Company code: Anhui Expressway Company Limited(600012) company abbreviation: Anhui Expressway Company Limited(600012) Anhui Expressway Company Limited(600012)
Internal control evaluation report in 2021
Anhui Expressway Company Limited(600012) 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 base 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 internal control audit opinion is consistent with the company's evaluation conclusion on the effectiveness of internal control over financial reporting
□ yes □ no 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: the headquarters of the company, pawn company, Xuanguang company, ningxuanhang company, Hefei management office, Chuzhou management office, Gaojie management office, Xiaoxian management office, Tianchang management office and anqing Bridge Company. 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 98.49% 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 96.45% 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:
Organizational structure, social responsibility, development strategy, corporate culture, risk assessment, human resources, information and communication, internal supervision, financial report, budget management, fund management, tax management, project management, asset management, procurement, business income, R & D management, contract management, etc.
4. High risk areas of focus mainly include:
Pawn business management, engineering construction project management, fund management, toll revenue management, etc. 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
None (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 supporting guidelines, combined with the company's internal control system and evaluation methods. 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 actual or potential error is greater than or equal to the lower of less than 5% of pre tax profit, less than 1% of pre tax profit, 5% of reported amount, 0.5% of total assets, 0.5% of total assets, 0.1% of total assets, but greater than or equal to the lower of tax
1% of pre profit and total assets
The lower of 0.1% of the amount
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
Material defect if an internal control defect alone or together with other defects has a reasonable possibility to prevent, detect and correct the material misstatement in the financial report in a timely manner, the defect is recognized as a material defect.
The following signs usually indicate that there may be significant defects in internal control, including but not limited to: 1
The certified public accountant finds that there is a material misstatement in the current financial statements, but the internal control fails to find the misstatement in the operation process; 2. The supervision of the audit committee and internal audit institutions on internal control is invalid; 3. Directors, supervisors and senior managers commit fraud in the performance of their duties; 4. Ineffective control environment; 5. Major defects are not rectified within a reasonable period.
Important defect if an internal control defect, alone or in combination with other defects, has a reasonable possibility to prevent, detect and correct the misstatement in the financial report that does not reach or exceed the importance level, but should still attract the attention of the board of directors and management, the defect shall be recognized as an important defect.
General defects internal control defects that do not constitute major defects and important defects shall be recognized as general defects.
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 actual or potential error is greater than or equal to the lower of less than 5% of pre tax profit, less than 1% of pre tax profit, 5% of reported amount, 0.5% of total assets, 0.5% of total assets, 0.1% of total assets, but greater than or equal to the lower of tax
1% of pre profit and total assets
The lower of 0.1% of the amount
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 defects do not take any action for the existing problems, which may lead to serious deviation from the control objectives. The following signs usually indicate that there may be significant defects in internal control, including but not limited to: 1 Enterprises lack democratic decision-making procedures, such as "three important and one large" decision-making procedures; 2. Unscientific decision-making procedures of enterprises, such as unsuccessful M & A due to wrong decision-making; 3. Violation of national laws and regulations, major environmental pollution or quality problems, causing investigation or litigation by the government or regulatory authorities, causing major economic losses or serious damage to the company's reputation; 4. Frequent negative news in the media; 5. The results of internal control evaluation, especially major or important defects, have not been rectified; 6. Lack of system control or systematic failure of important business
Important defects may lead to large negative impact and target deviation if no action is taken for the existing problems.
General defects. Failure to take any action on the existing problems may lead to small-scale target deviation.
（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 major defects in internal control over financial reporting during the reporting period □ yes √ no 1.2 Important defects
Whether the company has significant defects in internal control over financial reporting during the reporting period □ yes √ no 1.3 General defect
The company has formulated and rectified the general defects found. 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
Whether the company found any significant defects in internal control over non-financial reporting during the reporting period □ yes √ no 2.3 General defect
The company has formulated and rectified the general defects found. 2.4. After the above rectification, on the benchmark date of the internal control evaluation report, does the company find any major defects in the 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 non-financial reporting internal control 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
The company has effectively rectified the general defects found in the internal control evaluation of the previous year. 2. Operation of internal control in this year and improvement direction in the next year
√ applicable □ not applicable
This year, in order to meet the new regulatory requirements and its own development needs, the company established a strict, standardized, comprehensive and effective internal control system guided by risk management and focusing on compliance management and supervision. The trial operation period of the system is nine months. The implementation of internal control in 2021 was good, which played a good management and control role in all key links of the company's operation and management, provided guarantee for the healthy operation of the company's businesses and the control of business risks, and reasonably guaranteed the reliability of financial reports, the legitimacy of business operation, and the efficiency and effect of operation. Under the circumstance of the company's internal trial operation, the company will continuously improve its internal control system and promote the sustainable development of various risks. 3. Description of other major events
□ applicable √ not applicable
Chairman (authorized by the board of directors): Xiang Xiaolong Anhui Expressway Company Limited(600012) March 28, 2022
