1. The Hakka Affairs Commission, Taipei City Government (hereinafter referred to as the HAC), in order to promote Hakka culture, is providing grants to the Taipei City Hakka Culture Foundation (hereinafter referred to as the Hakka Culture Foundation), to operate and manage the Taipei City Hakka Cultural Park and has formulated the following prerequisites. 2. The scope of this grant in this prerequisite is for the Hakka Culture Foundation to operate the Taipei City Hakka Cultural Park, and to promote activities related to Hakka culture, art exhibitions and Hakka Village creative industries. 3. The Hakka Culture Foundation shall report and submit its preliminary plan (including work and budget planning) for the following year to the HAC for approval by April 15th of each year. 4. The Hakka Culture Foundation shall formulate the next year's work plan and budget according to the preliminary plan approved by the Hakka Affairs Commission (HAC). After the board of directors' approval, the next annual budgets shall be submitted to the HAC before June 30th of each year. The contents of the budget statement shall include: (The format of the budget of the Taipei City Foundation juridical person, which shall be sent to the Taipei City Council for the preparation of the budget notes for the "Foundation's Budget Items".) (1) Front Cover and Table of Contents (2) Main Description (3) Main Statements: 1. Estimated Statement of Income and Expenditure Operations 2. Estimated Statement of Cash Flow 3. Estimated Statement of Net Value Variations (4) Detailed Statement: such as the income detail list (5) Reference Table: such as the estimate statement of assets and liabilities The contents of the budget statement mentioned above shall need to be explained as comprehensive and detailed as possible. In addition to the forms enumerated, the Hakka Culture Foundation may, depending on the nature of its business and the actual needs, consider increasing the compilation of additional forms. The HAC shall evaluate and examine the establishment purpose, business needs, operational performance, investment effectiveness and financial conditions of the Hakka Culture Foundation. Following its review and if found to be inappropriate, it shall be returned to the Hakka Culture Foundation to make corrections within a time limit, then resent back to the HAC to complete the review. It shall then be submitted to the Taipei City Government's (hereinafter referred to as The Government) governmental meeting for approval. Upon approval and before August 31st it will be sent by mail to the Taipei City Council (hereinafter referred to as the City Council) with copy to the Department of Budget, Accounting, and Statistics, Taipei City Government (hereinafter referred to as The Department of Budget, Accounting, and Statistics). 5. The Hakka Culture Foundation shall apply to the HAC for grants by submitting three copies of the detailed planning of the current year before the 15th January of each year, in accordance with the budgeted amount of the grant approved by the City Council. As stated above, the detailed planning shall contain the operational conception and implementation of the plan, execution content, execution schedule and the allocation of the program funds. In the event that the Hakka Culture Foundation has applied for grants with more than two governmental agencies for the same project, it must list out all the amount of funds and the items applied with each agency. 6. The HAC shall review the detailed planning and if found to be unsatisfactorily inappropriate, it shall notify the Hakka Culture Foundation in writing to amend it and amend it within the time limit before re-submitting it to the HAC for a second review. The Hakka Culture Foundation shall implement the elements of the plan as approved by the HAC. However, those that need to be adjusted as a result of the actual business needs should be submitted to the HAC for approval before making any changes. 7. The Hakka Culture Foundation shall apply to the HAC for funding on the basis of the approved detailed planning, with the submission of three copies of the previous results report, one CD-ROM copy (except for the first installment), the phased allocation form (detailed as in Schedule 1) and the supporting documents. The previous results report shall be accompanied by the following relevant documents according to the nature of the project applying for a grant: (1) Operating revenues of the Taipei City Hakka Cultural Park (including rent, venue fees, royalties). (2) Statistics on the number of visitors to the Taipei City Hakka Cultural Park. (3) Results and Benefits of organizing activities. (4) Statistical analysis of customer satisfaction at Taipei City Hakka Cultural Park. (5) Details of the use of funds and of expenditure. (6) Overall implementation results evaluation analysis (7) Other results. When the Hakka Culture Foundation applies appropriation disbursement for funding after the second period, and in addition to the consent of the HAC, it must have disbursed more than 60 percent of the funds already appropriated in the previous period (including for actual and temporary payments). 