter II Financial Management Entities and Responsibilities
Article 6 The District Bureau of Agriculture and Rural Affairs is responsible for organizing, guiding, and coordinating the financial work of rural collective economic organizations throughout the district.
Town or subdistrict authorities shall manage and supervise the financial work of rural collective economic organizations in accordance with relevant laws, regulations, and rules on financial income and expenditure.
Rural collective economic organizations must establish and improve their financial management systems and implement a system of entrusted accounting to manage financial affairs. The rights to ownership, management, disposal, revenue, distribution, and approval of collective assets remain unchanged.
Article 7 The financial management of rural collective economic organizations shall be conducted under the leadership of the grassroots Party organization, with responsibilities fulfilled by the member (representative) assembly, the council or board of directors (hereinafter referred to as the “governing board”), the democratic financial oversight group or supervisory board (hereinafter referred to as the “supervisory panel”), and financial personnel, in accordance with relevant regulations.
Article 8 Major financial decisions in rural collective economic organizations shall follow a “4+2+1” system. (“4” means four steps: Proposals should be put forward by the Party organization of the village or the rural collective economic organization, jointly discussed by the “two committees” of the village or the organization, and deliberated by the Party members, and resolutions should be adopted by villagers/organization members or their representatives. “2” means transparency on two levels – resolutions and implementation results should be made known to the public. “1” means that a report shall be made to the town or subdistrict Party committee.) Major financial matters include, but are not limited to:
(1) Annual financial plans, budget adjustments, major financial income and expenditure items, and annual profit distribution plans;
(2) Large asset purchases, disposals, and large-scale construction projects;
(3) Major collective economic projects, including project establishment, contracting plans, and public welfare initiatives, fundraising, labor, and construction contracting;
(4) Major external investments and collective enterprise restructuring;
(5) Borrowing, debt reduction, or account write-offs, and major debt handling;
(6) Major plans for the contracting, leasing, or transfer of collective land and forests, the use of homesteads, and the allocation and distribution of land compensation and resettlement funds;
(7) Major external contracts;
(8) Compensation for key management personnel and other allowances;
(9) Distribution and issuance of major disaster relief goods, welfare aid, and funds, including those for people with disabilities;
(10) Other significant matters related to funds, assets, and resources that affect the vital interests of the organization members and the stable development of the collective economy
Before signing major external contracts, town or subdistrict authorities must guide the organization to conduct a legal review.
Rural collective economic organizations must establish thresholds for large asset transactions within the following ranges: economic unions: from 100,000 yuan to 1,000,000 yuan (including 100,000 yuan and 1,000,000 yuan); economic cooperatives: from 50,000 yuan to 1,000,000 yuan (including 50,000 yuan and 1,000,000 yuan).
Article 9 The responsibilities of the member (representative) assembly regarding financial management primarily include:
(1) Reviewing and deciding on the internal financial management system, annual financial plans, major financial income and expenditure matters, and annual profit distribution plans;
(2) Reviewing and deciding on fund-raising, contracting and leasing of assets and resources, external investments, and asset disposal;
(3) Reviewing and deciding on the remuneration for key managerial personnel and overseeing their performance and assessment;
(4) Inquiring about and offering suggestions to improve the annual financial management and oversight activities of the governing board and the supervisory panel;
(5) Other major financial matters that require a decision by the member (representative) assembly.
Article 10 The responsibilities of the governing board in financial management primarily include:
(1) Drafting and implementing the internal financial management system, annual financial budget, profit distribution plans, etc.;
(2) Managing the operation of fund-raising, contracting and leasing of assets and resources, external investments, and asset disposal, overseeing daily financial and asset management activities, signing economic contracts, and ensuring contract performance;
(3) Proposing remuneration suggestions for key management personnel and determining the remuneration for other staff members according to internal salary systems;
(4) Reporting the annual financial performance to the member (representative) assembly and responding to queries or suggestions raised by members or the supervisory panel;
(5) Implementing the provisions of the organization’s charter and decisions made by the member (representative) assembly on other financial matters.
Article 11 The responsibilities of the supervisory panel in financial management primarily include:
(1) Supervising the asset management, financial activities, and the implementation of financial and asset management regulations, and organizing democratic financial oversight;
(2) Overseeing the performance of the governing board, key management personnel, and financial staff, raising inquiries and suggestions for improvement regarding financial actions that harm the collective economic organization’s interests or violate laws, regulations, administrative rules, the organization’s charter, or resolutions made by the member (representative) assembly, and recommending the dismissal or termination of personnel as necessary;
(3) Supervising the business management and contract fulfillment of asset contracting, leasing, and tendering, as well as reviewing and monitoring their financial situations and transactions;
(4) Reflecting members’ opinions and suggestions on asset management, and providing inquiries and suggestions for improvements to the governing board or its chairperson;
(5) Assisting local governments and relevant departments in financial inspections and audit supervision;
(6) Reporting on the annual financial supervision situation to the member (representative) assembly;
(7) Carrying out other financial supervisory responsibilities in accordance with the organization’s charter and decisions made by the member (representative) assembly.
