Research On Internal Control Of Company N’s Capital Construction Projects

Capital construction is important to economic development.In the state’s financial expenditure,a large amount of funds are used for capital construction projects.Stateowned enterprises play an important role in capital construction.According to the unified deployment of the state-owned enterprise reform action plan,central enterprises are continuing to deepen the construction and supervision of internal control systems,including strengthening the construction of internal control systems for capital construction projects.Company N is a third-level subsidiary of a central enterprise.It is located in Sichuan and is the largest manufacturer of pressurized water reactor nuclear fuel assemblies in China.Its assets are 17.1 billion yuan.In order to meet the needs of business development,Company N maintains a certain number of capital construction projects every year.The thesis takes company N as the case study object,after introducing the company’s capital construction project workflow and internal control status,it analyzes the company’s current capital construction project management internal control defects from the five elements of internal control.Defects mainly exist in the following aspects.In terms of internal environment: there are phenomena of "absence of owner" and "insider control";part of the project management agency’s responsibility has not been implemented;human resource management is flawed;there are still some shortcomings in cultural construction such as corporate mission.In terms of risk assessment,there are problems such as insufficient risk identification and inappropriate risk response strategies.In terms of control activities,the main problems are as follows.The authorization approval process is lengthy and a mere formality,and the effect of financial accounting control is limited.What’s more,when preparing project budgets,consideration is not comprehensive.In terms of information and communication,the coordination and communication mechanism between departments is not smooth enough,and the effect of informatization construction is poor.In terms of internal supervision,one is that the deterrent force of the internal supervision organization is small,and the other is that the professionalism of the internal supervision personnel is low.Subsequently,this thesis puts forward suggestions for improving the internal control of the company’s capital construction projects from three aspects: the company’s overall level,specific business level and safeguard measures.Suggestions at the overall level of the company include improving the internal control environment,coordinating the information system construction of company N and strengthening the supervisory role of internal institutions.The specific business-level suggestions include: improving project risk assessment,improving and optimizing various control activities such as rotation of hot positions,contract control,and post-project evaluation,promoting information sharing of capital construction projects,and insisting on internal supervision of projects.Safeguard measures include organizational structure safeguards,institutional safeguards,and personnel safeguards.It is hoped that this thesis can provide some ideas for companies in the nuclear fuel industry to improve the internal control of capital construction projects,help improve the efficiency of the use of financial funds,give full play to the benefits of project construction,and maintain national security and energy security.However,Company N cannot represent the entire nuclear fuel industry,and at the same time,my professional level is limited,the suggestions presented in this thesis cannot be fully applied to other companies.