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Supervision Method

Supervision Method of the SHCDF

Chapter One General Principle

Article 1: In order to perfect the inspection and supervision mechanism for granted projects to ensure that the funds could be used substantially and exert its due effects, this Method is established in accordance with both Charter of Shanghai Cultural Development Foundation (hereinafter referred to as the SHCDF) and Grant Method for Projects.

Article 2: With the principle of order, effectiveness and beneficial, adopting a professional and open model, the SHCDF attaches great importance to the role of granted projects in promoting cultural innovation, fostering cultural talents, implementing strategy of excellent works and facilitating cultural exchange.

Article 3: The SHCDF establishes Supervision Office for Granted Projects, which is in charge of related operation.

Chapter Two Supervision Scope

Article 4: The scope for this method refers to the granted projects of the SHCDF with funds consigned by the Municipal Government.

Article 5: The Supervision scope in the Method involves the actual situation of project implementation, the use of funds and expected effects, etc.

Chapter Three Supervision Mode

Article 6: The SHCDF has established a consulting expert database. Experts with both high academic status in culture and art circle and rich experiences in operations of cultural market are in charge of analyzing and suggesting the supervision proposal for the grants.

Article 7: The SHCDF carries out a professional supervision upon the granted projects by consigning professional organizations, such as consulting service companies, accounting firms and law offices.

Article 8: According to the practical situation and comprehensive analysis of the projects, the SHCDF conducts a classified inspection & supervision to various projects.

Article 9: The SHCDF creates credit files for project subjects as references to its future application and evaluation for grants.

Article 10: The SHCDF creates post-assessment files for major projects as important factors to measure if the projects are eligible for the further grants, as well as important references to improve the SHCDFs operation of supervision.

Chapter Four Implementation

Article 11: The SHCDF carries out supervision according to Project Grant Agreement signed by the SHCDF and the grantee. The grantee should display great initiative in coordinating with the supervision of the SHCDF.

Article 12: The SHCDF classifies the granted projects into major supervision, moderate supervision, credits supervision and after-action supervision, making a reference to the classification suggestions offered by the experts of supervision and combining with the marks from Supervision Classified Evaluation Index for Granted Projects.

Article 13: The SHCDF requires the grantee, listed as object of major supervision, to submit the following documentation by stages: Process Report, Inquire Form for Operation, Month/Quarter Revenue & Expenditure Statistics and Achievements Report. The SHCDF organizes consulting experts or professional organizations to follow, inspect, appraise and audit the implementation of the granted projects. After the supervising has finished, the SHCDF makes supervision report in combination with the opinions from experts and professional organizations.

Article 14: The SHCDF requires the grantee, listed as object of moderate supervision, to submit the following documentation timely according to project progress: Process Report, Inquire Form for Operation, Achievements Report.The SHCDF organizes consulting experts or professional organizations to spot-check periodically, inquire the practical situation and audit, appraise the outcome of granted projects.

Article 15: The SHCDF requires the grantee, listed as object of credit supervision, to adopt self-supervision mode and submit the following documentation timely: Process Report and Achievements Report. According to the situation of the projects, the SHCDF organizes consulting experts or professional organizations to audit and appraise the outcome of granted projects. The object of credit supervision is the grantee that has experiences of carrying out the projects, who never violates the rules and contracts during the implementation, and has a good credit record in the SHCDF.

Article 16: During the process of supervision, the SHCDF adjusts the level of supervision in accordance with the opinions of consulting experts and professional organizations.

Article 17: The SHCDF requires the grantee, listed as object of after-action supervision, to submit Achievements Report. After the projects are finished, the SHCDF organizes accounting firms to conduct audit according to the projects situation.

Article 18: The SHCDF organizes experts and professional organizations to conduct post-assessment on both social and economic benefits of major supervision project, and establish the post-assessment files on granted projects.

Chapter Five Penalty Provision

Article 19: According to the practical situation, the SHCDF takes actions such as adjusting the schedule of appropriating funds, suspending appropriating or reducing the grant amount to the grantee, who fails to carry out Project Grant Agreement strictly or performs duty in a perfunctory manner.

Article 20: The SHCDF will punish the grantee that is dishonest, appropriates the funds improperly, infringes on Intellectual Property Rights or violates public virtue during the process of using the grants. The punishments include stopping appropriation, recovering parts or all grants or refusing to provide grants in the future in accordance with the seriousness of the case. If it is a case of gross violation, the grantee will be called to account the capacity of bearing legal responsibility.

Article 21: The SHCDF has the rights to take back the grants in a prescribed time as long as the SHCDF decides to stop or withdraw the project.

Article 22: The grantee that fails to accomplish the project as scheduled due to force majored, is required to submit postponing report to the SHCDF in 7 days after force majored happens. After being approved, the grantee is allowed to postpone completing the project.

Chapter Six Report

Article 23: The SHCDF makes report to its higher authority on supervision situation by means of submitting briefing.

Article 24: The SHCDF sends out caution or adjustment suggestions to the grantees when problems occur during supervision. Meanwhile, the SHCDF reports to its higher authority.

Article 24: The SHCDF submits annual supervision report to higher authority in the form of general report, which will be released to the public through media after being approved by the authority.

Chapter Seven Supplementary Articles

Article 26: The Method took into effect since June 1,2006.

Article 27: The SHCDF is entitled the sole right to the interpretation of the Method.

Copyright2006 Shanghai
Cultural Development Foundation
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