Audit authorities in Guangdong Province submitted its annual report to the Standing Committee of the Guangdong Provincial People's Congress yesterday. More than 10.6 billion yuan (US$1.3 billion) in public funds was misused last year.

Zeng Shouxi, head of the provincial audit department, pointed that more than 10.6 billion yuan (US$1.3 billion) in public funds was misused in Guangdong last year.

The figure was reported to be the lowest since 2001.

The report submitted to the Standing Committee covered 32 projects involving 4,040 government departments and institutions that operate on public funds.

According to the report, 15 departments under the provincial government prepared a budget for 8.507 billion yuan for 2004, 1.1 billion yuan more than their actual expenditure.

Further, an audit of 66 State-funded elementary and high schools revealed that sponsorships and donations worth 753 million yuan (US$92.84 million) were registered in different names. Such fees, donations and sponsorships made up 54 percent of the total income of the 66 public schools.

Zeng pointed out that the fees, donations and sponsorships in the 66 public schools that were audited were poorly managed.

Provincial authorities allow certain senior high schools to levy fees ranging from 23,000 yuan (US$2,840) to 40,000 yuan (US$4,930) for a three-year course of study on students who fail to attain the necessary qualifications but who still want to attend classes.

But such students must account for no more than 25 percent of the total number of students in the school, and their exam results must still be close to the base line.

The province does not allow any junior high school or preliminary school to levy such fees, but donations and sponsorships are accepted.

About half of the fees are set aside for schools, and the rest goes to the local education authorities to help poorer schools.

(China Daily, Shenzhen Daily July 28, 2005)