Coal Industry Safe Production Expenses Use from Policy Supervision to Policy Guidance

At the publicizing and implementing conference of the "Measures for the Administration and Use of Corporate Safe Production Expenses for the Extraction and Use of Enterprise Safety" recently held in the coal industry, Fu Jianhua, deputy director of the State Administration of Work Safety and director of the State Administration of Coal Industry Supervision, pointed out that it is necessary to better play the policy-oriented role of safety production costs. .

Since 2004, when the country set up a safe production cost extraction and utilization system for the coal industry, it is conservatively estimated that the country's cumulative total extraction safety production costs exceed 320 billion yuan, and only state-owned and state-controlled coal mines have cumulatively extracted safety production expenses of 247.5 billion yuan, cumulative use of safety. The production cost is 212 billion yuan. This special investment has achieved remarkable results in improving coal mine safety production conditions and improving the level of equipment.

With the changes in the economic situation and safe production situation in the coal industry, the policy for the extraction and use of safe production costs has also undergone several adjustments. From the initial effort to supervise enterprises to ensure safety, investment has gradually changed to guide enterprises to independently establish long-term efficiency in the extraction and use of safe production costs. system.

8 years results

The current role of the safety production cost in the coal industry has been mainly to make up for the transition from coal mine safety debts to guarantee the daily coal mine safety investment. The safe production situation in the coal industry has improved year after year. The death rate from coal mines has dropped to 0.564 in 2011, a decrease of 86.5% compared with 2003.

In 2003, the number of accidents involving production safety in the coal industry was high. There were a total of 44 accidents involving more than 10 people, 7 accidents involving more than 30 people, and a fatal death rate of 4.170 million tons.

At that time, the economy of the coal industry was just beginning to recover. The hard times experienced before had left severe sequelae on safety production. According to statistics, before 2003, the country’s key state-owned coal mines alone had arrears of RMB 68.9 billion in security. The scale of safety investment is small, the source is not guaranteed, and there are no hard rules in the direction of use.

Against this background, the "Decision of the State Council on Further Strengthening Safe Production Work" issued in January 2004 (Guo Fa (2004) No. 2) proposes to establish a company to withdraw security costs, risk deposits for safe production, and increase casualty accidents. Compensation for three economic policies.

In May of the same year, the Ministry of Finance, the National Development and Reform Commission, and the State Administration of Coal Mines jointly issued the "Administrative Measures on the Extraction and Use of Coal Production Safety Expenses" and "Several Regulations Governing the Management of Coal Mine Maintenance Expenses" (Caijian [2004] No. 119). ), It is clear that enterprises will use monthly extraction of safety costs in the cost, determine the extraction standards and specific scope of use for various types of coal mine safety costs, and specify that the extracted safety production costs shall be disbursed prior to the payment of corporate income tax.

Nearly a year later, in April 2005, the Ministry of Finance, the National Development and Reform Commission, the State Administration of Work Safety, and the State Administration of Coal Mines jointly issued the “Circular on Adjusting Coal Production Safety Expenses Extraction Standards to Strengthen the Management and Supervision of Coal Production Safety Expenses Use” ( Cai Jian [〔2005〕 No. 168), the coal mining safety production costs to extract the original high limit of the standard to the lower limit of the new standard, and allow companies to properly raise the extraction standard on the basis of the standard high limit, and provides 45 key coal enterprises The security cost extraction standard is not less than 15 yuan per ton of coal.

As of 2011, the coal industry safety production cost policy has been implemented for 8 years. According to the statistics of the National Bureau of Statistics, during the eight years, the country’s raw coal output was 21.4 billion tons, which was conservatively estimated with an average of 15 yuan per ton of coal extracted. The country’s total accumulated safe production costs exceeded RMB 320 billion.

