Case Study On Internal Control Of A Thermal Power Company’s Procurement Business

Thermal power companies belong to our country’s basic energy industry,but as nonrenewable resource reserves decrease,resource prices rise.However,thermal power enterprises have low bargaining power,and the contradiction between demand and price is prominent,which restricts the development of enterprises.In order to increase the efficiency of thermal power enterprises and improve production efficiency,it is necessary to establish a complete internal control system for the procurement business.A thermal power company is a subsidiary of a large state-owned energy company.Factors such as industry characteristics and the nature of the company make it’s internal control system different.This article sorts out the current status of A thermal power company’s internal control by collecting documents,procurement,payment execution procedures and organizational charts.The study found that A thermal power company has large deviations in procurement volume and planned volume because of unreasonable planning and insufficient approval;the lack of direct control and the lack of hierarchical review of supplier qualification;the lack of effective implementation of quantitative evaluation control and the non-standard score;the simple procedure of professional material acceptance,and the lack of professional acceptance and supervision personnel;Implementation defects such as insufficient follow-up evaluation and insufficient assessment of procurement quality affect the efficiency and effectiveness of corporate procurement.Based on the analysis of the causes and the actual situation of the A thermal power company,the author improved the procurement plan preparation and approval process;according to the supplier classification,optimized the supplier’s qualification review subject;detailed inspection and supervision;designed supplier evaluation indicators,and promoted enterprises to fully implement supplier dynamic quantitative evaluation.This article hopes to help A company improve the internal control system of the procurement business.So as to revitalize demand plan of each link,select appropriate procurement methods,save procurement costs and allocate resources rationally.It would be better if this article was useful for the internal control construction of the thermal power industry.