The Research On "Two Funds" Manage Optimization Issues In QJ Enterprise From The Perspective Of Internal Control

With the explosion of Evergrande’s debt,more real estate giants have also "exploded".In the face of this background,the form of collection of construction enterprises has become not optimistic.In recent years,with the deepening of market-oriented reform and the continuous improvement of the market system,especially after the "de foam" of real estate,the "deleveraging" of shadow banking and local debt,and the "squeeze" of overcapacity,China’s economic development has entered a critical period of transformation and gradually entered the new normal.Economic growth has shifted from high to medium-high speed,the economic structure has been continuously optimized and upgraded,and the driving force has shifted from factor-driven and investment-driven to innovation-driven.Under the influence of economic cycle,epidemic situation and other factors,under the background of the new normal,China’s macro-economy will show the "L" type development characteristics.Economic growth will slow down gradually,infrastructure investment growth will be limited,real estate investment will decline steadily,fixed assets investment growth will slow down at a high level,and investment structure will be adjusted.It is the key for construction enterprises to survive in such a big environment.With the SASAC of the State Council proposing that central enterprises should build world-class enterprises and speed up the construction of world-class financial management system,more and more enterprises focus on managing cash and reducing leverage.At the meeting of heads of central enterprises held on January 5,2023,the assessment index system of heads of central enterprises was changed from "two benefits and four rates" to "one benefit and five rates",Change the original "operating income profit ratio" to "operating cash ratio",and correct the position of capital.It can be seen that cash is king when the situation is bad.In the face of this orientation,the "two gold"(accounts receivable,inventory and contract assets),which are crucial to the operation and management of enterprises,have once again become the focus of central enterprise management and control.The construction industry is at the forefront of the "soft landing" of the economy.In addition to the policy factors of environmental supervision such as real estate regulation policy,monetary tightening,dust control and haze reduction,the cash flow of the construction industry is frequently urgent.According to the data of the State-owned Assets Supervision and Administration Commission of the State Council,the "two funds" of a representative central construction enterprise have accounted for more than 70% of the revenue,which has seriously affected the normal flow of enterprise funds.The vicious growth of the "two funds" scale has exacerbated the pressure of enterprise capital turnover,increased the interest-bearing liabilities of the construction company,and the long payback period and other reasons have led to a low total asset turnover rate of the construction enterprise,which has seriously affected the normal operation of the enterprise,If it is not controlled,it is easy to form non-performing assets,which will not only create benefits for the enterprise,but also bring great uncontrollable risks to the enterprise.With the continuous deepening of the country’s supply-side structural reform,construction enterprises have actively responded to the policy call of the SASAC to "reduce three costs and one subsidy".It is extremely urgent for construction enterprises to accelerate the mobilization of existing resources,deleveraging,and reducing "two subsidies".QJ Company is a wholly-owned subsidiary of a central construction enterprise in the Central Plains.Its "two gold" scale has continued to grow for several years,and doubled in 2021 compared with the previous year.It can be seen that there are certain problems in its "two gold" management.This paper takes the five basic elements of internal control as the research basis,and combines the quantitative research method with the literature research method,from the internal control environment,risk assessment,control activities Analyze the problems in the "two gold" management of QJ Company from the five perspectives of information exchange and communication and internal supervision,find out the weak links in the "two gold" management process,and put forward corresponding improvement measures from these five perspectives to provide effective solutions for the "two gold" management improvement of QJ Company.Due to the nature of QJ Company as a central enterprise and its large scale in the Central Plains,the summary of enterprises in the same type and region is representative to a certain extent.Through the study of the "two funds" management of QJ Company,it can provide some reference for enterprises of the same type and region.