In accordance with the requirements of the Engineering Bureau and company leaders, the company is currently connecting with the internal control staff of Shenzhen Dibo Enterprise Risk Management Technology Co., Ltd. to help guide and sort out the main responsibilities of each department of the company and quantify personnel functions. Work tasks such as department-related system construction and daily work processes of each department. Analyze and sort out the risk points that each department of the company needs to pay attention to in daily work, effectively improve the company's ability to resist risks and the awareness of internal control risk prevention of personnel in each department, and lay a solid foundation for the company's long-term development.

1. Progress of internal work

According to the "Basic Standards for Enterprise Internal Control" and supporting guidelines ("Application of Enterprise Internal Control" jointly issued by the Ministry of Finance, the China Securities Regulatory Commission and other five ministries and commissions) Guidelines", "Evaluation Guidelines"), as well as the relevant requirements for the company's internal control construction, implementation and company leadership in China Securities Regulatory Commission Announcement [2011] No. 41, combined with the company's current development status, the company held a meeting on May 28, 2016 Regarding the company's internal control work guidance and training kick-off meeting, the next work plan was formulated. Up to now, the main work carried out by the company is as follows:

(1) Attaching great importance and establishing an internal control implementation leading group and organizational structure to ensure that the construction of the company’s internal control system is carried out in an organized, planned, solid and effective manner, The company has established an internal control implementation leading group, which is responsible for the leadership, organization and coordination of internal control implementation work, and the decomposition of work tasks and responsibilities. An internal control standard project working group was established, and the leading department was the company's investment and development department.

(2) Formulate the company's internal control implementation plan

The first step: interview the company's general manager, deputy general manager and department directors; the second step: build the company's process based on the interview content Framework; Step 3: Guide specialists from each department to draw flow charts and write process descriptions; Step 4: Build the company’s internal control risk matrix; Step 5: Test the feasibility of the process. At present, the company's internal control process framework has been established. According to the unified deployment arrangements of the company's internal control leading group, various departments of the company have begun to draw and write flow charts and process descriptions. .

(3) Organize the company’s internal control specialists to conduct training

In order to improve the internal control expertise of the internal control specialists of each department, the company organized the internal control specialists of each department to participate in internal control training on June 3, 2016. The training was mainly provided by the full-time internal control personnel of Shenzhen Dibo Enterprise Risk Management Technology Co., Ltd. to train the specialists of each department in the drawing of internal control flow charts, the use of drawing software, and the writing of process descriptions, and stipulated the work tasks for this week and the completion of submissions. time.

(4) Develop a detailed work plan for internal control specifications based on the work plan, clarify the work content and goals, carefully plan according to the requirements of the work plan, and implement it in stages. The construction of this internal control system*** is divided into the following three stages for implementation:

The first stage is project planning and initiation. Clarify the full-time personnel responsible for internal control in each department and clarify the division of responsibilities. Specialists from each department will be responsible for drawing department flow charts and preparing process descriptions and risk matrices. The internal control implementation leading group is responsible for organizing the implementation of internal control work as required, and is responsible for organizing specialists from various departments to participate in internal control knowledge training.

The second stage is to review the internal control process. By sorting out the company's key business processes of internal control, we can understand the company's management status, establish the company's internal control documents (process diagrams, process descriptions, output documents), identify key business controls, and find out the problems in each process. Risk points, strengthen the management and control of each risk point.

The third stage is internal control detection and evaluation. By benchmarking regulatory requirements and corporate management practices, we prepare risk control matrices and self-check forms to evaluate the effectiveness of the company's internal control execution; we prepare a summary table of internal control defects based on the evaluation results of design effectiveness and execution effectiveness.

Currently, the internal control implementation work of the Fourth Hydropower Bureau Investment Company is progressing in an orderly manner.

II. The next step of internal control implementation work plan

First, continue to steadily advance in accordance with the internal control implementation work plan, and complete the internal control system construction, rectification and evaluation, and project summary according to the planned goals. and reporting and other internal control implementation tasks at each stage to ensure that the internal control implementation and evaluation work is carried out smoothly, orderly and smoothly, and to ensure the long-term operation of the internal control management working mechanism.

