Internal Control Of Cultural Relics And Museums Institutions Bused On The Financial Risk

Since the reform and opening up policy, we made major progress in the cultural relics and museums institutions, the number of the cultural relics and museums institutions rose from 721 in 1978 to approximately 6000 in 2012. In the years since then, against the trend of diversified capital source and operational activities, and industrialization, financial risks of cultural relics and museums institutions are increasing. And their financial risks are increasing. But the current financial management of cultural relics and museums institutions can not adapt to the new situation in the new period. Corruption cases were exposed repeatedly. Commercial operating frequently crops up disputes. These show clearly that the internal control of cultural relics and museums institutions is still incomplete. We could be concerned about cultural relics and museums institutions’inexperience in the financial risks avoidance, low awareness to the risks in financing, investment and management, etc. Especially before and after 2011, several series cases that occurred continuously in the Palace Museum brought attention to financial risks management and internal control construction of cultural relics and museums institutions and the Palace Museum. Clearly, it is an urgent task to set up an internal control system that fit in well with their particularities and development.Since the 1990s, tremendous progress of internal control theory and practice had made after its introduction to China. But the domestic scholars mainly concentrated in enterprises and not public institutions, much less cultural relics and museums institutions. The present internal control theory and practice can not meet the needs of the development of cultural relics and museums institutions. At the end of 2012, "The Basic Norms of administrative institutions internal control (try out)" released by China’s Ministry of Finance will apply from January 12014. This means that, cultural relics and museums institutions should strengthen the management, establish and improve the internal control system. These problems have become not only an inherent requirement for cultural relics and museums institutions to develop, but also a requirement for legislation. This makes it all the more urgent to enlarge related work.The main Methods used in the paper are methods of comprehensive analysis, comparative study, literature review, data collecting, and interview and survey analysis.According to the basic principle of financial risks and internal control theory, this paper starts with the look back on related literatures earnestly, and goes further on the review of the development process of financial risks and internal control theory. It analyzes the intrinsic relationship of financial risks and internal control. Based on the understanding of the fundamental theory, it starts with the analyzing of the particularity of the cultural relics and museums institutions. It presents primary financial risks, and analyzes the risk causes. It puts forward some suggestions and measures for cultural relics and museums institutions, from five following aspects of internal control environment, risk assessment, control activities, construction of information platform and internal supervision in the basis framework of COSO. It goes further on having done concrete cases analysis of the Palace Museum, and tells how to improve internal control of the Palace Museum at the end of the thesis. Firstly, improve the consciousness of internal control of cadres and staff, construct healthy internal control environment; Secondly, establish a sound system of internal control system, break the dualistic management architecture of operation control and financial management, add cultural relics management to fixed assets management; Thirdly, increase implementation capacity of internal control management.Hope this paper will benefit not only the study of internal control theory of cultural relics and museums institutions, but also the financial risks management and internal control construction of the Palace Museum and other cultural relics and museums institutions. Wish it will help to ensure the security of the cultural relics and state owned assets, improve the utilization efficiency of the fund, promote a sound development of cultural relics and museums institutions, and enhance the efficiency and effects of public services.