Recently, the Ministry of Finance of the State Administration of Work Safety carried out statistics on safety production costs for state-owned and state-controlled coal production enterprises of coal-related central enterprises and 26 coal-producing provinces (autonomous regions and municipalities directly under the Central Government). By the end of 2011, 26 state-owned and state-controlled coal production enterprises in 26 coal-producing provinces (autonomous regions, municipalities directly under the Central Government) had collected safety production expenses of 247.5 billion yuan, and accumulatively used safety production costs of 212 billion yuan. Among them, 8 provinces have accumulatively extracted safety production costs in excess of 10 billion yuan, and accumulatively use more than 10 billion yuan in 7 provinces, including Beijing, Jilin, Anhui, Jiangxi, Hubei, Sichuan, Guizhou, Fujian, Chongqing and Xinjiang. The safety production costs extracted by provinces (autonomous regions and municipalities directly under the Central Government) are all used.

The investment of this special fund has greatly improved the conditions for safe production, raised the safety level of coal mine equipment and facilities, and enhanced the capacity for emergency risk aversion and emergency rescue. According to the survey, the cost of extracting key coal mines in various countries has used a cumulative total of 95.5 billion yuan in “one pass and three defenses”, and a total of 57.4 billion yuan has been invested in the technical improvement of mine electromechanical equipment, power supply and distribution systems, and transportation (upgrade) systems. The replacement of a large number of new equipment and facilities, such as underground coal mines in Inner Mongolia, all mechanical and electrical transport equipment has been updated, Liaoning Province, a key coal mine five years to update the equipment nearly 10,000 Taiwan (sets).

Under the supervision and encouragement of the safety production cost policy, the enthusiasm of enterprises to extract and use safe production costs is high. For example, the state-owned and state-controlled coal mines in Shanxi Province have collected 82.6 billion yuan in safety production costs in 8 years and used 66.8 billion yuan. Shanxi Coking Coal Group Huajin Shaqu Coal Mine, Tongye Coal Group Co., Ltd.'s extraction standards reached 100 yuan per ton of coal, Shanxi Coal Group, Shanxi Coking Coal and West Mining Group reached 50 tons of coal and 70 tons of coal. In the 8 years since Anhui Province, a total of 29.1 billion yuan in safety production has been extracted, and all the extracted costs have been used. Anhui Huainan Mining Group's extraction standard is 50 yuan per ton of coal, a total of 16.3 billion yuan has been extracted since 2004, 70% of which are used for mine gas control.

In short, due to the supervision of policies and the improvement of the economic situation in the coal industry, the current role of coal safety production costs has been mainly to make up for the transition from coal mine safety debts to ensure the daily safety of coal mines. The safe production situation in the coal industry has improved year after year. The death rate per million tons of coal mines has decreased to 0.564 in 2011, a decrease of 86.5% compared with 2003.

Contrast between old and new policies

Compared with the old policy, the new “measures” expand the use of safe production costs, increase the extraction standard, use a more clear and detailed range of use, and the requirements for financial management and accounting are more clear. The responsibilities of companies and regulators are further clarified.

In February of this year, the Ministry of Finance and the State Administration of Work Safety jointly formulated and promulgated the "Administrative Measures for the Exploitation and Use of Enterprise Safety Production Expenses" (Financial Enterprise [2012] No. 16, hereinafter referred to as the new "Measures"), which expanded the scope of application of the policy. Three categories of industries, including metallurgy, machinery manufacturing, and development of weapons and equipment that need to focus on strengthening safety production work, were included in the scope of application. At the same time, the applicable fields of the original non-coal mine, dangerous goods production, and transportation industries were expanded, and the extraction of safe production costs was increased. Standards, and refine the scope of use of safety production costs.

For the coal industry, the original policy (Caijian [2004] No. 119, Caijian [2005] No. 168) of the new policy and the safety production cost of the coal industry has been revised in several aspects.

The first is to expand the use of safe production costs. The new "measures" stipulates that "safety production costs refer to the withdrawal of enterprises in accordance with stipulated standards and allocate funds exclusively for the purpose of improving and improving the safe production conditions of enterprises or projects among costs", which redefined the nature of safety production costs. Compared with the provisions in the original method “funds dedicated to coal mine safety production facilities”, the improvement of safe production conditions is no longer limited to safety facilities, but also includes safety production education and training, occupational hazard prevention, underground safety hedging, and major Hazard source monitoring and hidden risk control, such as preventive investment and reduce accident losses.

