Notice of Yueyang Municipal Finance Bureau on Carrying out Basic Evaluation of Internal Control in Administrative Institutions

Yue Caikuai [2016] No.2

County Finance Bureau, municipal units:

In order to further promote the implementation of the Internal Control Standard for Administrative Institutions (for Trial Implementation), and guide and promote all units to effectively carry out the construction and implementation of internal control, According to the Guiding Opinions on Comprehensively Promoting the Implementation of Internal Control Standards in Administrative Institutions (Cai Shui [2015] No.24), the Notice of the Ministry of Finance on Carrying out Basic Evaluation of Internal Control in Administrative Institutions (Cai Shui [2016] No.11) and the Notice of the Hunan Provincial Department of Finance on Carrying out Basic Evaluation of Internal Control in Administrative Institutions (Xiang Cai Hui [2016] No.16), the administrative and public institutions are hereby notified.

First, strengthen organizational leadership

In order to effectively strengthen the organization and leadership of the basic evaluation of internal control of administrative institutions in our city, and jointly promote the basic evaluation of internal control of administrative institutions, the Municipal Finance Bureau established the "Leading Group for the Basic Evaluation of Internal Control of Administrative Institutions", composed of the following personnel:

Group leader: Zou Sanyou, Party Secretary and Director of Finance Bureau.

Deputy leader: member of the party group and discipline inspection team leader of Pengjian Finance Bureau.

Member: Chief, Budget Section, Finance Bureau of Lichang City

Zhou Ji ‘en, Chief of Treasury Department of Finance Bureau.

Chief, Financial Supervision and Inspection Section, Yangyong Finance Bureau

Li Zhewen, Chief, Accounting Section, Finance Bureau

The leading group consists of "Office of Basic Evaluation of Internal Control of Administrative Institutions", and the office is set up with the Accounting Department of the Municipal Finance Bureau, which is specifically responsible for the pre-deployment, coordination, progress tracking, guidance and supervision, publicity and reporting, and information submission of the basic evaluation of internal control of administrative institutions. Comrade Li Zhewen, chief of the accounting department of the Municipal Finance Bureau, is also the director of the office, and Comrade Kuang Jianyi is the deputy director of the office.

All units at all levels should earnestly strengthen the organization and leadership of the basic evaluation of internal control in their own regions and units, make overall planning and implementation, ensure the comprehensive completion of the basic evaluation of internal control, and promote the overall improvement of the internal control level in their own regions and units through "promoting construction through evaluation".

Second, the work arrangement and requirements

All units at all levels shall, in accordance with the requirements of the notice, organize and mobilize according to the steps, supervise and urge the basic evaluation of internal control of their own units, and ensure that the basic evaluation of internal control is started before the end of September.

All units at all levels should attach great importance to it, strengthen the supervision, guidance and inspection of the basic evaluation of internal control in their own regions and units, ensure that the establishment and implementation of internal control in their own regions and units will be successfully completed by the end of 2016, and form a high-quality basic evaluation report on internal control, so as to improve the level and effect of internal control with the results of the evaluation report.

All units at all levels shall, before December 8, submit a summary report on the basic evaluation of internal control in their respective regions and units to the Accounting Department of the Municipal Finance Bureau. The contents of the summary report include the experiences and practices, achievements, existing problems, work suggestions and replicable and popularized work cases of the local area and the unit in carrying out the basic evaluation of internal control. For typical cases with high promotion value and reference significance, the Municipal Finance Bureau will report them to the Provincial Department of Finance, and bring them into the case base of internal control construction of administrative institutions in the province, and recommend them to the Ministry of Finance on the basis of merit, and organize relevant media to publicize and report them for the learning and exchange of administrative institutions.

Third, strengthen supervision and publicity

1. The basic evaluation report of internal control will be an important part of the final report of the department in 2016. All units directly under the municipal government shall, on the basis of the basic evaluation of internal control, conduct a comprehensive evaluation of the basic situation of internal control of the unit, and summarize and form a comprehensive report on the basic evaluation of internal control of the unit (see Annex 3 for the reference format), and report it to the Treasury Department of the Municipal Finance Bureau as an important part of the final report for 2016. Anyone who does not attach a basic evaluation report on internal control to the final report of 2016 will not be accepted.

