Dongjiang Environmental Company Limited(002672)
Self evaluation report on internal control in 2021
Dongjiang Environmental Company Limited(002672) 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 standard system), combined with the internal control system and evaluation methods of Dongjiang Environmental Company Limited(002672) (hereinafter referred to as "the company" or "the company"), on the basis of daily and special supervision of internal control, Evaluated the effectiveness of the company's internal control on December 31, 2021 (benchmark date of internal control evaluation report).
1、 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.
2、 Internal control evaluation conclusion
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. 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.
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.
3、 Internal control evaluation
(I) evaluation scope of internal control
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 the company and all holding subsidiaries. The business scope includes the collection, transportation, treatment and disposal of industrial waste and municipal waste, comprehensive recycling of resources, as well as the technical consultation, design, construction and operation management of environmental protection facilities. The total assets of the units included in the evaluation scope account for 100% of the total assets in the company's consolidated financial statements, and the total operating revenue accounts for 100% of the total operating revenue in the company's consolidated financial statements.
2. The main businesses and matters included in the evaluation scope include: organizational structure, corporate culture, social responsibility, internal and external information transmission, development strategy, audit, asset management, general control of information system, contract and file management, human resource management, comprehensive budget management, fund management, financial report, investment management, procurement management, sales management, project management, R & D and technology management Industrial waste business management, environmental protection service engineering construction management, environmental protection service operation management, municipal waste business management, etc. The high-risk areas of focus mainly include asset management, fund management, financial reporting, investment management, budget management and business management. (1) Organizational structure
In strict accordance with the provisions of the company law and other laws, regulations, normative documents and the articles of association, the company has established and improved the standardized corporate governance structure and rules of procedure, formed a decision-making and operation management system with the general meeting of shareholders, the board of directors, the board of supervisors and the company's management as the main structure, and performed various duties specified in the company law and the articles of association in accordance with the law.
In accordance with the provisions of national laws and regulations and the requirements of regulatory authorities, the company has established an organization that meets the company's business characteristics and business management needs; Following the principle of separation of incompatible positions, reasonably set up departments and posts, scientifically divide responsibilities and authorities, and formulate corresponding working systems and rules of procedure. The company's organizations have clear rights and responsibilities, check, balance and coordinate with each other, so as to ensure the smooth operation of the company's decision-making, implementation, supervision and inspection procedures, and form an internal control organization system that performs its duties, assumes its responsibilities, cooperates and restricts each other. (2) Corporate culture
The company has established the corporate culture management system, which integrates the elements of internal control and risk management into the construction of corporate culture, laying a solid institutional foundation for the improvement of internal control. The company has established a corporate culture concept system with "sincerity, diligence and expertise" as the core, laid a humanistic foundation for the company's operation and management, and formulated the corporate culture manual and the corporate culture implementation plan to promote the rooting of the corporate culture. The company earnestly fulfills the corporate mission of "practicing ecological civilization and serving a beautiful China", and strives to realize the corporate vision of "being the first demonstrator of China's comprehensive environmental services".
Through official account, WeChat public address, exhibition hall, external exhibition, promotional leaflet, brochure, platform and publicity materials, the company conducts high-quality publicity and information release and reporting work in a timely and high-quality manner. At the same time, it actively promotes corporate culture through the platform of "three colors Dongjiang", "Dongjiang style", company Yearbook, and internal cultural propaganda team, and based on the current business development and future prospects. Constantly update and improve various publicity materials.
The company integrates the construction of corporate culture into daily operation and management activities, enhances employees' confidence and sense of responsibility, enhances the cohesion and centripetal force of the company, and ensures the health and stability of the company's operation.
(3) Social responsibility
In the process of operation and management, the company earnestly performs its social responsibilities and obligations, establishes and improves various safety and environmental protection management systems, constantly improves the safety and environmental protection management system, improves the safety and environmental protection management organization and staffing at all levels, implements the safety and environmental protection responsibility system of the company and its subordinate enterprises, organizes on-site safety and environmental protection inspection, and comprehensively implements the hidden danger investigation mechanism. The company regularly organizes subordinate enterprises to carry out safety and environmental knowledge training, emergency rescue drills and other activities to improve employees' awareness of safety and environmental protection, promote the construction of enterprise safety culture, promote the overall improvement of safety and environmental protection, and provide a strong guarantee for the high-quality development of the company.