Article 12 Accounting and cashier duties in rural collective economic organizations shall be conducted through an agency system.
Article 13 The accounting agency must assign a sufficient number of accountants and cashiers, and the rural collective economic organization may appoint an accounting clerk.
Accountants should be openly recruited, and a conflict-of-interest system should be in place. The senior management of the rural collective economic organization and their immediate family members are not allowed to be involved in accounting work. Immediate family members of the head and accounting staff of the accounting agency are prohibited from serving as cashiers in the same agency.
Article 14 Financial personnel in the accounting agency must strictly follow the national, provincial, municipal, and district financial regulations, ensuring accurate day-to-day accounting and financial oversight. Any financial activity that violates relevant financial regulations must be refused, and any violations found during routine financial work should be reported promptly and truthfully to higher-level authorities.
Article 15 The responsibilities of accountants include:
(1) Reviewing and preparing accounting vouchers, recording and reconciliating accounting books, preparing and submitting financial statements, conducting audits, and maintaining financial records and documents, and managing financial disclosures, along with other day-to-day tasks;
(2) Supervising the collection, management, and use of rural collective funds and correcting any violations of financial regulations;
(3) Participating in the preparation of the rural collective financial budget plan;
(4) Assisting in the annual inspection, audit, and investigation of collective assets.
Article 16 The responsibilities of cashiers include:
(1) Managing the receipt and disbursement of cash funds, maintaining the cashier’s journal, storing cash and blank checks in accordance with the law, and ensuring the security of funds;
(2) Supervising the collection, management, and use of rural collective funds and correcting any violations of financial regulations.
Article 17 The responsibilities of accounting clerks include:
(1) Submitting accounts to the accounting agency, and maintaining auxiliary records of petty cash, physical products, fixed assets, receivables and payables, credits and debts, etc.;
(2) Managing contract documents and financial archives;
(3) Participating in the financial budget and final accounts work of the rural collective economic organization;
(4) Assisting in financial disclosures. By the 20th of each month, accounting clerks should obtain financial disclosure reports from the accounting agency, have them reviewed and signed by the supervisory panel and the head of the organization, and then file one copy and release another to the public;
(5) Accounting clerks have the right to refuse to process any financial transactions that violate financial regulations and discipline, and report any issues with the organization’s financial management to higher authorities.
Article 18 Accounting clerks must submit documents to cashiers by the end of each month. The cashier should settle the previous month’s accounts by the 5th of the following month (or the next business day if a public holiday), preparing a Cash and Bank Deposit Settlement Statement (Annex 1) along with properly classified receipts and other accounting documents for the accountant to process.
Accountants should complete the accounting work for the previous month by the 20th of each month, including the registration and preparation of accounting vouchers, accounting books, financial statements, and other accounting documents, and generate the materials for financial disclosure reports.
Article 19 Accounting agencies should ensure relative stability among their financial personnel. If personnel changes are necessary, the transfer or reassignment should follow the Basic Accounting Work Standards and proper handover procedures must be conducted. The District Bureau of Agriculture and Rural Affairs must be notified to handle user additions and changes to the District Platform for Rural Collective Funds, Assets and Resources Management.
Article 20 Town or subdistrict authorities should regularly organize financial personnel exchanges to improve communication between accounting agents and the rural collective economic organizations they serve. These exchanges help to better understand the organizations’ business conditions and strengthen daily coordination. Town or subdistrict authorities should provide at least one training session per year for accountants, cashiers, and accounting clerks.
Chapter III Budget and Final Accounts Management
Article 21 Rural collective economic organizations shall implement a budget and final accounts system. Economic unions shall prepare an annual financial budget, while economic cooperatives shall formulate an annual income and expenditure plan. Based on the previous year’s actual income and projections for the current budget (planned) year, the rural collective economic organization should prepare an annual income budget (plan). The expenditure budget (plan) should be arranged properly according to the organization’s capacity, ensuring stable operation and promoting growth.
Article 22 The budget (planned) revenue should primarily include operating income from production and business activities, land contracting, property rentals, and external investments; subsidies from fiscal departments at all levels; interest income; and other sources of income. The expenditure items should cover village administrative management costs, public welfare expenses, operating costs (expenses), welfare expenses, income distribution, and other expenditures.
Article 23 The draft annual financial budget (plan) should be completed by March 31 each year. The preparation or adjustment of the financial budget (plan) must be reviewed and approved by the member (representative) assembly.
