Research On The Internal Control Construction Of Administrative Units

In administrative institutions, the internal control refers to the process of risk management and monitoring for the management department to fulfill their social responsibility, which is indispensable. Recently, administrative institutions, as the main body managing social affairs, have exposed many deep-rooted problems. How to re-position itself, perform governmental functions, establish and refine government structure, promote the effective use of social resources, enhance the credibility of public service and face respond to the public’s attention to public affairs are all closely related to internal control. Mr. Lou, the director of the mimstry of finance, declares that, "Establishing and implementing internal control for administrative institutions are the communist party’s requirements in the 4th plenary session of 18th National People’s Congress, and also effective ways to build a corruption-free government."Chinese literature about internal control focuses more on enterprise, compared with their foreign counterparts. The establishment of internal control system in administrative is quite urgent facing dramatic changes and relevant research has meaningful and practical value. Based on the Internal Control Standards for Administrative Institutions, this thesis tries to summarize literature of internal control and justifies the necessity and practicability of its implementation. A quantitative study was performed in S bureau with 5 point Likert Scales from five aspects, including internal environment, risk evaluation, information and communication, controlling activity as well as internal monitoring. Studies have shown that A bureau has relatively effective internal control system, especially in information and communication. However, in the actual implementation of internal control system, there are still some problems such as lack of effective motivation system, lack of constraints on budget implementation, no strict separation between accountant and cashier positions and lack of experienced auditors etc. Combining with the author has observed about A bureau, six barriers to the improvement of internal control system are summarized including organizational, institutional, cultural, implement, information communication and monitoring barriers. Recommendations are also provided from the five factor perspective to improve A burearu’s performance in internal control.