With the advancement of conversion in coal enterprise management system and establishment of modern enterprise system, perfecting the internal control in coal enterprise is had to face the problem of coal enterprises in market competition. This analysis in coal enterprises establishing internal control system on the basis of the significance of Chinese coal enterprises internal control combined with foot, from the internal control process to comprehensively strengthen the coal enterprise’s internal control makes some observations.
First, the significance of the establishment of internal control system in coal enterprises
Divided into internal control system of coal enterprise internal management control system and internal accounting control system in two categories. Internal management control systems are those of accounting services, accounting records and financial statements do not directly affect the reliability of internal control. For example, personnel management, technology management within the enterprises. Internal accounting control system are those on the accounting business, directly affect the reliability of the accounting records and financial statements of internal control. Establishment of coal enterprise’s internal control system for coal enterprise’s development is of great significance.
(A) protect the safety of coal enterprises property material integrity
Establishment of coal enterprise’s internal control system on the custody of the property or material and use various means of control, materials can prevent and reduce property damage, eliminate waste, corruption, theft, embezzlement, and not fair use and other issues.
(B) the coal enterprises and high accuracy and reliability of accounting information
Accounting data is correct and reliable control of coal enterprise managers to understand the past, present, future prediction, make decisions necessary for, and through the development and implementation of business process procedures of internal control system, Science Division, under the conditions of the accounting data in competing, so as to effectively prevent the occurrence of errors and abuses, guarantee the correctness and reliability of accounting information.
(C) strengthening of national macro-control of coal enterprises
For coal enterprises and countries to develop a range of fiscal discipline and regulatory requirements by establishing an internal control system of coal enterprises to implement, through the implementation of internal control system of coal enterprises to self-restraint, follow the State’s fiscal discipline and regulations.
(D) improve the efficiency of management in coal Enterprise
Scientific system of internal control, to reasonably coal enterprises Division of the internal functions of the various departments and personnel control, coordination and assessment, departments and personnel in coal Enterprise fulfil its responsibilities, clearly defined objectives, ensure the production of coal enterprise business activities conducted in an orderly and efficient manner.
Second, the current situation of coal enterprise internal control
Since reform and opening up, the original mining Bureau was gradually transform the management mechanism of coal enterprise group with capital as a link, and have established a modern enterprise system, improve the corporate governance structure, coal enterprises has made great progress in internal control, but there are still many shortcomings.
(A) inadequate corporate governance structure
Because of the long-term effects of the planned economy in the past, coal in the process of enterprise reform in China, State-owned stocks dominating phenomenon seriously. Though enterprises have established the Board of Directors, supervisory board, has appointed team General Manager, but in practice, the Board’s monitoring role seriously weakening, the enterprise should have some institution set to play a proper role, in actual operation in the institution useless. Part of the coal enterprises and even is not set at all, the enterprise has only the shell of a modern enterprise, but not fundamentally a real legal person governance structure, there is no clearly defined rights and responsibilities of the Board of Directors, auditors and administrators, decision-making and management bodies of power cross, responsibility is unknown, it is difficult to form an effective checks and balances.
(B) enterprise social phenomenon of serious
As far as the social division, products production enterprise is the fundamental responsibility of organizations to national paid tax, social responsibility should be borne by the Government, through national financial allocation for the second time to resolve, in coal enterprises due to unclear property rights and other causes in the process of reform, and local governments also maintain countless contacts, the Government assessed on various emerging, various unreasonable charges despite repeated prohibition. Most of the large State-owned coal enterprise is continuing to fulfil regional community of stable functions, obligations to bear the burden of the community economy. To achieve the strategic objective of maximizing the wealth, and stability objectives often conflict.
(C) the internal control mechanism is not perfect
In order to ensure that the directive was implemented, most of the coal enterprises have developed various measures and procedures, including authorization and approval, segregation of duties in General, the design and use of appropriate vouchers, appropriate security measures, independent inspection and evaluation. But in corporate control, licensing approved control system of risk control, reports, budget control, control on many important links, still not really forming mutual isolation, contact, mutual restriction and supervision of the internal control mechanisms. Current coal enterprise is a vulnerability assessment of internal control activities in the largest sound enough, effective reward and punishment mechanism so that some major investment, and asset disposal decision-making procedures will inevitably there is considerable arbitrariness, to some extent breeds corruption within the enterprise.
