Research On Evaluation Of Internal Control Of Public Administrative Institutions

Since the reform and opening up, China has made remarkable achievements in economic construction. However, the operating mechanism of administrative institutions has lagged behind the current economic development, restricting the efficiency of public service and the allocation of public resources seriously. Internal control and practices of government and public sector proved that sound and effective internal control are essential measures in strengthening internal management, enhancing efficiency in the use of public funds and the level to serve public.①Research on the internal control of administration institutions appears mainly in2010-2013, especially with the18th National Party Congress, putting forward a comprehensive deepening reform and strengthening the relevant requirements of top design policy. China has issued the Administration Internal Control Norms (Trails) in November,2012, and required that implement and execute the norm formally in2014. It means that China has initially established the basic framework for public sector internal control system, and provided the relevant institutions with basis and guidance of establishment and implementation of internal control system, indicating that China has taken an important step in the area of establishing sound internal control mechanism of administrative institutions and developing the reform of administrative institutions.The issue and implementation of Administration Internal Control Norms have made the internal management and the construction of prevention and control of risk and probity to a new level. Despite relevant studies of internal control of administrative institutions have made progress, a relatively complete theoretical system has not founded. The understanding and awareness of internal control of administrative institutions have not come to agreement, especially for the evaluation of internal control, current research results cannot guarantee efficiency and effectiveness of internal control. Administrative institutions not only play as the role of carrier exercising social function, but also as the natural defenders of the public interest. Its efficiency of internal control relates to the harmonious development of socio-economic, political and cultural construction. Because of the lack of internal control initiative, the establishment of internal control evaluation system has become an important way to fulfill internal control requirements in order to achieve self-evaluation and authorities external evaluation. Lou Jiwei, the minister of Finance Ministry, said in the Ministry of Finance cadres and workers general assembly2013,"Nowadays and in the future, keeping deepening reform and we should focus on improving system, clearing responsibilities, streamlining processes, controlling nodes, strengthening supervision and spare no efforts to improve the effectiveness of the internal management and control." Therefore I believe it is necessary to study the issue of evaluation of internal control of administrative institutions. Build a complete system of internal control evaluation according to the specific provision of Norms and the concrete circumstances of administrative institution of our country. This will not only conducive to theoretical system, promote the construction of internal control, strengthen the identification, analysis and rectification of deficiencies to achieve the objectives; but also provide a theoretical basis greatly for external oversight body such as finance department, audit department and discipline department, to protect the internal implementation of the outcome.In this paper,"Evaluation of internal control of administrative institutions" will be the starting point and end point in this study. Using the standardized research methods, drill down to study how to build suitable evaluation system for administrative control. Around the topic of this paper, it mainly starts on the following aspects:Firstly, summary the existing internal control norms and foreign government internal control practices with the results of characteristics in our internal control system and the experience of other country, this will pave the way for the next parts. Secondly, define some relevant issues of internal control of administrative institutions, including meaning, objectives and the functions. Finally, propose the idea of construction and implementation of evaluation system in the context of evaluation of internal control. This paper is divided into six parts; the main content of each part is summarized as follows:The first part, introduction. This section describes the background of the study and research significance, summaries the literature review, describes the research ideas and methods, and point out the innovation of this paper.The second part, the theory and practice of administrative institutions internal control. Firstly, this part introduces the existing Norms and interprets the meaning and objectives of internal control of administrative institutions, noting administration sectors’ differences from company’s internal control and its own qualities from the prospective of purpose and element. Secondly, introduce the foreign mature government internal control system-the federal government internal control, and sum up the experience for our internal control development, these experiences will also be reflected in the following parts.The third part, the theoretical basis of evaluation of internal control of administrative institutions. This section mainly explores the theory of internal control of administrative institutions, including the definition of evaluation of internal control; bring the principal-agent theory and public accountability theory, control theory and contingency theory into public sector control, analyzing the evaluation of internal control; finally, describe the objectives and functions of evaluation of internal control.The fourth part, the construction of evaluation system of administrative institutions’ internal control, this section is the core part of the paper, divided into three sections for discussion. Firstly, summarize the existing internal control evaluation model, and analyze the advantages and disadvantages of different models, combine the features of our internal control of administrative institutions, and propose suitable model for China’s evaluation of internal control of administrative institutions on the basis of the analysis of the applicability of different modes; secondly, after determining the evaluation model, illustrate the principles, evaluation scope and logic of the overall construction; finally, design the evaluation index and propose the corresponding object observation and evaluation priorities combining the evaluation mode and principles of evaluation construction.The fifth part, the implementation of evaluation system of administrative institutions’ internal control. Implementation mechanisms are considered to be an important aspect to ensure the execution of the evaluation system, this section takes characteristics, selective mode and construction of internal control of administrative institutions and many other aspects into consideration, and proposes adaptive implementation mechanisms, addressing in five areas:main subjects, point and period, evaluation procedures, methods and final report.The sixth part, conclusion and outlook. This section summarizes the main conclusion of this paper, presents the limitations and demerits of this article and the direction of improvement, finally look forward to the future research direction in this filed.