Article 24 At the end of each year, the rural collective economic organization must prepare a final accounts report or an Annual Financial Plan Execution Statement based on the actual implementation of the annual budget (plan) and submit it for review by the member (representative) assembly.
Article 25 Once the financial budget and its adjustments as well as the final accounts report are approved by the member (representative) assembly, they must be submitted to town or subdistrict authorities for filing. If an accounting agency is entrusted with accounting services, the financial budget (plan) or its adjustments should also be copied to the accounting agency.
Chapter IV Fundraising and Debt Management
Article 26 Rural collective economic organizations may raise funds in accordance with relevant laws, regulations, and policy requirements, using various methods. Main sources of funds include loans from financial institutions, direct investments from social capital, financing leases, law-abiding mortgage financing using rural collective operational construction land use rights or collective forest rights, and collateral financing based on contracted land management rights or collective asset equity.
Article 27 Funds or other assets obtained from various levels of government shall be incorporated into the rural collective asset management system, recorded and used according to relevant regulations, and subject to supervision and auditing. Funds designated for specific purposes must not be misused or diverted.
Funds or assets received through donations must be handled according to the Accounting System for Rural Collective Economic Organizations (Cai Kuai [2023] No. 14). Detailed accounting and management should be conducted based on the intended use of the donated funds and the donating entity. If the donation agreement specifies the specific use of the funds, they must be used in accordance with the terms outlined in the agreement.
Article 28 When raising funds through the case-by-case approach, rural collective economic organizations must adhere to principles of scientific evaluation, democratic decision-making, affordability, controlled limits, and member benefits. Funds raised must be used according to the agreed-upon plan, ensuring their legality, reasonableness, and effectiveness. Strict measures must be taken to avoid waste or misappropriation, and detailed records of funded projects should be separately listed in the balance sheet.
Rural collective economic organizations should evaluate their repayment capacity when raising funds, strictly control debt scale and risks, and ensure the debt structure is balanced. In principle, the debt-to-asset ratio should be kept below 60%.
Article 29 If a rural collective economic organization must incur debt for operational activities, it must be part of the decision-making process for major financial matters at the village level, and follow the “4+2+1” system. The market research, feasibility study, member consultation, and financing plan should be submitted for review and decision by the member (representative) assembly, and the loan plan and review process should be reported to town or subdistrict authorities for approval.
For any debt incurred without following the democratic decision-making process, the responsible person shall bear the legal consequences for any adverse outcomes to the rural collective economic organization.
Article 30 Rural collective economic organizations shall not incur debt under the following conditions:
(1) Projects for which market research and feasibility studies have not been conducted, resulting in blind borrowing;
(2) Projects that have not been approved through the case-by-case democratic decision-making process or have not widely consulted members;
(3) Projects that fail to follow the necessary approval, public notice, and other procedural requirements;
(4) Debt incurred for non-operational expenses such as salaries, welfare benefits, bonuses, allowances, and office expenses, or for non-operational construction or public welfare initiatives;
(5) Debt-to-asset ratio exceeding 60%;
(6) Any other situations prohibited by laws and regulations.
Rural collective economic organizations are prohibited from providing guarantees for other entities, organizations, or individuals.
Article 31 Rural collective economic organizations must develop a repayment plan and prepare strategies for debt collection and resolution. They should actively repay debts based on their financial capacity and must not shift the debt burden onto members or increase farmers’ financial burdens, nor pass the debt onto local governments.
Confirmed bad debts should be thoroughly reviewed and addressed carefully. Collective assets and resources should be effectively utilized to strengthen the collective economy, create new growth opportunities, strictly control expenses, and enhance debt repayment capacity.
Chapter V Investment Management
Article 32 Rural collective economic organizations’ external investments include purchasing securities, establishing wholly-owned enterprises, acquiring shares in other companies, jointly investing in cooperative projects with other entities, and purchasing legal real estate or movable assets for profit.
Article 33 Rural collective economic organizations shall, in accordance with the actual development of agriculture and rural areas in the district and relevant national guidelines on social capital investments in agriculture and rural areas, encourage social capital investment in key industries and sectors. They may engage in business cooperation with social capital through methods such as sole proprietorship, joint ventures, partnerships, joint operations, and leasing. This cooperation should guide social capital to contribute modern production factors, including talent, technology, and management, into agriculture and rural areas, achieving mutual benefits. Both parties should conduct sufficient research or evaluations on the cooperation matters, and clearly define the scope, cooperation method, rights, responsibilities, and profit distribution in the contract.
Article 34 External investments by rural collective economic organizations must align with their development plans. An investment plan or scheme should be formulated, clarifying the sources of funds and their usage. When investing in enterprises, the collective’s shareholding percentage, the basis for share division, other shareholders’ information, business scope, and management measures of the company must also be clarified.
