1988: Back to the human world for a few years

Chapter 431 Ming (3)

"First of all, I must emphasize that although I am the head of the risk management department, I am also the deputy section chief of Momo Baitou and the president of the Linyi Import and Export Trade Promotion Association. In the past year or so, I have directly managed or coordinated hundreds of import and export trade projects, including large independent export brands such as Huamo Beer... Therefore, I think I still have a certain say in the operation and management of project companies!"

"Similarly, Section Chief He of the Drilling Company is the acting section chief of Momo Baitou. Since Momo Baitou will directly intervene in the operation and guidance of the investment projects, Section Chief He also has rich experience in the operation and management of project companies!"

After unabashedly reinforcing her and He Yongyi's authority, Mu Liya glanced at the people with different expressions and said word by word: "After a brief review of the situation of the 303 tertiary industry units under Dahua Company, Section Chief He and I agree that..."

"On the premise of maintaining their most basic operating and production turnover, the amount of one-way transfer payments that Dahua actually needs to make to a large number of tertiary industry enterprises is actually not that high... and the inflated proportion of transfer payments received by these enterprises is generally around 30%, and some even exceed 50%!"

"In fact, about 21% to 26% of tertiary industry enterprises, without the support of Dahua, have enough cash flow from their own operations to maintain the operation of the enterprise... and even have a surplus."

At this point, Mu Liya raised her lips slightly and said, "In other words, from a comprehensive point of view, of the 7400 million yuan that Dahua Company transferred to its tertiary industry units in the first half of the year, at least 3000 million yuan was unnecessary!"

"In other words, after the 3000 million was injected into those tertiary industry units, it was lost in the process of distribution and circulation... I think everyone should have some guesses about this!"

Wow~!

Everyone couldn't help but look at each other in surprise.

Although it is a well-known fact that the tertiary industry units below will inevitably incur energy consumption in the process of accepting the transfer payments from Dahua Company, no one could have imagined that the comprehensive loss ratio would be so high... It's over 40%!
But at this time, almost no one would doubt the accuracy of this estimated number.

As Miss Mu said, she herself is in charge of a package of foreign trade projects. He Yongyi is not only the former chief of finance who is proficient in financial knowledge, but also the acting chief of Mo Mo Bai Tou. He knows all the tricks that exist in various companies very well... Compared with these two elites with rich practical experience, most of the people here are just ordinary people who sit in the office all day long. Where do you get the confidence to question them?

The comprehensive loss rate exceeds 40%!
Yay, it doesn’t take much. As long as the comprehensive loss rate can be controlled below 10%, the deadlock that the company is currently facing will be solved!
Everyone knew that the number reported by Miss Mu was actually the core indicator for adjusting internal control work, so everyone held their breath and paid close attention.

Seeing this, Mu Liya smiled softly: "As I said just now, in my opinion, Dahua Company's subsequent internal control adjustments should be based on the eight words [separation of responsibilities, process rectification]."

"Among these eight words, separation of duties is the most important one... After all, everyone knows that companies are people-oriented. If we don't thoroughly implement the separation of incompatible duties, no matter how hard we try, it will be in vain!"

Separation of incompatible duties?
Hearing this unfamiliar word, many people began to look at each other in confusion.

Seeing this, Mu Liya just smiled softly and explained: "The so-called separation of incompatible duties, in the most easy-to-understand terms, is that you can't be both an athlete and a referee!"

"It has been twelve years since the reform and opening up. In the past twelve years, many problems have been exposed in our enterprises... Among them, due to the lack of awareness, the management of enterprises is chaotic, the rights and responsibilities are not clear, and even one person has multiple positions. There are many phenomena of being both a contestant and a referee... And this kind of overlapping of incompatible positions is the most harmful to the operation of enterprises and is most likely to cause problems.

At this point, Mu Liya gave Ma Bin a slightly apologetic smile: "For example, the most common example is being both an accountant and a cashier. This is called overlapping incompatible positions... If one hand does the accounting and the other hand manages the money, it would be strange if there are no problems."

