2.1.1 Economic Closed-loop involve
Resources Integration and Efficiency
During the highway project construction and asset
formation, it is necessary to ensure the safety of the
use of funds. Highway construction projects have
more locations, suppliers and longer periods.
Economic management must be in-depth assessment
of the project, budget review, tendering, bid
evaluation, contract development of the economy,
project execution, and final acceptance, the whole
process of preparation of final accounts.
After highway project completed, it had formed a
economic cycle which is the progress of charges -
expenses - loan management, and in it income and
expenditure of funds is very large, so it is important
to clearly reflect the flow of capital flow and
monitor the state.
In terms of highway maintenance, implement the
operation rules strictly, and control costs reasonably.
On inputs of manual works, materials, and
maintenance of engineering equipment and working
materials, the meticulous management is ensuring
the conservation of quality, while lowering operating
costs and increase operating earnings.
2.1.2 Economic Context Associated with the
Quality of Internal Control and Risk
Management
Because large-scale investment, long period, as well
as many links in fund management, a relatively long
time, it is easy to breed waste, misuse,
misappropriation, and other violations irregularities,
thus establishment of the internal control system and
risk management is undoubtedly critical.
Formed an economic network by combining
budget, finance, financial, economic assets, whether
is clear and can be traced back, is an important
indicator of the perfection degree for internal control
and risk. First, started from the business operations,
each data links are established in the relationship
upstream and downstream and any one of them can
be inquired traceability information on the front part.
Secondly, every aspects of specific responsibilities,
a clear record of operations, audit and supervision of
incompatible rights holders, so that responsibility for
duty, for people, all long-term preservation of
records.
2.2 The Establishment of Economic
Business Management and Control
Integrated Management Platform,
Internal Control and Risk
Management
To this end, two aspects need to build economic and
business regulatory framework integration. One is
the main line of top-down line, through the company
headquarters, molecular Company, branch,
department, business unit of execution. Another
dimension is information integration, from a
business executive, management, management
decision-making at three levels, from the bottom up,
layer by layer information collection, integration,
unity and integration to the shared data center
management and control platform.
2.2.1 Integrated Management and Control
Framework
As shown below is the integration of economic and
business regulatory framework, in support of
business management and control integration to
mainly achieve the following management
objectives:
Company Headquarters — Subsidiaries:
Resources, Approval, Monitoring
According to corporate strategic planning and
highway business plan, established a comprehensive
budget system. Company headquarters is responsible
for integration of resources, asset allocation,
financing, approval of investment projects,
investment monitoring, cash management, funds
settlement and financial accounting, reporting and
analysis.
Subsidiaries — Execution Unit: Business
Management, Implementation and Feedback
Business entities undertake concrete projects, roads,
business operations and business development. Road
Construction Company track and manage the life
cycle of the project budget estimate, plan, schedule,
quality, contract and cost. Supervision during
approval and budget, supervise the implementation,
and accurate or complete information on project
implementation feeding back into the financial,
human resources, assets and investment platform for
centralized control.
Operation Corporation is responsible for access
fees, road maintenance, toll revenue paid, operating
expenses and maintenance, through appropriate
projects, submitted to the funding plan and
appropriated the use inside diameter in the budget.
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