Study On Internal Control Of Financial Investment In Local Investment And Financing Platform A Company

The accelerated pace of urbanization in various places has led to a gradual increase in demand for urban infrastructure construction,while government revenues cannot cover the funds for these infrastructure projects,for this reason,local governments at all levels have formed a number of companies with special functions,namely local investment and financing platform companies.Most of the projects undertaken by these companies are social welfare projects with high investment amount,long construction period and low marketability,and it is difficult to recover the huge investment in the early stage of the project.Under the premise of the lack of profitability of public welfare projects,local investment and financing platform companies can still keep their statements profitable,mainly by relying on local government financial subsidies and other income formed by land revenue to smooth out the statement losses.Once the local economy is in the doldrums and the financial subsidies and land revenue do not reach the expected value,the local investment and financing platform companies will have fewer sources of funds on the one hand,and the losses on the other hand may affect the credit rating of the company and reduce its refinancing ability,which is even directly related to the survival of the company.Therefore,the local investment and financing platform companies have sought ways to improve profitability,long-term equity investment does not bring significant income in the short term,moderate financial investment has become an important growth point for economic efficiency.Internal control plays an important role in modern enterprise management,which not only can steadily promote the strategic planning of enterprises,improve the efficiency of operation and management,and make the true and complete disclosure of enterprise information,but also help prevent internal fraud and promote the production and operation activities of enterprises legally and in compliance with regulations.Therefore,local investment and financing platform companies want to improve profitability through financial investment business,we must establish a set of "clear responsibilities,scientific processes,risk control" internal control system,so that the financial investment work is based on evidence,there are rules to follow,to avoid the investment risks caused by internal control defects,to achieve a healthy and healthy company development.This thesis selects the financial investment business of Company A as the research object,firstly,it elaborates the background and significance of the research,and then,on the basis of theoretical studies on local investment and financing platform companies and internal control by domestic and foreign scholars,it clarifies the basic concepts of internal control of financial investment of local investment and financing platform companies.Then,taking Company A,a local investment and financing platform,as an example,the current situation of the company’s financial investment internal control is introduced,and the internal control deficiencies of Company A’s financial investment are discussed around the overall environment of its internal control and the various processes of its investment business.For Company A,to optimize the overall level of internal control,it is necessary to improve the corporate governance structure,strengthen the construction of human resources,optimize the authorization of investment decisions and optimize the supervisory board of subsidiaries;to optimize the internal control of investment projects,including strengthening the control of project review and doing due diligence;to optimize the internal control of investment decisions,it is necessary to strengthen the awareness of decision risk control and strengthen the control of decision To optimize the internal control of investment decision making,we need to strengthen the awareness of risk control of decision making and compliance control of decision making;to optimize the internal control of investment implementation,we need to strengthen the awareness of compliance of team and control of investment business records;to optimize the internal control of investment supervision,including the establishment of daily supervision mechanism,strengthening of internal audit supervision and strengthening of post-event management of investment.It is hoped that the optimization suggestions put forward in this thesis can help Company A to reduce financial investment risks and improve management efficiency,and at the same time,provide a reference for similar enterprises to develop in a high-quality and sustainable manner.