The Research On Internal Control Of Project Funds Of J Company

The funding cycle runs through the whole process of business activities, as theblood of a company, the rationality of the capital control system design andimplementation is basic condition for normal operation of enterprises, either the basisfor enterprise survival or development. Because of the strong liquidity, high risk, andcoupled with the difficulty of monitoring for construction projects, it is easy toembezzlement and waste, result in loss of business and impede the realization ofbusiness goals. Therefore, building a better project funding system of internal controlis particularly important. In this paper, I make an analysis of the theoretical system ofinternal control of funds, with J company as the case background.Then put forward toimprove the capital controlling of J company through the introduction of the financialinternal control system, the status quo, and the existence of the problem and itsanalysis of the reasons.This study introduces the background and significance of the subject, and makesan organization of internal control areas of research involving the funds. It draws aconclusion that the present researches lack of the right combination of businesssystem, practical application of evaluation studies on capital controls literature fromthe normative point of view and empirical researches. The measure of limits andmodes of capital controls is also rarely mentioned. The paper elaborates the conceptof internal control systems and related theory, drawing ideas that the critical controlpoints are capital budget management system, the separation of the post systems andincompatible duties, authorization and approval system, the seal and notesmanagement system, cash inventory and periodically check system, the accountingrecords of the file system and capital supervision and inspection system. Then thestudy makes a summary and a deeply analysis of J company’s current constructionactivities, system weaknesses and implementation defects. The essential reasons arethat the capital budget control is not perfect, the use of engineering funds process isnot standardized, the quality of the financial staff and supervision system are missing.This paper also discusses the suggestions for improvement of the use of funds onengineering activities on the basis of corporate nature and scale of operation. And at last I make a detailed planning on the implementation of various measures such asbuilding risk early warning system, optimizing the budget control, optimizing theprocess of project funding system, optimizing the engineering supervision and so on.