Construction Of Internal Control System Mechanic Schools

As part of non-profit organisations, technical institutes welcomed its opportunityfor development in the late90s. All kinds of technical institutes continued to expandand upgrade, as a result, their number of students increased significantly, and it gaverise to complications in economic activities. In the traditional model of plannedeconomy, the government funds the operation of technical institutes, but this causesinefficiency where institutes spend all that they were given and keep requesting formore funding. However as the economic activities in technical institutes continue tostrive, many problems surfaced in different areas involving financing, investment,equipment procurements and infrastructure projects, and many unreasonable andillogical decisions were made, causing discrepancies in actual results and initial aims,as well as creating hotbeds for corruption. Due to the fact that there have been asignificant cases of corruptions in the expansion of institutes and building ofinfrastructures, and alarming issues involving debts and finance. Even though therehas not been any major cases of corruption in technical institutes, it does not rule thepossibility of such cases happening. Thus, in order to level up the quality ofmanagement of technical institutes to its rate of development, improving efficiency inusage of funds and achieving the pre-determined targets, it is crucial for a system ofinternal control and management, that is suitable for the technical institutes to beestablished.This thesis takes references from relevant research results and practicalexperiences, it builds on the foundation of theories of internal management andinformation, establishing the system of internal management for technical institute. Italso analyses the current situation of internal management of technical institutes,researching the underlying reasons for the above mentioned problems. andhighlighting the necessity of improving and perfecting the system of internalmanagement of technical institutes. Lastly, based on the the COSO report regardingthe research results for risk management, together with the relevant regulations fromthe jointly issued (Basic standard for internal management of enterprises) by theministry of finance, securities and futures commission, department of audit, chinabanking regulatory commission and china insurance regulatory commission. Lookingat the distinguishing characteristics of the economic activities in the technicalinstitutes, using the example of a certain institute, illustrating the breakdown of itsinternal management, establishing the foundation of environment control, resting on the system of internal control of the management. Designing the practical control ofthe weak links in management, such as currency funds, physical assets andengineering projects in the current economic activities. Hoping to provide someinsights to establishing a healthy internal management system of technical institutes.As the writer does not have deep knowledge of internal management due to shortworking experience, the information came from the accumulation of day by dayworking experience, research and analysis. Thus the finished work might containimperfections in details and content, the writer aim to perfect the thesis in his futurework and research.