Strengthening the financial infrastructure on Some Thoughts on Internal Control

[Abstract] In recent years, college enrollment and higher education because of international competition and other reasons, colleges and universities have set off the infrastructure boom, infrastructure Investment has expanded rapidly, increasing the amount of Investment, construction finance management in the importance of the more prominent need to further strengthen the Financial Management infrastructure, improve construction finance system, strengthen the infrastructure of financial internal controls to ensure that universities maximize the limited Investment in infrastructure and social benefits of Investment. for the current construction finance some problems of internal control, the authors proposed some countermeasures and suggestions to improve construction finance internal control to provide some reference.

[Keywords:] university infrastructure; financial control; problem; Strategy

In recent years, with the deepening of the reform of colleges and universities, colleges and universities appeared in infrastructure boom, infrastructure Investment has expanded rapidly. However, the rapid expansion of university education system and the introduction of debt, bring development for the university also brought the risks. Moreover, with the infrastructure management of universities increasingly complex internal and external environment, crime prevention duties infrastructure increasingly shows its urgency. College Capital Crimes complex reasons, but the corruption cases that have occurred in view, Capital Construction Management tilt to the university the right to a high incidence of corruption is only the incentive, lack the necessary management and this downward compatible internal control system is the university infrastructure underlying causes of high incidence of corruption. infrastructure to do the financial internal control is an important part of infrastructure work and effective means is one of the university infrastructure an important component of internal control. Therefore, universities need to improve their overall competitive strength and infrastructure to prevent crime, strengthen the infrastructure of financial internal control is an important management tool and one of the means.


First, construction finance the existing internal control problems

Because of the current university financial system is not perfect, the unit of inadequate understanding of Financial Management of infrastructure and other objective reasons, construction finance, there are some internal control weaknesses and problems, mainly as follows:
(1) Financial Management system infrastructure has not completely straighten out the financial system design is not perfect, some construction finance has not been fully incorporated into their school in the entire Financial Management system, to directly monitor college finance Investment in infrastructure to bring certain difficulties.

(2) University Internal infrastructure, finance, asset management, lack of sectoral coordination, affecting the efficiency of financial internal control infrastructure.

(3) basic infrastructure and management tools for Financial Management is weak, the whole process of infrastructure difficult to implement effective control.

(4) Personal finance infrastructure quality and business level needs to be improved, the team needs to be strengthened.

The current construction finance internal control is mainly due to these problems: construction finance management system that is not, constraint mechanism is not perfect; capital construction projects does not sound internal financial controls; infrastructure and lack of personnel and other financial complex. Therefore, for these issue, the author made a number of strengthening the construction finance the work of the internal control measures, in order to improve the university to provide some reference for the internal control infrastructure.


Second, to strengthen construction finance some of measures of internal control

(A) strengthening financial management infrastructure college leaders awareness of the operational level of infrastructure finance staff
Currently, the university leadership is often not fully aware of the financial infrastructure funds management personnel in the importance of schools that do a good job for infrastructure Investment depends mainly on the management of infrastructure sector, infrastructure finance staff just play by the rules, according to the contract payment can be. lack of infrastructure finance staff involved in financial analysis unit, the opportunity to study and forecast failed to participate in project decision-making, bidding, construction, completion and final acceptance of the control and supervision, project decision-making process for the breach of contract changes is unreasonable, arbitrary diversion of capital funds weak financial supervision and implementation irrational phenomenon. So, university leaders have the responsibility and obligation to establish a sound financial management system infrastructure (such as: asset management system, project contract management system, Engineering change approval system, project price settlement system, cost accounting system for wood procurement management system, reimbursement system, infrastructure system of financial and accounting officer job responsibilities, major financial transactions reporting system, etc.), especially in the current period of rapid development in the university infrastructure, it should strengthen the infrastructure of financial internal control and their own sense of responsibility, the financial infrastructure internal control as an important part of the internal control infrastructure implemented.

To make financial internal control infrastructure, infrastructure finance staff quality, continuous improvement of business level is the key. University financial management should continue to multi-channel, multi-forms to enhance its expertise in infrastructure finance staff training, and continuously improve its operations and management, which includes not only new ideas, absorb new knowledge, to improve the knowledge structure, master accounting expertise, should also be aware of construction and other expertise, infrastructure and general procedures for project construction, bidding, almost (pre-) operator and other relevant knowledge and related knowledge of laws and regulations, and gradually promote the process of financial management Information infrastructure to improve efficiency so that the infrastructure finance staff to adapt to the new situation the need for financial management infrastructure.

(B) the infrastructure of financial internal control covers the whole process of infrastructure projects, give full play to its financial management functions
Construction finance staff in the process of infrastructure projects, in order to advance in forecasting and decision-making, a matter of emphasis on the control and management, and afterwards there is analysis and evaluation. Infrastructural projects to achieve financial internal control is an important means of financial management infrastructure, including project decision-making control, control of project design and budget estimate, bidding and contract control, construction control, the final acceptance and final control of five parts, runs through the whole process of project construction.

1. Project decision-making control components: infrastructure finance staff on the project proposal to the financial analysis and forecasting analysis of the reliability of conclusions, and gives specific written comments and the whole process of decision-making involved in the project, countersigned by the relevant decision-making resolutions.

2. Project design and budget estimate control components: infrastructure finance personnel in responding to the project design drawings in the budget review, the audit includes the amount of the accuracy of the project, to apply the correct scale, and the aggregate costs incurred to take reasonable.

3. Bidding and Contract Control components: The process also includes bidding, bid opening, calibration and contract management phase, infrastructure finance staff should be involved, both for infrastructure financing and construction of the project team staff to understand the human, material and financial situation, understand the characteristics of the project, schedule, budget price, contracting methods, and the balance sheet approach and the financial provisions, you can make reasonable suggestions from the accounting point of view.

