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Social organizations to face random audit

Updated: May 31, 2019 By Wang Keju China Daily Print
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The Ministry of Civil Affairs ordered random audits of 250 social organizations to step up oversight and strengthen the orderly development of social organizations across the country, according to a statement on Tuesday.

Most of the groups were Chinese associations, and included 202 social groups, 23 foundations and 25 social service organizations.

Among them were two foreign chambers of commerce - the American Chamber of Commerce in China and the Australian China Chamber of Commerce - as well as four international associations, including APEC Port Services Network and the International WWII Museum Association.

The organizations will be assessed in aspects such as annual performance reports, financial audit reports, operational effectiveness and efficiency, and compliance with laws, regulations and policies.

The ministry, for example, will inspect whether there are wrongdoers that misappropriate assets or profit through unreasonable expenses for activities and management.

Deng Guosheng, a professor of the School of Public Policy and Management at Tsinghua University, said that the audit was just routine work.

A regulation released in 2017 noted that no less than 10 percent of the social organizations registered at the ministry should be randomly audited each year.

According to chinanpo.gov.cn, where the public can check registration information of social organizations, there are 2,301 social organizations registered at the ministry, with 19 foreign chambers of commerce.

The ministry has hired 10 accounting firms to conduct the audit, which is expected to last until August.

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