"Take the tertiary industry enterprises under our Dahua as an example. In many tertiary industry units today, the financial manager often serves as a cashier. As long as the financial manager approves the payment, the money can be paid. At this time, the financial manager can easily transfer the money to the designated account... Since the two incompatible positions of accountant and cashier are actually overlapped on the financial manager, if he wants to commit fraud, he does not need to collude with others to do it. Not only is the behavior concealed, but as long as he controls the intensity and uses the method of ants moving house, the risk of being detected by us is still very low... Of course, if he and other management do fraudulent business together, it will be difficult to find unless we conduct a large-scale audit."

She wanted to give a specific example, but after noticing the unnatural expression of Ma Bin, the head of the Finance Department, she smiled and gave up the idea: "Of course, the overlapping of incompatible positions in finance is only the most well-known sector, but in fact there are many other sectors in the company where positions are incompatible."

“For example, if a person who has the authority to decide or approve material purchases also serves as a purchaser… this is called incompatible authorization and approval positions;”

"For example, the person who fills out the sales invoice also serves as the reviewer... This is called incompatible business handling positions;"

“For example, if a warehouse worker also performs purchasing work… this is called incompatible property custody duties;”

“For example, if an auditor also performs accounting work… this is called incompatible audit and inspection duties;”

"There are many such cases, and some incompatible positions are even very hidden. However, today I just want to give you a general understanding of what incompatible positions are, give you a few examples of areas where problems are most likely to occur, and then make you aware of the necessity of separating incompatible positions. That's enough."

At the end, Miss Mu smiled harmlessly: "The core of internal control work is to prevent and reduce the occurrence of some bad things through the control of internal departments and personnel, and the core of separation of incompatible duties is also internal control... But since it is control, we naturally have to control the intensity. We must be tough in some places where we should be tough, but we don't need to be so tough in some places where we shouldn't be tough."

"After all, if the internal management of a company is too rigid and loses its flexibility, it will also lose its vitality!"

Everyone breathed a sigh of relief when they heard this. People like Liu Bo even wiped the sweat from their palms calmly.

Miss Mu’s last two sentences couldn’t have been clearer. This time, the internal control adjustment will mainly affect the tertiary industry units below, and there won’t be any major moves within Dahua Company… In short, the top priority is to help the company overcome the current difficulties.

Some people may be curious, why are Liu Bo and others so nervous that they even have sweat on their hands. Is it too exaggerated?
Ok……

Let's put it this way, in today's Dahua Company, no matter whether it is Yang Mo, who is at the peak of his career, or those who can still hold on to their own territory under Yang Mo's strong pressure, every one of them is a beneficiary of "being both a referee and an athlete" - although there are rarely any overlapping incompatible positions in their duties, if their territory is viewed as a whole, then overlapping incompatible positions are everywhere.

Students who have worked in internal control should all know that in terms of the meticulousness and strictness of internal control rules, it is fair to say that the administrative system of later generations is already hell-level difficult. While the powers are divided, there are so many teams supervising each other. It is almost impossible to make any progress simply by relying on one's own powers... Not to mention the municipal level and above, even at the county level, under the constraints of procedural justice, if you want to do something weird, it is definitely not as simple as you think (although this may be contrary to everyone's cognition, students who work in the system should have the most say... Please remember the key words: [scope of authority], [want to rely on yourself]).

There is a very important internal control link here, which is "social relationship review."

To put it simply, there is a database in the administrative system. As long as you have the permission to log in, you can find information about everyone in the system, including your three generations of direct relatives, aunts and uncles, your classmates, people you have worked with, and people you are close friends with. The higher the level, the more detailed the information.

Therefore, when you are assigned some more important jobs and positions, the principle of "first distant, then distant" will generally be followed, which is the so-called avoidance of suspicion.

So you see, if you really want to implement high-standard internal control principles, once you reach a certain level, you and your relatives and friends will have no chance of working in the same unit or department. It is even more impossible to use social relationships as a link and achieve overlapping of incompatible positions in a group collaborative way, and ultimately control a certain aspect of the work.

