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
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
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 SHCDF¡¯s operation of
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
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
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
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
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
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