Coal enterprises in the financial management of capital construction projects

[Abstract] coal enterprise infrastructure finance accounting irregularities exist, the construction unit irregularities advance for projects, reserve margin does not regulate the quality of engineering, construction, non-standard units of management costs, financing and other issues not timely. For infrastructure the whole process of project financial management and ensure infrastructure is the key to early management, process management infrastructure projects to strengthen the core, good infrastructure is the focus of final completion of the project.

[Keywords:] coal enterprises; construction projects; financial management

1, the problems in the financial infrastructure

First, accounting irregularities. Basic project accounting irregularities mainly establish accounts, the use of inaccurate accounts, project cost accounting is not complete and other issues.


Second, there is no storage of construction funds to open a bank account or multiple accounts opened. Ministry of Finance requirements, with a construction project, regardless of their financial resources in nature, account must be in the same accounting and management. In the actual construction work, some units do not account storage of construction funds, but to confuse the construction fund of funds in other accounts in the context of accounting; some units as sources of project funding, of a different nature, resulting in duplicate accounts on the same construction project to open bank accounts in several accounting of construction funds, contrary to the provisions of the financial management infrastructure.

Third, advance for projects of construction units irregularities. In accordance with the capital accounting requirements, the project has not started before the approval, preliminary work can pay fees (but not payment for work); project plan has been approved, preliminary design and budget not yet approved, to pay for the necessary construction costs; preparation is really necessary working capital construction enterprises, the construction units can be allocated under the contract shall be the preparation. preparation shall not normally exceed the year of construction and installation work for 25% of the funds needed. Construction preparation unit shall pay, working conditions should be based on, one after another to offset the construction cost.


Fourth, the reserve margin does not regulate the quality of the project. In accordance with the provisions of financial management infrastructure, "the construction unit price must be settled by project aside 5% of the total project quality bond, pending completion of the project one year after acceptance of the liquidation." Some construction unit without the required deposit reserve quality, quality problems is difficult to respond to the construction unit to find the money deducted, would not achieve the construction unit to ensure project quality binding effect.


Fifth, the construction unit management costs is not standardized. The basic construction unit of accounting in accordance with the requirements of the construction unit of management fees should be implemented "total control, and truly charged," the cost of some units over budget more, squeeze out the construction costs, provision for the amount charged by some units, some units are transferred from other accounts out spending, in violation of the construction unit of management fees of Use.


Sixth, the funding is not timely. Slowly local matching funds, has seriously affected the progress of construction and higher efficiency in the use of funds allocated; project price settlement irregularities, there is no measurement and payment system in strict accordance with the project will pay the price, but for large construction unit advance funds, do not follow the progress of the project construction fund allocation; the balance of project financial management irregularities.


2, the whole process of infrastructure projects, financial management

2.1 good job pre-management infrastructure the key financial management

Early infrastructure projects in capital construction program is an important stage of the project based on the success or failure. To ensure a comprehensive capital construction projects and objectivity in decision-making, financial management and supervision should be placed on the following aspects: �� the construction phase of the project. According to country, industry macroeconomic policy, fiscal policy, business income structure, financial situation audit projects, design review and bidding units of the supervision process, preliminary cost estimates for project and support the control of the audit. As with the stage of preliminary work , and any disruptive changes must occur in specific real-time cost effective financial supervision and control. �� in the project feasibility study stage. coal infrastructure projects, financial management and supervision will focus on the economic viability of the project budget reasonable compliance, the credibility of the legitimate sources of funds. So, not only to judge according to the national universal indicator of the financial viability of the project, but also with industry characteristics, financial and taxation policies, comprehensive argument; also in accordance with state audit of the project budget to prevent "fishing" and the unrealistically high, and carefully examine the financing options proposed by the rational combination of investment and financing programs; to combine indicators of infrastructure projects of industry analysis of the project from the source to prevent loss and ensure fast development of enterprises. �� In the project approval stage. financial management and supervision will focus on "Anticorruption", "anti-change." budget to strengthen the control of non-compliance dare to veto the project to prevent "excessive" costs, to prevent pass through bribery. but also to prevent To pass, free to modify the project based on indicators, resulting in birth defects in construction projects. Links to Research Papers Download http://www.hi138.com 2.2 infrastructure projects to strengthen the process of management is the core of financial management