Risk assessments should be conducted for external investments. If significant amounts of collective assets, funds, or equity investments are involved, a feasibility study must be carried out. The feasibility study may be entrusted to a third-party organization with the necessary legal qualifications.
External investments must be reviewed and approved by the member (representative) assembly. Major external investments can only be implemented after being approved through the “4+2+1” procedure.
Article 35 Rural collective economic organizations must sign a written agreement or contract with partners for external investments, clearly outlining the rights and obligations of both parties. The agreement should include the investment term, amount, method, profit settlement method, breach of contract liability, investment management methods, and exit mechanism.
Article 36 If external investments are made without following the prescribed democratic decision-making procedures and without approval from higher authorities, resulting in financial losses for the rural collective economic organization, the responsible individuals must be held accountable.
Article 37 Rural collective economic organizations must comply with the Company Law of the People’s Republic of China, the Civil Code of the People’s Republic of China, company bylaws, and other legal provisions to exercise shareholder rights in affiliated enterprises and protect the collective’s legitimate interests.
Rural collective economic organizations should disclose the operating status of their invested enterprises to members on a quarterly basis.
Chapter VI Credit Management
Article 38 Rural collective economic organizations should strengthen the management of receivables and promptly collect overdue debts. Written demand letters with legal effect should be issued periodically to safeguard the statute of limitations, and penalties for breach of contract should be collected as per the contract.
Article 39 Rural collective economic organizations must strictly control the incurrence of debts and are prohibited from arbitrarily lending public funds. Borrowing by the organization or its members for production purposes should be secured through mortgages, pledges, or other forms of guarantees. The borrowing amount must be approved following the “4+2+1” procedure, and a legally compliant loan contract or agreement must be signed.
Article 40 If a debtor entity is dissolved, and the debt cannot be recovered based on the Civil Procedure Law, or if the debtor has passed away with no assets or liable person to settle the debt, the debt may be written off after approval through the “4+2+1” procedure. After the write-off, the account should be closed, and the case archived. No individual is allowed to unilaterally decide to reduce or forgive debts.
Article 41 If bad debts result from not following the prescribed democratic procedures and individual factors, the responsible parties should be held accountable for compensating the losses. If the decision was made collectively by the “two committees”, the members who agreed to the decision shall jointly bear the compensation responsibility.
Chapter VII Monetary Fund Management
Article 42 Rural collective economic organizations must strictly follow the Provisional Regulations on Cash Management. Any amount exceeding the cash settlement threshold must be settled through bank transfers, electronic payments, bank cards for village affairs, or third-party payment methods.
Article 43 Rural collective economic organizations shall implement a fixed petty cash system and strictly control the cash stock limit. The limit for reserved petty cash should be based on the daily operational expenses for three to five days, as determined under the guidance of the town or subdistrict accounting agency. If there is a need to increase the petty cash reserve for emergency response, urgent work, or other special circumstances, the situation must be explained and filed with the town or subdistrict accounting agency before disbursement.
Cash receipts and disbursements must strictly follow the “two-line system” (separating income and expenditure), and the practice of sitting on idle funds or using them indiscriminately is prohibited.
Article 44 Rural collective economic organizations should maintain a basic bank account for daily transfer settlements and cash receipts and payments. Specialized accounts may be opened for the management of special funds if necessary. Bank accounts should only handle the organization’s own business, and renting or lending these accounts is strictly prohibited.
Article 45 The opening, modification, and cancellation of bank settlement accounts must be approved by the joint meeting of the “two committees”, and reviewed and approved by the town or subdistrict department of rural collective economic organization financial management. All bank account information should be entered into the Platform for Rural Collective Funds, Assets and Resources Management.
Article 46 All cash and bank deposit transactions must be recorded individually, with daily and monthly reconciliations completed. Multiple transactions should not be consolidated into a single entry, and cash and bank deposits must not be mixed in the accounting records. Any misuse of public funds, private deposits of public funds, establishment of unauthorized petty cash funds, use of vouchers as a substitute for physical assets, false claims, or other fraudulent activities are strictly prohibited.
Cash and bank deposit transactions should be reconciled monthly, with accountants and cashiers verifying the cash journal, counting the physical cash, and reconciling the deposit balance with the bank. Reconciliation should be completed in the financial management system for rural collective economic organizations, ensuring that the accounts match the actual cash on hand, the various accounts are consistent, the accounts align with supporting documents, the vouchers match the records, and the accounts match the financial statements.
At the end of each month, the cashier must prepare a Cash and Bank Deposit Settlement Report based on the monthly cash and bank deposit transactions. If discrepancies in cash are identified, the cause should be promptly investigated, and any shortage must be compensated by the responsible person to ensure the accuracy of the records. For unrecorded items, the accountant should work with the cashier and the expense reviewer to prepare a Bank Deposit Reconciliation Statement (Annex 3).
