Internal control evaluation report in 2021
Bbmg Corporation(601992) all shareholders:
In accordance with the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control regulatory requirements (hereinafter referred to as the enterprise internal control normative system), combined with the company's (hereinafter referred to as the company's) internal control system and evaluation methods, and on the basis of daily and special supervision of internal control, we evaluated the effectiveness of the company's internal control on December 31, 2021 (the benchmark date of internal control evaluation report). I Important statement
It is the responsibility of the board of directors of the company to establish, improve and effectively implement internal control, evaluate its effectiveness and truthfully disclose the internal control evaluation report in accordance with the provisions of the enterprise's internal control standard system. The board of supervisors shall supervise the establishment and implementation of internal control by the board of directors. The management is responsible for organizing and leading the daily operation of the enterprise's internal control. The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this report, and bear individual and joint legal liabilities for the authenticity, accuracy and completeness of the contents of the report.
The objective of the company's internal control is to reasonably ensure the legal compliance of operation and management, asset safety, authenticity and integrity of financial reports and relevant information, improve operation efficiency and effect, and promote the realization of development strategy. Due to the inherent limitations of internal control, it can only provide reasonable assurance for the realization of the above objectives. In addition, as changes in circumstances may lead to inappropriate internal control or reduced compliance with control policies and procedures, there is a certain risk to speculate the effectiveness of internal control in the future according to the internal control evaluation results. II Internal control evaluation conclusion 1 On the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting
□ yes √ no
2. Evaluation conclusion of internal control over financial reporting
√ valid □ invalid
According to the identification of major defects in the company's internal control over financial reporting, there are no major defects in the internal control over financial reporting on the benchmark date of the internal control evaluation report. The board of Directors believes that the company has maintained effective internal control over financial reporting in all major aspects in accordance with the requirements of the enterprise's internal control standard system and relevant regulations. 3. Whether major defects in internal control over non-financial reporting are found
□ yes √ no
According to the identification of major defects in the company's internal control over non-financial reports, the company found no major defects in the company's internal control over non-financial reports on the benchmark date of the internal control evaluation report. 4. Factors affecting the evaluation conclusion of internal control effectiveness from the benchmark date of internal control evaluation report to the date of issuance of internal control evaluation report □ applicable √ not applicable
There are no factors affecting the evaluation conclusion of the effectiveness of internal control from the base date of the internal control evaluation report to the date of issuance of the internal control evaluation report.
5. Whether the evaluation on the effectiveness of the company's internal control report is consistent with the audit conclusion
√ yes □ No 6 Whether the disclosure of major defects in internal control of non-financial reports in the internal control audit report is consistent with the disclosure of the company's internal control evaluation report √ yes □ no III Internal control evaluation (I) Scope of internal control evaluation
According to the risk oriented principle, the company determines the main units, businesses and matters included in the evaluation scope and high-risk areas. 1. The main units included in the evaluation scope include: Bbmg Corporation(601992) headquarters, 7 secondary group companies (including the units under management) and 3 professional units directly under the group (including the units under management), a total of 359 units.
2. Proportion of units included in the scope of evaluation:
Proportion of indicators (%)
The total assets of the units included in the evaluation scope accounted for 98.52% of the total assets in the company's consolidated financial statements
The total operating income of the units included in the evaluation scope accounts for 99.44% of the total operating income in the company's consolidated financial statements
3. The main operations and matters included in the scope of evaluation include:
It includes various elements involved in the company level control in the company's internal control manual and the internal control manual of subordinate enterprises. The business level control involves capital activities, procurement and production activities, asset management, sales business, research and development, engineering projects, guarantee business, business outsourcing, financial report, comprehensive budget, contract management, human resources, product quality management, information resource management, information system Information disclosure and other internal control processes. 4. Key areas of focus include:
Including capital activities, procurement and production activities, asset management, sales business, engineering projects, financial reports, comprehensive budget, contract management and other business processes. 5. The above units, businesses and matters included in the evaluation scope and high-risk areas cover the main aspects of the company's operation and management. Is there any major omission
□ yes √ No 6 Is there a statutory exemption
□ yes √ No 7 Other explanatory matters
No other matters (II) Basis of internal control evaluation and identification standard of internal control defects
The company organizes and carries out internal control evaluation according to the enterprise internal control standard system and the internal control manual of the company and its subordinate enterprises. 1. Whether the specific identification standard of internal control defects is adjusted with that of previous years
□ yes √ no
The board of directors of the company distinguished the internal control of financial report from the internal control of non-financial report according to the identification requirements for major defects, important defects and general defects of the enterprise internal control standard system, combined with the factors such as the company's size, industry characteristics, risk preference and risk tolerance, and studied and determined the specific identification standards of internal control defects applicable to the company, which are consistent with the previous years.
