The System Design For Investment And Financing In Colleges And University

With the quick expansion of colleges and universities, capital flow multiplies inrecent years, and economic crimes are also committed frequently in this field.Therefore, it is very important and urgent to study the internal control of financingand investment in colleges and universities. However, the available researches aboutinternal control have been aiming at profit-seeking organizations, but for collegesand universities they are sporadic and superficial, without systematic theories orapplicable frame, both in academic circle or in government policies.The key to study the internal control of financing and investment in collegesand universities is to construct the theoretical frame for this system. Referring to theavailable domestic and foreign research achievements, the author analyzes thepresent condition and its profound reasons of internal control in colleges anduniversities, then manages to establish the control model and theoretical frame, anddevelops corresponding evaluation method based on qualitative and quantitativestudy. The key factors to construct theoretical frame are determining the aim andelements for internal control in colleges and universities. The aim can be dividedinto two levels. The first is the general (or strategy) aim, that is, to assure thesurvival and sustainable development of colleges and universities. The second ispractical aim, being subdivided into3kinds, safety, compliance and managementobjectives. The internal control elements are also brought forward, where controlenvironment is the base, financial management system is the core, and regulation isthe guarantee.Effective application of internal control for financing and investment dependson the key control points. The guarantee should first start from organizationconstruction. Financing and investment committee should be established to manage the decisions and control activities, thus to remove the previous disadvantages suchas separate management of investment and financing, poor communication,information delay and low efficiency. Secondly, risk management should be paidmore attention. Overinvestment and loan risk should be focused on. The authoranalyzes internal control in colleges and universities and puts forward the keycontrol points that are directly related with the effective application of internalcontrol. At last, the author suggests that it is also important to set up the work flowof controlling financing and investment activities.