The Analysis Of Internal Control Problems Of A State-owned Water Companies Receiving Government Grant Allocation Reservoir

As a national institution for the purpose of social public welfare, organized bystate organs or other organizations use state-owned assets held, engaged in education,science and technology, culture, health and other social service organizations, in thestate planned economy period, public welfare function by the state. In recent years,accompanied by a large number of the establishment of the profit-driven institution,make the institution gradually deviated from its mission. The lack of managementpersonnel overstaffed institutions, low management level, function disorder, hasoccupied much of the national financial and management resources，no longer meetthe development and requirements of the market economy.The restructuring ofprofit-making institution, into the enterprise, the enterprise operation, is one ofimportant way to solve the institution reform. In the actual process of restructuring,many operational institution by government departments in the whole free transferway into management relatively mature and has a certain scale of large state-ownedenterprises to carry out the follow-up management. In the early stages of institutionreform, how to help the institutions to complete identity change, staff properly placed,the receiving unit to improve the internal control system in order to be receiving uniteffective integration in order to adapt to the whole development strategy has becomethe focus of reform.Based on the A is received by the state-owned group restructuring institutions Mreservoir and by its subsidiary B company for example analysis of the follow-upmanagement, expounds the process and by B, the follow-up to the management of theunclear property rights lead to financial risk and law risk, mechanism reform isexpected to bring personnel placement cost underestimation of risks, not timely management mode and organization structure caused by the lack of clearmanagement, after receiving the personnel placement difficulties, cultural integrationdifficulties, supervision mechanism does not extend to the M reservoir caused by Acompany’s financial risk receiving process. The author used COSO "internal control--integrated framework" theory of A company to receive the M reservoir internalcontrol problems analysis of the causes, from five aspects: control environment, riskassessment, control activities, information communication and supervision on thereception behavior of enterprise internal control are expounded, Hope A state-ownedgroup can optimize the control environment, control activities to enhance thefoundation of cultivating risk management concept and management mechanism, riskresponse improved M reservoir internal control activities effectively, improve theinformation management and communication, strengthening internal auditsupervision system and other measures to strengthen the construction of internalcontrol of state owned enterprises, influence gradually eliminate and resolve thereceiving institution behavior on enterprise internal control.Through the analysis andresearch of A state-owned group received by restructuring institutions M reservoircase, the hope can give government departments and managers of state-ownedenterprises some enlightenment on the reform of institutions of this special socialchange. Only further improve the social security system, to leverage the statemacro-control policies, strengthen the system construction of internal control ofstate-owned enterprises, in order to fundamentally completed the reform institutions,but also make the state-owned enterprises have undertaken reforms to boostinstitutions of social role, strengthen development institutions in the tide of reform.