(D) too many levels of legal persons, unclear responsibilities
A good information system should be able to ensure that everyone in your organization clearly know their specific responsibilities are. In the coal inside the system, from the group to the grass-roots enterprises, some up to five or six levels, so anyone can pipe, who and whether or not, after a problem is often blame, accusations, eventually nothing cannot be held responsible. Due to too many levels, span is too large, so easy out, makes significant investment funds is difficult to control, caused losses to the State-owned assets.
Third, the countermeasure of perfecting internal control of coal enterprises
Perfection of internal control is a system engineering of coal enterprises, active efforts are required, necessary to improve the control environment of enterprises on the one hand increase the control consciousness of all the staff, while proceeding from the enterprise’s internal control process, conduct a comprehensive risk assessment, control activities of the establishment of good internal supervision, strengthen enterprise, the establishment of a unified information system.
(A) improve control environment
Perfect the construction of coal enterprise’s internal control environment, first of all to strengthen the sense of conscious control of the coal enterprises. Success or failure depends on the employee’s control of enterprise internal control awareness and behavior and consciousness and behavior of enterprise internal control is the key. In theory, internal control has its own limitations, mainly is the Supreme Leader controls the randomness of the enterprise or collusion, engage in internal control. Therefore, improving coal enterprises conscious awareness of internal controls is particularly important.
(B) conduct a comprehensive risk assessment
Risk management of coal enterprise was established by enterprise management strategy, the use of risk analysis techniques to identify business risk, and take the appropriate method to reduce risk. First of all to prevention of risk management in coal enterprises belong to the high-risk industries in the coal industry, in terms of safety risk from multiple risk factors, light cause personnel injury, blood sacrifices, in a heavy ore may crash, causing great damage. So should conscientiously carry out full risk source identification, according to the requirements of the occupational safety and health system, procedures, institutionalizing and standardizing ongoing second also belongs to the concentration is low, in the coal industry market competitive industry, will encounter different levels of risk in the enterprise. Risk impact on the ability of each enterprise’s survival and development, also affect their competitiveness in the industry and the reputation and image in the market, its implementation cannot be divorced from its internal control on which the Ministry of the environment and the internal and external risk factors. Therefore, enterprises must establish normal “SWOT” analysis of assessment system, looking for opportunities for their survival and development; last should be good at transferring risks, such as buying insurance. Not only must carry out risk analysis in the process of formulation of the strategic objectives, and to be reflected in the ongoing internal control processes. Especially when the external environment changes within the enterprise but also to strengthen risk assessment, propose countermeasures.
(C) establish good control activities
Internal control in coal enterprises, not only to effective control of all aspects of the implementation of comprehensive enterprise management, comprehensive placed economic monitor the economic activities of enterprises, but also on important aspects of business management, important links and practicing key control. Organic combination of surface and point of control to the control of, can play a good benefit. In implementing the internal control in coal Enterprise how to find control points by point to the control of the dice role is the need to take seriously the problems. Coal enterprises internal control point should be located in three locations: one is the capital. On enterprise’s Fund raising, scheduling, use of, the allocation of such strict control, prevention of cardiopulmonary bypass of funds; the second is the cost. On enterprises the cost of spending implementation of strict regulation of preventing corrupt practices; third power use. On different segments of the business and economic activities of enterprises operator of powers to implement a-activity monitoring to prevent the misuse of power, resulting in economic losses.
(D) strengthening internal oversight
Coal enterprises is both a part of the internal control of internal auditing, supervision and internal control other aspects of the main forces. The supervision of the coal enterprise’s internal control process, internal audits play an increasingly important role, through the supervision and control of environmental effectiveness and control procedures of internal audit, supervision and internal control in coal enterprises are being executed and timely feedback of information relating to the implementation of the results to help businesses achieve more effectively the expected control objectives. While in the process of monitoring, internal audit to promote establishment of control environment, to improve the control system to provide constructive suggestions, success for your organization to achieve the required level of internal control service.
(E) the establishment of a unified management information system
A good information system should help to improve the efficiency and effectiveness of internal control in coal enterprises, specifically, should help control the establishment and amendment of the standard evaluation of effectiveness, control activities, improvement of control development and of the report and recommendations conveyed in a timely manner. On a control system of coal needs to identify the information needs of users, on the basis of the collection, processing and handling of information, and pass such information promptly, accurately and cost-effectively (including passing downward, upward and horizontal communication) to the relevant personnel within an enterprise, enabling them to successfully fulfil its mandate. Security is an important guarantee of coal mine safety production monitoring information system. Therefore, enterprises must strengthen the construction of management information system.