Further Study On Comprehensive Financial Evaluation System Of Higher Education

In the last few years, the higher education system has been highly vitalized with the development of the education system in China, and the finance of it is also facing a more complex situation. The newly published accounting system applied to institutional organizations also complicates the accounting procedures, by which on the other hand greatly enriches the accounting data. Therefore, in 2001, a research project entitled "Comprehensive Financial Evaluation System of Higher Education" established a evaluation system to provide a timely and effective reflection or forecast of the financial resource's allocation, capability, efficiency and risk of the universities. This evaluation system is the most normative and best up to now among all kinds of systems, and is under extension among Chinese higher schools.It is necessary to point out that although this evaluation system is the best one now, we can't say that this evaluation system is perfect. This system is still need to be improved for it is just based on the everyday work experience. In this paper, our "further study" will focused on the index system and evaluation method of the evaluation system.First, the paper optimizes the index system on the works followed: (1) renews the classification of the index system; (2) eliminate the overlap indexes in the index system. By the optimization, the index system's structure has been more condensed and the classification has been more according to the practice. Our optimization will do good to improve the effect of the comprehensive financial evaluation.Then the paper redesign the evaluation method using objective power evaluation methods. This work is done as followed: (1)using principal components analysis method evaluated the financial situation of higher schools, and got the evaluation result; (2) using factor analysis method evaluated the financial situation of higher schools, and got the evaluation result. Thus, we get three results including the result evaluated by the Ministry of Education. For the difference of the methods, the results are different too. This brings us to the thought of combining the three results to overcome the disadvantages of the two types evaluation methods (objectively or subjectively assign weights), absorb the advantages of them at the same time, and get a more reasonable evaluation. So we employs the combination evaluation method combined the three results into a single one. This paper aims to provide a research of comprehensive financial evaluation methods among higher schools, so the value of the combination evaluation result is still to be judged by experts. ...