Although state-owned enterprises are not administrative systems, in fact, the principles and requirements of the two are similar. Therefore, even if today's internal control design framework is far less detailed than that of later generations, there is no problem in helping your relatives and friends adjust their jobs in the name of preventing group fraud, thereby cutting off this line of power... In fact, state-owned enterprises attach the most importance to their position. When Miss Mu, who has Mu Siyuan and Yang Mo standing behind her, is tasked with the two big hats of "protecting state-owned assets" and "preventing group fraud", no one dares to jump out to object.

As for why Liu Bo seemed the most nervous among these people, it was because he himself was a representative of incompatible and overlapping positions.

You have to know that the internal audit organization of a company like Dahua is generally composed of three organizations: the audit center, the audit committee, and the supervisory board... The three have similar goals, but each has its own responsibilities and there is no affiliation between them.

However, Liu Bo was not only a member of the Audit Committee (the independent director system had not yet been introduced at that time), but also served as the Auditor General of the Audit Center. This matter clearly violated the principle of incompatibility of audit and inspection duties... Compared with the former, the latter point is the real problem.

That is to say, nowadays everyone is indifferent to this aspect, and no one brings it up. If someone with a little influence really stands up and criticizes him publicly, he will be in a passive position... Not only will he be passive, but it will also be easy for him to ruin the deal.

Therefore, when he heard Mu Liya emphasize the words "restraint" and "flexibility", he felt a sense of relief in his heart for escaping death, and he couldn't help but act as a supporting actor.

"I agree. When I was cooperating with the Risk Management Department in the follow-up audit, I found that there were too many problems in those tertiary production units;"

"Minister Mu's suggestion is very good. As an auditor, I believe that the accounting control of all economic activities such as monetary funds, physical assets, foreign investment, engineering projects, procurement and payment, financing, sales and collection, costs and expenses of those units must follow the principle of separation of incompatible duties. It is also necessary to reasonably design accounting and related job positions, clarify responsibilities and powers, and form a mutual check and balance mechanism!"

When it comes to work related to his own business, Liu Bo is very professional and the directions he proposes are very directional.

But the only thing is that he only mentioned the direction but did not mention how to change it.

This old fry!
Miss Mu glanced at him calmly, with an unchanged smile on her face: "In fact, the headquarters has been emphasizing the standardization of operations and management in recent years, and has tried to set up incompatible positions in some enterprises based on the actual situation of the enterprises themselves;"

"But unfortunately, due to lack of experience in the past, these positions are not standardized and perfect... Especially in the relevant positions such as authorization approval and business handling, business handling and accounting records, accounting records and property custody, business handling and audit inspection, authorization approval and supervision inspection, there are many omissions... Some companies have improper accounting positions, too much business overlap, and too many accountants have part-time jobs; some companies have incompatible positions that lack systematization and cannot cover various assets and business matters, resulting in the weakening of actual management effects."

After veiledly pulling another layer of tiger skin, Mu Liya sighed slightly: "In fact, everyone knows why there are so many omissions, and also knows why the previous separation of incompatible duties was so ineffective;"

"On the one hand, this is indeed caused by our lack of experience and lack of vision;"

"But on the other hand, it is because the management of the project company committed fraud and deliberately created loopholes!"

He looked around at everyone with a somewhat cold gaze: "In the past, if these units were still directly managed by the Tertiary Industry Office of the Command, they could have slowly improved and gradually solved the problems;"

"But now, these units are already managed by Dahua Company. Dahua Company is facing huge pressure to divert employees. We can no longer adopt the previous solution of unraveling the problem!"

At this point, Mu Liya paused slightly and said, "When those tertiary production units below used to write self-criticisms and reports, didn't they always use lack of experience as an excuse, and always use the lack of high-level professional talents as an excuse?"

"it is good!"

"Now they don't have to deal with these things themselves. Our risk management department will issue them a complete manual for the separation of incompatible duties... In addition, we can also learn from the drilling company's silent investment and include a small-scale subsidiary business in financial sharing!"

