Chapter 1 General Principles
These Regulations are enacted pursuant to Article 66 of the Civil Associations Act.
The financial affairs of social associations shall be disposed of in accordance with the provisions of these Regulations unless otherwise prescribed by law. Administrative orders that do not conflict with these Regulations shall apply all the same.
A social association as called in these Regulations refers to a social association established under the Civil Associations Act.
The accounting year of a social association shall be determined by the calendar year, and shall commence from the first (1st) day of January and terminate on the thirty-first (31st) day of December each year. However, if otherwise provided by international social association articles that it should be reported to regulating authority for approval, these articles shall be implemented.
The accounting basis of a social association shall employ cash basis at ordinary times and accrual basis for settlement upon the end of the accounting year.
Chapter 2 Accounting Reports and Accounting Items
Accounting reports are as prescribed below:
1. Final accounting form of incomes and expenditures.
2. Statement of incomes and expenditures in cash.
3. Statement of assets and liabilities.
4. Inventory of properties.
5. Statement of incomes and expenditures in funds.
Each association may compile internal accounting reports by themselves according to actual requirements.
The formats of the report forms listed in the first paragraph and instructions for tabulation are shown in Annex 1.
Accounting items include assets, liabilities, funds and surplus/deficit, incomes, and expenditures.
The titles and instructions of the accounting items referred to in the above paragraph are shown in Annex 2.
Chapter 3 Accounting Books
Accounting books are divided into the following categories:
2. General ledger.
3. Property registers.
4. Detailed ledger.
5. Other books.
Where the amount of the annual budget is not more than NT$3,000,000, it is allowable that only daybooks are established, and property registers may be prepared where properties are purchased or disposed.
The formats of the accounting books listed in the first paragraph are shown in Annex 3.
Chapter 4 Accounting Vouchers
Accounting vouchers are divided into the following two classes:
1. Original vouchers: an original voucher refers to a voucher that proves the process of an accounting matter and is used as a reference for producing accounting vouchers.
2. Accounting vouchers: an accounting voucher refers to a voucher that proves the liability of the accountant and is used as evidence for keeping accounts.
Where the amount of the annual budget is not more than NT$3,000,000, original vouchers may be used as evidence for keeping accounts.
Original vouchers include the following:
1. Bill of receipt, payment, transfer of cash, check, and securities.
2. Book of receipts.
3. Bill of salary payment.
4. Report form of business trip allowance.
5. Bill of deposit and withdrawal.
6. Invoice, receipt, contract, and order form.
7. Statement of damaged and discarded properties.
8. Budget sheet for revenues and expenditures.
9. Evidential bills of expenditures.
10. Decrees, resolutions, and related bills proving the process of accounting affairs.
11. Other forms, vouchers, and bills.
For the original vouchers listed in the subparagraphs above, if a format has been prescribed, such format shall apply; otherwise, the format shall be designed by each association itself according to actual requirements.
Accounting vouchers include the following:
1. Receiving slip.
2. Disbursement slip.
3. Transfer slip.
The formats of the accounting vouchers listed in the above paragraph are as shown in Annex 4.
Chapter 5 Compiling and Auditing Budgets and Final Accounts
The board of directors of a social association shall, two (2) months before an accounting year begins, compile an annual work plan and a budget sheet for revenues and expenditures, submit them to the member's (member representative's) congress for approval, and before the accounting year begins report them to the regulating authority for reference. Where the member's (member representative's) congress is not held as scheduled, the plan and the form may be adopted first by a joint meeting of the board of supervisors and the board of supervisors of the association, and reported to the regulating authority, and then be submitted to the member's (member representative's) congress for adoption after the event, and reported to the regulating authority again for reference.
The format of the budget sheet for revenues and expenditures referred to in the above paragraph is as shown in Annex 5.
The board of directors of a social association shall, within two (2) months after an accounting year terminates, compile a work report and a form of final accounts of that year, and submit them together with a statement of incomes and expenditures in cash, a statement of assets and liabilities, an inventory of properties, and a statement of incomes and expenditures in funds to the board of supervisors for auditing. The board of supervisors shall produce a position paper of auditing and return the aforementioned documents with the paper to the board of directors. Then, after the documents are adopted in the member's (member representative's) congress, they shall be reported to the regulating authority for reference before the end of March. Where the member's (member representative's) congress is not called as scheduled, a joint meeting of directors and supervisors may be held to adopt the documents and report them to the regulating authority, and after they are adopted in the congress, report them to the regulating authority again for examination and reference.
Where the amount of final accounts referred to in the above paragraph is more than NT$15,000,000, accountants may be employed to provide attestation.
Chapter 6 Property Management
Properties as called in these Regulations are limited to the fixed assets listed in Annex 2.
Property management as called in these Regulations refers to matters regarding the procedure of property processing such as registration, increase, decrease, disposal, safekeeping, and use of properties.
To purchase, sell, transfer, or set the rights to mortgage real properties, a social association shall submit the proposal to the member's (member representative's) congress for adoption, and report to the regulating authority for approval. However, in special cases and with the authorization of the member's (member representative's) congress, purchasing of real properties may be adopted by a joint meeting of directors and supervisors, reported to the regulating authority for approval and processing, and then reported to the congress to subsequently admit the purchase. In this case, a photocopy of the ownership certificate must be submitted to the regulating authority for reference.