When submitting the basic evaluation report of internal control, all units directly under the municipal government should include the basic evaluation report of internal control at the unit level and the comprehensive report of basic evaluation of internal control at the unit level (the main body of the report includes the unit level and subordinate units).

2. Strengthen supervision and inspection. In order to ensure that the basic evaluation of internal control in administrative institutions is carried out on time and the evaluation results are true and effective, the Municipal Finance Bureau will take the development of basic evaluation of internal control as an important reference for financial supervision and inspection and inspection of the implementation of the Accounting Law. Any unit that fails to provide the basic evaluation report of internal control in time as required, or that practices fraud in the evaluation process and the evaluation results are untrue, will be the key focus of the city’s financial supervision and inspection and the inspection of the implementation of accounting law. Once verified, the responsibilities of relevant units and personnel will be seriously investigated.

Financial departments at all levels should strengthen internal and external coordination and communication, establish a working mechanism, and jointly promote the basic evaluation of internal control.

3. Strengthen publicity and exchange of experience. The basic evaluation of internal control is an important measure to promote the establishment and implementation of internal control. Financial departments at all levels and units directly under the municipal government should increase the publicity and promotion of the basic evaluation of internal control and its achievements, make full use of media resources such as newspapers, television and the Internet, and carry out multi-level and multi-directional continuous publicity and reporting.

Attachment: 1. Scoring table of basic evaluation indicators for internal control of administrative institutions.

2. Instructions for filling in the scoring table of basic evaluation indicators for internal control of administrative institutions

3 basic evaluation report on internal control of administrative institutions (reference format)

Yueyang bureau of finance

September 13th, 2016

Annex 1

Basic evaluation index score table of internal control in administrative institutions

Annex 2

Scoring Table for Basic Evaluation Indicators of Internal Control in Administrative Institutions

Instructions for filling in the form

In order to guide the administrative institutions to carry out the basic evaluation of internal control smoothly, the operating rules of the indicators and evaluation points in the Scoring Table of Basic Evaluation Indicators of Internal Control of Administrative Institutions and the evaluation scoring method are described as follows for the reference of all units in carrying out the basic evaluation of internal control.

First, the evaluation index setting and score distribution

The basic evaluation of internal control in administrative institutions adopts the method of quantitative evaluation, and sets the unit-level evaluation index and the business-level evaluation index, which are 60 points and 40 points respectively, totaling 100 points. The evaluation indicators at the unit level are divided into 6 categories and 21 indicators, and the evaluation indicators at the business level are divided into 6 categories and 15 indicators.

Second, the evaluation operation rules

(a) unit level indicators (this indicator is 60 points)

1. Indicators of the start-up of internal control construction (14 points in total).

1.1 Establish an internal control leading group to formulate and start relevant working mechanisms. (score 4 points)

Detailed operating rules for evaluation: this unit should start the construction of internal control, set up an internal control leading group (1 point), with the main person in charge of the unit as the team leader (1 point), establish a joint internal control working mechanism and carry out work (1 point), and define the lead department (or post) of internal control (1 point).

Confirm by viewing meeting minutes or deployment documents.

1.2 Conduct special training on internal control. (score 3 points)

Operating rules for evaluation: this unit shall conduct special training on relevant national policies, the internal control system of the unit, the objectives and measures to be achieved by the internal control of this unit, and the responsibilities of various departments and their personnel in the implementation of internal control. Only for the training of national policies, this item is only 1 point; Only for the training of national policies and the system formulated by the unit, this item only gets 2 points.

Check the training notice, training materials, etc.

1.3 Conduct internal control risk assessment. (score 3 points)

Operating rules for evaluation: internal control risk assessment should be carried out based on the internal control objectives of the unit and combined with the business characteristics of the unit, and a mechanism for regular risk assessment should be established.

Confirm by viewing the risk assessment report.

1.4 Carry out organizational and business process reengineering. (score 4 points)

Detailed operating rules for evaluation: The organization and business processes should be combed and re-engineered according to the "three decisions" plan of the unit, and the flow chart should be prepared.

Through the comparison and confirmation of the increase or decrease or adjustment of functional departments or posts and the revision of relevant systems.

