The Research On Internal Control Of Fund Management In M Local Government Financing Platform Enterprise

Since 1994,China has begun to implement the taxation system reform.With the deepening of reform,local finance has gradually been unable to bear a large amount of public affairs expenditure.In this context,local government financing platforms emerged in the 1980 s.In some extent,the emergence of local government financing platform has promoted the development of the city and contributed to the construction of urban infrastructure.But for a long time,there are still some problems in the management of funds,especially in the internal control of fund management.These problems have become a major obstacle to the completion of market-oriented transformation of local government financing platforms.In recent years,there have been many platform companies announced retirement from local government financing platform because of mismanagement of funds,and no longer responsible for local government financing.This has caused some losses for local infrastructure construction and the people's livelihood.At the beginning of 2018,Yunnan State-Owned Capital Operation Co.,Ltd.,as a province-owned financing platform with a registered capital exceeding RMB 10 billion,was unable to repay the trust loan due to poor fund management,which seriously affected the normal operation of the company.Since then,the issue of internal control over the fund management of the local financing platform has drawn attention from all parties.With the country's call for the market-oriented transformation and upgrading of local government financing platforms,local platform companies have responded positively.As a competitive and famous financing platform in A city,M Local government financing platform company has actively sought market transformation.In 2015,it began to experiment with new investment areas,open up new fund-raising channels,and develop new business operations.However,its market-oriented transformation has not been smooth.M Group's internal control system for capital management is still not perfect,which leads to some risks in its fund-raising,investment and business activities.In a certain extent,these risks have hindered the Group's strategic goal of market-oriented transformation.Therefore,effective internal control of fund management is of great significance to local government financing platforms such as Group M.The structure of this study is as follows: Firstly,this paper analyzes the relevant research background,research purpose and significance,reviews and comments on the relevant researchresults of domestic and foreign scholars,and puts forward the content framework of this study and thinking method;Secondly,according to the characteristics of the internal control of capital management of China's local government financing platform,taking Group M as a case enterprise,analyzes the status of its fund management control environment,risk assessment,control activities,information and communication,and supervision,and finds that the internal control of M Group's funds management exists.Finally,on the issue of how to implement effective internal control of capital management,it discusses and proposes practical and feasible optimization solutions in light of the existing internal control problems of capital management in case enterprises.This article mainly adopts literature research method,investigation method,and case analysis method to study the internal control problem of fund management of local government financing platform.Based on the analysis of theories and cases,this study draws the following conclusions:(1)M Group,as a local government financing platform in the process of market transformation,has an unreasonable internal structure for the internal control of fund management,and the human resources system needs to be improved;The risk assessment system is incomplete;Lack of control activities;Low efficiency of information and communication;Ineffective supervision of internal auditing and other issues;(2)Targeting the existing problems of M Group's current internal control of capital management,and combining the characteristics of its corporate nature and capital business,to propose an internal control optimization plan for capital management;(3)To improve the internal control environment for fund management by M Group,establishing a fund management risk assessment system,improving fund management and control activities,enhancing information and communication in fund management,and strengthening supervision over fund management;While helping M Group to improve its internal control over fund management,it also provides reference for other local government financing platforms of the same type in the optimization of internal control of capital management,helping local government financing platforms to fulfill their duties and successfully complete market-oriented transformation and development.