The company strictly implements the "three Simultaneities" management of new reconstruction and expansion projects, that is, the safety facilities, occupational hazard protection facilities and relevant pollution prevention and control measures of the construction project must be designed, constructed, put into production and use at the same time as the main project; To ensure that the project meets the requirements of relevant laws and regulations after completion and operation, so as to ensure the safety and health of employees and prevent environmental pollution.
The company builds pollution prevention and control facilities such as wastewater and waste gas in strict accordance with the relevant requirements of the environmental impact assessment and approval opinions of the project. In terms of wastewater and waste gas treatment, effective measures such as new processes and technologies are adopted to achieve up to standard discharge.
The company insists on increasing investment in safety and environmental protection, comprehensively improving the management level of safety and environmental protection, and ensuring the safety, standardization and order of various operation activities.
(4) Internal and external information transmission
The company has formulated the internal reporting system of major information, established the information transmission mechanism and procedures, defined the management measures for information collection and transmission of all functional departments and subordinate units of the company, and required the internal information reporting obligor to timely report relevant information to the board of directors of the company, so as to ensure that the company disclosed all information that may have a great impact on the company in a timely, accurate and complete manner.
(5) Development strategy
The company has formulated the rules of procedure of the strategic development committee of the board of directors. The strategic development committee under the board of directors of the company studies and puts forward suggestions on the medium and long-term development strategic planning, major investment and financing schemes, major capital operation and asset operation of the company. The company has established a leading group for the preparation of the 14th five year plan to guide the implementation of the preparation of the 14th five year plan. The directors, supervisors and senior managers of the company have established strategic awareness and strategic thinking, and decomposed and implemented the company's development strategy to all internal management levels and all employees.
According to the changes of internal and external environment and the needs of its own development, the company expounds and combs the strategic objectives of the company. In order to achieve the strategic objectives, the company formulates key tasks, decomposes the key tasks, and assigns the responsibility to each functional department; And implement the company's development strategy into the annual production and operation activities through the annual business plan and comprehensive budget management, so as to ensure that the company's development plan is implemented step by step. The company promotes the implementation of the annual business plan by signing the letter of responsibility for annual business objectives with its subordinate units.
(6) Audit
The audit committee of the board of directors has an audit department. The company has formulated internal audit systems such as internal audit system, anti fraud management system, internal control evaluation management system and measures for the implementation of accountability for illegal operation and investment. According to the company's audit management system and in combination with the company's management reality, the company's audit department organizes regular operation and management of the company and its subordinate enterprises Carry out audit supervision and evaluation in terms of financial revenue and expenditure, economic benefits, internal control construction and implementation, general manager's performance of duties, reflect their existing risks and problems, put forward audit suggestions and supervise the audit rectification from the perspective of improving management and efficiency, standardizing operation activities, preventing and resolving risks and effectively preventing fraud.
(7) Asset management
The company has formulated asset management systems such as fund management system, fixed assets management system and inventory management system, which have been continuously revised and improved to carry out scientific and effective management around three aspects: fixed assets, current assets and intangible assets. It has formulated clear management requirements and normative constraints on the acquisition, daily physical management, asset disposal and the definition, valuation, amortization, inventory and impairment evaluation of various assets. The company takes measures such as division of responsibilities, regular physical inventory, property records, account verification and property insurance to prevent
(8) General control of information system
The company set up a special Informatization Leading Group at the level of IT governance, and formulated relevant system guarantee systems from the aspects of strategic planning, application system construction, data application and network security. In terms of information planning and construction, formulate the information system construction plan according to the company's development strategy and management innovation needs, and ensure that the information construction serves the company's development strategy and business objectives by orderly organizing the development, operation and maintenance of the information system. By establishing supporting it services and operation and maintenance mechanisms, the company ensures the safe and stable operation of the existing information system, supports the development of the company's business, continuously improves the integration of internal control measures into the level of it activities in the specific process, and continuously improves the value-added benefits of it optimizing management processes and preventing business risks. (9) Contract and archives management
The company has established a contract approval system, defined the approval authority of various contracts, established a tracking mechanism for contract performance, and taken corresponding preventive measures against the risks arising from contract performance. According to the new laws and regulations and business changes, the legal department of the company continuously revised the contract temsector and promoted its application in its subordinate subsidiaries, effectively preventing and controlling the possible risks in the process of contract performance. The company has established perfect archives management regulations, and regularly coordinated and archived the company's business data, technical data, meeting data, internal and external documents, contracts and agreements and other archives of the previous year, and established an electronic library of important archives.
