Research On Internal Control Of Public Non-profit Organizations In China

Although the government manages social affairs, its capacity and energy is limited and can not solve all social problems. Although the market mechanism has touched every corner of social life, the market mechanism also appears to do nothing when facing the multiplicity and complexity of social problems, let alone reasonable solution to these social problems. Non-profit sector develops in the blank areas that the government and market mechanism are unable to cover.Due to special national conditions, there are some differences between the non-profit organizations of China and that of the West. Public non-profit organizations take a large part of non-profit sector in China, while in the West non-profit organizations take a large part. With government background, public non-profit organizations functions the same as that in the West. Public non-profit organizations appear all important areas of social life. They take the responsibilities to improve human qualities, enhance technological level, provide social services and other responsibilities.But with the rapid development of economy and society, some problems appear in public non-profit organizations, always occured in profit organizations, and these problems take the growing trend. For example, in recent years, the Red Cross of China has become a major tropic. There is a event of "astronomical-price tents" in May 2008. While there are also many events such as "astronomical-price meal " of Red Cross of Luwan District in Shanghai, Guomeimei, astronomical-price purchase, the Red Cross of Wuhan rent out warehouse illegally which is used to provide disaster relief, a country Red Cross of Sichuan "requests verbally" local not to accept "donor outside of the system" in 2011. Things appear one after another and are far more than that. Public non-profit organizations frequently have problems, its clean has been covered by dark suspicions and there is serious threat to the social credibility of the public non-profit organizations. Based on the background, this paper take internal control of public non-profit organizations as main contents, pointing the problems, revealing the root causes of the problems and exploring solutions to public non-profit organizations of internal control.This article reveals problems of our public non-profit organizations' internal control from the characteristics of public non-profit organizations, ways of operation and management mechanisms, and reveals the root leading to weak internal controls of public non-profit organizations. Subsequently, the article makes proposal to improve internal control of public non-profit in China from both interior and exterior.This article includes the following six parts:PartⅠ: Introduction. This section mainly describes the background, significance of research and domestic and international research, research methods, the innovation and insufficiency of the article.PartⅡ: Outline of the internal control of public non-profit organizations in China. The public non-profit organizations is set as object of the study considering the characteristic of public non-profit organizations in China. Defining internal control of public non-profit organizations and analyzing the aims.PartⅢ: Experience of internal control of non-profit organizations overseas. This part mainly introduces the experience of internal control of non-profit organizations overseas, mainly including:emphasis on information in public, the introduction of independent director system, triple audit, the perfect personnel management system, the emphasis on supervision of society and public opinion and so on.PartⅣ: The problems of the internal control in public non-profit organizations and the roots. This part begins with the scandals of public non-profit organizations to draws out the problems of internal control existing in public non-profit organizations, including poor awareness of internal control, governance structure is not perfect, the personnel system is unreasonable, budget management is not perfect, the lack of risk assessment, information transparency is in low-level and the implementation effect of internal monitoring is poor. The main causes of weak internal controls are included: internal control standards of public non-profit organizations has not been developed, the absence of owner and supervision mechanism is not perfect, over-reliance on government, the relations between public non-profit organizations and market.Part V:Suggestions. To mainly put forward the proposal to improves the problems of internal control of public non-profit organizations in China in two aspects. First, taking consideration of the characteristics, building internal control framework of public non-profit organizations, including the internal control environment, internal control activities, monitoring and self-evaluation. And important factors of each part are analyzed. The second part is to enhance industry supervision to public non-profit organizations through external factors concluding the supervision by government, strengthening the society public scrutiny, full display of media surveillance.Part VI:Conclusion and forecast. Carries on the summary and the forecast to this article. And proposed the limitation and deficiency.