Research On The Internal Control Of Local Government Investment And Financing Platform

Since the start of the tax-sharing reform in 1994,naturally the financial resources of the central government have become more extensive,and the financial resources of local governments have been relatively reduced.The inadequate transfer payment system has also adversely affected the financial resources of local governments.In this case,the local government debt mechanism is relatively lagging behind,and the available budget is limited,which greatly stimulates local government officials to borrow.The emergence of local government investment and financing platform has become an inevitable trend.The development of local government financing platform is inseparable from its implicit guarantee of the government and because it plays a role in the appreciation and maintenance of state-owned assets,it is also equivalent to a state-owned enterprise.Local government investment and financing platform funds mainly come from infrastructure based livelihood projects,affordable residential fixed assets,education,culture,health and social management services,as well as agriculture,rural communities and communities,and a large number of investment in farmers.In addition to the huge government debt and wide coverage,financing platform companies have lower debt paying ability and lower collateral than conventional state-owned enterprises.With the increasingly strict requirements of debt increase policy,it is also an inevitable trend for local governments to carry out "market-oriented" reform of investment and financing platforms,and its requirements for internal control are more stringent.This article summarizes the development of local government investment and financing platforms in recent years,and changes in local government investment and financing platform policies.Secondly,it involves the research on local government debt at home and abroad,the research on local government financing platform by Chinese scholars,and the research on internal control by domestic and foreign scholars.Highlig HT the importance of internal control on local government debt,and then introduce the importance of effective internal control on local government investment and financing platform.As well as the constraint changes of relevant time and legal documents.Firstly,it introduces the establishment of HT Company,its main business,relevant organizational structure and internal control.Although the local government investment and financing platform is a state-owned enterprise,it is different from other state-owned enterprises.Therefore,when optimizinginternal control,it is necessary to consider the relationship between the three,and take the financing platform,local government and financial institutions as a whole.Internal control will be more effective if it is considered in its entirety.Local government investment and financing platforms should face the defects of internal control management and actively improve the quality of internal control to effectively reduce the possibility of risk.It should also try its best to break away from the blessings of the government,clarify its own fund management,establish comprehensive budget management,improve market management and supervision systems,and clarify credit responsibilities.