"Let's also learn from Momo Baitou and expand a shared accounting center based on the finance department of Dahua Company... Gather all the original accountants of those tertiary industry units, and after assessment, rotate them to different departments of different units to completely cut off their business connection lines!"

"As for the daily basic financial work of the tertiary industry units, it is also very simple. Each unit will have one or two accountants assigned by the shared accounting center to work on-site according to actual needs, and then they will rotate once a year, absolutely not giving them any chance to corrupt!"

hiss~!

Small-scale subsidiary businesses included in financial sharing? Everyone's face changed slightly. This model was created by Momo Baitou at the beginning of this year, and they had heard of it.

The "small-scale subsidiary" here does not mean a small company in the literal sense. It generally refers to an enterprise with smaller revenue or fewer employees within a medium-to-large enterprise or a group enterprise.

The financial business characteristics of these companies include small financial business volume, small funds settlement volume, few or no branches, small number of financial personnel required, unclear division of financial positions, and large differences in non-standard professional knowledge of financial business.

According to the principles of inclusion of regular financial sharing business, Momobaitou requires that the subsidiary business included in accounting sharing often meets the following characteristics: large business volume, large number of people required, clear job division, high degree of business standardization, large company scale or many branches, which can also be called the business characteristics of large-scale subsidiaries; accordingly, regular financial sharing operation and management methods are also designed to target this business characteristic.

But the problem is that among the 303 tertiary industry units under Dahua Company, at least % do not meet or do not fully meet the financial sharing requirements of Momobaitou... You know, these tertiary industry units may be small grasshoppers compared with the Dongying Command or Dahua Company, but if you release any one of them to the society for horizontal comparison, they are at least medium-sized enterprises or small and medium-sized enterprises.

What are you going to do... ?
Looking at Ma Bin with a look of ecstasy on his face, everyone was full of doubts and had some vague guesses, but the ideas were immediately rejected as soon as they came up.

If the shared accounting center is expanded, the biggest beneficiary will be the Finance Department... After all, even if we don't count the number of new recruits to the shared accounting center, the number of accountants who need to be sent to those tertiary industry units to work on-site will exceed 300. Once the two sides are added together, it will immediately become the largest department in Dahua Company.

But the problem is that, from a natural standpoint, the Finance Department is a mortal enemy of almost all departments, especially risk control departments like the Risk Management Department that have taken away some of their jobs, and are naturally incompatible with each other.

And in the past six months, it was well known that Ma Bin from the Finance Department had been at odds with Mu Liya and Yang Mo over project approval and funding allocation... The two sides even quarreled directly at meetings several times, and the resentment between them was deep.

So logically speaking, if Miss Mu intends to take advantage of this internal control adjustment to connect some resources, even connecting the Audit Center or the Supervisory Board will be more reliable than connecting the Finance Department... You know, unlike all the departments of Dahua Company, the Finance Department where Ma Bin is located is a separate mountain, and the big boss behind him was the first one to sideline Mu Siyuan.

Thinking of this, a supervisor representative suppressed his doubts and raised an objection: "There is no problem with establishing and expanding a shared accounting center, but the accountants assigned to tertiary industry units cannot be from the finance department... I have learned about the financial sharing model of Momo Baitou. Their shared accounting center has already taken care of all the important financial work of those small enterprises/projects. The accountants assigned to the units do not need to use the elites in the finance department... This will not only cause excessive waste of resources, but also cause some unnecessary risks."

Although the supervisor's words were rather obscure, everyone knew what he meant.

If those dispatched accountants are included, the size of the Finance Department's staff will suddenly expand to at least 400 people... Currently, Dahua Company has a total of more than people. After the expansion of your department, the total number of staff will reach half of the company. Is this acceptable?

