Research On Nonprofit Institutions Internal Control Issues

In recent years, investment in public services continues to increase, the institutions internal control problems get more and more attention by the society, establish a sound and effective institutions internal control system is also essential for the modem institutions. But the institutions internal control system is still in its infancy, many systems are not perfect and there are many loopholes. In order to solve these problems the Ministry of Finance formulates "institution of administrative internal control standards (Trial)" (accounting (2012) 21 number) in 2012.Firstly, I discusses the basic theory of institutions internal control by reading a lot of domestic literature, books, other laws and regulations, literature study and descriptive study.lt is including internal control connotation and elements, characteristics and classification of institutions, the subject, object, and internal control method of institutions. Then the third chapter use case analysis and empirical research method to presented the institution status and internal control problems and reasons by a welfare institution for the study. Including low budget control efficiency; weak internal control awareness, uneven quality of personnel; job setting unreasonable and unclear; internal supervision is imperfect, the lack of effective risk assessment mechanisms. The fourth chapter describes the target of institution’s internal control and learn COSO internal control five elements. Giving a suggection of the internal control system and institutions build recommendations from the control environment, risk assessment, control activities, information and communication, and supervision. Analysis and research of these issues will help strengthen and improve the internal control system of institution, effectively avoid regulatory corners; to some extent, to reduce corruption and fraud phenomenon, to implement the common functions of the institution; ensure the security of financial resources and to improve the use efficiency of financial capital; It have practical significance to strengthen internal controls of institutions.