8. The Hakka Culture Foundation shall, except for after the first phase of appropriation of funds, submit the following information to the HAC on a quarterly basis for reimbursement within 10 days after the end of each quarter. However, with the consent of the HAC, submission can be postponed except for the following: (1) Detailed Income and Expenditure budget for the previous quarter. (2) Original evidence of subsidized funds expenditure. (3) Other data specified by the HAC. The Hakka Culture Foundation shall submit the financial statement of the previous year and the implementation status and effectiveness report of the work plan in 10 copies to the HAC for verification before February 20th of each year. 9. The grant received by the Hakka Culture Foundation and the attached expenditure voucher shall be processed and made a list of expenditure details and the total amount of actual funds spent according to the requirements of the Management Guidelines for The Government Disposal of Expenditure Vouchers. The receipt and expenditure list shall be prepared, together with the original receipts, and sent to the HAC for transfer to the auditing agency. The Hakka Culture Foundation shall also keep a copy of the expenditure voucher for future reference. Various accounting reports, account books, memo books and vouchers, and the storage and digital processing of accounting data shall be carried out in accordance with the retention period of Article 84 of the Accounting Act. Vouchers that have been prematurely destroyed, damaged or lost shall be clarified as per their reasons and process circumstances, reported to the HAC and forwarded to the auditing body for assent. In the case of an unconfirmed procedure, the grant or the grant-recipient group will, depending upon its severity, have the amount of the subsequent grant reduced or stopped for one to five years. 10. The implementation of the subvention shall be governed by the following provisions: (1) The maximum fee for lecturers and attendance fees for experts and scholars to be paid from the HAC's grant shall be the hourly rate criteria set by the Executive Yuan. (2) If procurement is required during the execution of the plan, the amount of the grant provided by the HAC is more than half of the amount of the purchase, and the amount of the payment is more than the amount announced, it should be handled in accordance with the provisions of the Government Procurement Act. (3) Plans for overseas travel, organizational structuring of personnel quota, research and development, purchase of new vehicles and replacement of old vehicles shall be implemented in accordance with the proposal. They should not be modified or added without the special approval of the HAC. (4) If the plan involves a study project abroad, the plan to leave the country should refer to the Taipei City Government's annual plan for overseas travel grant program format. Travel expenses for relevant personnel shall refer to the provisions of the public officials' travel expenses of the central government agencies. Within three months after returning back to the country, the report shall be handled according to the fourth point of the Measures for handling reports for officials from the Taipei City Government and its affiliated agencies going abroad or to the Chinese mainland for official business and submit to the HAC for review. (5) In order to conduct policy promotion, it is necessary to clearly identify it as an advertisement and disclose the names of the authority and units that handle or subsidize it, in accordance with one of Article 62 of the Budget Act, and it is not possible to conduct such marketing by way of placement. (6) The amount of public relations fees shall be subject to the standard approved by the Government; any expenditure of a special nature shall be carried out in accordance with the expenditure regulations issued by the Executive Yuan. (7) The remaining unlisted items shall be dealt with in accordance with the accounting rules of the Hakka Culture Foundation and the accounting system. 11. During the execution of the project, the HAC may inspect the books, vouchers and other documents or check the cash and property of the Hakka Culture Foundation. If necessary, it may request a prompt or photocopy of the account books, certificates or other documents. The Hakka Culture Foundation shall not obstruct, circumvent or reject the verification mentioned above. It shall respond in detail to any inquiry made by the HAC. 12. The Hakka Culture Foundation shall set up a dedicated account for the grants received from HAC separately from other sources of donations. It shall settle the current year's expenditure on the grant and the amount of funds payable by December 31, each year. A detailed statement of annual expenditure (including the total planned amount for the main project, the amount appropriated, the amount implemented, the amount of reserves, and the amount of balances, details as per attachment 2) shall be submitted to the HAC to handle the retention payments for the current year and the remaining amount of unused funds shall be returned to the HAC by the 5th of January next. Upon expiration or termination of the contract, the Hakka Culture Foundation shall return the remaining balance of the grant funds (including usufruct) to HAC, and all the remaining non-used funds from other sources shall be remitted to the HAC's designated account. 