A Study Of The Internal Control System In Colleges And Universities

As an essential part of the modern management theory, the internal control system has become one of the indispensable administrative tools in the development of colleges and universities. Its basic concept came into being as early as the late 19th century. The theory of internal control eventually perfected itself in 1992 when the COSO Committee in the U.S. issued the important report entitled Internal Control—General Frame. However, so far most of the research done both in and out of China focused on the management in enterprises rather than in colleges and universities. In order to smooth out the implementation of college administration, a perfect internal control system effectively supervising the stuff involved has been highly necessary, adapting itself not only to the relevant laws and regulations of the state, the professional standards, but also to the specific situation in a particular university. With the adoption of such national policies as to develop China with science and technology in 1999, to extend college enrollment throughout the country, to further promote higher education, to enhance the reform on educational system, fundamental changes have taken place in college administrative system and its operational system under which the old pattern no longer meets its functional requirements. Therefore, how to devise a new internal control system for colleges and universities which makes full use of various ways of modern management has become most critical for todays'college administration.Based on a careful study about subjects like the relation between college administration and internal control, the five elements of the COSO theory as well as current situation in colleges and universities, the thesis intends to design a feasible internal control system for colleges and universities which places due emphasis on prevention. It aims at giving a practical solution to the existing problems in college internal control by establishing and improving systems, procedures to prevent both potential errors and malpractices.Started with an analysis on the present status of internal control in China's colleges and universities, this paper points out the necessity and ungency of strengthening internal control. Followed by a detailed research on the relation between college administration and internal control, along with the five elements of COSO theory, it further explores the designing of internal control system in colleges and universities. Finally, concrete analysis is made on its two key points : project management and budget control.