Moreover, the accounts of the Finance Department are difficult to audit. Such a large-scale expansion will inevitably give you stronger personnel power. Sending so many accountants there will also strengthen your power over affairs indirectly. With this expansion, the three powers of personnel, finance and affairs will all be greatly strengthened. How can other company agencies supervise you?
Glancing at Ma Bin, who had a slightly unnatural expression, Mu Liya looked a little embarrassed: "But if we want to reduce the transfer payment losses of the tertiary industry units below, setting up an accounting sharing center is the most effective way. As long as the accounting rights are in the hands of the company, it will not be so easy for the people below to do something weird;"

"After the tertiary industry units hand over their accounting rights and rotate all their accountants, they will inevitably face the problem of insufficient accounting personnel. They also need to handle some basic financial work on a daily basis. We can't let their existing accountants stay in their units, right? This is like a journey of 100 miles. If they connect with other business links at that time, all our previous efforts will be wasted!"

The supervisor smiled and said, "Manager Mu, I think you misunderstood me. What I meant was that the original accountants of the tertiary industry units must be transferred to Dahua Company and then undergo assessment and rotation... This is no problem. In fact, we all know that this is a very important part of the internal control work adjustment;"

"As for sending our accountants to work on-site, that's fine too. After all, our original intention is to do a good job of internal control, not to shut down the operations of those tertiary industry units... The shared accounting center cannot be responsible for all the financial work of these companies, and without accountants to help with those daily basic work, the daily operations of those tertiary industry units cannot be maintained at all."

"But... this does not mean that all the resident accountants must be staff from the Finance Department."

? ? ? ?
Miss Mu's face showed a deep shock: "Supervisor Wang, what do you mean...?"

The supervisor smiled and said, "Didn't Minister Mu say that the accountants assigned to the site are only responsible for handling the most basic financial work?"

"If that's the case, then the requirements for professional skills won't be very high... Although the headquarters is still short of people who are good at accounting, there are plenty of people who can handle ordinary daily work and reports."

At this point, the supervisor paused for a moment, then looked around at everyone: "Everyone, generally speaking, work like this involving internal control adjustments is either handled by the general manager or the party committee, so... Regarding these dispatched accountants, I suggest setting up a shared dispatched accounting office, which will then be managed by the party committee office and supervised by the audit center and the board of supervisors. What do you think?"

The supervisor's logic is not complicated at all.

Regardless of the considerations, a unit like Dahua Company is not allowed to have a department that disrupts the balance or even becomes too big to be managed. Therefore, considering the actual situation of Dahua Company, since it is imperative to include the business of small-scale subsidiaries in financial sharing, the only way to make a balance is to make a balance in terms of personnel size.

Moreover, although these accountants assigned to the office are inconspicuous and are responsible for seemingly unimportant daily basic accounting work, they can provide the most comprehensive and authentic original data... When necessary, the audit center can use these original data to thoroughly investigate whether the Finance Department has any illegal operations.

Of course, this is just a consideration of balance. More importantly, these are at least 300 job vacancies, which would make anyone envious.

You have to know that, although he is just a dispatched accountant, in terms of status he is a formal employee of Dahua Company. Today's Dahua Company not only has good treatment, but also a loud reputation. These more than 300 formal employee positions are a temptation that many people cannot refuse, whether they are used to do favors or to recruit members of the gang... Just think about the temptation of the employment positions of the several companies jointly established by the drilling company and Sangong Co., Ltd. to some people, and you will know. Besides, the temptation of Dahua Company's formal employees is much greater than that of employees of joint ventures.
As for why it is registered under the name of the Party Committee Office of the Board of Directors, it is actually a helpless move.

Logically speaking, for a new department like this created due to adjustments to internal control work, it would be most appropriate to have it directly managed by the general manager.

But unfortunately, everyone knows what kind of person General Manager Ding Xiang is.

It just so happens that institutions like the Supervisory Board and the Audit Center cannot have subordinate departments that are not related to supervision. Functional departments such as the Risk Control Department, Legal Compliance Department, Asset Protection Department and Business Review Department cannot set up a financial department under them before they have independent operating and accounting rights... Moreover, nearly half of these departments are Yang Mo's people. Even if they have independent operating and accounting rights, the company cannot hand over such departments related to internal control to them for management.

After counting, looking at the current Dahua Company, it is found that only the board of directors' office can set up such a department.

