Gansu Engineering Consulting Group Co.Ltd(000779)
Self evaluation report on internal control in 2021
Gansu Engineering Consulting Group Co.Ltd(000779) all shareholders:
According to the provisions of the basic norms of enterprise internal control and its supporting guidelines and other relevant regulatory requirements, Gansu Engineering Consulting Group Co.Ltd(000779) (hereinafter referred to as "the company" or "the company") evaluated the effectiveness of the company's internal control as of December 31, 2021 (the benchmark date of internal control evaluation report) on the basis of daily and special supervision of internal control in combination with the company's systems and evaluation methods.
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, its effectiveness may change with the change of the company's internal and external environment and operation, so it can only provide reasonable guarantee 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) basic principles of internal control system
1. Principle of comprehensiveness: the company's internal control runs through the whole process of decision-making, implementation and supervision, covering various businesses and matters of the company and its subsidiaries.
2. Principle of importance: the company's internal control focuses on important business matters and high-risk areas on the basis of comprehensive control.
3. Principle of checks and balances: the company's internal control forms a role of mutual restriction and mutual supervision in the aspects of governance structure, institutional setting, distribution of rights and responsibilities, business process, etc., while taking into account the operation efficiency.
4. Principle of adaptability: the company's internal control shall adapt to the company's business scale, business scope, competition and risk level, and shall be adjusted in time with the changes of the situation.
5. Cost benefit principle: the company's internal control balances the implementation cost and expected benefits to achieve effective control at an appropriate cost.
(II) evaluation scope of internal control
According to the risk oriented principle, the company determines the main businesses and matters included in the evaluation scope and high-risk areas. The total assets included in the evaluation scope accounted for 89.39% of the total assets in the company's financial statements, and the total operating income accounted for 80.61% of the total operating income in the company's financial statements.
The main businesses and matters included in the evaluation scope include: organizational structure, development strategy, human resources, social responsibility, corporate culture, capital activities, procurement business, asset management, sales business, research and development, guarantee business, financial report, budget management, contract management, internal information transmission, information system, internal supervision, information disclosure, comprehensive management, etc.
1. Organizational structure
In strict accordance with the company law, the guidelines for the governance of listed companies and other laws and regulations and the articles of association, the company has established the general meeting of shareholders, the board of directors and the board of supervisors as the power organ, executive organ and supervisory organ of the company respectively. In combination with the actual situation of the company, the company has formulated the rules of procedure of the general meeting of shareholders, the rules of procedure of the board of directors, the rules of procedure of the board of supervisors and other meeting rules of procedure, clarifying the rules of procedure of the general meeting of shareholders The responsibilities and authorities of the board of directors, the board of supervisors and the management have formed a corporate governance structure with respective responsibilities, coordinated operation and effective checks and balances. The company has reasonably set up various internal functional organizations, and defined the responsibilities and authorities of various organizations by formulating internal management systems and relevant documents such as organization chart, department responsibilities, post work standards and authority guidelines, so that the management and employees can fully understand and master the design of organizational structure and authority allocation.
2. Development strategy
According to the articles of association, the strategy committee under the board of directors of the company is responsible for studying and making suggestions on the company's medium and long-term development strategy, major project investment decisions and major matters decided by the board of directors. According to the national development plan and industrial policy, based on the analysis of the current situation and change trend of external environment and internal resource conditions, the company has made directional, overall and overall positioning, development objectives and corresponding implementation plans for the survival and long-term stable development of the company in a certain period of time in the future. The company is positioned as a consulting enterprise in the whole process of engineering. Focusing on the social and economic development strategy of national and local governments, the company focuses on building the most valuable listed enterprise in the field of engineering consulting in China, based on the fields of infrastructure construction such as transportation, municipal administration, water conservancy and hydropower and industrial and civil buildings, and focusing on emerging fields such as green construction, ecological construction and environmental engineering. Adhering to the organic and unified development concept of political responsibility, economic responsibility and social responsibility of state-owned enterprises, the company strives to be a maintainer and builder of green ecological environment.
