The Research On Internal Control System Of Government Institutions

With the development of economy and increase of social demand, the problems of government institutions are becoming serious, how to establish and improve the structure of government institutions, optimize its internal control, and promote the effective use of social resources, avoid corruption and waste, has become a major issue faced by the whole society. In November2011, in order to improve the internal management level and risk prevention capabilities, protect the interests of the public, and promote clean government, the Ministry of Finance drafts the "internal control of administrative institutions specification"(Draft), in December2012the "internal control of administrative institutions norms"(for Trial Implementation) was issued which means the government institutions will meet the storm of the internal control."The State Council institutional reform and the transformation plan" was introduced in the NPC and CPPCC in March2013. Li Keqiang, the Prime Minister talked about the plan at a press conference for the following points:1the mechanism reform is to optimize the government structure, and the transformation of government functions is mainly embodied in the power of cutting right, distinguish the boundaries between government and markets, if the market can do to the market, the government should only do a job of supervision, such as improving the system of administrative examination and approval.2In order to punish corruption, we should establish a perfect mechanism of anti-corruption, while emphasizing the people’s livelihood expenditure is rigid, even by cutting government spending to ensure people’s livelihood expenditure not decrease, let people live a good life, and promised would not increase three public support in five years.3The government should advocate the financial budget management system to be open, transparent, standardized, scientific, optimize the current financial results, make it more inclined to the livelihood of the people, and let the public and media make effective supervision on it. From the Prime Minister Lee’s points of view, the current administrative units should improve its internal control system in order to optimize the structure of financial transformation, conform to the government function.With the establishment of the public finance and expenditure reform, government institutions are facing new situation and task, therefore, it’s very important to strengthen and improve the internal control to standardize the financial behavior of the main body, plug the loopholes, save financial fund, improve the quality of economic operation. In fact, the practice of the system of innovation of China’s anti-corruption and urgent need for the systematic research on the internal control of the government institutions. From the actual situation of current government institutions, because of lack of internal and external constraint mechanism for a long time, the management is poor, most of the institutions do not have strict implementation of internal control system. In order to adapt to external demands of the new situation, and enhance their own internal control management level, not only it has theoretical significance on the research of internal control of the government institutions t, but also has practical value. So we can summarize in the practice experience that internal control has been carried out in the first step of the government institutions, and give some theoretical guidance to the internal control practice for other government institutions. On the basis of the Ministry of Finance issued" The internal standard control of administrative institutions", this paper wants to use the basic theory of internal control, do a research and analysis through the current situation of A, and find the problems in the internal control, then analysis of the reasons, finally, give suggestions to improve the internal control system, strengthen the implementation and evaluation of internal control and help other government institutions.This paper is divided into five chapters, each chapter is organized as follows:Chapter1, Introduction. This part firstly summarizes the research background and significance, and then describes the research ideas and research framework by a combination of charts and text.Chapter2is literature review. This chapter reviews the literature both home and abroad. After comparing the researches, it shows that both in theory and practice foreign researches are richer, have more research perspective and covers more diversification, research method compared with domestic scholars are more mature, more logical and testing, the domestic scholars in the internal control of administrative unit of empirical research also needs to strengthen. The literature review provides empirical evidence for further empirical analysis.Chapter3is theoretical analysis, definition and evolution of internal control are introduced firstly, and then elaborated the contents of the system of internal control framework of COSO, discusses the necessity of internal control and feasibility of COSO internal control framework used in the government institutions,finally analyze the laws of internal control and the current situation of internal control of government institutions,.These theoretical analyses support the empirical study in the following paper, so this chapter is the basis of this paper. On the basis of the feasibility study, it is determined to use the five elements of the COSO internal control framework to carry on the analysis to the administrative unit of A.Chapter4, Empirical Analysis. This chapter firstly first introduces the basic situation of the case A, then uses the COSO theory to analyze the internal control of case A and finds problems.Use the fuzzy comprehensive evaluation method to evaluate the internal control, turn the internal language evaluation into precise digital control and provide the internal control report. This part is the highlight of the paper. Finally, give suggestions for case A.Chapter5is the conclusion of this paper, with the main innovation and Prospects. After the empirical analysis of the A board, this chapter shows the relevant conclusions of current administrative units to improve the construction of internal control base on the five elements of COSO framework.After reviewing the main conclusions of this paper, we explore the innovative point of this article. Meanwhile, we discuss the limitations of this study and outlook on future research of Internal Control.Through empirical research, the paper reaches the following conclusion:(1) Improve the internal legal construction control of administrative units, to provide the legal guarantee for the implementation of internal control. Financial, auditing, supervision and other administrative departments should give administrative units more policy support, guidance and help to establish and perfect the supervision system of administrative units in the internal control systems, to give full play to the role, to ensure that the internal control can be implemented continuously. It is necessary to be promulgated relevant laws and regulations as soon as possible, to make clear and specific provisions on the administrative unit issued its annual budget and final accounts, the use of funds of government departments and administrative units should be shown timely, standardized, promote the supervision of public opinion.(2) With the transformation of government functions, administrative units should pay attention to the key points of risk prevention.In accordance with the requirements in2013NPC and CPPCC, administrative units should be redefined risk prevention and control of key points, the risk point of focus is mainly on two aspects, resumption risk and financial risk.(3) Deepen the reform of financial system, improve the quality of capital operation, the implementation of a comprehensive budget management. Take strict implementation of the new "administrative unit financial rules", make all income and expenditure into budget management. Take of the "two lines of revenue and expenditure" management strictly, Conscientiously implement the centralized treasury payment reform, standardize zero-balance account use and authorization payment amount, prepare annual budget according to the actual work, should also make up the government procurement budget. Combine the budget and assets, ensure the safety and effectiveness of asset management.(4) Speed up the construction of information, enhance the level of information of administrative unit comprehensive control. In order to improve the efficiency of administrative office, the implementation of office automation should be taken, the internal documents can be transported by the network communication electronic, increase the administrative unit information construction, promote the sharing of information resources in the use of information technology. Inform the information of internal control system, give full play to the role of information technology in information communication, enhance the comprehensive risk management.(5) Set up internal audit and external supervision mechanism, and build serious accountability system. Improve the internal supervision system, the establishment of full-time auditors; at the same time, it should emphasize the comprehensive internal audit, improve the status of internal audit. From the external supervision, combining the characteristics of China’s administrative units it should be established mainly to government supervision, social supervision by the external supervision mechanism. Finally, we should clear accountability system, it should be seriously investigated and related personnel responsibilities according to the audit found problems.Innovation and contribution of this paper:(1) To fill a gap in the internal control empirical study of administrative units.The previous literature is simply introduced and discussed the problems of current administrative units of internal control and improvement suggestions, or do the research on the construction of internal control in our country’s administrative units draw on the experience of the foreign countries, but little empirical research on the specific case of needle. Therefore, this paper attempts to do research on the basis of theoretical analysis of a concrete case analysis, ues the empirical model to conduct quantitative evaluation. It’s expected that this study could make up an empirical study on the internal control for our administrative units.(2) Using fuzzy comprehensive evaluation method, construct the quantitative evaluation model of internal control.This paper uses empirical research and normative research methods. First carry on the analysis of internal control system of COSO internal control framework of A based, then use the fuzzy comprehensive evaluation method to build model, the research on internal control changes fuzzy language description into precise numbers. In this study, it’s hoped that the fuzzy comprehensive evaluation method can provide reference for our country’s administrative units of internal control evaluation, to provide empirical evidence for.the construction of China’s administrative units of the internal control system,...