First, financing programs and investment plan (budget) implementation. Coal infrastructure projects mainly by financing the construction of capital projects, borrow money form. To review its own capital is in place, included in the annual budget, capital budget money ; to review funding of capital investment contract (agreement) is signed, and whether the project matches; to review documents or government funding or grants approval is received, if additional funds are not there any other place; to examine whether the borrowing of funds loan commitment issued by a bank letter of intent, foreign bank loans or loans from international financial organizations or issue bonds proposal is approved by relevant departments; to review the annual investment plan (budget) is implemented. Only funds with plans to implement, can we agree to start the construction. ensure that the project into the implementation phase according to plan, according to the progress of the timely supply of funds to ensure the smooth implementation of construction projects.


Second, strengthening the basic construction project bidding and management of financial supervision. To review the financial position to bid, such as financial strength and cash flow position, liquidity and corporate credit conditions, to confirm that they have adequate financial performance, and ensuring project can be completed according to contract duration, and improve investment results; to review bid corporate social reputation, by the People's Bank, various networks of social credibility survey to find out the pending litigation, the return of loans, transactions in arrears, equipment and technology etc., its objective evaluation; to participate in the tender subject of review and supervision of the whole process, especially the development of tender specifications, the two sides agreed to the funds, time, inspection methods, materials, supplies, payment methods, quality standards, and deposit requirements clear.


Third, the construction of infrastructure projects to strengthen the financial management and supervision of the process. To establish and improve internal control system to improve financial management and supervision of construction projects the quality of work, supervision of construction projects to ensure that rule-based, law, construction projects to improve the quality of accounting and financial management levels. through the internal control system of the internal division of labor organizations and leaders to set and achieve all aspects of the functional departments and contain each other, checking each other. in particular to improve the human, financial, and material management system engineering inspection system, using the system to regulate construction projects in various economic activities and management. supervise implementation of the system, according to the various systems developed regular and irregular funding of construction projects management, engineering, quality control, etc. check, and evaluate the existing internal control system, constantly improve the internal control system.


2.3 The final completion of capital construction projects to do is focus of financial management

Coal infrastructure projects in accordance with the approved content and design of all construction is completed, require organizations to project completion and acceptance, transfer of production, to ensure that the correct asset value of new construction projects to fully reflect the interests of investors, should be placed on the final acceptance and commissioning of the financial management operation and supervision. to individual projects in accordance with the contract duration, quality, with particular focus on production debugging acceptance of the situation and ensure the integrity of the transfer of infrastructure projects. grasp of property completed project materials, claims and debts of the clean-up. capital construction projects completed after acceptance, deal with all kinds of fixed assets, equipment, materials, clean up and transfer of credit and debt in a timely manner and for standardized procedures for the transfer of works is completed, clearing accounts. well end infrastructure management and supervision of public money. in the completion of major infrastructure projects acceptance, there will still be some sporadic works in progress, prone to lax management at this time the phenomenon, the main project should be treated the same as the acceptance criteria and payment process. The quality of the project bond, the guarantee must meet the contract period, the relevant departments inspection confirmed only after payment. should be placed on infrastructure projects, management and supervision of the accounts. strictly in accordance with financial regulations and the preparation of final accounts for the preparation of the report shows that the use of funds for capital construction projects, project completion sunny conditions, analysis of budget implementation and evaluation; according to the balance of funds to be allocated and the balance of material handling, set aside a good finish and quality of public money deposit.

References:

Sun Shuna. Strengthen financial management of capital construction projects [J]. Metallurgical accounting, 2009 (4). Links http://www.hi138.com Research Papers Download