The second is to increase the safety production cost extraction standard. The new “Measures” has raised the minimum safe production cost standard, and no longer determine the extraction standards according to the double standards of mine size and disaster type, and uniformly draw the lower limit standard according to the gas level and mining process regulations. The new "Measures" stipulates that coal enterprises shall extract monthly raw coal production based on the amount of coal extracted. The coal mine (rock) and gas (carbon dioxide) outburst coal mines, high gas mine coal mines 30 yuan per ton of coal, and other Wells and mines have 15 tons of coal and open pits have 5 tons of coal.

The new "Measures" also made it clear that enterprises can appropriately raise the standards for the extraction of safety production costs on the basis of the prescribed standards and in accordance with the actual needs of production safety. Before the publication of these Measures, the provincial governments have already formulated the methods for the issuance and use of safety fees. The extraction standards are lower than the standards specified in the present Measures, and adjustments are made in accordance with the new "Measures", which are higher than the standards specified in the new Measures. Standard implementation.

In order to prevent individual companies from having excess balances in safety production costs, Article 14 of the new “Measures” stipulates that “the balance of safety costs at the end of the year for small and medium-sized micro enterprises and large-scale enterprises respectively reaches 5% and 1.5% of the company’s annual operating income, The safety production supervision and management departments and the coal mine safety supervision agencies and financial departments at the local county level or above agreed that the enterprises can reduce or reduce their safety costs during the current year."

The third is to clarify and refine the scope of use of safety production costs. The new “Measures” added a lot to the scope of safe production costs for coal companies, such as coal and gas outbursts and high gas mines to implement the “two four in one” comprehensive anti-outburst measures spending, the implementation of mine pressure (rock pressure), Thermal hazards, open pit slope management, control of goafs, emergency rescue technology and equipment, facility allocation and maintenance expenditures, accidental escape and emergency refuge facilities equipment and emergency drilling expenditures, and construction and improvement of coal mines' safe underground hedging System "expenditures; carry out assessments, monitoring and rectification expenditures for major hazard sources and accidents; use of new technologies, new standards, new processes, and new equipment for safe production; expenditures for safe production inspection and evaluation, consultation and standardization; safety Production propaganda, education, and training expenses; Equip and update the expenditures of safety protection supplies for field workers.

The fourth is to clarify the requirements for financial management and accounting treatment of safety production costs. The new “measures” stipulates that the accounting treatment of corporate security costs shall comply with the requirements of the unified accounting system of the State, namely, the “Notice of the Ministry of Finance on Issuing the Accounting Standard for Business Enterprises No. 3” (CBA (2009) No. 8). Article stipulates that the safety production fee that a high-risk industrial enterprise shall draw in accordance with state regulations shall be included in the cost of the relevant product or the current profit or loss, and shall also be recorded in the "4301 Special Reserve" subject. When an enterprise uses the extracted safety production fee, it is a cost-based expenditure that directly offsets the special reserve. If an enterprise uses the extracted safety production fee to form a fixed asset, it shall pass the expenses incurred in the collection of the “construction-in-progress” account and shall be recognized as a fixed asset when the safety project is completed and ready for use; at the same time, Deduct the special reserve and confirm the accumulated depreciation of the same amount. The fixed assets will no longer be depreciated in subsequent periods.

The fifth is to further clarify the responsibilities of industry enterprises and regulatory agencies in the supervision and management of safety production costs. In order to ensure that enterprises effectively implement the policy of safe production costs, the new "measures" complement and improve the content of the supervision and management of safe production costs. Companies are required to establish a sound internal safety management system and strengthen safety management. In order to prevent chaotic disguised fees, the new "Measures" emphasize that security costs belong to the enterprise to raise funds for its own use, and other units and departments must not adopt centralized management and use of such forms as collection and escrow. The responsibilities of finance, safety production supervision and management, coal mine safety supervision departments, and industry authorities are to supervise and inspect the extraction, use, and management of safety costs of coal companies according to law. The provisions of corporate responsibility requirements should be examined with emphasis.