2. Identification standard of internal control defects in financial reporting
The quantitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
The impact of internal control defects ≥ the overall importance level, accounting for the proportion of overall importance 20% of the overall importance level
Financial data amount 20% - 100%
Note: the company takes the total assets and net profit as the benchmark for determining the importance level, and selects the lowest value as the importance level of the financial statements. Importance level criteria:
Importance level of financial indicators (consolidation / parent company / subsidiary)
0.5% of total assets
Net profit 5%
The qualitative criteria for the evaluation of internal control defects in financial reporting determined by the company are as follows:
Qualitative standard of defect nature
Major defects ● any degree of fraud found by the company's management;
● major internal control deficiencies that have been found and reported to the management have not been corrected after a reasonable time;
● ineffective internal control environment;
● defects affecting revenue trend;
● defects affecting the total amount of connected transactions exceeding the amount of connected transactions approved by shareholders;
● major misstatements found in external audit are not first discovered by the company;
● other defects that may affect the correct judgment of report users.
Important defects ● major internal control defects that have been found and reported to the management are not rectified comprehensively and thoroughly after a reasonable time;
● imperfect internal control environment;
● accounting measurement is not timely and accurate, resulting in information lag or information error;
● there are serious defects in the financial system.
General defects ● other internal control defects related to financial reporting.
Note: there are no other matters to be explained. 3. Identification standard of internal control defects in non-financial reporting
The quantitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Index name major defect quantitative standard important defect quantitative standard general defect quantitative standard
The amount of direct asset loss is more than 20 million yuan and less than 10-20 million yuan
Note: there are no other matters to be explained.
The qualitative criteria for the evaluation of internal control defects in non-financial reporting determined by the company are as follows:
Qualitative standard of defect nature
Major deficiencies ● lack of democratic decision-making procedures;
● decision making procedures lead to major mistakes;
● serious loss of middle and senior managers and senior technicians;
● negative news frequently appears in the media, covering a wide range;
● lack of system control or system failure of important business;
● major or important defects in internal control have not been rectified.
Important defects ● democratic decision-making procedures exist but are not perfect;
● general errors caused by decision-making procedures;
● violation of internal rules and regulations of the enterprise, resulting in losses;
● serious loss of business personnel in key positions;
● negative news in the media, affecting local areas;
● there are defects in important business systems or systems;
● important or general defects in internal control have not been rectified.
General defects ● inefficient decision-making procedures;
● violation of internal regulations without loss;
● serious loss of business personnel in general posts;
● negative news appears in the media, but the impact is small;
● defects in general business system or system;
● general defects have not been rectified;
● there are other defects.
Note: there are no other matters to be explained. （3） Identification and rectification of internal control defects 1 Identification and rectification of internal control defects in financial reporting 1.1 Major defects
Whether the company has any major defects in internal control over financial reporting during the reporting period
□ yes √ no 1.2 Important defects
Whether the company has any significant defects in internal control over financial reporting during the reporting period
□ yes √ no 1.3 General defect
There are some general defects in the daily operation of the internal control process, but because the company's internal control has a dual supervision mechanism of self-evaluation and internal audit, the risk is controllable and has no impact on the company's financial report. 1.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company have any major defects in the internal control of financial reporting that have not been rectified
□ yes √ no 1.5 After the above rectification, on the benchmark date of the internal control evaluation report, does the company have any important defects in the internal control of financial reporting that have not been rectified
□ yes √ No 2 Identification and rectification of internal control defects in non-financial reporting 2.1 Major defects
Whether the company found any major defects in internal control over non-financial reporting during the reporting period
□ yes √ no 2.2 Important defects
□ yes √ no 2.3 General defect
There are some general defects in the daily operation of the internal control process, but because the company's internal control has a dual supervision mechanism of self-evaluation and internal audit, the risk is controllable and has no impact on the company's financial report. 2.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in non-financial reporting internal control that have not been rectified
□ yes √ no 2.5 After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any important defects in the internal control of non-financial reporting that have not been rectified
□ yes √ no IV Description of other major matters related to internal control 1 Rectification of internal control defects in the previous year
□ applicable √ not applicable 2 Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
In 2021, the company adhered to the "four developments" and further straightened out the "1 + 7 + X" management structure and improved management efficiency in accordance with the control principles of "flattening, specialization, regionalization and informatization"; Further strengthen the publicity and implementation of the implementation system in 2021 and the revised internal control manual in 2019 in the management units at all levels; Further optimize the institutional setting of the group headquarters, refine the responsibilities and authorities of departments, and give full play to the functions of the strategic decision-making center, capital operation center, asset supervision center and human resource allocation center of the headquarters; Further improve the management and control mode of affiliated enterprises, clarify the management level, and implement the tenure system and contractual management; Further strengthen the construction of the rule of law and compliance system, implement the three-level leadership package system for major cases, and effectively implement the general legal adviser system; Further improve the comprehensive quality of employees, establish a talent pool for human resources, finance and skilled technicians, and organize all kinds of training
