Research On The Railway Administrative Units Of The Internal Control System

As an important environment to keep the unit work well and improve work efficiency, internal controls occupy an important position in an unit’s management. In our country, Administrative institutions takes administrative instruments as principle thing as its specificity. For a long time internal controls are not taken seriously, it makes the building of internal controls of administrative institutions fall behind, cause a lot of problems and prevented the government units from improving efficiently.In2013, The ministry of finance enacted the first regulations about administrative institution’s internal controls in China, the regulations made further demands to administrative institution’s internal controls, China railway corporation is in the process of reforming, having as high as CNY1036billion of registered capital. Data of year2013indicates that China railway corporation has jurisdiction over18administrative units and23business units and its total assets reaches CNY4663.159billion. It is an enormous challenge for administration business units of China Railway Corporation to improve utilization ratio of fund and achieve organization operating. China Railway Corporation’s administrative institution is working to perfect the building of internal controls. This paper takes its institution, for example, Here would investigating its internal controls and comes up with an internal control system for China Railway Corporation.We take administration business units of China Railway Corporation as research subjects, interview8units and combine field research and questionnaire to analyze their internal control. As the units are different from each other, we focus on typical problems they all have, such as lack of risk evaluation, irrationality and dependence of internal audit organization and short of attention to internal control. For these problems, we propose favorable internal control systems for China Railway Corporation.In the process of building systems, according to internal control regulation of administration business units, we make the compliance of internal control of administration business units stand out and take advantage of internal controls of enterprise properly, such as the combination of performance appraisal and post responsibility system. Each unit needs proper adjustment on this basis considering its actual situation.In the first part, we introduce research background, significance, purpose and methods, besides we review the research achievement of administrative institution’s internal controls at home and abroad. In the second part, we analyze the existing specification of internal controls for administrative institutions in China. In the third part, we take8Administrative institutions of China Railway Corporation for examples and find existing problems by combining it to field investigation and questionnaire. We discuss the factor of the problems in four aspects, such as country, ministry of finance, China Railway Corporation and its administrative institutions. In the fourth part, we build an internal control system which is suitable for the China Railway corporation, it includes one whole level in which the five elements of internal controls are as the main and six service layers. We focus to make it more significant by taking consider to the imperfection of internal controls and the status of China Railway Corporation。...