What's also very subtle is that although the office director Song Wenxuan now has a very special relationship with Yang Mo, Song Wenxuan is not qualified to directly supervise the Party Committee Office, Party Committee Propaganda Department, Party Committee Organization Department and other departments that also belong to the Board Office.

Therefore, although it is not very suitable, the Party Committee Office has become the most suitable leadership department for the "Shared Accounting Office" at the moment. Moreover, Director Chen of the Party Committee Office not only has his own independent leader, but he is not close to Song Wenxuan on weekdays. He can be regarded as a very good candidate.

As it concerns organizational principles, after a brief exchange and communication, the eleven participants finally roughly approved the initial plan in the slightly disappointed look of Ma Bin. After communicating with Director Chen after the meeting and reporting to the command center for approval, they can bring it to the meeting for formal discussion.

After glancing at Liu Bo, Supervisor Wang and others who had a smug look in their eyes and thought they had gained a few more tentacles, Mu Liya pursed her lips without comment, and then continued to communicate with everyone about how to rectify the financial process.

In fact, after the introduction of the financial sharing model, the financial process rectification of the subordinate tertiary industry units is not particularly significant, but Mu Liya still said it very seriously.

For example, clarify the financial payment process, break down the payment process into cashiers, accountants, and approvers, so that they can form checks and balances with each other, increase the difficulty of group fraud and the risk of being exposed, and use the "collective responsibility" personnel punishment system to prevent cashiers from enjoying the right to do accounting.
For example, a reasonable approval process should be designed. Payments need to be entered by the cashier and reviewed by the accountant and financial manager. Large payments need to be reviewed and signed by the factory manager before payment can be made.

For example, a system of irregular spot checks by the internal audit and internal control departments was established (the risk management department gained the leading position in internal control work in this meeting) to increase the risk of fraud being discovered by a third party in a short period of time, thereby deterring some people from taking chances.

In short, Miss Mu's main idea for process improvement is only one:
Lengthen the financial and approval work process as much as possible...The more people involved, the greater the risk of fraud and the smaller the personal benefits; this makes the effort and reward disproportionate, and ultimately, under the barrier of high sunk costs, the chances of group fraud, especially financial group fraud, are gradually reduced from the root.

It has to be said that this idea, which originated from He Yongyi, has taken the characteristics of human nature to the extreme... Later experience has also proved that this deliberately created loss aversion system can indeed effectively reduce the chances of group fraud.

Of course, the related side effects are also obvious, but this is not something that people of this era can predict.

........................

Seeing that everyone in the conference room was happy except Ding Xiang, and thought they had gained a lot, Zhuo Mali felt a chill in her heart.

After taking a look at Miss Mu, whose face was filled with a smile as warm as the spring breeze, Zhuo Mali felt her hands and feet getting a little cold.

At first glance, the eldest daughter of the Mu family can be regarded as a model of public devotion. By merely setting up two new departments, she has created the possibility of investigating the hidden funds of those tertiary industry units. Not only is it very likely that she will help Dahua Company overcome the upcoming difficulties, but she will also help the company reduce the possibility of group fraud by subordinate units through institutional design.

His good intentions and superb means are truly amazing.

But only she, who had helped Yang Mo and his team design countless equity trees, knew that the real focus of the Mu family's eldest daughter today was not on the separation of incompatible positions, which was a sensitive and headache for everyone.

But it is that...

That series of financial work links was more than twice as long as the original one!

I'll be a good boy.

It turns out that this young lady had been going around in circles for a month, even causing such a big fuss, and in the end she had this idea!
Your appetite,

Isn't it too big?

Zhuo Mali looked at the young lady in front of her with complicated eyes. After being nurtured by Yang Mo, her every move became more and more feminine. She couldn't help but let out a silent sigh in her heart.

Now the little guys...

Are the methods already so cruel?!
He glanced calmly at Song Wenxuan, who was standing beside him with a faint smile, but there was no trace of frustration in his eyes from beginning to end.

She suddenly had a premonition...

possible,
In the eyes of these guys, the seemingly well-intentioned advice I gave some time ago was just a funny clown show...

(End of this chapter)