Long-term success

In the past few years, the economic situation of the coal industry has been good. Enterprises attach importance to safe production, but also have financial resources to invest heavily in this area. However, how long-term and fully follow the concept of "unsafe, not production" development, there must be institutional protection and guidance. With the supervision and encouragement of the system, it eventually became a habit and became something that was integrated into the company's development strategy.

At the end of 2008, the Ministry of Finance issued the "Notice on Doing a Good Job on the Implementation of Accounting Standards Companies' 2008 Annual Reports" (accounting letter [2008] No. 60). The high-risk industrial enterprises are required to follow the "Accounting Standards for Business Accounting," in order to withdraw safety production costs in accordance with regulations. The specific requirements in the explanation (2008) are treated separately under the “earnings reserve” of the owner’s equity as “special reserve” items, which are no longer listed as liabilities; the dimension of the withdrawal of fixed assets by coal enterprises The simple fee should be handled in accordance with the principle of safe production costs.

This accounting method means that safety production costs are no longer pre-tax. During the National “**” period in 2009, Wang Xianzheng, member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference, and the representative of the coal industry of the former board of directors of the Yankuang Group, Yan Jiahuai submitted the “Longitudinal Report on Perfecting Coal Mine Safety Fee Accounting and Establishing Coal Mine Safety Production Investment. The "Recommendation of Effective Mechanisms" requires policy continuity.

Subsequently, under the coordination of the State Administration of Work Safety and the China Coal Industry Association, the Ministry of Finance expressed understanding and support for the requirements of the coal industry. Implementation varies across regions, and some provinces (autonomous regions and municipalities directly under the Central Government) still enjoy the pre-tax expenditure policy for safe production costs.

However, enterprises still have concerns about this, and they hope that the policy can clarify the “pre-tax expenditures for safety production costs”, saying that in the coal industry, the “Administrative Measures for the Exploitation and Use of Safety Production Expenses for Enterprises” propaganda and implementation meeting, Anhui Huainan, who speaks as the representative of the company Mining Group and Shanxi Panan Group all mentioned this clause in the proposal. The new "approach" does not specify this.

Perhaps the significance of this policy on taxation will gradually diminish. Its main role is to guide enterprises more centrally in establishing a long-term system for the extraction and use of safe production costs.

In the coal industry's "Administrative Measures for the Exploitation and Use of Corporate Safety Production Costs," a relevant person in charge of the Enterprise Division of the Ministry of Finance stated that safety production costs cannot be discussed in respect of safety production costs, and companies should raise the safety production costs to the corporate level. Strategic management level. Each person in charge of a coal company must have a sense of responsibility in history. When the business day passes, a long-term system arrangement will be made for the company. The long-term vision of “previously planting trees and descending people’s coolness” will be required.

This will be the long-term success of the safety production cost policy. Before 2003, only the state-owned key coal mines accounted for more than 68.9 billion yuan in security debt. Naturally, at the end of the century, the economy of the entire industry was extremely sluggish at the end of the century. There was no systematic guarantee of safety production investment. Is it not the main reason? one? In the past few years, the economic situation of the coal industry has been good. Enterprises attach importance to safe production, but also have the financial resources to invest heavily in this area. However, how long-term and completely follow the concept of “unsafe, not production” development must still have institutional guarantees and guidance. With the supervision and encouragement of the system, it eventually became a habit and became something that was integrated into the company's development strategy.

(Note: In the process of policy adjustment, the name of safety production costs has also been adjusted. The policy says “safety fees” and “production safety deposits.”

