Songcheng Performance Development Co.Ltd(300144)
Internal control evaluation report in 2021
Songcheng Performance Development Co.Ltd(300144) all shareholders:
According to 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, 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.
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) 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. The main units included in the scope of evaluation include:
Name of unit
Performing Arts - Songcheng Performance Development Co.Ltd(300144)
Culture and art industry - live performance Hangzhou paradise Co., Ltd
Culture and art industry - live performance Sanya qianguqing tourism performance Co., Ltd
Culture and art industry - live performance Lijiang Chama ancient city tourism development Co., Ltd
Culture and art industry - live performance ABA Jiuzhai qianguqing Tourism Development Co., Ltd
Culture and art industry - live performance Shanghai Songcheng Expo Performance Development Co., Ltd
Culture and art industry - live performance Guilin Lijiang qianguqing Performance Development Co., Ltd
Culture and art industry - live performance Zhang Jia Jie Tourism Group Co.Ltd(000430) qianguqing Performance Development Co., Ltd
Culture and art industry - live performance Zhejiang Xitang Songcheng Performance Development Co.Ltd(300144) gu Performance Development Co., Ltd
Culture and art industry - live performance Foshan Nanhai Qiaoshan Cultural Tourism Development Co., Ltd
Culture and art industry - live performance Hangzhou Songcheng Performance Development Co.Ltd(300144) Gu technology and Culture Development Co., Ltd
Tourism service Hangzhou Songcheng dumuqiao Travel Agency Co., Ltd
The total assets of the units included in the evaluation scope account for 77.48% of the total assets in the company's consolidated financial statements, and the total operating revenue accounts for 89.81% of the total operating revenue in the company's consolidated financial statements; The total profit accounts for 70.16% of the total profit of the company's consolidated financial statements; The main operations and matters included in the scope of evaluation include:
Corporate Governance: organizational structure, development strategy, human resources, social responsibility and corporate culture.
Business process of the company: covering the core business processes and main business modules of the company and its subsidiaries, focusing on decision-making management system, budget management system, monetary fund management system, procurement and payment, inventory, foreign investment and control over subsidiaries, fixed assets, engineering projects, intellectual property and intangible assets, financing, sales and collection, costs and expenses, human resources External guarantee, accounting system and financial report, information disclosure, asset impairment, authorization management.
The above units, businesses, matters and high-risk areas included in the evaluation scope cover the main aspects of the company's operation and management, and there are no major omissions.
The details are as follows:
1. Control environment
The internal environment includes various factors that affect and restrict the establishment and implementation of the company's internal control. It is the basis for the implementation of the company's internal control, including governance structure, organizational structure setting and power and responsibility distribution, corporate culture, human resources policy, internal audit mechanism and anti fraud mechanism.
In accordance with the company law of the people's Republic of China, the company has established the board of shareholders, the board of directors and the board of supervisors to perform the functions of decision-making, management and supervision respectively. Work in accordance with their respective rules of procedure. The company has established various internal control institutions according to the actual situation of the company, such as development strategy committee, nomination committee, audit committee, salary and assessment committee, etc. The company has set up various business management departments according to the needs of the company's business, management and internal control, and has formulated the internal management system and employee manual of each business and management department.
The company has formulated the business guiding ideology of providing high-quality services for the society, steady and honest operation and abiding by laws and regulations.
The company requires every employee, including senior managers, to strengthen professional cultivation and business learning, abide by the professional ethics of honesty and trustworthiness, abide by discipline and law, and do not harm the interests of investors, creditors and the public.
The company pays enough attention to human resources, a key factor affecting the company's internal control, and attaches importance to their professional ethics and professional competence when selecting and hiring employees; Conduct practical training for employees; Employees with the same value orientation and behavior characteristics as the company's business guiding ideology and corporate culture will be promoted or assigned to important and key positions to ensure the effective implementation of the company's internal control system.
The company has established and strictly implemented the performance appraisal system for employees at all levels to promote the organic unity of responsibilities, rights and interests of employees at all levels and the effective implementation of the company's internal control.
The company has established an independent internal audit institution and is directly responsible to the board of directors; Carry out internal audit in accordance with the provisions of the internal audit system, and be specifically responsible for the supervision and inspection of production and operation activities and the implementation of internal control, including inspection and audit, putting forward improvement suggestions and handling opinions, so as to ensure the implementation of internal control and the normal progress of production and operation activities. When senior managers leave office, their work performance and the implementation of internal control shall be audited.
The company has established a complaint reporting system to carry out anti fraud work. The company encourages employees to resort to fraud in financial reports and information disclosure; Embezzle or misappropriate the company's property without authorization, abuse of power or other illegal acts; The illegal use of the company's property to seek improper interests during the company's business shall be reported to the company's board of directors or board of supervisors, audit committee or similar institutions to prevent fraud. 2. Risk assessment
The company carries out risk assessment according to the internal control environment, the company's business and specific work links, finds out the risk factors in the implementation of the internal control system, and takes targeted countermeasures to avoid out of control of internal control.
