The Polling and Using of Suzhou Municipality Year 2004 Housing Public Accumulation Fund has been reported to Suzhou Municipal Committee for the Management of Housing Public Accumulation Fund and has been adopted after being examined and discussed, and has been audited by the Suzhou Municipal Audit Office. In compliance with the provisions of the “Audit Law of the People’s Republic of China”, the “Regulations on the Management of the Housing Public Accumulation Fund” of the State Council and the “Trial-implementation Measures of the Suzhou Municipality on the Announcement of Audit Findings”, the audit findings are now announced as follows:
I. The Basic Facts of the Management of the Housing Public Accumulation Fund
The results of the revenues and expenditures of the Suzhou Municipality year 2004 housing public accumulation fund, after having been audited, are complete and true, and are of standardized accounting without appropriation, embezzlement and other illegal investment phenomena. The management and business of the housing public accumulation fund saw further strengthening and development. After the organization has been regulated, the former organizations of the five cities (counties) and two districts have been regulated into the branches and sub-branches of the Suzhou Municipal Center for the Management of the Housing Public Accumulation Fund respectively, and thus the unified management and unified accounting of the housing public accumulation fund of the whole municipality have been realized in an all-round way. The housing public accumulation fund management departments at various levels have made efforts to launch the polling of the housing public accumulation fund, and actively urged all the units to hand in and accumulate the housing public accumulation fund according to law; the coverage rate of the whole municipality housing public accumulation fund system has reached 83.27%, coming out in front in the whole province and playing its role in upholding the rights and interests of the employees. Paying attention to the prevention of the risks in the fund providing, the Municipal Center for the Management of the Housing Public Accumulation Fund, in line with the situation of the tremendous pressure on the housing public accumulation fund brought about by the strenuous increase of housing sales, has taken timely policy regulated and controlled measures on the basis of the decision of the Committee for the Management of the Housing Public Accumulation Fund, and thus ensured the sustainable providing of the housing public accumulation fund to satisfy the basic demands of the broad masses of the people for the drawing of and borrowing from the housing public accumulation fund. By the end of 2004, there have been 77900 accumulative households of the whole city over the years having enjoyed the loans from the housing public accumulation fund, among which the loan borrower households in Suzhou proper has exceeded one third of the handing-in and accumulating persons. The after-loan management of the housing public accumulation fund of the whole city has been good, with the personal loan overdue rate being 0.087 ‰, which is far lower than the control line of 3‰ prescribed by the province. Following the City Management Center, all the sub-centers management departments have carried out the “one-stop” service in their halls in an all-round way, with the service efficiency being further enhanced. And the Suzhou Municipal Center for the Management of the Housing Public Accumulation Fund was appraised as the Year 2004 “Municipal Organ Work Style Construction Advanced Unit” and the “Excellent Management Center in the Whole Province” by the CPC Municipal Committee, the Municipal Government and the Provincial Department of Construction respectively.
II. The Audit Findings
(1) The fund polling and drawing
In 2004, the whole municipality polled a housing public accumulation fund of 2.684 billion yuan, among which the city proper polled 1.174 billion yuan. Up to the end of 2004, the whole municipality had polled an accumulative fund of 10.473 billion yuan, among which the city proper had polled 5.006 billion yuan. The whole municipality drew 1.348 billion yuan of housing public accumulation fund in the same year, among which the city proper drew 690 million yuan. Up to the end of 2004, the whole municipality had drawn an accumulative fund of 4.241 billion yuan, among which the city proper had drawn 2.298 billion yuan. The surplus of the polled fund had been 6.232 billion yuan, among which the surplus of the city proper had been to 2.708 billion yuan.

Table of polling and drawing of the housing public accumulation fund in year 2004
								Unit: Hundred million yuan
	Sum	City proper	Zhang- jiagang	Chang- shu	Kunshan	Wujiang	Taicang	Wuzhong	Xiang- cheng
Poled in the same year	26.84	11.74	3.16	3.62	2.88	1.73	1.63	1.50	0.58
Accumula- tive polled amount	104.73	50.06	10.84	15.19	10.04	6.12	5.56	5.54	1.38
Drawn in the same year	13.48	6.90	1.32	1.79	1.21	0.76	0.59	0.65	0.26
Accumnla- tive drawn amount	42.41	22.98	3.37	5.83	3.28	2.32	1.85	2.37	0.41
Surplus of polled amount	62.32	27.08	7.47	9.36	6.76	3.80	3.71	3.17	0.97