Article 47 To ensure proper management of collective funds, the withdrawal of bank deposits should be supervised by using a “dual stamp” system (financial seal and legal representative seal).
Article 48 The entire process of reviewing, transferring, and supervising income and expenses through an online system should ensure that the data is traceable, auditable, and accessible for inquiry.
Chapter VIII Land Compensation and Resettlement Fees Management
Article 49 The “land acquisition compensation and resettlement fees” referred to in these Measures refer to the land compensation fees, resettlement subsidies, compensation for crops, and compensation for above-ground attachments paid to rural collective economic organizations in accordance with the law.
Article 50 The land acquisition compensation and resettlement fees must be strictly managed in accordance with relevant laws and regulations, with special accounts established for storage, management, and usage.
Article 51 Before distributing and using the land acquisition compensation and resettlement fees, rural collective economic organizations must differentiate the compensation amounts payable to third parties and pay them promptly as required by the land acquisition authorities. Rural collective economic organizations are prohibited from treating the compensation amounts payable to third parties as part of the land acquisition compensation and resettlement fees for distribution or use.
Article 52 Before distributing and using the land acquisition compensation and resettlement fees, rural collective economic organizations must accurately calculate and determine the amount to be distributed or used. They must also develop a distribution and use plan, which shall be decided through the “4+2+1” procedure. The plan should clearly specify the following:
(1) The items for which land acquisition compensation and resettlement fees are to be distributed or used.
(2) The proportion of distribution or use.
(3) The qualifications and conditions for those entitled to receive the compensation and resettlement fees.
(4) The usage plan for the portion of the compensation and resettlement fees retained by the collective.
(5) Other matters that need to be clarified.
Article 53 The land acquisition compensation fees retained by the rural collective economic organizations shall be accounted for under the “Public Welfare Funds” and mainly used for production development, increasing accumulation, collective welfare, and public welfare projects. They must not be used for non-productive expenditures, such as payment of staff remuneration or entertainment expenses.
Article 54 If a rural collective economic organization opts to receive compensation in the form of monetary compensation for retained land, it shall be managed under the organization’s unified property management system. Within the limits of prohibitive regulations, and following democratic management principles, the rural collective economic organization may decide how to use the funds to develop collective economy, improve the living standards of members in the affected rural collective, or enhance pension and medical insurance.
Chapter IX Asset Management
Article 55 Fixed assets of rural collective economic organizations, including buildings, machines, equipment, tools, agricultural construction facilities, etc., with a useful life of more than one year and unit value of 2,000 yuan or more, shall be classified as fixed assets.
Article 56 Rural collective economic organizations shall establish a sound system for managing fixed assets, including annual asset inventories, asset registration, safekeeping, acquisition, use, and disposal. The management and maintenance methods for assets shall be classified, and the responsibilities of asset users and managers must be clearly defined.
Article 57 Rural collective economic organizations shall establish a depreciation system for fixed assets, deducting depreciation monthly and charging it to current costs or expenses based on the asset’s use. Depreciation may be calculated using the “straight-line method”, “units of production method”, or other appropriate methods. Once a method is selected, it cannot be changed without justification. The useful life of fixed assets shall be reasonably determined based on related regulations and the nature and usage of the assets. Once the useful life is determined, it cannot be arbitrarily changed.
The following fixed assets shall not be depreciated: unused or unnecessary fixed assets, excluding buildings and structures; fixed assets leased for operational purposes; fixed assets that have been fully depreciated but are still in use; fixed assets that are prematurely scrapped; other fixed assets that are not subject to depreciation under relevant regulations.
Article 58 Rural collective economic organizations shall perform tasks such as project approval, bidding management, contract management, project construction, safety management, acceptance, project funds management, and archival management according to relevant regulations. They must also establish a robust internal control system for managing ongoing construction projects.
Decisions on construction projects should follow democratic management procedures. For projects involving government subsidies, the rural collective economic organization must submit the project construction plan to the relevant town or subdistrict department.
The completion settlement of construction projects must be accompanied by a confirmed project settlement statement. After project completion and acceptance, the final settlement should be made within a prescribed period, not exceeding one year. Projects that have been delivered for use but have not completed final settlements should be recorded based on estimated values, with final adjustments made after the completion of the settlement, and depreciation shall be calculated in accordance with fixed asset management regulations.
Projects that do not meet fixed asset recognition conditions after completion should be recorded as operating expenses or other expenditures based on relevant regulations.
Article 59 Rural collective economic organizations must strengthen the management of collective biological assets according to relevant laws, regulations, and the organization’s charters. They shall develop management rules, maintain accounting records as per relevant standards, and ensure effective management responsibilities are fulfilled.
