China Guangdong Nuclear Power Group

China Guangdong Nuclear Power Group Co., Ltd. (hereinafter referred to as Guangdong Nuclear Power Group) borrowed $300 million from the Bank of China with 1979 as the capital, and jointly established Guangdong Nuclear Power Joint Venture with Hongkong China Power Company to be responsible for the construction and operation of Daya Bay Nuclear Power Station. It has been 27 years since the State Council decided to establish China Guangdong Nuclear Power Group Co., Ltd. based on Daya Bay Nuclear Power Station in 1994. According to the policy of "relying on nuclear power to develop", Guangdong Nuclear Power Group has developed and built Ling 'ao Nuclear Power Station, Dalian Hongyanhe Nuclear Power Station and Fujian Ningde Nuclear Power Station on the basis of Daya Bay Nuclear Power Station. At present, the main member units 13 have formed a new pattern of supporting the development of conventional clean energy, financial services, information technology research and development and logistics services. As of June 5438+ 10, 2006, Guangdong Nuclear Power Group had total assets of 57.9 billion yuan and net assets of 23.2 billion yuan. The two nuclear power plants in operation have four million kilowatt generating units, with an annual power generation of 30 billion kWh.

One of the important reasons why Guangdong Nuclear Power Group can achieve good business performance and maintain a healthy development trend for many years is that the management of each company in the group attaches great importance to the construction of internal control system and internal audit supervision.

First, establish a scientific internal control system.

The supervision and evaluation activities of internal audit on the company's operation and management are organized with internal control as the main line. A sound internal control system is not only the basic guarantee for the healthy and orderly operation of the company, but also the premise and foundation for the effective development of internal audit. In the early stage of the construction of Guangdong Daya Bay Nuclear Power Station, referring to the management system and mechanism of Hong Kong China Power Company and combining with its own reality, an effective internal control system and audit supervision system were gradually established, and scientific programmed management was implemented. Through various technical procedures and administrative procedures, clarify the division of responsibilities and interfaces between departments to ensure that all important business activities can be "rule-based, well-documented"; By establishing a scientific authorization management system and rationally distributing and restraining power, we can truly achieve "everyone is responsible for everything and everyone is supervised"; After the establishment of the group company, the management of the parent-subsidiary company was constantly standardized by promoting the management policies of the group company and the construction of related supporting systems. This series of internal control measures has played a great role in the construction and operation of nuclear power plants. At the beginning of 2003, the Audit Department of Guangdong Nuclear Power Group, on the basis of organizing a systematic study on the corporate governance of the group and the management control modes of its parent company and subsidiaries, put forward and implemented the framework system of group policy procedures from three levels: strategic control level (policy), management control level (system) and operation control level (procedure), with a total of 62 systems supporting management policies. The management policy of the group company defines the group company and its member companies from 65,438+00 aspects such as corporate governance, strategic management, human resource management, financial management, safety, quality and environmental protection, science and technology management, business management, information management, public relations and corporate culture, and administration and logistics management. On the basis of promoting the establishment of the framework system of policies and processes of the group company, all member companies have comprehensively sorted out and revised the original systems and processes according to the requirements of the management policies and supporting systems of the group company, and gradually formed an internal control system with consistent principles, distinct levels and characteristics of the group company, and gradually formed an internal control system with characteristics of Guangdong Nuclear Power Group.

Second, carry out effective internal control audit.

1, straighten out the internal audit management system. Daya Bay Nuclear Power Station introduced the audit concept and mode of China Power Company of Hong Kong, set up a chief auditor, directly reported to the board of directors, and accepted the two-way responsibility system led by the general manager administratively, which showed strong applicability and superiority in practical work. Being responsible to the board of directors is conducive to ensuring the high independence and authority of internal audit, thus effectively implementing comprehensive supervision of the company. The board of directors of a company can also keep abreast of the company's operation and management through internal audit and take timely measures to reduce the company's operational risks. Reporting to the general manager regularly coordinates the relationship with the general manager, which is also conducive to the development of internal audit. The main function of internal audit is to provide management consulting and supervision services and promote the increase of enterprise value, which is also the ultimate goal of shareholders. The internal audit management mode of Daya Bay Nuclear Power Station adopts the risk analysis and evaluation method stipulated in the procedure, and evaluates and analyzes the main business activities of the company item by item from seven risk factors, such as the company's management target plan and budget, policies and procedures, organization's division of labor and authorization, management information and records, asset management and benefits, staff training, contract management and expense allocation, and determines the risk level of each project, which is all included in the "audit project list". "Audit Project List" is the basis for making periodic audit plans and annual special audit plans. By carrying out risk-oriented all-round audit supervision, we can ensure the soundness and effectiveness of the internal control system, effectively control the possibility of abnormal events, and create conditions for the normal development of production and business activities of the group company.