(2) The loan granting and collecting
In 2004 the whole municipality granted the personal housing public accumulation fund loans of 2.726 billion yuan, among which 1.294 billion yuan was granted in the city area. Up to the end of 2004, the whole municipality had granted an accumulative amount of 7.603 billion yuan, among which 3.985 billion yuan had been granted in the city proper. The whole municipality collected 863 million yuan of personal housing public accumulation fund loans in the same year, among which 435 million yuan was collected in the city proper. Up to the end of 2004, the whole municipality had collected an accumulative amount of 2.484 billion yuan, among which the city proper had collected 1.324 billion yuan. The surplus of the loans of the whole municipality had been 5.119 billion yuan, among which the surplus of the city proper had been 2.661 billion yuan. The loan surplus of the whole municipality had accounted for 82.14% of the collected surplus, among which the surplus of the city proper had accounted for 98.26%.

The granting of personal housing public accumulation fund loans in year 2004
							Unit: ten thousand households, hundred million yuan
	Sum	City proper	Zhang- jiagang	Chang- shu	Kunshan	Wu- jiang	Taicang	Wu- zhong	Xiang- cheng
Households getting loans in the same year	1.39	0.50	0.18	0.28	0.14	0.09	0.10	0.06	0.04
Accumulative households getting loans	7.79	3.96	0.79	1.28	0.61	0.23	0.48	0.36	0.08
Loan amount granted in the same year	27.26	12.94	2.05	4.74	2.39	1.87	1.49	1.35	0.43
Accumulative granted loan amount	76.03	39.85	8.10	10.93	5.41	3.83	4.05	3.06	0.80
Amount collected in the same year	8.63	4.35	1.05	1.43	0.51	0.35	0.50	0.36	0.08
Accumulative amount collected	24.84	13.24	2.91	4.47	1.29	0.44	1.32	1.08	0.09
Surplus of loans	51.19	26.61	5.19	6.46	4.12	3.39	2.73	1.98	0.71

(3) The situation of State bonds
In order to ensure the drawing of and loan granting from the housing public accumulation fund, the whole municipality didn’t purchase new State bonds in 2004. The whole municipality paid State bonds of 210 million yuan in the same year, among which the city proper paid 30 million yuan. The year-end surplus of State bonds of the whole municipality was 33 million yuan, among which no surplus was of the city proper.

Surplus of State bonds purchased with housing public accumulation fund in year 2004
							Unit: ten thousand yuan
	Sum	City proper	Zhang- jiagang	Chang- shu	Kunshan	Wujiang	Taicang	Wuzhong		Xiang- cheng
Surplus of State bonds	3,251.46	-	2,280.00	-	721.46	-	250.00	-		-

III. Audit-proposed Suggestions and Improvement Measures
(1) It is necessary to further expand the coverage of the polling of the housing public accumulation fund from the nonpublic enterprises. The administrative organs, institution units and State-owned enterprises of our municipality execute the housing public accumulation fund comparatively well; however, the consciousness of handing in and accumulating housing public accumulation fund of the foreign-invested and civilian-run enterprises is not so up to the requirement, and they are of a rather low establishing and handing-in rate. It is necessary to intensify the publicity and enforcement strength to coordinate multiple channels of various parties to urge the establishment and handing-in, so as to win more support and coordination from various social circles to jointly build up a beneficial atmosphere for maintaining the legal rights and interests of the employees.
(2) It is necessary to further beef up the management over the personal housing public accumulation fund loan business. In line with the status quo of rather high pressure of the loan demand on the fund, it is necessary to maintain a rational loan level, and to ensure the sustainable operation of the housing public accumulation fund. And it is necessary to intensify trend estimate, to intensify the after-loan management, so as to healthily and reliably launch the personal loan business.
(3) It is necessary to further speed up the pace of scientific management. In compliance with the requirements of the business development, it is necessary to pay urgent attention to the development and application of the software for the housing public accumulation fund personal loan, to enthusiastically probe the methods for making the loan drawing and loan refunding equal to each other and for the loan refunding by account transfer, and thus to exercise the dynamic management of loan, so as to incessantly enhance the scientific management level of the housing public accumulation fund.

Suzhou Municipal Audit Office
Suzhou Municipal Center for the Management of the Housing Public Accumulation Fund
April 26, 2005