Purchased biological assets shall be valued at their purchase price, including related taxes and fees. The feeding costs of young and fattening livestock, cultivation costs of economic forests before production, and cultivation costs of non-economic forests before they reach a closed canopy shall be included in the asset cost. The cost of biological assets invested by stakeholders should be determined according to the terms specified in investment contracts or agreements, except when the value is deemed unfair. The cost of naturally occurring biological assets may be based on nominal values.
After the productive use of livestock and economic forests, amortization should be carried out according to relevant accounting standards. Expenses incurred for management and care after biological assets become mature or reach their designated production purposes shall be accounted for as operating expenses. Harvested agricultural products are managed as inventory.
In cases where biological assets are damaged or destroyed, the difference between the actual cost and the amount to be compensated by the responsible party or insurance company shall be recorded under other income and expenditure, following the “4+2+1” procedure.
Article 60 Intangible assets of rural collective economic organizations include patents, trademarks, copyrights, non-patent technologies, land management rights, forest rights, and grassland rights, which are identifiable non-monetary assets that do not have physical forms and are owned or controlled by the organization.
Intangible assets acquired should be initially measured at cost. Software developed by a software company is treated as a purchased intangible asset. Intangible assets formed from self-research and development should be recorded at the total expenditure incurred from the development stage to the point of meeting the intended purpose. Intangible assets received as donations, without charge, or through exchange should be recorded according to the determined cost of the intangible asset and processed according to relevant regulations.
Rural collective economic organizations must establish an intangible asset ledger and amortize the asset over a minimum of 10 years, charging the cost to management expenses. Income from the transfer of intangible assets following the prescribed procedures should be recorded under other income, and the associated costs should be recorded under other expenditures.
Article 61 Assets must be appraised in the following circumstances:
(1) When the value is large, or non-monetary assets are involved in equity participation, joint operations, joint ventures, or cooperation.
(2) When assets of significant value are sold, exchanged, transferred, or involved in changes of ownership.
(3) When assets are used as collateral.
(4) In cases of mergers, divisions, reorganizations, or dissolution of rural collective economic organizations or businesses they own.
(5) Other circumstances where asset appraisals are required by law.
Article 62 Asset appraisals for rural collective economic organizations must be decided by the member (representative) assembly and conducted by a qualified asset appraisal agency. The results of the appraisal must be disclosed to all members and reported to town or subdistrict authorities.
Article 63 Asset disposal refers to the act of transferring partial or full ownership or usage rights of fixed assets, intangible assets, biological assets, etc., through sale, exchange, scrapping, or other means.
Article 64 Rural collective economic organizations shall, based on the actual usage of assets and in accordance with the original asset value, handle the disposal of the following assets after approval through the “4+2+1” procedure:
(1) Assets that need to be retired or cannot be repaired due to technical reasons.
(2) Assets that have been confirmed as lost or unrecoverable and those suffering abnormal losses.
(3) Assets that have exceeded their useful life and no longer meet current operational needs.
(4) Assets damaged or lost due to natural disasters or other force majeure events.
(5) Fixed assets dismantled due to land requisition, transformation, or illegal construction.
Article 65 The sale or disposal of rural collective economic organization assets must comply with relevant asset transaction regulations. Asset exchanges must be decided according to the original value, and the “4+2+1” procedure must be followed.
Article 66 If there is a loss of assets, the difference between the actual cost and the amount to be compensated by the responsible party or insurance company shall be recognized as an asset loss.
Chapter X Income and Expenditure Management
Article 67 The revenue and expenditure activities of rural collective economic organizations must be included in unified financial management and accounting, and be subject to oversight through the District Platform for Rural Collective Funds, Assets and Resources Management. Establishing off-book accounts is strictly prohibited. Individuals are prohibited from handling financial revenues and expenditures, and non-financial personnel are not allowed to manage such activities.
Article 68 All income generated by rural collective economic organizations, including from production and sales, service provision, investment returns, transfer of collective asset usage rights, and government operational subsidies, must be invoiced or documented according to regulations via the District Platform for Rural Collective Funds, Assets and Resources Management and recorded in the accounts promptly.
When issuing invoices through the District Platform for Rural Collective Funds, Assets and Resources Management, the corresponding payment contract must be linked.
Article 69 The financial documents of rural collective economic organizations include fiscal receipts issued by the finance department, invoices approved by the tax authority, special financial receipts printed by the District Bureau of Agriculture and Rural Affairs, or other standard documents that comply with fiscal and tax regulations. These are valid income vouchers for the organization’s accounts.
Article 70 Expenditures of rural collective economic organizations should prioritize economic development, public welfare, and livelihood security, while minimizing administrative expenses and controlling consumption-related expenditures.
Article 71 Expenditures for business operations, daily management, local public welfare, comprehensive services, and ensuring the functioning of village organizations and village affairs must be accounted for as appropriate costs.
