The pursuit of perfection at Ming Chi University of Technology

Ming Chi University of Technology, like other Formosa Plastics Group enterprises, has developed a comprehensive, pragmatic, and rigorous management mechanism in areas such as administrative process digitization, transparency in bidding operations, and detailed standardization.

The internal control of Formosa Plastics Group has always been highly praised, and as a part of the group, Ming Chi University of Technology also performs well in internal control. For Ming Chi University of Technology, auditing is not merely about conducting passive inspections of various units within the school. The goal is to identify problems, develop improvement plans for these issues, review them jointly with the relevant internal units, implement the solutions, and follow up regularly to ensure their effectiveness and identify any necessary revisions, striving for "perfection." In other words, auditing actively participates in the improvement process rather than just identifying issues.

Secretary General of Ming Chi University of Technology, stated that the school had been focusing on implementing internal control even before the government established clear regulations. The Ministry of Education revised Article 51 of the Private School Law on January 16, 2008, stating that "school corporations and their established private schools should establish an internal control system for self-monitoring of personnel, finance, and school operations." Additionally, on December 9, 2009, the Ministry formulated the "Implementation Measures for the Internal Control System of School Corporations and Their Established Private Schools," further emphasizing the importance of legalizing internal control systems. Consequently, Ming Chi University of Technology first proposed internal control regulations at the school affairs meeting, which were approved, and later received approval from the Board of Directors in November 2010. The school officially implemented the system in 2011.

Priority is given to risk and significance

Basically, the Ministry of Education hopes to achieve the goal of school autonomy through the implementation of internal control regulations, with the Ministry playing a supportive and supervisory role in the process. Secretary General pointed out that before the formal implementation of the relevant internal control regulations, the school already had related rules, albeit scattered across various departments. Through the formal legalization process, these regulations were consolidated, detailing those with "higher risk" and "higher importance," and were approved by the Board of Directors.

Secretary General stated that the internal control regulations within the school can be broadly categorized into several types: 1. Personnel, 2. Financial, and 3. Operational. The personnel category includes promotions and reviews, the financial category covers accounting, and the operational category is broader, encompassing administration, academic affairs, general affairs, research and development, industry-academia collaboration, international development, and information processing. For the personnel category, it includes hiring processes, salary and benefits, insurance, attendance, and performance evaluations.

After the implementation of the internal control regulations, each unit had formal rules to follow and relevant records, making their work more thorough. The internal control regulations consist of 41 articles, with 11 articles under the personnel category, selected from over 100 original personnel regulations of the school, highlighting the most important ones. The internal control regulations cover those with higher risk and higher importance, requiring Board approval for their formulation. However, future amendments to the regulations will depend on their significance to determine the reviewing unit. Especially for the organizational charter, procurement methods, and the method for selecting the president, they must be reviewed by the Board of Directors.

Additionally, Ming Chi University of Technology has an auditing unit that regularly audits the internal control of each unit, with Secretary General as the head, reporting directly to the president.

Internal control personnel need long-term development

Secretary General stated that the biggest challenge in internal control auditing is finding experienced personnel to perform the audits. If inexperienced individuals are assigned, they often fail to identify the issues, let alone propose solutions. Therefore, these personnel must be familiar with relevant operations and regularly undergo "internal audit personnel training courses," making it a position that requires long-term development. Additionally, the mindset of the units being audited is crucial. Secretary General emphasized that auditing is not about supervision but about helping each unit identify areas for improvement. Thus, communication with the units before auditing becomes very important to ensure they understand that auditing is meant to identify issues and is not punitive. The aim is to enhance the performance of each unit through the auditing process, and building this trust takes time.

Before conducting audits, a "work contact form" is sent to the unit being audited, informing them of the schedule and items to be audited. Private meetings are held to establish trust and consensus between the auditing and audited units. Only through both horizontal and vertical communication can the auditing work gain the recognition and cooperation of the business unit managers. The primary purpose of auditing is to check whether the systems are being effectively implemented and to assist managers in evaluating personnel. Auditors must also be mindful of their attitude, focusing on systems and school affairs rather than targeting the staff of the audited units, ensuring the audit process proceeds smoothly.

Secretary General mentioned that the school's motto is "strive for perfection," with regulations being revised every two years to continuously review the appropriateness of the system, including internal control regulations. Ming Chi University of Technology also identifies two to three benchmark schools for emulation to enhance its performance. Currently, the benchmark schools are National Taipei University of Technology and National Taiwan University of Science and Technology, both of which have notable achievements in education and industry-academia collaboration. Chang Gung University and Chang Gung University of Science and Technology, which share the same board of directors, are also reference points.

As part of the Formosa Plastics Group, Ming Chi University of Technology places great emphasis on cost-effectiveness in financial control. To avoid waste, budget reviews start in February and March each year, with needs repeatedly confirmed before submitting the budget to the board of directors in August for approval. To ensure more efficient and precise budget usage, the university signs "delegation contracts" with the Formosa Plastics Group’s contracting and procurement departments, allowing professional personnel, who are sensitive to prices and experienced in engineering, to handle procurement and project contracting. Before proceeding to the procurement stage, the feasibility and necessity of the budget are reviewed again, especially for budgets exceeding one million NT dollars, which undergo a second review to prevent unnecessary expenditures. The dual review and professional execution of procurement naturally lead to more efficient and flexible budget control.

Ming Chi University of Technology also follows the diligent spirit of the Formosa Plastics Group. To effectively utilize resources, even in the sweltering summer heat, it is mandated that air conditioning cannot be used from 8 to 10 in the morning, reflecting the long-standing commitment to energy conservation and carbon reduction at the school. The internal control regulations aim to enable the school to manage itself more autonomously, and the implementation of self-audits is crucial to the school's progress.

Ming Chi University's internal control not only demands professionalism from the auditors but also pays attention to the needs of the audited units and ensures good communication to facilitate a smoother audit process. The university’s approach to budgeting and execution, inheriting the pragmatic style of the Formosa Plastics Group, avoids unnecessary expenditures, making it a model worth emulating.