Second, thoroughly implement the company's internal control system. The company will formulate and complete company-related internal control management systems, which will help the company further improve corporate governance and more effectively realize the company's development strategy, which will help The company further improves management and control measures in terms of strategic risks, financial risks, operational risks, market risks, etc. to prevent various risks, improve the company's management level, consolidate the company's development foundation, and provide strong support for sustainable development.

Third, further strengthen the learning, training and participation of all employees. By strengthening publicity, training and other means, we will encourage employees in all departments and levels of the company to deeply understand the requirements of the internal control standard system, update management concepts, master internal control methods, and form a company-wide "Everyone learns internal control, The good atmosphere of "everyone is subject to internal control and everyone is subject to restraint" promotes the company to establish a systematic, standardized and efficient internal control management mechanism.

3. Experience on the Implementation of Internal Control

Based on the above work, we have summarized some basic experiences, mainly in the following aspects:

(1) Correct understanding of internal control The importance of standardization implementation, clarify the guiding ideology and work goals of internal control construction work; implement comprehensive risk management-oriented corporate internal control standards, comprehensively improve corporate management levels, more effectively realize the company's development strategy, and realize the company's development model transformation and sustainability. Therefore, the implementation of standardized internal controls is not only an effective measure for the government to strengthen market supervision, but also an endogenous driving force for the company's sustainable development. Comprehensively implement corporate internal control standards and establish and improve a risk management-oriented company internal control system, which will help further improve corporate governance and improve control measures in strategic risks, financial risks, compliance risks, production safety risks, environmental risks, etc. , preventing and resolving various risks within and outside the company, and conducive to safeguarding the legitimate rights and interests of the public. The implementation of internal control standards is an important symbol of the implementation of modern company systems. It is the strengthening of company management. It is the endogenous driving force for the company to achieve comprehensive, coordinated and sustainable development. It is the need for enterprises to strengthen standardized operations and improve management, and it is also the supervision of external regulatory agencies. protection needs. The Fourth Hydropower Bureau Investment and Development Co., Ltd. strictly implements the work goal of strengthening the construction of the internal control system, with the goal of standardizing management and preventing risks, starting from establishing and improving the internal control system, and systematically sorting out the company's existing internal control systems in accordance with the relevant requirements of internal control regulations. Control procedures and improve them, focus on standardizing business processes, clarify job responsibilities, strengthen restrictions, and implement accountability

to form a sound and effective internal control system for the company to ensure the realization of the company's strategic goals and sustainable development.

(2) The management attaches great importance to it and all employees actively participate. The company established a leading group for the implementation of internal control standards and invited full-time internal control personnel from Shenzhen Dibo Enterprise Risk Management Technology Co., Ltd. to provide guidance and training on the company's internal control work. At the same time, the company identified the leading department and assigned a dedicated person to be responsible for this work, forming a team of senior executives of the company. Decision-making and coordination, each business department is the main body of system construction, and the functional department coordinates and organizes the working mechanism; the internal control specification implementation working group is specifically responsible for supervising and inspecting the design and operation of internal control, tracking improvements, and feeding back relevant information; each department, Each construction department is responsible for sorting out the relevant business risk management and control processes within its scope of responsibility, improving and implementing management systems, internal control self-evaluation and rectification of internal control defects, etc.

(3) Extensively study internal control regulations, actively carry out business training, and create an atmosphere of learning internal control, emphasizing internal control, and abiding by rules; In May 2016, the company’s senior executives, functional departments, construction department and various business departments business personnel have participated in special meetings on internal control guidance and training held by the company. At the same time, the company has equipped various departments and construction departments with authoritative learning materials on internal control standards, and requires each department to organize employees to study. Through learning and training, we update management concepts, cultivate internal control culture, master internal control methods, and create a good internal control atmosphere within the department.