Study on the Internal Control Issues of Highway Construction Investments
|School||Changsha University of Science and Technology|
|Keywords||Highway Construction Project Investment Internal Control|
Highway is the backbone of our transportation system, one of the most important infrastructures under development, improving the economic development of the artery. Planning data from the“National Highway Planning Network”points out that will construct 85,000 kilometers highway within 30 years, with a total investment of about 2 trillion Yuan. The introduction and implementation of the“Twelve Five-Year”plan has brought new opportunities for highway development. However due to the complex environment and long period of highway construction, the phenomenon of“three excesses”and“black-box operations”is highlighted. What’s more, the existing problems such as interception, misappropriation and diversion of construction funds have brought enormous challenges for highway construction units to invest and manage highways. May 22, 2008,“the basic norms of internal control”has provided guidance for establishing and strictly implementing internal control system in highway construction projects, furnished a strong basis, clear objectives and scientific guidelines to improve the“whole process of comprehensive”investment management.Therefore from the perspective of construction units, this paper carries out researches in internal control issues on highway construction projects with the use of project management theory, agency theory, cybernetics theory and the theory of risk management. Firstly, this paper summaries and analyzes domestic and foreign theories and practical experience related internal control and management on highway projects construction and investment, describes the theoretical basis of this study. Secondly, it analyzes the current status and problems of the internal control management on highway construction projects in reference to the surveys, the causes which results in above problems. Then, combing the COSO Risk Management Framework and < the basic norms of internal control >, it proposes specific internal control measures on highway construction and investment in terms of internal control environment, risk assessment, control activities, information communication and monitoring, with the dynamic prediction model of highway construction investments and‘quartet joint measurement’,‘three financial supervision’as a major part. Finally, taking the A highway construction project as an example analyses the internal control on the A highway construction project and puts forward sound proposals to perfect the internal control under the notion of the proposed internal control. This paper is intended to furnish some reasonable suggestions of internal control on highway construction investments.