Financial Control System On Enterprise Group

The business group is a kind of legal person united-corporations basing on the advanced development of modern enterprises. In the meanwhile, it is the inevitable results of large-scale socialized production and market economy development. The group plays a key role in our country's economy construction. Shandong Provincial Bureau of Geology and Mineral Resources (hereinafter referred to as SDGM) which is characterized by both a institution and an enterprise possesses characteristics of a enterprise group as well. Confronted with domestic and foreign competition, the financial activities of geological exploration institutions(hereinafter referred to as GEIs) are more and more diversified and complex. Financial management is becoming increasingly important in economic activities of GEIs. The level of financial management in GEIs imposes direct effects on the reform and development of geological exploration economy. It is imperative that the ideas should be transformed, the management should be improved and the development road should be explored. By regarding SDGM as an enterprise group, the article carries out the research on the systematic supervision and control over the financial activities of SDGM and puts forward measures for solving the problems existing in the process of financial supervision and control so as to strengthen the financial supervision and control over GEIs, improve the capital efficiency and promote the healthy development of geological exploration economy as well.This paper is divided into five parts.The first one deals with general concepts of financial supervision and control of enterprise group. It explains concisely the meanings and characters of financial supervision and control from four aspects including executors, objects, objectives and means of control on the basis of the particularities of business groups. The whole research is based on this part.The second part describes the current situation of financial supervision and control of SDGM. The background information, structures of the organization and some features of geological exploration industry are introduced and the particularities of financial management in geological exploration industry is also set forth. The third part reveals the problems with regard to financial supervision and control of SDGM and analyses the reasons for these problems.The fourth part puts forward measures as well as new trains of thought for financial supervision and control including comprehensive budget, appointment of inspector general, internal control and prevention of risks.The final part introduce the safeguard measures of financial supervision and control of SDGM (group),including Optimizing the operation environment of financial monitoring system , the rewards and punishment mechanism , the risk control of finance monitoring system.The geological exploration industry is a capital and labour-concentrated industry. The management in most of GEIs is rough and unskilled. Moreover, because the governmental authorities concerned haven't performed direct research on the financial supervision and control over GEIs, the research on financial supervision and control of the provincial bureaus is also a weak link. So the main purpose of the article is to improve the financial supervision and control over GEIs by means of advanced research on the financial supervision and control of business groups.The financial supervision and control over business groups is a large and complicated system. The GEIs are very special institutions with characteristics of enterprises. Many aspects concerning financial management of GEIs deserve researches. It is a pity that the paper cannot deal with every aspect because of the limited time and capability.Because SDGM and its secondary institutions grew out of administrative departments, there are short of systematic, full and accurate historic data to support the analysis and research. The drawback of the paper is that a few data is quoted to analyze problems concerned.