Article 72 A strict approval system should be in place for the expenditures of rural collective economic organizations. The approval hierarchy for expenditures can be set from low to high as follows: leader approval, joint approval by two leaders, review and approval by the joint meeting of the “two committees”, and final decision by the member (representative) assembly. Specific approval rights for each level should be defined by the member (representative) assembly.
Leader approval is usually signed by the head of the rural collective economic organization, while joint approval by two leaders is generally done by the Party secretary and head of the organization. If the Party secretary and the head of the organization are the same person, joint approval shall be done together with a member designated by the joint meeting of the “two committees”. Disputed expenditures within the approval authority should be submitted to the next higher approval level, with the member (representative) assembly’s decision as final.
Article 73 When handling reimbursement procedures, the organization’s staff must provide valid original vouchers and complete the Expense Reimbursement Form for Rural Collective Economic Organizations in Baiyun District, Guangzhou (hereinafter referred to as the Reimbursement Form, Annex 4), which must be signed by both the person handling the expense and the certifier. All reimbursement materials must be properly organized, reviewed by the organization’s supervisory panel, and submitted for approval at the appropriate level. The supervisory panel must complete the review by the 5th of each month (or the next working day if a public holiday). Failure to review within the prescribed time without valid reasons will be considered approval. Upon approval, the cashier and accountant must verify and sign the original vouchers before payment. Payments may be refused and not recorded under the following circumstances:
(1) Unfounded or illegal expenditures;
(2) Failure to comply with democratic decision-making procedures, exceeding approval authority, or failure to provide relevant approvals and meeting records;
(3) Unclear or unreasonable expenditure purposes;
(4) Non-compliant or missing original vouchers, or using informal receipt instead of valid original documents;
(5) Incorrect payment times or methods;
(6) Expenditures not included in the annual financial budget (plan), or exceeding the budget without adjustment;
(7) Expenditures requiring tendering but where the tendering process was not conducted as per regulations.
Expenditures for special funds must follow the relevant special fund management regulations. In addition to the normal original vouchers, the Reimbursement Form must indicate the name of the special fund used, along with the related supporting documents.
Article 74 The basic requirements for original vouchers are:
(1) The voucher must include the title, date, the name of the issuing organization or the preparer’s name, signatures or seals of the responsible staff, the receiving organization’s name, economic transaction description, quantity, unit price, and amount.
(2) Original vouchers from external organizations must be stamped with the issuer’s official or finance seal, and the stamp must be clear and legible. Original vouchers issued externally must bear the organization’s official seal;
(3) The original voucher must include both the written and numeric amounts, which must match. For physical purchases, a shopping list and acceptance procedures are required, and payment vouchers must include the receipt from the payee;
(4) Refunds must include remittance bank vouchers and supporting documents;
(5) Economic activities approved by relevant higher authorities must be accompanied by the approval documents as attachments. If separate filing of these documents is required, copies should be kept as attachments.
Article 75 Rural collective economic organizations should standardize the payment process for construction project payments. When processing payments for project expenses, relevant documents such as the project contract, budget and final accounts, and progress acceptance materials must be provided. Upon project completion, a formal invoice must be submitted for settlement.
Article 76 Rural collective economic organizations should manage subsidies for work delayed according to actual needs. Specific conditions, beneficiaries, and subsidy standards should be defined based on actual circumstances. These provisions should be implemented after being approved by the member (representative) assembly. Members of the “two committees” of the rural collective economic organization are not allowed to receive subsidies for work delayed for attending meetings.
Subsidies must include records of the reason for work delay, a list of affected personnel, and acknowledgment of receipt. Signing on behalf of others or falsifying signatures is strictly prohibited. It is also forbidden to issue bonuses, subsidies, or allowances under the guise of work delays. If the subsidy standard has not been approved by the member (representative) assembly, it should not be issued.
Article 77 Rural collective economic organizations are strictly prohibited from using visits or training activities as an excuse for tourism. If collective funds are used for study or training trips, a relevant plan must be made, and it must be approved through the appropriate democratic procedures before execution.
If the event organizer bears the full cost, participants may not claim reimbursement for these costs. For expenses not covered by the organizer but deemed necessary for the event, participants must obtain legitimate proof of payment. Collective funds must not be used for distributing subsidies, or purchasing souvenirs, local specialties, or similar items.
Article 78 Rural collective economic organizations must strictly control reception expenses and follow relevant regulations for public receptions. Reimbursement for reception expenses must include a detailed list, with information on guest organizations, attendees, reception purpose, the handler, and accompanying persons.
For activities related to traditional festivals or folk events, each organization should prepare a budget based on the event's scale, which must be approved through the proper democratic process before implementation.
