Internal control is the management process of integrating control and evaluation measures of each division inside an organization. The five elements of internal control are control environment, risk assessment, control activities, information & communication and monitoring. This process relates to all members in the organization and is carried out for the purpose of increasing execution efficacy, complying with laws and regulations, safeguard assets and providing reliable information.
The supervision mechanism of internal control in BOHSR includes measures as follows:
1. Routine supervision: implementation of supervision work will be handled respectively by supervisors of each business division. The supervisors are also responsible to set annual goals and conduct evaluations periodically. Internal control achievement performance will be a significant reference for the annual evaluation of each division.
2. Self-evaluation: in accordance to organization adjustment of Executive Yuan, the self-evaluation practice will be determined subsequent to completion of the adjustment.
3. Internal audit: the auditing team will objectively examine the internal control system through professional auditing point of view with correspondence to “Precautions for Government Internal Audits” to assess its effectiveness. The internal auditing team of MRT Engineering Office has completed the 2014 audit which set focus on construction safety incidents & disasters and the unresolved improvement section of the central government budget report audit conducted by National Audit Office. Subsequent monitoring practices will also be implemented.
An effective internal control system is the foundation of high quality governance. It not only integrates diverse information and connects multi-function divisions internally but also prevents corruption and increases benefits of the people. To strengthen the internal control mechanism, BOHSR actively conducted internal control trainings, evaluated the internal control system, followed up on unresolved improvement issues periodically, integrated internal management data with project auditing points and combined regular supervision with the internal control system. With the above measures, BOHSR is effectively supervising project progresses and will ensure to achieve policy targets within schedule and quality.