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Regulations for the Administration of Confucius Institute Headquarters Funds
Chapter 1: General Principles
1. The "Regulations for the Administration of Confucius Institute Headquarters Funds" is formulated, in accordance to related rules and stipulations of the Chinese government, to enhance the management of funds (hereinafter referred to as "the Headquarters funds"), by the Confucius Institutes Headquarters (hereinafter referred to as "CIHQ") to individual Confucius Institutes, in order to ensure their efficacy in usage.
2. CIHQ shall be responsible for examining and approving the annual budgets and final financial summary of projects designed by individual Confucius Institutes, as well as making the overall plans in the administration of the Headquarters funds for Confucius Institutes.
3. Specific accounts shall be established for the Headquarters funds by each Confucius Institute; the earmarked funds shall be used only for specific purposes. The Board of Directors of each Confucius Institute is responsible for the annual budgets and annual final financial summary of their projects; they shall be held responsible to the CIHQ.
Chapter 2: Range of Expenditures
4. The Headquarters funds allocated to each Confucius Institute can be used for the following purposes after obtaining the approval of the CIHQ:
a. Providing money for the initial operation of a newly established Confucius Institute, including building repairs, and equipment purchases;
b. Developing Chinese language courses;
c. Training Chinese language instructors and providing Chinese language teaching resources;
d. Establishing local facilities for the holding of Chinese proficiency tests, e.g. HSK, YCT, BCT, and for the certification of Chinese language teachers;
e. Providing information and consultative services on Chinese
education and culture;
f. Promoting Chinese and foreign language and culture exchanges;
g. Other service items or events stipulated in specific agreements of individual Confucius Institutes.
Chapter 3: Budget Administration
5. Individual Confucius Institutes shall draw up a budget, based on the needs of projects in the coming fiscal year, by the dates specified by the CIHQ.
6. Individual Confucius Institutes applying for the Headquarters funds for the coming fiscal year should fill out the "Application Report for Annual Project Funds/ Initial Operation Funds" (Appendix 1).
The "Application Report for Annual Project Funds / Initial Operation Funds" should include the amount and source of their self-prepared funds, keeping in principle a 1:1 ratio with the Headquarters funds the Institute is applying for.
The budget for personnel expenses should not exceed 50% of the total project budget.
7. The "Application Report for Annual Project Funds / Initial Operation Funds" should be submitted, with the consent of their Board of Directors, to the CIHQ for examination and approval before September 15th of that year. The CIHQ shall examine and verify the budget for the projects before March 15th of the following year, and shall allocate the Headquarters funds in a gross sum or in installments before April 1st, according to that Institute's progress in its project implementation.
8. Criteria for examination and verification by the CIHQ of projects submitted by individual Confucius Institutes include:
a. Whether or not the projects submitted for verification lay within the support range of the Headquarters funds;
b. Whether or not the project-related data, submitted as per requirement, are complete and in order, and whether or not the content is equitable and detailed.
c. Other materials supporting the "Application Report for Annual Project Funds/ Initial Operation Funds".
9. When applying for Initial Operation funds, a newly established Confucius Institute should, after signing the cooperation agreement, fill out and send back to the CIHQ the "Application Report for Annual Project Funds / Initial Operation Funds".
10. In due time, the CIHQ shall give a formal written reply to each Initial Operation funds budget application that the CIHQ receives; when received before May 1st, the CIHQ shall verify the application before June 1st; when received before November 1st, the CIHQ shall verify the application before December 1st, so that funds can be allocated in time for initial operation.
11. The Headquarters funds for the budget, once appraised and ratified, generally will not be amended with a supplementary budget, and any cash surplus will be reverted to the budget funds for next fiscal year.
12. CIHQ shall be responsible for supervising the budget implementation of all Confucius Institutes. Each Confucius Institute should arrange its budget expenditure according to the budget approved by the CIHQ. Individual Confucius Institutes should apply to the CIHQ in advance, for any significant changes (an amount accounting for more than 10% of the total budget) discovered in their budget implementation, and changes can be executed only after obtaining the approval from the CIHQ.
13. For Confucius Institutes that are already in operation, the CIHQ may appropriate in advance some parts of the funds before verifying the budget, to ensure the normal operation of these Confucius Institutes.
Chapter 4: Administration of Final
14. Before January 15th of the following year, each individual Confucius Institute should submit to the CIHQ a report on its final financial summary by filling out the "Report of Final Financial Accounts for Annual Project Funds / Initial Operation Funds" (Appendix 2).
15. Final financial summary should be accurate in statistics and numbers, complete and intact in content, and punctually filed and reported to the CIHQ.
16. Each Confucius Institute should prepare its budget and final financial summary according to the "Instructions for Filling in the Tables in Appendix 1 and 2" and complete its budget expenditure under the specified classifications (Appendix 3).
Chapter 5: Inspections and Assessments
17. The CIHQ reserves the right to conduct, when it deems necessary, inspections and assessments, including audits, appraisals, and verification, on various Confucius Institutes' budget implementations, final financial summary, and their efficacy in the usage of the Headquarters funds; it also reserves the right to demand further explanations from individual Confucius Institute regarding their budgets and final financial summary.
18. Inspections and assessments shall be conducted by experts or intermediary agents or institutions entrusted by the CIHQ.
19. The CIHQ reserves the right to take actions against any Confucius Institute that violates the "Regulations for the Administration of Confucius Institute Headquarters Funds." Actions may include: demanding the rectification of wrongdoings, stopping further examination, approval or appropriation of more Headquarters Funds, and claiming compensation for the CIHQ's financial loss.
Chapter 6: Supplementary Articles
20. If and when a legal dispute occurs between the CIHQ and a Confucius Institute during the course of implementing the "Regulations for the Administration of Confucius Institute Headquarters Funds," all principal bodies of the various partners in cooperation shall accept the jurisdiction of the Beijing Court.
21. The CIHQ reserves the right to interpret the "Regulations for the Administration of Confucius Institute Headquarters Funds."
22. The "Regulations for the Administration of Confucius Institute Headquarters Funds" shall come into effect on September 1st, 2008.
23. In case of discrepancies or legal disputes, the original Chinese "Regulations for the Administration of Confucius Institute Headquarters Funds" text shall be held authority.
Appendix 1： Application Report for Annual Project Funds/ Initial Operation Funds
Appendix 2：Report of Final Financial Summary for Annual Project Funds/ Initial Operation Funds
Appendix 3：Instructions for Filling in the Tables in Appendix 1 and 2
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