Article 79 Rural collective economic organizations’ “two committees” members, supervisory panel members, and staff who need to dine during overtime work or attend official activities may be reimbursed according to the municipal or district government’s meal reimbursement standards. Reimbursement must include proper dining receipts, with the dining time and participant details signed. For meals taken in the organization’s cafeteria due to overtime work, a cafeteria dining registration form, including the dining time and participant names, should be provided.
Article 80 Rural collective economic organizations should strictly control vehicle-related expenses. When reimbursing fuel costs, the vehicle’s license plate number should be noted on the receipt. For vehicle repair costs, the vehicle’s license plate number and a repair list must be included. Private vehicle expenses are not eligible for reimbursement, and private use of official vehicles is prohibited.
Article 81 Special funds allocated by the government or raised independently must be used exclusively for their intended purpose and may not be diverted.
Chapter XI Profit Distribution Management
Article 82 Before the year-end income distribution settlement, the rural collective economic organization must clear all assets, liabilities, and debts, and handle contract fulfillment and settlements. It should accurately calculate the annual income, expenses, and distributable income.
Distributable income refers to the remaining portion of revenue from operating income, contracted and remitted income, investment income, subsidy income, and other income items eligible for distribution, after deducting operating expenses, management costs, and other expenditures for the year. It also includes any undistributed income from the beginning of the year and other transfers.
Article 83 Rural collective economic organizations should determine their income distribution plan in accordance with relevant laws, regulations, policies, and the organization’s charter. The plan should specify important matters such as the scope of distribution and distribution ratios.
Article 84 The profit distribution plan of the rural collective economic organization shall follow the “4+2+1” procedure.
In years with high profits, the distribution amount should be reasonably controlled, with any surplus carried over for use in the following year, implementing a policy of “covering deficiencies with surplus”. Income from collective asset contracting or leasing, which is collected in lump sums or concentrated amounts, should be distributed across the relevant years and should not be distributed all at once. If any collective asset income is not actually received in the current year, the corresponding amount should be excluded from the distribution.
In the absence of distributable income, profit-sharing is prohibited, and borrowing to pay dividends is also not allowed. Profit-sharing due to administrative adjustments, leadership changes, or similar factors is strictly forbidden.
Article 85 The annual profit distribution of the rural collective economic organization should follow this order:
(1) Cover losses from previous years;
(2) Deduct public welfare funds;
(3) Pay shareholder dividends;
(4) Other distributions.
The provision ratio for the public welfare fund is determined according to the organization’s charter.
Article 86 The public welfare fund, once approved according to the prescribed procedures, can be used for capital expansion, covering past operating losses, expanding production and operations, as well as building collective welfare and public service facilities.
Chapter XII Supervision and Management
Article 87 Financial supervision of the rural collective economic organization mainly includes, but is not limited to, financial disclosure, democratic financial management, and audit supervision.
Article 88 The financial disclosure of rural collective economic organizations shall be carried out according to the Regulations of Guangdong Province on Village Affairs Disclosure and other relevant provisions.
Accounting agencies must promptly provide financial disclosure materials for rural collective economic organizations, ensuring that the information is comprehensive and accurate.
Article 89 The opinions of the financial management review by the supervisory panel shall be considered valid if agreed upon by at least two-thirds of the members after a vote and signature. The names of dissenting members, along with their reasons, must be noted, and the opinions should be promptly disclosed to all village (organization) members.
Article 90 To strengthen audit supervision, a sound system should be established for auditing the terms of office and departure of rural collective economic organization leaders. New debts and claims should be a key focus of audits. Based on practical needs, special audits should be conducted on financial management issues that are frequently raised by the public. The audit results should be disclosed in a timely and complete manner.
Article 91 Personnel from rural collective economic organizations and accounting agencies who violate the provisions of these measures by providing false materials, failing to report accounts or provide financial information as required, abusing their authority, or neglecting or improperly performing their duties shall be held accountable in accordance with the relevant municipal or district regulations. Any financial losses caused will be subject to legal compensation. Violations of laws or regulations will be handed over to the disciplinary inspection and supervision authorities for investigation, and criminal liability will be pursued if a crime is committed.
Chapter XIII Supplementary Provisions
Article 92 For matters such as approval authority at different levels, large and small expenses, and other matters not clearly specifying amounts, town or subdistrict authorities should, based on actual conditions, guide the rural collective economic organizations to specify these matters in their organizational charter or financial management system and submit them to the accounting agency.
Article 93 Town or subdistrict authorities may, according to the provisions of these measures and the actual work situation, formulate implementation details and guide rural collective economic organizations within their jurisdiction to improve internal financial management systems.
Article 94 These Measures shall come into effect on February 1, 2025, and shall remain valid for five years.
Annexes: 1.Cash and Bank Deposit Settlement Statement
2.Registration Form for Petty Cash Limit Application (Change)
3.Bank Deposit Balance Reconciliation Statement