2, focus on prevention, strengthen the audit before and during the event. The fundamental purpose of internal control audit is to "increase benefits and prevent risks". Based on the audit philosophy of "prevention first, prevention is better than correction", Guangdong Nuclear Power Group has always put the focus of internal control audit on prevention and control beforehand, taking into account the inspection during the event and post supervision, and established a restraint and supervision mechanism based on prevention. By moving the control point forward, violations can be reported and handled in time, and abnormal events can be eliminated in the bud as much as possible. For procurement projects exceeding a certain amount, the audit department will intervene in the stage of contract bidding and bid evaluation, and comprehensively supervise all key points in the procurement process, including: procurement plan, project application, supplier selection, bid evaluation rules, price negotiation strategy, contract recommendation, contract terms, authorization approval, etc. To ensure the standardization of the procurement process and achieve the best procurement benefits. During the execution of the contract, the audit department tracks the execution and changes of the contract, and puts forward rectification opinions in time when problems are found. Through the internal control audit before and during the event, the potential risk loss is avoided.

Third, improve the quality of internal control audit.

1, implement audit publicity and accountability system. Through the analysis of the problems found in previous audits, the main reasons for lax system, non-implementation of system, irregular management or blind spots in internal control are found out. Through the three "musts", the reasons for the problems found in the audit must be found out, the audit suggestions and improvement measures must be implemented, and the responsibilities of relevant personnel must be investigated. Solve the problem of repeated investigations and repeated crimes. By strengthening the audit accountability system, the audit effect is guaranteed. While emphasizing the "accountability" of audit, we should actively promote the "openness" of audit and implement the audit announcement system.

2. Integrate the supervision power and innovate the supervision mode. Integrate supervision institutions such as discipline inspection, supervision, auditing, and board of supervisors to form an organic whole, cooperate with each other, and give full play to the joint efforts of supervision. First, promote the establishment of a joint meeting system for internal control and supervision of the Group. The joint meeting is led by the Party Group and General Manager Department of the Group Company, led by discipline inspection and supervision, and attended by departments with supervisory functions such as auditing, finance, asset management and human resource management, to communicate and analyze the relevant information and situations of key links of the Group, such as material procurement, project bidding, fund management, asset disposal, property right transfer, restructuring and reorganization, human resource management and contract business management, investment and financing management and safety and quality management, and timely analyze the new situation in the Group's internal control and supervision work. The Audit Department of the Group Company undertakes the functions of the joint meeting office, summarizes relevant information on time, puts forward problems that need attention, and promptly follows up and implements the rectification of related problems. The second is to integrate audit supervision and supervision by the board of supervisors, and further strengthen supervision by improving the corporate governance structure of member companies and standardizing the operation of the board of supervisors. The supervision of the audit department of the group company and the supervision of the board of supervisors are also on behalf of shareholders, and their purposes are highly consistent. In the past, due to the lack of organic connection and integration between them, there were some defects in the supervision role. To this end, the group company adjusted the management and operation mode of the board of supervisors of member companies and set up the board of supervisors office in the audit department of the group company. In principle, the supervisors of the member companies are concurrently the auditors of the group companies. The supervision of the group companies on the member companies will be mainly conducted in the form of annual inspection by the board of supervisors, and the annual inspection report will be reported to the shareholders' meeting after it is formed. This not only straightened out the supervision division between the audit department of the group company and the audit department of the member companies, but also further improved the corporate governance structure of each company, gave full play to the supervision function of the board of supervisors, and played a multiplier effect on ensuring the quality of internal control audit.

Excerpt from: China Internal Audit.