Scientific Institutions Thinking, The Application Of A Comprehensive Budget Management

Prepared according to the institutional development plans and undertakings, the budgetary plan of scientific public institutions provides important guarantee for the fulfillment of their responsibilities and the realization of their plans and offers guidelines for them to raise, allocate, utilize and manage their funds. However, due to the lack of effective internal and external long-standing monitoring mechanisms, most preliminary scientific institutions make pro forma budget management, and because the leadership overlooks the importance of budget management and pays little attention to it, the regulations on budget management become insufficient and the management concepts, methods and tools lag far behind, resulting in a series of problems concerning budget preparation and implementation, such as shaggy preparation, poor feasibility, over budget, non-budgetary expenditure, lack of oversight, and waste of resources. The extensive budget management has become increasingly unsuited to the needs of the new situation. Therefore, to adapt to changes in this new era and put on a better performance in the financial management of scientific public institutions is an urgent issue in the current time.Comprehensive budget management (CBM), through the budget, distributes, evaluates and controls various financial and non-financial resources among departments within the institution, organizes and coordinates the institution's production and business activities effectively to achieve the established business objectives, and proves to be a thorough, all-round and inclusive budget management system for organizations. As an advanced budget management system, CBM plays an important role in strengthening the budget management practice in scientific public institutions, realizing reasonable collection, distribution and use of funds, and promoting the development of science. In consideration of these current problems and defects in the budget management of scientific public institutions, this paper discusses on the application of CBM in scientific public institutions with case study, integrating the concept of CBM, the management information system (MIS) theory and the method of statistics analysis, and provides an practical proposition to carry out CBM in scientific public institutions.This paper is divided into the following six chapters.Chapter One introduces the research background and the significance of this thesis, the research and practice of CBM at home and abroad, and the ideas and methods adopted in this paper. Chapter Two presents a comprehensive and systematic description of the concept, theoretical system and functions of CBM and possible challenges in implementing CBM.Chapter Three illustrates the development and status quo of budget management in scientific public institutions and demonstrates the unavoidable problems and contradictions.Chapter Four discusses on the necessity of implementing CBM in scientific public institutions.Chapter Five, with a case study, focuses on how to implement CBM in scientific public institutions. First, the basic facts, the practical difficulties and the objective of the implementation of CBM in Case A is analyzed; Then, the method to build a CBM system is illustrated. A. It is proposed that the preparatory work should be emphasized, including establishment of CBM concepts, alignment of thoughts, creation of special budget management system such as budget management committee and office, and employment of matrix system as the organizational form; B. The procedure to build a CBM system is expounded in detail, including establishment of strategic objective through strategic planning (institutional visionâ†'institutional missionâ†'analysis of internal and external environmentâ†'SWOT Analysisâ†'Selection of Strategy); determination of budgetary objective by analyzing strategic objective; determination of the principles, subjects, workflows and methods of budgetary planning; determination of the key points in budgetary execution; determination of the budgetary adjustment range and procedures; and determination of the selection, procedure, method, rewards and punishment; C. The significance of the implementation of CBM for the execution of comprehensive budget is described, the design plans and workflows for management information system module are suggested, and such data process designs as the budget preparation module, budget execution module, the budget adjustment module and the budget evaluation module are introduced emphatically.Chapter Six presents the summary and discusses on the outlook of this study.