Chapter 7 Disposal of Finance and Accounting
The standard and payment method of the admission fee and perennial membership fee of a social association shall be prescribed in its constitution, adopted by the member's (member representative's) congress, and then reported to the regulating authority for approval and implementation.
The board of directors shall, according to the annual budget, compile a payroll of the workers, and submit it to the member's (member representative's) congress for adoption.
Upon disaffiliation, the members of a social association may not request a refund of the fees already paid by them.
Social associations shall allocate a proper sum into the provident fund each year, and the sum shall be not more than twenty percent (20%) of the total amount of the budget. However, such a sum cannot be allocated in case of a deficit budget occurring in the social association.
The fund referred to in the above paragraph and its interest incomes shall be deposited in a special account according to its purpose, and may not be used without the consent of the board of directors.
In a social association, the surplus in the final accounts may be used as financial sources for expenditures of the next year.
The financial accounts of social associations shall be calculated in the unit of new Taiwan dollars (NT$), and foreign currencies shall be converted into new Taiwan dollars for the purpose of keeping accounts.
The financial incomes of a social association, except the revolving fund, shall be deposited in a bank or the post affiliated to Chunghwa Post Co., Ltd , and may not be deposited in other public or private enterprises or with individuals; in principle, any incomes shall be deposited immediately upon receipt.
The involving fund referred to in the above paragraph may not exceed NT$100,000, and shall be kept by the financial personnel with the consent of the board of directors.
A sum of current expenses not more than NT$10,000 may be paid in cash under the item of the involving fund. A sum of more than NT$10,000 shall be directly paid to the receiver by means of a crossed order check, and may not be paid in cash.
In a social association, formal receipts shall be produced for all the incomes, and counterfoils shall be reserved for future examination. Upon withdrawal of deposits, the principal, secretary-general, or director-general and the financial personnel shall jointly stamp their seals on the vouchers.
The incomes and expenditures of the standing offices, commissions, groups, and other internal operational organizations of a civil association shall be received and paid by the association, and no other annual budgets or final accounts of incomes and expenditures may be compiled.
For the meetings held by a social association, the attendees of the association may not receive any pay. However, a reasonable pay for attendance or a transportation allowance may be offered for the directors to attend meetings of the board of directors, the supervisors to attend meetings of the board of supervisors, and the non-voting attendees who perform their duties in accordance with Article 9 of the Regulations on Implementation of Supervision of Civil Associations according to the financial status of the association and with reference to the standard set forth by the government or according to the transport tickets.
In a social association, it is not allowable that a sum of financial income or expenditure is not reported or is reported falsely, and public financial announcements shall be issued periodically.
In a social association, balance shall be kept between the incomes and the expenditures, and the relative incomes and expenditures shall be confirmed within the range of the incomes and funds already realized.
The vouchers, accounting books, report forms, and other archives of social associations shall be stored in accordance with the following provisions:
1. To be stored permanently:
(1) Annual budget and final accounts.
(2) Collection, storage, and withdrawal of various funds.
(3) Inventory of properties, property registers, and statement of damaged and discarded properties.
(4) Various property contracts and certificates.
(5) Construction and repair of real properties.
(6) Increase and decrease of properties and alteration of property rights.
(7) Statement of assets and liabilities.
(8) Other financial archives that need to be stored permanently for inspection.
2. To be stored for ten (10) years:
(1) Accounting books, slips, checks, and registers.
(2) General ledger and detailed ledger.
(3) Other financial archives that should be stored for inspection for ten (10) years.
3. To be stored for five (5) years:
(1) Various temporary vouchers.
(2) Short-term loan cases.
(3) Other financial archives that should be stored for inspection for five (5) years.
4. To be stored for three (3) years: various daily and monthly report forms and their originals.
Upon expiration of the specified term of storage, the financial archives listed in the subparagraphs above may be destroyed after being verified by the board of directors. In special occasions, the term of storage may be prolonged with the consent of the board of directors and the board of supervisors, and shall be reported to the regulating authority for reference.
Chapter 8 Financial Personnel
Financial personnel as called in these Regulations refer to the personnel who deal with the affairs concerning accounting, cashing, and property management.
The financial personnel referred to in the above paragraph shall be assumed on a full-time basis. However, if the personnel quota of a social association is insufficient, the financial personnel may be assumed by other workers on a part-time basis.
The financial personnel of a social association shall provide guarantee upon accession, and the procedure shall be prescribed by the board of directors of the association.
The financial personnel of social associations shall handle financial affairs in accordance with the provisions of these Regulations, and compile the related report forms in specified time limits.
Chapter 9 Financial Auditing
Financial auditing of a social association includes periodical and temporary auditing, and both shall be performed by the board of supervisors. The regulating authority may execute selective examinations according to actual requirements.
The board of supervisors shall perform periodical auditing when holding periodical meetings of supervisors according to its authorities, and when necessary, may hold temporary meetings to execute temporary auditing with the approval of the regulating authority.
Chapter 10 Supplementary Provisions
The incomes of a social association and its subordinate operational organizations may be exempted from income tax and such exemption shall be handled according to the provisions set forth by the Ministry of Finance.
These Regulations shall become effective as of the date of promulgation.