Research On The Internal Control Of Local Goyernment Financing Platform Corporate

Local government financing platform company is a special product of economic system of socialism with Chinese characteristics,since the 20th century,80 years of local government financing platform for the first time since the emergence,the local government through this type of enterprise financing,extent,pulling the local economy growth and made important contributions to the promotion of urban infrastructure and improve the livelihood of the quality.During the starting period,development period,a period of rapid inflation,standardize the clearing period,in 2014 "on strengthening local government debt management advice"(Guo Fa[2014]43)issued a paper after,local government financing platform companies ushered in the fade out in the transition period.Can fade out in the period of transition,the financing mode,the rapid transformation of business mode and management mode is an important challenge for the development of local government financing platform for the company,but for a long time,local government financing platform companies in business development exist a lot of problems,especially in the internal control system construction is very weak,which is an obstacle to the transformation and development of the.For the local government financing platform,improve and perfect the internal control mechanism and time and tide wait for no man,only to face up to the problems existed in the past,to explore a way for the improvement of internal control,comprehensive and standardized operation of the local government financing platform,the comprehensive risk prevention,and can steady and healthy development,better play the role of serving the local economic development.This article uses the standard research method,literature review method,data analysis and other methods to analyze and research the internal control of local government financing Platform Co.First from the local government financing platform and internal control two perspective and illustrate the concept of local government financing platform of internal control,introduce the definition of local government financing platform,types,characteristics,the internal control theory,risk management theory to the study of the internal control system of theoretical guidance to construct the theoretical basis of this paper is expounded in this paper.Secondly,to precise positioning of the local government financing platform company internal control weaknesses,a comprehensive study of the course of development and its causes analysis and look at the issue from the development,the urbanization speed and investment driven and tax system in the financial management system and relevant legal obstacles,officials of the values and political view and the government of technology industry attention four level analysis of the main reasons for the development of local government financing platform.The process of urbanization and investment driven is the fundamental cause of the ecbolic financing platform of the rapid development of the company,the tax sharing fiscal system and related legal system makes the local government financing platform companies become the effective carrier to meet local government infrastructure investment demand,to avoid legal risk financing,the current GDP to outline the performance evaluation system and the competition between local officials of political promotion makes local governments have continued investment and financing impulse,government policy changes directly affect the local government financing platform for the company's development trend.Third,the basic elements of control theory,risk management theory,the theory of fiduciary duty in the internal,from the lack of clear objectives of internal control,the lack of good internal control environment,the lack of perfect risk management mechanism,the lack of effective internal control activities,the lack of accounting information system,the lack of strict control of six aspects of sound internal audit starting with the system,put forward the financing platform of local government internal control consciousness,ownership structure,capital structure,debt,budget control,operation control,accounting control and internal audit,etc.,combined with relevant data,reflect the severity of these problems,and may lead to the economic development of security risks.Then,the XX New Town Development Co.,Ltd.was selected to carry out an example analysis,and put forward specific issues.Finally,aiming at the problems,puts forward some suggestions that the transformation of local government financing platform companies must from the optimization of internal control environment,improve risk management mechanism,strengthen the operational control,strengthen internal and external supervision of the four aspects to strengthen the internal control system construction,truly separate government functions from enterprise management,and constantly improve the corporate governance mechanism,continue to strengthen the internal control and risk management,actively choose effective way to become bigger and stronger,in order to meet the challenges of the market in the future,to seek survival and development.