The Research On Optimizing Internal Control Of Procurement In Tang Dukou Town Government

As a means of public finance expenditure, government procurement has been implemented in developed countries for more than two hundred years. However, the study of government procurement began in the late 1990's in China and most of the theories were referred by the experiences abroad. In this paper, we will study the Tang Dukou town government procurement management. It means that the grass-root unit, whose procurement scale and scope reaches the requirement of centralized purchase, founds the central purchase organization to manage the administrative agency-procurement of the projects, goods and services. The implement of the government procurement at the town level is the important part of the public finance innovation at the county level. It is the necessity requirement of deepening the innovation of the fiscal and taxation systems as well as the key point to carry out the slogan which is'the town finance shall be managed by the district and all the procurement shall be managed all together'. As the grass-root unit, the town government is the bottom of the finance management system. Whether the government procurement internal control can be implemented effectively is the key point by which it can be consummated.This paper is established on the foundation of extensive research on government procurement theory and internal control theory. With the literature review method, survey research, experience summarization and principle of integrating theory with practice, field investigation and analysis are aimed to the current problems appears in Tang Dukou town government procurement combined with Five Factors of internal control and some research achievements of government procurement internal control. At present, the main problems of the Tang Dukou town government procurement includes irrational institutional framework, uncritical approval system, weak risk awareness, lack of ability to identify and control risk, poor budgeting, unsound supplier management, uneven quality of purchasing staff, defective communication system, incomplete supervision system and so on. Finally, the suggestions of improving the town government procurement are also proposed based on the practical situation of the town:improves current internal control environments, optimizes internal institutional framework, meliorates current control activities, adjusts supplier management system, establishes good communication mechanism, strengthens the monitoring and constraints during the internal control process, and so on. It is hoped that these measures can help to establish and improve the town government procurement internal control system, then to improve the usage of the fund in order to give the direction to ensure the effective management of town government procurement.