A Study Of Financial Management Mechanism On Revolution Of China’s Public Institutions

Originated from the planned economy circumstances, the public institutions of China have helped the government provide public products for the society, and contributed its unique social function in the process of Socialist Modernization. However, with the growth of social economy, the mechanism reform of public institutions turns out to be problematic. The biggest issue lies in that "Being public in terms of form but performing like the enterprise".Based on the social needs of China’s economy and classification reform of public institutions, this paper mainly focused on the study of financial management mechanism in the process of public institutions enterprising. In order to accommodate the needs of planned economy, the public institutions must innovate in management mode, especially in the financial management mode. Meanwhile, it is also very important to enhance the concepts of operation, competition, marketing and benefit, be prepared for the uncertainty of future and enlarge the scope of work.Under this particular background, this paper has introduced the theory of mechanism innovation and illustrated its content from the aspects of financial management, financial control, financial risk, crisis warning, incentive constraint and comprehensive financial evaluation. Moreover, taking the GSMT Bureau of Geology as the research target, this paper has summarized the operation experience and suggestions for the financial management mode of public institutions in the process of enterprising reform, based on analyzing the current financial management state.In general, it is of great importance for public institutions to improve all the subsystems including budget, benefit evaluation, financial management, comprehensive assessment, etc. in the process of innovative reform. To achieve the goal of innovative the financial management mechanism, the public institutions have to establish the correct financial management notion, secure corresponding financial mechanism, enhance the construction of management team and improve the capability of financial management.