4. Construction project control link: The link includes the implementation of the project construction contract, the construction section of the allocation, quality management, project schedule control, construction cost management, content, infrastructure finance staff should be involved in monitoring the whole process of construction, the development of rational planned use of funds, and key control at critical points.

5. Final acceptance and final control elements: infrastructure finance staff to carry out the clean up in time to examine the final account book, the preparation of the draft final account, report to the audit of the accounts involved in analysis of budget estimates, budget implementation and gap analysis, and the cost of the project benefit analysis.

(C) the financial infrastructure to grasp the key points of internal control, improve the system of personal responsibility
Universities should be based on the characteristics of infrastructure projects, identify the infrastructure of internal control critical control points. Identify critical control points around the project need to close the central part of the internal accounting control to the expansion of the surrounding business processes. Critical control point set must be reasonable and easy to line, effective control points is too much to lose the flexibility of the financial internal control infrastructure, easy to dampen the enthusiasm of infrastructure finance staff, and too little sebum will affect the infrastructure of financial internal control objectives. so to grasp the internal financial control infrastructure projects , the following four key points to be controlled: Links to Research Papers Download http://www.hi138.com 1. Engineering Projects: infrastructure finance projects must first legitimate, reasonable to identify, review whether the project is complete, the legal approval procedures, project budget, project budget and funding sources to be legitimate.

2. On the implementation of the project: infrastructure project finance staff of the regulatory implementation process to be monitored. The first construction contract must be determined by tender; the second is carried out at any time to monitor the project.

3. Project record: Infrastructure Project Finance personnel matters should be promptly recorded. Project Manager to provide timely and regular progress of the works to the financial reports and financial forecasts.

4. Cost of the project: infrastructure financing should be correctly calculated the project cost, in strict accordance with the level of budgetary control of expenditure. First, the progress of timely and accurate records, materials, equipment and other Investments; the second is in progress carried forward to the timely delivery of assets ; third is whether the contents of the necessary changes to the project approval; Fourth, the implementation of the construction period of the audit; Fifth regularly review the progress and quality grade; six is the original value of fixed assets may be included in borrowing costs in time check.

(D) strengthen accounting, standardized procedures for disbursement of funds and accounts processing
Construction finance should be included in the financial field grade, in the infrastructure of financial accounts and the complete breakdown of the establishment, subject to detailed series should be set to meet the needs of accounting principles, are not too small and too coarse. Universities should be three capital accounts Detailed Subject-level set, which corresponds to the general ledger level subjects, two correspond to the name of the project, the construction of three units corresponding to the name of the project. infrastructure accounting in college, in addition to opening a bank account after the required supporting a "bank" subjects , the need to set the following basic subjects: "Investment of Construction Engineering", "stock materials", "advance fund", "advance preparation shall," "deferred Investment", "investment in equipment," "accounts receivable" "Accounts payable", "meet the construction cost," "equipment shall meet", "other receivables", "Other payables", "infrastructure funds" and "delivery assets" and other subjects.

Strictly regulate the disbursement of funds procedures: 1. Project funds to pay for basic procedures: the construction supervision engineer to apply for audit sign �� �� �� track audit engineers examined and signed on behalf of the Audit signing party at the Engineering Section Chief for approval �� infrastructure �� pipe works at the infrastructure action �� Finance leadership for approval at the infrastructure and leadership in charge of examination and approval �� Audit leadership for approval (above the limit of funds) �� approval of school leaders in charge of infrastructure (above the limit of funds) �� payment �� infrastructure finance feedback; 2. material terms and for equipment for the basic procedure: Application materials and equipment suppliers �� �� examined and signed supervision engineer engineers to track audit staff review audit signature signature �� Materials �� Materials Section Chief for approval at the infrastructure �� pipe material capital punishment at the Treasury in charge of infrastructure leading to approve �� The Department leadership for approval �� Audit everywhere leadership for approval (above the limit of funds) �� approval of school leaders in charge of infrastructure (above the limit of funds) �� �� infrastructure finance payment feedback.

Meanwhile, early in the project, the three links of the mid and late regulate the accounts of a good infrastructure project process, especially for the late settlement of the accounts of the project should focus on the specification. Such as have been completed and to achieve "intended use "The assets are stated to be in time for the valuation procedures. valuation can not be accounted for under the" Investment of Construction Engineering "and" deferred investment "in two parts, and construction works contracts should be based on the value price increases and contract changes occurred in self-construction material costs, loan interest, labor costs and other accounts on completion of the project works be carried forward. infrastructural finance staff should have been recorded in the asset valuation of the necessary price adjustment: to "intended use" construction in progress, if not for the completion of final year procedures, once the formalities for the accounts to be adjusted according to actual cost value of the original provisional estimate.

(E) to strengthen the construction project financial Information management, establishment of Information feedback system
Universities should be a designated officer responsible for financial Information collection, collation, the use of computerized accounting methods, true, accurate, complete and timely manner to the higher authorities, competent leadership to submit financial Information. Submit information including financial information reflects the the use of funds and monthly reports, annual reports, financial statements completion of the project, after completion of the project-benefit analysis of investment reports and other relevant information. At the same time, to strengthen the school finance, infrastructure, asset management and auditing of communication, timely feedback relevant financial information, making the parties to grasp the situation to ensure the successful completion of project tasks. arranged in the following year college capital infrastructure plan, the financial sector should be based on the school funding availability and the possibility of internal transfers, preparation of annual plans, and promptly submit the School of Finance. the construction project before the start of infrastructure works at the construction contract should be submitted to the Treasury, the tender letter books, started work permits and pay the upfront fee and all contracts related to the future for all term basis for the disbursement of funds. ��

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