Comparison of safety production cost policies related to the coal industry before and after revision

before fixing

(Cai Jian (2004) No. 119, Cai Jian [2005] No. 168, Cai Jian [2006] No. 180, Cai Qi [2006] No. 478)

After modification

(Cai Qi (2012) No. 16)

Description Chapter 1 General Provisions Chapter 1 General Provisions further expands the direction of the use of safety costs and changes the limitations of the original coal mine safety costs that can only be used for coal mine safety production facilities. The improvement of safety production conditions and control measures for accidents also include safety production propaganda education and hidden danger management. As long as it is used to improve and improve the safe production conditions of enterprises or projects, security costs can be used. Cai Jian [2004] No. 119: Article 2 The term "security expenses" as used in these Measures refers to the amount of capital that an enterprise extracts from the actual production of raw coal and is used exclusively for coal mine safety production facilities.

Financial Enterprise [2006] No. 478, Article 3: Safe Production Cost refers to the amount of funds that an enterprise extracts according to the required standards, and pays out expenses, and is specifically used to improve and improve the safe production conditions of the enterprise.

Article 3: The term "safety production expenses" (hereinafter referred to as "security expenses") as used in these Measures refers to funds that are drawn out of costs in accordance with stipulated standards and are used exclusively for the purpose of improving and improving the safe production conditions of enterprises or projects.

Safety costs are managed in accordance with the principles of “corporate withdrawal, government supervision, ensuring need, and standard use”.

Chapter II Standards for the Extraction of Security Expenses Chapter II Standards for the Extraction of Security Expenses According to the new classification standards for coal mines, the classification basically corresponds to the original classification: coal (rock) and gas (carbon dioxide) outburst mines, high gas mines 15 yuan per ton coal adjustment It is 30 yuan; other wells and industrial mines are adjusted to 15 yuan per ton of coal; open pits are adjusted to 5 yuan per ton of coal.

Cai Jian [2005] No. 168 regulations:

(I) Large and medium-sized coal mines

1. High coal mines, coal and gas outbursts, severe natural fires, and large influxes of coal in mines are not less than 8 yuan per ton. Among them, 45 households that focus on monitoring coal production enterprises have not less than 15 yuan per ton of coal;

2. Low-gas mines are not less than 5 yuan per ton of coal;

3. Open pit mine coal is not less than 3 yuan.

(B) Small Coal Mines

1. High-gas mines, coal and gas outbursts, severe spontaneous combustion, and large influx of coal in mines are not less than 10 yuan per ton of coal;

2. Low tons of coal mine tons of not less than 6 yuan.

Article 5: Coal production enterprises shall extract monthly raw coal output based on the exploitation. The extraction costs for coal production per unit of coal from coal mines are as follows:

(i) Coal (rock) and gas (carbon dioxide) outburst mines and high gas mines cost 30 yuan per ton of coal;

(2) 15 yuan per ton of coal in other wells;

(c) 5 tons of coal in open pit mines.

Mine gas classification is implemented according to the current "Coal Mine Safety Regulations" and "mine gas rating appraisal specifications."

Financial Enterprise [2006] No. 478 Article 11: When the balance of the special account of the end-of-year safety expenses of small and medium-sized enterprises and large-scale enterprises reached 5% and 2% of the previous year's sales revenue of the company, the safety production supervision and management at the local county level or above The departmental finance department agreed that the company can reduce or reduce security costs this year. Article 14: At the end of the year, when the balance of safety expenses of small and medium-sized micro enterprises and large-scale enterprises reached 5% and 1.5% of the operating income of the company during the previous year, the safety production supervision and management departments and the coal mine safety supervision agencies of the local county-level and above financial departments It is agreed that the company can reduce or reduce security costs this year. In the extraction of necessary provisions, new requirements for micro-enterprises were introduced. The criteria for large-scale enterprises to raise or reduce security costs were adjusted from the 2% of the company's previous year's annual sales revenue to 1.5% at the end of the previous year. Chapter III Use of Security Expenses Chapter III Use of Security Expenses In accordance with the requirements of Document 23 of Guofa and Document No. 40, the expenditures for the implementation of "two four in one" integrated anti-knock measures have been increased for coal and gas outbursts and high gas mines; Coal mine safety production transformation and major hidden dangers management, perfecting the “six major systems” for underground safety evasion, emergency rescue technical equipment, facility configuration and maintenance expenditures, accident escape and emergency refuge facilities equipment configuration and emergency drill expenditure; major hazard sources and Assessment of accident risks, monitoring, rectification expenditures; safety production inspection and evaluation, consultation and standardization construction expenditures; on-site operations personnel safety protection supplies, safe production promotion education and training expenditures; safe production applicable new technologies, new standards, new processes, new equipment Promotion and application, as well as inspection and inspection expenses for safety facilities and special equipment. Caijian (2004) No. 119 Article 6: The specific scope of use of security costs is:

