What Is an Income and Expenditure Statement?

Financial revenues and expenditures are the revenues and expenditures of various funds that are handled by state agencies, state-owned financial institutions, enterprises, institutions, and other organizations in accordance with the provisions of the country's financial accounting system for accounting affairs, accounting, and accounting supervision. ^[1]

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Violations of the state's financial revenues and expenditures include cost overruns, miscellaneous expenditures, false profit and loss, non-operating expenditures, concealing sales and non-operating revenues, and embezzling special funds.

Audit institutions may deal with or punish those who violate the state's financial revenues and expenditures. The types of punishment are: (1) warning, notification of criticism; (2) fines; (3) confiscation of illegal gains; (4) other punishments taken in accordance with law.

The specific approach is: the auditing agency shall order corrections within the scope of its statutory authority, give warnings, report criticisms, and deal with the assets obtained in violation of the law in accordance with the five methods of auditing. For violations of financial revenues and expenditures with illegal income, a fine of 1 to 5 times the illegal income shall be imposed; if there is no illegal income, a fine of 50,000 yuan or less shall be imposed. Where laws and administrative regulations have other provisions on punishment or punishment for violations of financial revenues and expenditures stipulated by the State, such provisions shall prevail. If the "Interim Regulations of the State Council on Penalties for Violating Financial Regulations" stipulates that the illegal income can be confiscated, the auditing authority can implement such provisions. If the auditing agency deems that the person in charge and other persons directly responsible for the audited unit should be given administrative or disciplinary sanctions, it shall make recommendations to the relevant department or unit for administrative or disciplinary sanctions. Relevant departments and units shall make a decision in a timely manner and notify the audit institution in writing of the results. If the financial revenue and expenditure of the audited unit violates the provisions of laws and administrative regulations and constitutes a crime, the judicial organs shall be held criminally responsible. This is also a problem of unit crime.

The distinction between fiscal revenues and expenditures and financial revenues and expenditures is mainly based on the following considerations:

First, we must understand the definition of fiscal revenue and expenditure and financial revenue and expenditure

Fiscal revenue and expenditure is a theoretical summary of the redistribution of social products in the form of funds from the perspective of the country. All financial activities that fall within the scope of national distribution are called fiscal revenues and expenditures. Financial revenue and expenditure is a theoretical summary of the movement of funds reflecting economic activities from the perspective of departments, enterprises, and units. Unit fund activities that have no direct payment or appropriation relationship with the financial department are customarily called financial revenues and expenditures.

Second, we must understand the relevant provisions such as the Audit Law, the Budget Law, and the Regulations for the Implementation of the Budget Law.

Article 2 of the "Audit Law" sets out the principle of fiscal revenue and expenditure. Auditing agencies shall conduct audit supervision on the financial revenues and expenditures of various departments of the State Council and local people's governments at all levels and their departments, and the financial revenues and expenditures of state-owned financial institutions and enterprises and institutions. This is actually clear. The targets of the fiscal revenue and expenditure audit are mainly the departments of the State Council and local people's governments at various levels and their departments.

Articles 16 and 17 of the "Audit Law" further stipulate the audit of fiscal revenue and expenditure. The auditing organs shall audit and supervise the execution and final accounts of the budgets of other departments (including the units directly under them) and lower-level governments, as well as other financial revenues and expenditures. The auditing organs shall audit and supervise the implementation of the budget at this level and other fiscal revenue and expenditure. According to the "Budget Law" and the "Regulations for the Implementation of the Budget Law," "departments at this level" refer to state agencies, military forces, political party organizations, and social groups that have direct budget contribution and appropriation relations with the financial department of the government at the corresponding level. "Units" refer to enterprises and institutions that have direct budgetary payment and appropriation relationships with the government's financial department at the same level. The people's government at the corresponding level here refers to the people's government at the corresponding level of the audit agency that issued the audit decision.

The fiscal revenues and expenditures and financial revenues and expenditures of units that have direct payment and appropriation relations with the financial department are linked and overlapped, and it is still difficult to distinguish them. It is not just that state agencies consider fiscal revenue and expenditure. Some enterprises, institutions, and other organizations also have fiscal revenue and expenditure. This is because these units may have both fiscal revenues and expenditures; they are also a sum of funds. The funds allocated to the budget unit from the state budget are fiscal revenues and expenditures from the national perspective, and from the unit perspective, People used to call them financial income and expenditure. It can be seen that it is difficult to determine whether the illegal behavior of an audited entity is a fiscal revenue or expenditure behavior or a financial revenue and expenditure behavior.

Third, it must be understood in the light of the provisions of the Opinions of the Audit Commission on Several Issues in the Implementation of the Revised Audit Law (Shenfafa [2006] No. 25)

The seventh point of Audit Office [2006] No. 25 stipulates that the departments that specifically organize the execution of budgets at the corresponding level, state agencies, social groups, and other organizations that have direct payment and appropriation relations with the financial department of the people's government at the corresponding level (herein, "Including party organizations that have direct payment and appropriation relationships with the financial departments of people's governments at the corresponding level, and enterprises and institutions that are budgetary units at the first level.), And lower-level people's governments, Article 17 Anyone who refuses to accept the audit decision made during the implementation of the audit may apply to the people's government at the level of the auditing agency for a ruling. The decision of the people's government at the corresponding level shall be final.

The general principles for determining fiscal revenue and expenditure are:

First, as long as they are the departments that specifically organize the execution of the budget at this level, regardless of the nature of the unit, state agencies, social organizations, and other organizations, as long as the above units have a direct payment and appropriation relationship with the financial department (the only indirect relationship is financial revenue Support), and their audit by the auditing agency is conducted in accordance with the provisions of Articles 16 and 17 of the Audit Law, collectively referred to as the financial revenue and expenditure in auditing law.

2. The economic responsibility audit focuses on fiscal revenue and expenditure, which is mainly financial revenue and expenditure, and financial revenue and expenditure is mainly financial revenue and expenditure.

3. Except for cases 1 and 2, they are collectively referred to as financial revenue and expenditure.