2. Indicators on the responsibility of the main person in charge of the unit for the establishment and implementation of internal control (6 points in total).

2.1 The main person in charge of the unit presided over a meeting to discuss issues related to the establishment and implementation of internal control. (score 2 points)

Operating rules for evaluation: the principal responsible person of the unit shall preside over a meeting to discuss the establishment and implementation of internal control. The main person in charge of the unit presided over the meeting, but only included internal control in one of the topics of the meeting for discussion, this item only scored 1 point. If the main person in charge of the unit presides over a special meeting on internal control to discuss the establishment and implementation of internal control, this item will get 2 points.

Confirm by viewing meeting minutes or deployment documents.

2.2 The main person in charge of the unit presided over the formulation of the internal control work plan and improved the working mechanism. (score 2 points)

Operating rules for evaluation: the main person in charge of the unit shall preside over the formulation, revision and approval of the internal control work plan of the unit (1 point), and be responsible for establishing and improving the internal control work mechanism (1 point).

Confirm by viewing the meeting minutes or relevant documents of the internal control work plan.

2.3 The main person in charge of the unit presides over the division of internal control work and staffing. (score 2 points)

Detailed operating rules for evaluation: The main person in charge of the unit shall conduct unified leadership and coordination with relevant departments and personnel involved in the establishment and implementation of internal control, preside over the division of work and staffing, and play a leading role and assume leadership responsibilities.

Confirm by viewing the meeting minutes or relevant documents of the internal control work plan.

3 indicators of the restriction on the operation of power (8 points in total).

3.1 The construction of power operation mechanism. (score 4 points)

Detailed rules for evaluation operation: The power structure of the unit should be sorted out, and a power operation mechanism with scientific decision-making, firm execution and strong supervision should be constructed to ensure that the decision-making power, execution power and supervision power are mutually restricted and coordinated.

Confirm by viewing the meeting minutes or relevant documents.

3.2 Supervision over the operation of power. (score 4 points)

Detailed operating rules for evaluation: This unit should establish a power operation supervision and evaluation mechanism linked with functional departments or posts such as auditing, discipline inspection and supervision, so as to regularly supervise the exercise of power such as decision-making power and execution power, find out problems in the power operation process in time, and correct and improve them.

Confirm by checking meeting minutes, power list and related systems.

4 indicators of the completeness of the internal control system (this indicator is 16 points in total).

4.1 Establish a budget management system. (score 2 points)

Operating rules for evaluation: the budget management system of this unit should cover four aspects: budget preparation and internal approval, breakdown and release, budget implementation, annual final accounts and performance evaluation. 0.5 points for each aspect covered. If an aspect contains two points, if only one of them is covered, it is still regarded as not covered in this aspect, the same below.

Confirmed by checking the budget management system, relevant reports and approval documents of the financial department that have been issued and implemented by the unit.

4.2 Establish revenue management system. (score 2 points)

Detailed operating rules for evaluation: the revenue (including non-tax revenue) management system of this unit should cover four aspects: price determination, bill management, revenue collection and revenue accounting. 0.5 points for each aspect covered.

Confirm by checking the income management system issued and implemented by this unit.

4.3 Establish expenditure management system. (score 2 points)

Detailed operating rules for evaluation: the expenditure management system of this unit should cover four aspects: budget and plan, determination of expenditure scope and standard, approval authority and approval process, and expenditure accounting. 0.5 points for each aspect covered.

Confirmed by viewing the expenditure management system issued and implemented by this unit.

4.4 Establish a government procurement management system. (score 2 points)

Operating rules for evaluation: the government procurement management system of this unit should cover four aspects: budget and plan, demand application and approval, process management and acceptance and warehousing. 0.5 points for each aspect covered.

Confirm by looking at the government procurement management system issued and implemented by this unit.

4.5 Establish an asset management system. (score 2 points)

Detailed operating rules for evaluation: the asset management system of this unit should cover four aspects: asset purchase, asset custody, asset use, asset accounting and disposal. 0.5 points for each aspect covered.

Confirmed by viewing the asset management system issued and implemented by this unit.