(i) Expenditure on renovation and renovation of main ventilation equipment in mines;

(2) To improve and reform mine gas monitoring system and drainage system spending;

(3) Perfecting and renovating mine comprehensive prevention and control coal and gas outburst expenses;

(D) improve and reform mine fire fighting expenditure;

(5) To improve and reform mine water control expenses;

(6) To improve and upgrade the safety and protection equipment and facilities expenses for mine mechanical and electrical equipment;

(7) To improve and reform the safety equipment and facilities expenditures for mine power supply and distribution systems;

(8) To improve and upgrade the safety equipment and facilities expenditures for the mine transportation (lifting) system;

(9) To improve and renovate the comprehensive dust control system for mines;

(10) Other expenditures directly related to the safety production of coal mines.

Article 17: The safety costs of coal production enterprises should be used in the following scopes:

(i) Coal and gas outbursts and high gas mines implement the "two four in one" comprehensive anti-outburst measures spending, including gas pre-drainage, protective layer mining regional anti-outburst measures to carry out prominent regional and local forecasting, implementation of local supplementary defense Sudden measures, updating and renovating anti-explosive equipment and facilities, establishing prominent prevention and control laboratories, etc.;

(II) Expenditures on the safety production and transformation of coal mines and the treatment of major hidden dangers, including “one-pass and three-prevention” (ventilation, gas prevention, coal dust prevention, and fire prevention), prevention and control of water, electricity, transportation and other system equipment renovation and disaster management projects, implementation of coal mines Mechanization transformation, implementation of mine pressure (rock pressure), thermal damage, open pit slope management, goaf control and other expenditures;

(III) Perfecting the “six major system” expenditures for coal mine monitoring and monitoring, personnel positioning, emergency avoidance of dangers, self-rescue under pressure, rescue of water supply and communications, safety and risk avoidance, emergency rescue technical equipment, facility configuration and maintenance expenses, and accidental escape And emergency evacuation facility equipment configuration and emergency drill expenses;

(4) to carry out assessments, monitoring and rectification expenditures for major hazard sources and accident hazards;

(5) Expenditure for safety production inspections and evaluations (excluding safety assessments for new construction, reconstruction, and expansion projects), consultation, and standardization construction;

(6) Equipping and renewing the expenses of safety protection supplies for field workers;

(7) Expenditure on publicity, education, and training for production safety;

(8) Expenditure on the application of new technologies, new standards, new processes, and new equipment for safe production;

(9) Inspection and inspection expenditures for safety facilities and special equipment;

(10) Other expenses directly related to production safety.

Chapter IV Supervision and Administration Chapter IV Supervision and Administration Industry authorities have supervision and management responsibilities for the extraction and use of corporate security costs. Cai Jian [2005] No. 168 stipulates: Coal mine safety supervision agencies at all levels and relevant local government departments, especially coal mine safety regulatory agencies, must strictly follow relevant regulations and adopt scientific and effective measures to increase safety costs for extraction and use of coal production enterprises. Supervision and inspection of relevant conditions.

Article 23 of the Financial Enterprise [2006] No. 478: The financial department and the safety production supervision and management department shall supervise and inspect the extraction, management, and use of the company's safety expenses.

Article 35: Financial departments at all levels, safety production supervision and management departments, coal mine safety supervision agencies and relevant industry authorities shall supervise and inspect the withdrawal, use, and management of the company's security costs.

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