China National Audit Office – Performance Report

Earlier this year the Performance Report of the National Audit Office of the People’s Republic of China was released having examined the operations of the China National Audit Office (CNAO) in 2011.

Firstly it provides a list – for the first time that McLeod Governance can recall seeing – of the significant State audit organisations:

Foreign Affairs Audit Office, Development and Statistics Audit Office, Education Audit Office, Science and Technology Audit Office, Industry Audit Office, Ethnic and Religious Affairs Audit Office, Security and Justice Audit Office, Supervision and Personnel Audit Office, Civil Affairs and Social Security Audit Office, Finance, Tax and Customs Audit Office, Resources and Environmental Protection Audit Office, Construction Audit Office, Transportation Audit Office, Agriculture, Forestry and Water Resources Audit Office, Trade Audit Office, Culture and Sports Audit Office, Public Health and Medicine Audit Office, State-owned Assets Supervision and Administration Audit Office, Economic Law Enforcement Audit Office, Media and Communication Audit Office, Press and News Audit Office, Tourism and Overseas Chinese Affairs Audit Office, Science and Engineering Audit Office, Seismological and Meteorological Audit Office, and Publicity Audit Office.

It also lists the regional offices of the Auditor General as:

Jing-Jin-Ji Resident Office of CNAO, Taiyuan Resident Office of CNAO, Shenyang Resident Office of CNAO, Harbin Resident Office of CNAO, Shanghai Resident Office of CNAO, Nanjing Resident Office of CNAO, Wuhan Resident Office of CNAO, Guangzhou Resident Office of CNAO, Zhengzhou Resident Office of CNAO, Jinan Resident Office of CNAO, Xi’an Resident Office of CNAO, Lanzhou Resident Office of CNAO, Kunming Resident Office of CNAO, Chengdu Resident Office of CNAO, Changsha Resident Office of CNAO, Shenzhen Resident Office of CNAO, Changchun Resident Office of CNAO and Chongqing Resident Office of CNAO.

The real interest in the publication, however, resides in its summary of how the (CNAO) performed for it provides an insight into the size of the Auditor General’s task in the world’s largest country.

A couple of areas of note:

  • In 2011, the local audit institutions at all levels audited (investigated) 152 thousand units.
  • Totally, 492.11 billion yuan (1 Chinese Yuan equals 0.16 US Dollar) of illegal fund, and 28.91 billion yuan of lost or wasted fund were found out.
  • CNAO helped the audited units and other related units to recover from loss or avoid loss at 44.84 billion yuan. 1,577 cases were handed over to the judicial and disciplinary inspection and supervision organs, involving 2.395 people.
  • Whilst doing 152 thousand audit reports, the CNAO submitted 11 thousand special audit and investigation reports and released 7,999 audit results to the public. 179 thousand special audit reports, comprehensive reports and information bulletins were submitted.
  • Among them, 110 thousand reports (61.8%) were approved and adopted by the Party and government leadership and related departments. 278 thousand suggestions were proposed to the audited or related units. Among them, 208 thousand suggestions (75.1%) were adopted. The audited units formulated 23,171 rectification measures and improved 7,419 regulations according to the auditing suggestions.
  • 93% percent of the problems found in the audit have been rectified. In addition, through rectification of the problems found in the audit, 9.46 billion yuan was saved for the state’s revenues and expenditures, 6.07 billion yuan of loss avoided, 0.37 billion yuan of capital appropriated in place, and 0.23 billion yuan of investment reduced.
  • By the end of 2011, CNAO had 3,057 staff members on the regular payroll, including 2,859 administrative staff members (322 at CNAO organs, 2,262 at resident audit offices and 275 at dispatched audit bureaus) and 198 staff members at government-affiliated institutions.
  • 84% of staff are Chinese Communist Party members – the political affiliation of staff is noted.

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