4.6 Establish a construction project management system. (score 2 points)

Operating rules for evaluation: the management system of the construction project of this unit shall cover the project establishment and examination, budgetary estimate, bidding, project change, capital control, acceptance and final accounts, etc. Out of 2 points, 0.5 points will be deducted for each aspect not covered, until the deduction is finished.

Confirmed by looking at the construction project management system issued and implemented by this unit.

4.7 Establish contract management system. (score 2 points)

Detailed operating rules for evaluation: the contract management system of this unit should cover four aspects: contract conclusion, contract performance, contract filing and contract dispute settlement. 0.5 points for each aspect covered.

Confirmed by viewing the contract management system that has been issued and implemented by this unit.

4.8 Establish a decision-making mechanism system. (score 2 points)

Detailed rules for evaluation operation: the decision-making mechanism system of this unit should at least cover two aspects: "triple and one big" collective decision-making and hierarchical authorization. 1 point for each aspect covered.

Confirm by looking at the decision-making mechanism system that has been issued and implemented by this unit.

5 incompatible posts and responsibilities separation control indicators (6 points in total).

5.1 The incompatible posts and responsibilities were effectively designed. (score 3 points)

Operating rules for evaluation: The incompatible positions and responsibilities of this unit include but are not limited to application and examination and approval, examination and approval and execution, execution and information recording, examination and approval and supervision, execution and supervision, etc. Out of 3 points, 1 point will be deducted for each incompatible position that has not been effectively designed until it is deducted.

Confirm by looking at the published post rules and regulations and post responsibility manual of this unit.

5.2 Incompatible posts and responsibilities are effectively separated and implemented. (score 3 points)

Operating rules for evaluation: In view of various economic activities of the unit, we should implement all kinds of incompatible posts and responsibilities designed to form a working mechanism of mutual restriction and supervision.

Confirm by randomly checking relevant documents by category. If the signatures of all the relevant documents in the spot check meet the requirements, the item will be scored, otherwise it will not be scored. Check the problems reflected by the internal and external inspections of the unit. If there are related problems, this item does not score.

6 internal control management information system function coverage index (this index is 10 points).

6.1 Establish an internal control management information system with functions covering major business controls and processes. (score 6 points)

Operating Rules for Evaluation: The functions of the internal control management information system (hereinafter referred to as system functions) should fully reflect the economic and business control processes stipulated by the system of the unit, and should at least include business matters such as budget management, revenue and expenditure management, government procurement management, asset management, construction project management and contract management. One point will be deducted for each of the six aspects of business that is not covered. If the business is not covered because the company itself does not exist, the business will not be deducted. If this unit has not established an internal control management information system, both points of 6.1 and 6.2 will be directly scored 0.

By looking at the system function specification and the actual operating system, the system function is compared with the requirements of the internal control system for confirmation.

6.2 The system sets up incompatible post accounts and reflects their authority. (score 4 points)

Operating Rules for Evaluation: Independent account names and passwords and clear operating authority levels shall be established in the system for incompatible positions and responsibilities of internal control of covered business processes. If there is no separate account or authority for each pair of incompatible positions, 1 point will be deducted until the deduction is finished.

By looking at the system function specification and the actual operating system, the user account setting of the system is compared with the requirements of the internal control system for confirmation.

(two) business indicators (this indicator is 40 points)

7 budget business management control indicators (7 points in total).

7.1 Internally decompose the budget and approve the release. (score 3 points)

Detailed operating rules for evaluation: The accounting department of this unit shall break down the budget indicators by department according to the budget approved by the finance department at the same level and the expenditure demand put forward by various business departments within the unit, and issue them to all business departments after approval by the budget management committee.

Confirm by viewing the budget approval document, department responsibilities, work plan and internal release document of budget approval.

7.2 Budget execution variance rate. (score 4 points)

Operating rules for evaluation: calculate the average value of the variance rate of the annual budget execution of this unit in recent three years. If the absolute value of the variance rate is higher than 5%, the reasons for the variance rate should be traced. If it is verified that the cause of the variance rate is related to internal control, score according to the variance rate result: if the absolute value of the variance rate is 5-10% (inclusive), score 2 points; 10-15% (inclusive), 1 point; If it exceeds 15%, score 0. If the absolute value of the variance rate is within 5% (inclusive) or the reason for the variance rate has nothing to do with internal control, score 4 points.

