Procedures of Shanghai Municipality on Checking

Residents’ Financial Situation

(Promulgated by Decree No. 14 of Shanghai Municipal People’s Government on July 22, 2009)

Article 1 (Purposes)

With a view to effectively implementing the social relief, social welfare and such other systems and normalizing the work of checking residents’ financial situation, these Procedures are formulated on the basis of relevant provisions of the State, and in the light of the actual circumstances of this Municipality.

Article 2 (Application Scope)

The relevant government departments, while implementing the systems of minimum living security, medical assistance, education assistance, housing guarantee and others, entrust the agencies for checking this Municipality’s residents’ financial situation to carry out investigation, verification and issuance of written reports on the financial situation of individual residents or families that apply for assistance. These Procedures apply to such activities.  

The individual residents or families mentioned in the above clause that accept the investigation and verification on their financial situation carried out by the agencies for checking this Municipality’s residents’ financial situation hereinafter are referred to as the checking objects.

Article 3 (Principles)

The checking work shall adhere to the principle of legality, objectiveness and justice, and protect the legitimate rights and interests of the checking objects.

Article 4 (Competent Administrative Department)

Shanghai Municipal Bureau of Civil Affairs is the competent administrative department in charge of the work of checking this Municipality’s residents’ financial situation.

Article 5 (Checking Agencies)

Shanghai Residents’ Financial Situation Checking Center and the district/county residents’ financial situation checking agencies (hereinafter referred to as the checking agencies) are the agencies established with government approval specially in charge of the specific work of checking this Municipality’s residents’ finical situation.

Article 6 (Checking Entrustment)

The relevant government department, after accepting the application made by this Municipality’s individual residents or households for minimum living security, medical assistance, education assistance, housing guarantee or other programs, in need of their financial situation for reference as required, may entrust the checking agencies to carry out the investigation and verification thereof.

Article 7 (Checking Contents)

The checking contents include the checking objects’ disposable income and property. The disposable income includes wage income, net business income, property income, transfer income, etc., and the property includes physical property, monetary assets, etc.

The specific contents of the disposable income and property shall be otherwise provided by Shanghai Municipal Bureau of Civil Affairs jointly with relevant departments according to relevant provisions of the State. 

Article 8 (Checking Means)

The checking agency may carry out the work by way of household survey, neighborhood visit, letter verification, information deriving from relevant government departments, etc.

Article 9 (Checking Channels)

The checking agency shall carry out the checking work by the following channels:

1. the wage income may be found by way of investigating the employment and labor remuneration, benefits of all kinds, as well as the payment of social insurance premium, public housing reserve fund, personal income tax, etc.;

2. the net business income may be found by way of investigating the industry and commerce registration, the production and business operation of enterprises or individual businessmen, as well as the payment of corporate income tax, etc.;

3. the property income may be found by way of investigating the interest, stock dividend, bonus, insurance proceeds, house rental and proceeds form intellectual property rights, etc.;

4. transfer income may be found by way of investigating the drawing of old age pension, unemployment insurance benefits, social relief and public housing reserve fund, as well as the gaining of gift, compensation and indemnity;

5. the physical property may be found by way of investigating the possession of real estate, vehicles, as well as valuable articles such as antiques and art works; and

6. the monetary property may be found by way of investigating the possession of deposits and securities, and the situation of creditor’s rights and debts.

Article 10 (Investigation on Expenditure)

Besides the checking contents provided in Article 7, if the checking objects’ expenditures are obviously inconsistent with the income status they provided, or significantly affect their financial situation, the checking agency may carry out investigation on the corresponding expenditures.

Article 11 (Obligations of the Checking Objects)

The checking objects shall truthfully provide relevant information on the financial situation of individual persons or families, and shall not conceal information or make false reports.

The checking objects shall actively cooperate with the checking agency in carrying out the investigation according to law.

Article 12 (Special Provisions)

In the case of their deposits, securities and commercial insurances in need of investigation, the checking objects shall, in accordance with the requirements of relevant government departments, give authorization in writing and assistance to the checking agency for investigation.

Relevant banks, securities, insurance and such other agencies shall, on the authorization of the checking objects, provide information on the checking objects’ deposits, securities, commercial insurances to the checking agency according to law.

Article 13 (Obligations of Relevant Units and Organizations)

Relevant organizations such as the checking objects’ work units and the neighborhood committees or villager’s committees at the area where the checking objects register their residences or live shall assist the checking agencies in carrying out work.

Article 14 (Obligations of Relevant Government Departments)

Department of human resources and social security, public accumulation fund management, industry and commerce administration, taxation, housing administration, vehicles administration, civil affairs and others shall provide the checking agencies with the following information related to the checking objects:

1. matters of employment, social insurance premium payment and social insurance benefits receipt;

2. matters of housing public accumulation fund payment and use;

3. matters of registration, production and operation of enterprises and individual businessmen;

4. matters of tax payment of individual persons, individual businessmen and enterprises;

5. matters of real estate possession, transaction and house rental;

6. matters of vehicles possession;

7. maters of social relief and social allowance receipt; and

8. other matters required by the Municipal People’s Government.

Article 15 (Written Report Issuing)

The checking agency shall, upon verification of relevant information obtained through the prescribed channels, issue written reports and submit them to relevant government departments.

The written reports shall be reference for relevant government departments to make the decision of examination and approval.

Article 16 (Review)

When the checking objects raise objections against the examination and approval decisions, relevant government departments in the opinion of necessity to review their financial situation may require the checking agency to conduct review.

The checking agency shall submit the review result in writing to relevant government departments within the prescribed time limit.

Article 17 (Specifications of the Checking Work)

The checking agency shall set up work specifications and the liability system for investigation and verification to ensure the checking work is timely, accurate and impartial.

The checking agency shall set up the strict and unified administration system and take necessary measures to ensue the safe operation of information systems.

For the purpose of carrying out such checks as household survey, neighborhood visit, information deriving, the checking agency shall assign at least two staff members, who shall produce relevant documents while doing such checks. 

Article 18 (Confidentiality Obligation of the Checking Agencies and Staff)

The checking agencies and their staff members shall keep secret of the information related to the checking objects obtained in the process of checking, and shall not reveal to organizations or individual persons without reference to the checking work.

Article 19 (Punishment of Staff Members)

Any staff member of the checking agency who abuses powers, neglects duties, or engages in malpractice for personal gains causing serious consequences shall be given disciplinary sanctions according to relevant provisions of the State; if the wrongful acts constitute a crime, the wrongdoer shall be prosecuted for criminal liability according to law.

Article 20（Increase of Checking Items）

Where the execution of other systems of social relief and social welfare apart from those of minimum living security, medical assistance, education assistance and housing guarantee requires   the entrusted checking agencies to carry out investigation and verification of residents’ financial situation, approval shall be obtained from the Municipal People’s Government beforehand.

Article 21 (Detailed Rules for the Checking Work)

Where the execution of the specific social relief, social welfare and other systems requires the checking of residents’ financial situation, Shanghai Municipal Bureau of Civil Affairs may, jointly with relevant departments, formulate the detailed rules for the checking work in line with the characteristics of such programs, according to these Provisions and other relevant provisions.

Article 22 (Effective Date)

These Procedures shall be effective as of September 1, 2009.