(10) Human resource management
Closely focusing on the objectives and tasks of the 14th five year plan of the company, taking Comprehensively Strengthening the leadership of the party as the core, adhering to the principle of the party managing talents and cadres, clarifying the management requirements for the introduction, development, use, training, assessment, incentive and withdrawal of human resources, focusing on the optimization of talent management mechanism, continuously improving the selection and employment mechanism, promoting the implementation of diversified incentive measures, and realizing the rational allocation of human resources.
Adhering to the core value of "sincerity, diligence and expertise", the company adheres to the concept of "recruiting the most suitable and cultivating the best" talents. Focusing on the four dimensions of "Talent Gathering", "talent cultivation", "talent refining" and "talent development", the company implements the long-term mechanism of "attracting, cultivating, using and retaining" talents. Under the principle of "openness, equality, competition and selection of the best", the company creates a long-term mechanism of respecting and cherishing talents Make good use of the general environment of talents.
The human resources department shall regularly evaluate the implementation of the annual human resources plan, summarize the experience of human resources management, analyze the main defects and deficiencies, and continuously improve the human resources policy.
(11) Comprehensive budget management
The company has established a comprehensive budget management mechanism, continuously revised and improved the budget management system, budget management implementation rules and other relevant systems, and provided the basis for the company to sign the annual performance appraisal agreement with its subordinate units through the preparation of budget and the setting of financial assessment indicators. The company has established a budget management platform to control various expenditures according to the budget, track the budget implementation, analyze deviations and causes, and give risk tips, so as to provide decision-making basis for the management.
The company's budget implementation control complies with the company's authorization and approval regulations, strictly controls the extra budgetary expenditure, improves the budget implementation report, strengthens the communication of budget information, finds out the problems in budget implementation in time and formulates relevant improvement measures. The budget assessment system is clear, the indicators are reasonable, and the rewards and punishments are based on, so as to ensure the achievement of budget objectives.
(12) Fund management
The company has formulated the fund management system to comprehensively manage cash, bank deposits, other monetary funds, valuable documents and bills, and strictly implement the authorization and approval of various links such as fund raising, custody, use, distribution and dispatching.
The company has established a group fund settlement center to coordinate the funds of each subsidiary company, ensure the safety of funds and reduce the cost of funds. All subordinate units of the company shall strictly carry out fund management to ensure that the use of the company's funds complies with the principles of safety, rationality and efficiency.
(13) Financial Report
The company prepares the financial report in strict accordance with the national financial and accounting laws and regulations and the provisions of the company's relevant financial systems, and defines the handling procedures and division of responsibilities for accounting, report preparation, review, approval and disclosure, so as to ensure the authenticity, accuracy and integrity of the company's financial report. At the same time, the information disclosure of financial reports is carried out in strict accordance with the company's information disclosure management system, and the accountability system for major errors in annual report information disclosure is formulated to standardize the company's information disclosure behavior.
(14) Investment management
The company has established a sound foreign investment management mechanism. Based on the state-owned assets management regulations and listing rules, the company has formulated the equity investment management system (for Trial Implementation) and a series of internal operation guidelines for foreign investment, which clearly stipulates the joint venture and cooperation, acquisition and merger, reorganization and capital increase of the company and its subsidiaries to foreign non affiliated enterprises, so as to realize the prior Strict control of the whole process during and after investment.
The investment management department closely follows the company's development strategy and development strategy