3. Human resources
According to the labor contract law and other relevant laws and regulations and in combination with the actual situation of the company, the company has formulated management systems such as employee recruitment management measures, employee training management measures, performance management measures, employee salary management measures and labor contract management measures. The company implements the post open recruitment system, optimizes the introduction and allocation of human resources, establishes and improves the training, selection, assessment and incentive mechanism of human resources, further improves the human resource management system in terms of talent recruitment, employee training, performance management and salary management, and regularly provides employees with labor skills and professional technology training, so as to establish a good growth environment and communication platform for the company's employees, It has laid a foundation for the further implementation of the company's talent strategic objectives. Through multi-level training and performance appraisal, continuously improve the professional ability of employees, effectively mobilize the enthusiasm of all employees, and ensure the realization of the company's business plan and strategic objectives.
4. Social responsibility
In accordance with the provisions of the guidelines for the application of enterprise internal control and in combination with the actual situation of the company, the company has formulated internal control systems such as the measures for the management of work safety, adhering to the guidance of "scientific development and safety development", the policy of "safety first, prevention first and comprehensive treatment", the concept of "people-oriented and caring for life", and the principle of "production must be in charge of safety, and whoever is in charge is responsible", Establish and improve the safety production management system, create a good safety production environment and ensure the smooth progress of all work.
Pay attention to the performance of social responsibility, mainly related to safe production, environmental protection, resource conservation, employment promotion, etc. The enterprise organically combines the production concept, core competitiveness, sustainable development ability and due social responsibility, takes into account the internal and external relations of the enterprise, and achieves mutual benefit and win-win and multi win.
5. Corporate culture
In order to standardize the corporate culture construction of the Group Corporation, create a good atmosphere for corporate culture construction, promote the healthy and orderly progress of the group's corporate culture management, further complete the corporate mission of "creating high-quality projects and creating a green ecological environment", promote the corporate values of "innovation, openness, integrity and win-win", and strive to gather the consensus of the majority of Party members and cadres to serve the overall situation of reform and development of the province, Make every effort to build the enterprise vision of "Western top, Chinese first-class and internationally renowned integrated comprehensive service industry group in the field of engineering construction". 6. Financial activities
In accordance with the requirements of the company law, the accounting law of the people's Republic of China, the accounting standards for business enterprises, the guidelines for the application of enterprise internal control and other laws and regulations, and in combination with the actual situation of the company, the company has formulated fund management systems such as the management system for the use of large amount funds, the financing management system and the measures for the management of foreign investment, which strictly standardize the procedures for the receipt and expenditure of funds, the approval authority and the behavior of foreign investment. The company controls funds through various control means and methods, such as separation of incompatible positions, control of accounting records, authorization approval, control of quota and expenditure standards, so as to effectively ensure the safety and effectiveness of funds. Through the effective adjustment of internal funds, the company has avoided idle funds and shortage of funds as much as possible, and maximized the efficiency of fund use. 7. Procurement business
Combined with the actual situation, the company has formulated the procurement management measures for low value consumables, procurement management measures and material procurement management, made an overall plan for the company's material procurement, and formulated relevant processes, systems and management measures in terms of planning, requisition, approval, procurement, acceptance, management and maintenance. It standardizes key businesses such as purchase business application, approval, purchase and management, and establishes a business record control system with settlement vouchers such as purchase requisition, contract, acceptance document and warehousing document as the carrier. In terms of procurement and payment management, the company coordinates and standardizes the procurement management activities of various business units, effectively reduces procurement costs and fraud risks, improves procurement quality and capital use efficiency, and promotes the improvement of the company's management level.
8. Asset management
According to the company's development strategy and in combination with the actual business needs, the company has formulated the measures for the management of intangible assets and the measures for the management of fixed assets to clarify the management responsibilities of the assets of various functional departments, implement the authorization and approval system for the purchase of intangible assets and fixed assets, and strictly perform the approval procedures. Check the physical objects regularly to ensure that the accounts are consistent with the actual accounts, and effectively ensure the safety, authenticity and integrity of various assets. At the same time, relevant management measures have been formulated in the aspects of asset plan, purchase requisition, approval, bidding, procurement, acceptance, inventory, depreciation and disposal, standardizing the key businesses in asset management and ensuring asset safety.
