The Study On Internal Control Of Changchun GS Of Government Invested- Projects

Government investment item has played a very important role in the continuous development of national economy, the improvement of the people's livelihood and the perfection of social economic environment. However, in the practical field of government investment item, there are still problems existing in government investment item, such as management extensive, operating inefficient, and waste extravagant, etc. All of these are due to the internal control errors directly or indirectly. For the above-mentioned reasons, this paper use Changchun GS government investment item as research example. The main contents are as followed:Chapter One, the first chapter mainly introduces the background of selecting the topic, research on the theory at both home and abroad, value in theory and practical significance, and the ideas and methods of the study.Chapter Two, the second chapter discusses the character, quality, and significance of Changchun GS item, and the item scale, capital source, organization structure, and the importance of internal control to this item.Chapter Three, the third chapter mainly introduces the status and problems of the internal control of Changchun GS item. The research indicates that, the capital control, system design and operation process of the internal control of GS item have formed a certain order. But there are still problems, such as irrational project governance mechanism, distempered supervisory and restrictive mechanism, and inner information transmission bottleneck, etc, all of which are disclosed from the angle of the five factors of internal control one by one.Chapter Four, principal agent-theory and internal control theory are used in the fourth chapter to analyze the problems existing in the internal control of GS item. First, from the government investment item perspective, there are complicated and multilevel principal-agent relations existing in the item. Among the multilevel principal-agent relations, as the agent of government, the item construction unit or project office can either be the agent or have the possibility to engage coalition with other agent. Second, risk exposed in the internal control of Changchun GS government investment item comes mainly from managerial factors, which is the loose enforcement of construction system. Third, attach weight to the information and communication in management and evade the agent as an insider affecting the interests of uninformed player. During the communication with intermediary agencies and between departments of project office, communication should be enhanced. Forth, the agent as a rational person has the tendency to maximize his benefits, he might pursue his own interest, and put the interests of client in a secondary position or sacrifice client's interests. So the two layers of agents need to be supervised.Chapter Five, the fifth chapter has put forward some specific resolutions combining the practical situation of Changchun GS government investment item. First, only definite target, principle and overall plan can apply reference and basis to the construction of internal control. Second, create a favorable internal control environment. Water Conglomerate integrate the key resources, such as manpower, finance, substance and information system in the management platform based on the government investment item, establish special GS government investment project management department specialized in catering for engineering construction management, appoint project manager and bring the core administrative function of project manager into full play, implement construction system strictly, intensify project incentive and restricting structure and information disclosure. Third, improve the information and communication of GS project. Set up information communication procedure of collection, processing and transmission, and information database. Project administrator should internally let everybody be aware of their responsibility and have a thorough understanding of all regulations. Fourth, Strengthen GS item supervision. Exert function of internal audit, intensify external supervision, and give full scope to financial monitoring mechanism. Fifth, carry out effective control. Aiming at the internal control problems existing in practical work, countermeasures are put forward.This paper introduces the problems existed in the internal control of Changchun GS government investment item, analyzes their causes, and proposes several suggestions, which provide feasible suggestions for perfecting the internal control, and also provide a reference for other quasi government investment item to find and perfect the weak link in the internal control.