Research On Internal Control Of Administrative Institutions Based On The Business Process

With the rapid development of market economy,today the boundary of the Accounting subject has been extended to the internal control areas,forming the large composite Accounting consisted of finance,accounting,auditing,and control.As important social management departments of our country,Administrative institutions regard internal control as one of the most important methods to guarantee security of the state-owned assets and prevent the civil servants,corruption and fraud.However,the case of Bureau of Finance of Qianjiang City in Hubei Province occurred in 2009,the case of Bureau of Finance of Poyang County in Jiangxi Province occurred in 2010,the Red Notice involving a hundred people in April 2015...All of these disheartening figures reflect that the relevant departments are lacking in internal control extremely.Generally speaking,the administrative institutions have simple business process and relatively simple accountancy checking.Most of them know little about the internal control and are very poor in execution of the internal control system.It caused confusion of fund management,flaws of internal control and other serious problems to a certain degree.In 2014,Lou Jiwei,the Minister of Finance Department of the People's Republic of China,proposed his opinion about the establishment of the internal control system.He said that it is the explicit requirement of the 4th plenary session of 18th Communist Party of China Central Committee to establish and implement internal control in the administrative institutions.The well-established internal control system is an effective means to prevent and control the independent risk and build a clean government.In the process of writing this thesis,the author uses different methods,such as literature review method,case study method,file access method,tracking observation method,interview method and so on.The author reviews the research status of the internal control of administrative institutions from the aspects of system construction and theoretical research at home and abroad.This thesis summarizes the theoretical framework of the internal control of the administrative institutions from the four aspects of definition,objectives,elements and principles.The theories in the field of economics,management,administration,public administration,psychology and auditing are used to analyze the necessity of implementing internal control in administrative institutions of China.The economics theory puts forward to cultivate moral man.The management theory puts forward to define the accountability of the administrative institutions,and implement administrative accountability system.The administration theory puts forward to control the administrative discretion.The public choice theory claims that economic man is the logical starting-point of analyzing government behaviors.The Maslow's Hierarchy of Human Needs puts forward that love and belonging,esteem and self-actualization are the demand of civil servants.The three elements of Fraud Triangle are closely related to internal control.It focuses on the research of the present situation of the internal control of our country's administrative institutions and sums up the characteristics of China's administrative institutions.The administrative institutions of our country are of strong dependence of the state policy,deeply influenced by cultural tradition,and of unbalanced development.The overall concept about the government management of administrative institutions is relatively backward.The current problems are analyzed by using COSO five elements,they are internal controlling environment,risk assessment,controlling activities,information and communication and supervision.This paper selects XX,a public management institution,as a case research object,which has special vertical management mode and dual attribution of administrative institutions and public institutions.By analyzing the national laws such as Civil Servant Law of the People's Republic of China,it is concluded that the public management institutions are more similar to the administrative institutions rather than the public institutions in essence,although they belong to the series of the public institutions organizationally.XX unit is a government survey institution and also a statistical survey of law enforcement agencies.It exercises statistical investigation and supervision authority independently according to law.The XX unit reports the results of the survey and related information to the National Bureau of statistics and the provincial investigation team independently,and is responsible for the authenticity and accuracy.At the same time,it also undertakes the tasks of statistical survey commissioned by the local government.Combined with the characteristics of the case study object,the paper selects the budget,capital,procurement,assets and other business to sort out the problems of internal control of the unit from the perspective of business process.The conclusion is that the structure,ideology,system,personnel,information communication and other aspects carry out the above problems.Based on the analysis above,the author takes XX unit as an example to put forward the construction of the internal control of the administrative institutions in China based on the business process from the four aspects of theory,system,implementation and supervision.This paper states that in philosophy it is important to activate the endogenous power,make the following principles,clear the scope of the objects,and sort out the key control points.In terms of system construction,the government should introduce the internal control system and the implementation rules suitable for China's national conditions.And the relevant departments should provide the appropriate policy support from the state level.In the unit level,the administrative institutions should set up internal control office and establish the rotation system,evaluation system and so on.In the business level,it should make strict division of responsibilities and set up the risk control system of critical control point.In the process of the implementation,attention should be paid to ideological,methods,and operational level.At last,the thesis puts forward requirements of the supervision process from the time,subject,content,methods and other aspects.The administrative institutions shall design the internal control framework of the unit level for all of the departments,positions and staffs in accordance with the principle of the separation of the incompatible duties and the principle of internal authorization and approval.Through the integration of business process,all of the departments,positions and staffs are embedded in the internal control system of the business level.The administrative institutions will accomplish the internal control management of system,unit,business and staff by means of information technology.The thesis is aimed to put forward more specific suggestions to the internal control management of the current administrative institutions like XX unit in China.