9. Sales business
In accordance with the accounting standards for business enterprises, basic norms for internal control of enterprises and other relevant laws and regulations, and in combination with the actual situation of the company, the whole process of sales business can be controlled through strict control of customer selection, sales contract signing, revenue and payment collection, sales business assessment and other processes; The company has formulated management systems such as operating revenue recognition and management system and accounts receivable management system, which standardize and control the main links of sales business, clarify the responsibilities and authorities of each post, and ensure the separation, restriction and supervision of incompatible posts. Sales control covers sales management, revenue recognition procedures, collection management and other related matters, forming a strict management system and authorization review procedures, which is conducive to ensuring the orderly and efficient operation of production and operation activities.
10. Research and development
In order to further strengthen the scientific research management of the group and its subsidiaries, comprehensively improve the ability of independent innovation and core technology research in key fields, improve the scientific research mechanism based on independence, innovation and integrity, fully stimulate the innovation vitality of scientific researchers and create an innovation atmosphere.
11. Guarantee business
In order to standardize the company's external guarantee behavior, effectively control the company's external guarantee risk and safeguard the legitimate rights and interests of the majority of shareholders, the management system of external guarantee is formulated in accordance with the company law of the people's Republic of China, the securities law of the people's Republic of China, the guarantee law of the people's Republic of China, the stock listing rules of Shenzhen Stock Exchange and the regulations on regulating listed companies to the company, It stipulates the assessment and approval of guarantee business, the approval and execution of guarantee business, the execution and verification of guarantee business, the custody of guarantee property and business records, defines the rights and responsibilities and mutual restriction requirements and measures of various departments, and effectively prevents the company's external guarantee risk. At present, the company has no external guarantee.
12. Financial Report
The company attaches great importance to the authenticity and integrity of the data in the financial report, and strictly controls and manages the accounting, preparation and release of the financial report of the whole company.
The board of directors is responsible for the examination and approval of the annual, semi annual and quarterly financial and accounting reports of the group, and the chairman, general manager and chief financial officer are responsible for the examination and approval of the monthly financial reports. The chairman (legal representative) shall ensure the authenticity and completeness of the financial accounting report. The chief financial officer shall be responsible for organizing the preparation and reporting of the financial accounting report and the analysis and utilization of the financial accounting report. The office of the board of directors shall be responsible for the disclosure of the periodic report, and the financial management department of the group joint stock company shall be responsible for organizing the preparation and reporting of the financial accounting report and financial analysis report, The financial management department of each subsidiary shall timely and accurately report various statements and relevant accounting information according to the requirements of the financial management department of the Group Corporation, and ensure that the accounting information provided is true and complete.
In accordance with the accounting laws and regulations and the unified accounting standards system, the company strictly controls the changes of the company's accounting subjects, accounting vouchers and assets, so as to ensure that the company's accounting subjects cannot be changed at will, the original vouchers are kept intact, the content is standardized, and the asset records are true. In order to avoid false financial reports and major omissions, the company has strengthened the process control over the preparation of financial reports and the external provision of financial statements. Specifically, before the preparation of the financial report, necessary asset inventory, impairment test and verification of creditor's rights and liabilities shall be carried out, and the transactions and matters that have a significant impact on the financial report shall be approved in accordance with the specified authority and procedures; When preparing the financial report, the statement shall be prepared in strict accordance with the accounting system and policy requirements stipulated by the state. No one shall change the company's existing accounting policies and accounting estimates without authorization to ensure the accuracy and authenticity of financial data; Before formally providing the financial report to the public, the company employs an accounting firm to audit and confirm by the audit committee to ensure that the financial statements provided by the company are free of false information and major omissions.
13. Budget management
In order to strengthen the internal control and management of the company's funds, ensure the safety and integrity of funds and improve the efficiency of the use of funds, the budget management system has been formulated in accordance with the requirements of the accounting law of the people's Republic of China, the guidelines for the application of enterprise internal control and other laws and regulations, which stipulates the procedures for the preparation, examination, implementation and modification of the budget. Budget preparation is guided by the company's strategic planning, accurately analyze and judge the market situation and policy trend, and scientifically predict the year
