The College Financial Decision-making And Risk Management In Our Country

Along with the continued expansion of the scale of higher education institutions, the economic activity of universities has become complex increasingly.The flow of funds increases rapidly. The sources of the funding is multiplex and no longer limited to the funds allocated by the country, what proposes new requirements to the financial management of colleges and universities objectively. The connotation and extension of financial management has been changed, and there is an urgent need for colleges and universities to strengthen financial management, guard financial risk, improve efficiency in the use of funds, and make the control and use of the funds consistent with the school's career plan. Therefore, further improving the financial management and achieving the development goals of colleges is the problem what the college finance policy-making organ has been studying and discussing.This paper studies from the in-depth development of China Educational Reform, the college financial who undertakes multi-channel to gather funds for education gradually and manage the usage of funds effectively. Through the empirical analysis of statistical data from college overall and the individual in our country, it obtains the elaboration and suggestion about the control and use of funds, the prevention of financial risk, the enhancement of financial management and the usage of funds effectively. This article structure arrangement is as follows:The first part, the college financial management system development is linked to the development of the national economy and the reform of the education management system closely. Under the planned economy system, the universities implements a single centralized accounting management system, and the management of budgetary authority is centralized. Along with the gradual establishment of the socialist market economic system, our country has transformed from unification to diversify in the aspect of funds investment, which causes the complete development and breakthrough on the idea of solving the education input from the educational department, the plan and finance department, and that transforms from the government investment to the country, society, schools, collective and individual investment gradually. The pattern that mainly depends upon the government allocating funds and gathers the funds for education by multi-channel is forming. It has gradually established two financial management system including "level accounting, level management" and "secondary accounts, secondary management". After the reform of the universities management system, the scale of a considerable number of colleges and universities expanded significantly by adjustment and merge, and the school environment has undergone tremendous changes. Universities more and more emphasis on the overall planning and efficiency in the use of school funds, because of the contradiction between inherent requirements of schools to seek their own resources and the relative lack of supply. This paper proposes to establish the "centralized management,unified leadership" Financial Management System and the larger universities establish "unified leadership, classification management" Financial Management System. With the evolution of the Financial Management System, it regulates the financial activities of the universities gradually, strengthens macro-control of the schools who can concentrate on the necessary funds to strengthen armed forces, safeguard the normal order in schools.The second part, according to the sources of higher education funds, the changes of them and empirical comparison, analyzing the main causes of financial risk of higher college, along with the measure to promote financial development, and demonstrate it at the external aspect of finance devotion and scale development and the internal aspect of manage benefit. Universities raise the school funds in accordance with the teaching duties they undertake and the inherent requirement of their own development. According to the demonstration of the revenue composing of one university from 2001 to 2006, it's a conclusion that colleges and universities have basically formed a pattern with funding allocations for the main channel, multiple channels as assistant to gather funds for education. Compared with the past, a single fund-raising channel, sources of higher education funds have increased broadly and undergone major changes. In addition to state funds, other sources of funds continued to increase. The main source of funding is state funding, tuition, research income, such income accounted for more than 90% of total revenue. By choosing a national education statistics and financial situation of one university in recent years, Comparative analysis shows that the main cause of the financial risk of higher learning is the high development speed, the insufficient investment of the state, large-scale merger of colleges, large amount capital used for the integration, stability, basic construction. The higher college loan problem gets serious. A series measures can be taken to maintain the healthy operation of university finance. First, Increase funding for higher education, second, reform the graduate education system. Enhance funds allocation to large scale university of merger, third, apply certain exemption policy to universities whose finance problem is caused by merger, forth, Strengthen loan management, last, reducing financial risks.The third part, through the analysis of the use of university funds flow, start with the benefit and efficiency of resources, Constructing Performance Indicator System, Study input-output performance, evaluate through assessment standards and criteria. The efficiency and effectiveness of resource allocation of Higher Education mainly incarnate at the overall results in fields such as teaching, scientific research and social work, and the efficiency of higher education resources used in these fields. College Performance Evaluation System is a set of correlative guide lines which reflect higher education finance management, capital status and other aspects constructed according to checking content with Performance Assessment as focus. According to building higher education finance affair performance evaluation system, assessing the scale of their debt, the resource possession and use per student, Self-financing capacity indicators, consequently base on Quantitative analysis, combing the computing and sorting of qualitative indicators, single and multi-target indicator to get colleges'Performance Evaluation with reason, reflect their financial Comprehensive strength Objectively, so as to providing a correct policy to guide the development of universities.The fourth part, the core content of the management of university funds - budgetary management and building internal control. With the increasing community of the universities development, the flow of funds increases rapidly, that requires strengthening the management of funds and guarding against financial risks urgently. And then it formed a self-discipline mechanism for economic activities in colleges and universities, and made the financial management and control consistent with the school's career plan. However, the budgetary management, the internal control and management play an important role on the planning and control of financial organization. The universities should adhere to the scientific concept of development, improve the budgetary, decision-making and management system, achieve scientific, standardized and transparent budgetary; establish a budgetary performance evaluation system gradually, improve budgetary management and efficiency in the use of budgetary funds; make it scientific, tight, detailed, rigid and guidance gradually, so that the universities can make the best use of limited funds efficient, make the budgetary become real powerful tools or means to provide the conditions for safeguarding and promoting the development of the cause. It is also very important to improve and perfect the higher effective internal controls to achieve a reasonable distribution of resources, improve their efficiency and management interests, and protect the safety integrity assets. In view of the current main problems about the internal control of colleges and universities, we can strengthen these areas such as improving internal restraints and supervision mechanisms, establishing a system of approval, authorized and collective decision-making, taking a clear economic system, strengthening the internal audit and building finance team, etc.Based on the foregoing analysis, it can draw the major proposed conclusion. College financial management is linked with the development of the national education management system closely. Along with the deepening of the reform of the educational system, the higher education developed rapidly. A series of large-scale reform of colleges such as increased enrollment and the merger make it dramatic increase in demand for funds. Because of insufficient financial input and limited sources of funding from other channels, it formed the obvious contradiction between supply and demand of funds, which leads to the financial risks highlighted such as schools successive financial deficits, increasing debt, over-dependent on bank loans and capital, and heavy interest burden, etc. This article proposes to increase investment in higher education from the national budget-driven channel, achieve the goal of education funding and the investment accounted for 4% of GNP, so that there are stable and reliable sources of funds for higher education. We should reform the system of postgraduate education to create a more standard features suitable for graduate education cost-sharing mechanism. For the funds from state special education funds, we should give special consideration to the combined size of the bigger schools. Also, we should give some exemption policy to the bank loans from college merged, strengthen loan management, implement the economic system, and establish the risk model to reduce financial risk. It is a good way to the college's financial management by allocating the internal resources reasonably and improving the effectiveness and efficiency of the use of funds. In the same time, we should strengthen the funds management of schools, budgetary management and internal control, and finance, distribute and use the school funds reasonably to promote the development of education. It is of important significance to achieve overall development plan and strategic objectives.