Research On Internal Control Of PPP Project

The PPP model is a cooperative relationship between the government and social capital.The two parties provide public goods and services such as infrastructure construction to the public through revenue sharing and risk sharing.For the past few years,with the development of market economy,the requirement of public goods and services has also increased,which has further promoted the introduction and development of the PPP model in China.Through the PPP model,it can effectively solve the government's financial pressure on public infrastructure construction.At the same time,it can share the government's pressure on the construction and management of the project.Therefore,since the recommend of PPP model,it has received the highly attention of the whole national market and has been enthusiastic supported by government policies.For social capital,the PPP model not only provides a stage for social capital to participate,but also brings them tangible rich income and intangible good reputation.Promoting the development of PPP model in the field of infrastructure construction in China will be another powerful starting point for stimulating the vitality of China's economy and changing the functions of our government departments.Because of its complexity,the PPP model generally has the features of long construction period,large scale of investment capital,long return time,high technical standards and wide cooperation scope.However,because of the short introduction and application time,there are many problems such as insufficient experience,deep research,and unclear specifications.Until 2017,the Ministry of Finance announced that it would clean up the PPP project that had been put into storage on a large scale nationwide,which made the rapidly developing PPP model slammed on the "quick brake".In the final process of clearing the PPP library,the number of projects more than 1600,and the total investment involved reached 1.8 billion yuan.This shows that the operation of PPP mode in China is still not perfect,and the internal control of government and social capital have many unsolved problems.At present,the academic research on the internal control of PPP projects mainly focuses on the construction of the government.The two sides of the cooperation often have problems before they can find a solution.That means we lack of a complete PPP control system.This article is based on these issues to carry out research,taking the "Equity Financing+Franchising" composite PPP model of the Beijing Metro Line 16 project as an example,from the standpoint of the two sides to analyze their internal control risks,then design appropriate internal control activities.This paper analyzes the implementation status of PPP mode in China first,and clarifies the institutional background.Then we focus on the reasons for the large-scale clearing phenomenon.Through the analysis of the failed projects,the problems exposed in the internal control system construction of China's PPP projects are summarized.Secondly,this paper through the method of case study,taking the Beijing Metro Line 16 project as an example,first analyzes the background and financing structure of the project.Subsequently,the project risks arising from the adoption of the new composite model "Equity Financing+ Franchising" were analyzed.Finally,from the perspective of the government and the social capital,this paper analyzes the internal control points of the project,and designs the risk points of the project process to design reasonable internal control activities.Reduce risk to a low level,prevent project risks,and ensure the project finished.