The company pays attention to the influence of internal factors in the risk assessment, including the professional ethics of senior managers, employees' professional competence, team spirit and other personnel quality factors; Management factors such as business mode, business process design, financial report preparation and information disclosure; Basic strength factors of financial status, operating results and cash flow; Research and development investment, information technology application and other technical factors; Environmental factors such as operation safety, employee health and environmental safety.
The company pays attention to the influence of external factors in risk assessment, including economic factors such as economic situation and market competition, industrial policies, interest rate and exchange rate adjustment, laws and regulations, regulatory requirements and other legal factors; Technological progress, process improvement and other scientific and technological factors; Natural disasters, environmental conditions and other natural factors. 3. Main control activities
(1) Decision management system
In terms of major decision-making management, the company has formulated corresponding enterprise strategy, major investment and financing, asset purchase and other management measures. The development strategy committee of the company studies and puts forward suggestions on enterprise strategy, major investment and financing, asset purchase and other schemes. If necessary, the development strategy committee can hire an intermediary to provide professional opinions for its decision-making. Major investment and financing and asset purchase shall be approved by the general meeting of shareholders or the board of directors respectively according to the disposal system of major events of the company and the authority setting.
(2) Budget management system
The company has formulated a comprehensive budget management system to clarify the responsibilities, tasks, working procedures and specific requirements of various departments and links such as budget preparation, approval, implementation, analysis and assessment.
The financial department of the company is responsible for the specific management of the company's budget and is directly responsible to the president. The chief financial officer assists the president in strengthening the leadership and business guidance of the company's budget work.
The annual budget shall be implemented after being approved by the general meeting of shareholders of the company.
The business scope of budget management of the company includes procurement and payment, inventory, sales and collection, investment, purchase and construction of fixed assets, engineering projects, financing, human resources and other departments.
The company's budget preparation is based on the actual situation of the previous year, combined with the company's business development, comprehensively considering the possible impact of changes in economic policies, industrial market conditions, product competitiveness, changes in internal environment and other factors on production business during the budget period, and is prepared according to its own business characteristics and actual work.
After the preparation and approval of the company's budget, all business departments shall strictly implement it, decompose the budget indicators into business indicators of all business departments and relevant posts, and combine them with the assessment of the completion of economic responsibility.
The company attaches importance to the budget control of monetary fund receipt and payment. For the funds that have been included in the budget but the payment procedures are not perfect and the payment vouchers are not in conformity, the payment shall not be handled. If the budget preparation basis is not established due to major changes in the market environment, operating conditions, national laws and regulations, or force majeure events or emergencies, or there will be significant differences in the budget implementation results, and the budget needs to be adjusted, it shall still be reported to the general meeting of shareholders for approval according to the budget approval procedures. The company regularly analyzes and checks the budget implementation. The internal audit institution will carry out audit supervision regularly or irregularly, and timely find and correct the problems existing in the process of budget implementation. The assessment of budget implementation is carried out in accordance with the procedures submitted by the budget implementation department, reviewed and verified by the financial department and approved by the board of directors of the company. (3) Monetary fund management system the financial department of the company shall set up full-time personnel to manage monetary funds, and unauthorized personnel are strictly prohibited from contacting and handling monetary fund business. As of December 31, 2021, the company has established fund authorization system and fund receipt and payment review and approval system. The fund authorization system stipulates the maximum fund limit that authorized personnel at all levels can approve. The fund receipt and payment review and approval system stipulates the authority and responsibility of various links such as the payment application, approval, review and payment of monetary funds, and stipulates that the funds with unclear purpose and without necessary accessories or vouchers will not be paid. The approval authority of the company's monetary fund collection and payment is as follows: expense reimbursement approval authority: the cost within the scope of annual business assessment shall be reviewed by the department head and reported to the leader in charge or the person authorized by the president for approval. Loan approval authority: if the amount of a loan is less than 5000 yuan (excluding 5000 yuan), it shall be reviewed by the department head and reported to the leader in charge for approval; If the one-time loan exceeds 5000 yuan, it shall be reviewed by the department head and reported to the leader in charge and the authorized person of the president for approval. If the loan in the preceding paragraph is outstanding and the accumulated balance exceeds 10000 yuan (excluding 10000 yuan), it shall be reviewed by the person in charge of the Department and reported to the leader in charge and the person authorized by the president for approval. The opening of the company's bank account shall be approved by the leader in charge of financial accounting and uniformly managed by the financial management department. There are no bank accounts other than those managed by the financial management department