Calculation formula:

Confirmed by checking the unit budget quota and unit final accounts approved by the finance department at the same level.

8 revenue and expenditure business management control indicators (this indicator is 6 points).

8.1 Revenue shall be managed under centralized management and bill control, so that all receivables can be collected. (score 2 points)

Detailed operating rules for evaluation: the income (including non-tax income) of this unit shall be managed by the accounting department and accounted for; For contracts involving income, the accounting department shall regularly check whether the amount of income is consistent with the contract; Set up a bill manager according to the regulations and establish a bill ledger; Register the application, activation, write-off and destruction of all kinds of bills in a timely manner. If one of the above four aspects is not done, 0.5 points will be deducted.

By looking at the relevant system of the unit, check the records of the accounting department to check the contract and confirm the bill ledger.

8.2 Expenditure items shall be subject to centralized management and classified control. (score 2 points)

Detailed operating rules for evaluation: this unit shall specify the centralized management departments and responsibilities of various expenditure business matters, and conduct centralized management of expenditure business matters; Expenditure items should be classified and managed, and corresponding systems should be formulated, and different approval procedures and authority should be implemented for different categories of items; Clarify the requirements of external original bills to be submitted for all kinds of expenditure business matters, and clarify the requirements of internal approval forms and the key points of document review; Through the analysis and control of all kinds of expenditure business matters, we find out the abnormal situation of expenditure and its reasons, and take effective measures to solve it. If one of the above four aspects is not done, 0.5 points will be deducted.

Confirm by viewing the expenditure management system, internal approval documents and relevant expenditure vouchers.

8.3 Collective decision-making and regular reconciliation shall be carried out for debt matters. (score 2 points)

Evaluation operation rules: units that can borrow debts according to regulations should establish a debt management system; Carry out prior argumentation and collective decision-making; Regularly check the debt balance with creditors; The debt scale should be controlled within the prescribed scope. If one of the above four aspects is not done, 0.5 points will be deducted. Units that are prohibited from borrowing debts according to regulations, if there is borrowing behavior, get 0 point for this item.

Determine by looking at system documents, meeting minutes, statements, debt contracts, etc.

9 government procurement business management control indicators (7 points in total).

9.1 Government procurement compliance. (score 4 points)

Detailed operating rules for evaluation: the goods, services and projects purchased by this unit shall be strictly implemented in accordance with the provisions of the annual government centralized procurement catalogue and standards. For each item that should be adopted but not adopted or violates the annual centralized government procurement catalogue and standards, 1 point will be deducted until it is deducted.

Confirm by looking at the unit government procurement items in a certain period.

9.2 Implement the government procurement policy. (score 2 points)

Operating rules for evaluation: The government should strictly implement policies such as energy conservation and environmental protection and promoting the development of small and medium-sized enterprises when purchasing goods, services and projects. For each item that fails to implement the government procurement policy as required, 1 point will be deducted until the deduction is finished.

Confirm by looking at the unit government procurement items in a certain period.

9.3 Changes in government procurement methods and approval for purchasing imported products. (score 1 point)

Detailed operating rules for evaluation: the procurement of goods or services above the standard of public bidding by means of non-public bidding, as well as the government procurement of imported products, shall be submitted for approval in accordance with regulations. For each item that is not submitted for approval according to the regulations, 1 point will be deducted until the deduction is finished.

Confirm by looking at the unit government procurement items in a certain period.

10 asset management control indicators (this indicator is 6 points in total).

10.1 Check, count and track assets regularly. (score 4 points)

Detailed operating rules for evaluation: the monetary funds, inventory, fixed assets, intangible assets, creditor’s rights, foreign investment and other assets of the unit shall be checked and counted regularly to ensure that the accounts are consistent with the facts; Follow-up management of creditor’s rights and foreign investment projects. Deduct 1 point for each class of assets that are not regularly checked, counted or tracked, until the deduction is finished.

Confirmed by checking various asset ledgers, accounting books, inventory records, various investment decision-making approval documents and meeting minutes of this unit in the past year.

