Water conservancy construction funds belong to state organs, social organizations and enterprises according to regulations; In the audit practice, we found that due to the current accounting system and accounting standards; As a liability, the water conservancy construction fund should be paid according to the accounting system implemented; First of all, let's look at the subject of "management expenses"; Management expenses refer to the expenses incurred by enterprises in organizing and managing production and operation; We know that the characteristic of management cost is that the total cost is within a certain range. From the perspective of financial management, the basic water conservancy construction fund is collected from state organs, social organizations, enterprises and institutions and employees in accordance with the provisions of flood control and security and key water conservancy projects. It is usually levied according to the current operating income of the enterprise.

In the audit practice, we found that because the current accounting system and accounting standards are not clear about the subject of "water conservancy construction fund" as expense accounting, some enterprises account for "management expenses", some enterprises account for "non-operating expenses" and some enterprises account for "business taxes and surcharges".