13. The revenue generated by the management of the Taipei City Hakka Cultural Park (including land, construction, equipment and facilities) by the Hakka Culture Foundation should be reported to the HAC for approval before the income can be used. The remaining revenue collected after the settlement should be transferred to the account designated by the HAC, audited annually and subject to inspection by the HAC. 14. The Final Accounting Reports by the Hakka Culture Foundation shall be submitted to the HAC by letter before May 31st of each year following approval by the Board of Directors (Supervisors). The financial statements of the Hakka Culture Foundation for the application of the project must be assessed and certified by a Certified Public Accountant and sent to the HAC for inspection before May 31 of each year. If necessary, the HAC may send staff members for auditing the financial statements. The appointment of an accountant by the Hakka Culture Foundation shall not have been subject to any disciplinary action for the three years prior to his/her appointment. The contents of the accounts shall include (as in the format of the financial statement of the Taipei City Foundation legal entity which must be sent to the Taipei City Council for the preparation of the final accounts ("the Foundation?s Final Accounting Reports Items): (1) Front Cover and Table of Contents (2) Main Description (3) Main Statements: 1. Statement of Income and Expenditure Operations 2. Statement of Cash Flow 3. Statement of Net Value Variations 4. Balance Sheet. (4) Details Table and Reference Table: such as the income details list (5) Reference Table: such as the count summary of the number of employees With regard to the Details Table and Reference Table mentioned above, in addition to the forms enumerated, the Hakka Culture Foundation may, depending on the nature of its business and the actual needs, consider increasing the compilation of additional forms. The results of the work and final accounts of the Hakka Cultural Foundation shall be evaluated and reviewed on the purpose of its establishment purpose, business needs, operational performance, investment effectiveness and financial conditions. During the audit process, if it is found that there are deficiencies in the results of the work and the contents of the final accounts, the audit opinion shall be sent to the Hakka Culture Foundation for correction. 15. The HAC may conduct occasional or special audits on the implementation of the detailed planning of the Hakka Culture Foundation: (1) Committee of Performance Assessment Management: The HAC shall invite academic experts from relevant fields and representatives of the HAC to form a Committee of Performance Assessment Management to conduct regular assessments on the actual implementation, the content quality and the effectiveness of the project of the Hakka Culture Foundation. The results of the review shall be used as the basis for the next annual funding grant by March 20 each year. (2) Performance Assessment Taskforce: The HAC may set up an "Assessment Working Group" to conduct regular and occasional audits at the Park area. The results of the audit may be provided to the "Committee of Performance Assessment Management" for reference. 16. The Hakka Culture Foundation shall, in the course of its planning process, independently process all financial receipts and expenditures in the scope of its business, in accordance with Accounting Act, Audit Act, tax laws, generally accepted accounting principles and its accounting system. 17. The results obtained from the implementation of the Hakka Culture Foundation plan should be authorized to be used by the HAC, without compensation, in all forms of publicity. The Hakka Culture Foundation shall make an agreement with its employees or other relevant third parties to ensure that the above rights are enjoyed by the HAC. 18. In the event the Hakka Culture Foundation is found in any one of the following situations, the HAC may recover all or part of the subsidy funds provided, depending on its severity: (1) Information submitted is duplicitous, omissive and dishonest. (2) During the assessment of the grant application, if the result is found to be ineffective, that it is it has not been spent in accordance with the purpose of the grant, or that it has been misrepresented and overstated, not carried out in accordance with the plan approved by the HAC. However, reasons not attributable to the Hakka Culture Foundation are not subject to the limits. (3) Except in the cases set out in the preceding paragraph, the plan was changed without the consent of the HAC. (4) Prevent circumvention or refusal to accept the assessment or verification by the HAC. (5) Other violations of this prerequisite or other provisions prescribed by law. In the case of one of the subsections 1 and 2 of the previous paragraph, in addition to the recovery of all or a part of the aid, the case may be suspended for a period of one year to five years.