The Exploration On Financial Management Of Public Welfare Institution In China

With the expansion of assets in public welfare institutions in recent years, it is becoming a pressing issue to improve their management. Financial management is the core of economic management in public institutions and plays a decisive role in the reform process in this area. Meanwhile, business transactions in public welfare institutions have become more variable and the environment of financial management is more complicated under market economy conditions, which makes public welfare institutions more like general for-profit organizations today. They therefore frequently face disturbing financial problems and are starting to deal with financial risks and financial crisis. Overall, as most of the public institutions in China have issues such as a lack of financial management consciousness or experience. There is an urgent need to improve financial management in public welfare institutions.The reform of financial management in public welfare institutions is a long term task. In order to clear the way and construct a basic framework for financial management in public institutions, this paper discusses the problems of financial management operation and financial risk analysis systems in public institution financial management. Make public welfare institutions the main object of research. It raises some basic ideas and proposals regarding these issues based on the research of public institutions as well as basic theories of financial management with reference to practical experiences from both home and abroad.The paper has4sections. Section1is about why the topic was chosen, its background and subject matter. In this section, research on financial management in public institutions both in China and overseas is summarized, as well as the contribution and limitations of the paper. Section2provides an overview of China’s public welfare institutions and theories of financial management which it then compares with financial management theories applied to enterprises in order to utilise aspects that are relevant to their reform. Section3then constructs a financial management operation system and discusses its internal operation in public welfare institutions, including financing, investing, and capital usage. Finally, section4looks at the construct of a financial risk analysis system. This section constructs an alarm system for the probable risks in the operation process of public welfare institutions, and proposes several recommendations.