10.2 Allocate, use and dispose of assets in strict accordance with legal procedures and authority. (score 2 points)

Operating rules for evaluation: This unit shall go through the examination and approval procedures in strict accordance with the examination and approval authority when allocating, using and disposing of state-owned assets. Without approval, it shall not allocate assets, use assets for foreign investment, lease or lend them, or dispose of assets by itself.

Confirmed by checking the approval of asset allocation, foreign investment, lease and loan, free allocation (transfer), foreign donation, sale, transfer, replacement, scrapping and loss reporting, and loss verification of monetary assets.

11 indicators of construction project management and control (8 points in total).

11.1 Perform the examination and approval procedures for content change of construction projects. (score 2 points)

Detailed operating rules for evaluation: this unit shall organize the implementation of construction projects according to the approved preliminary design scheme. If it is really necessary to carry out project negotiation and design change, the centralized management department of construction projects and project supervision institutions shall conduct strict audit and perform corresponding examination and approval procedures in accordance with relevant regulations and system requirements. Major project changes should also refer to the relevant procedures and requirements of project decision-making and budget control to re-perform the examination and approval procedures. Every time there is an illegal change in a construction project, 1 point will be deducted until it is finished.

By looking at the changes that occurred during the construction of the completed construction projects of this unit in the past five years, it is confirmed.

11.2 Timely preparation of final accounts for completion and delivery of assets. (score 2 points)

Detailed operating rules for evaluation: this unit shall prepare the final financial accounts of the project in time after the completion of the construction project, and go through the formalities for the delivery and use of assets in time after the project is completed and accepted. Every time there is a construction project that fails to prepare the final accounts of completion acceptance in time, 1 point will be deducted; Every time there is a construction project that fails to handle the formalities for the delivery and use of assets in time, 1 point will be deducted until the end of deduction.

It is confirmed by reviewing the completion acceptance data and final accounts preparation audit data of the completed construction projects of this unit in the past five years.

11.3 The over-estimated rate of construction projects. (score 4 points)

Detailed operating rules for evaluation: calculate the over-estimated rate of completed construction projects in this unit in recent 5 years. If the over-estimated rate is higher than 5%, the reasons for the over-estimated rate should be traced. If it is verified that the reason for the over-estimated rate is related to internal control, it will be scored according to the situation of over-estimated rate: 2 points will be deducted for every construction project with over-estimated rate higher than 5% until the deduction is finished. If it has nothing to do with internal control, score 4 points.

Calculation formula:

(The investment in final accounts of construction projects shall be subject to the final financial accounts of the approved projects; During the construction period, if the preliminary design estimate is adjusted, it shall be calculated by the last approved adjustment estimate).

Confirmed by checking the investment estimate of the construction project and the approved final accounts report.

12 contract management control indicators (this indicator is 6 points in total).

12.1 Strengthen contract conclusion and centralized management. (score 3 points)

Operating rules for evaluation: this unit shall strictly review the contract text, and the centralized contract management department shall make unified classification and serial numbering. For the contract text with significant influence or complicated legal relationship, the business department, legal department, accounting department and other relevant departments should be organized to conduct joint audit. Every time there is a contract that is not in compliance with the regulations, 1 point will be deducted until the deduction is completed.

Confirm by checking relevant systems, randomly checking contract approval records, meeting minutes, etc.

12.2 Strengthen the control of contract performance. (score 3 points)

Operating rules for evaluation: this unit shall effectively monitor the performance of the contract, clarify the responsible person for contract implementation, inspect, analyze and accept the performance of the contract in a timely manner, and take timely measures if it is found that the contract cannot be performed on time; In case of the need to supplement, modify or terminate the contract, strict supervision and examination shall be conducted in accordance with the relevant provisions of the state. For each contract that fails to effectively monitor the performance of the contract, or fails to supervise and review the contract’s supplement, change and dissolution, 1 point will be deducted until the deduction is finished.

Confirm by checking the inspection records of contract performance, contract acceptance documents, supervision and review records of contract supplement, change or cancellation, etc.

Third, the evaluation scoring method

1. All evaluation indicators are applicable to the participating units, and the scores of the participating indicators are summarized, which is the evaluation score of the participating units, with a full score of 100 points.

2. If an indicator is not applicable because the participating units do not involve certain business, the evaluation score needs to be converted, and the conversion formula is as follows: