Changchun Government’s Appointment Of CFO And The Related Countermeasures

The government appointing CFO system is the product of the development of China’s marketeconomy, in line with the requirements of the current political and economic reform. Besides, itsprinciple accords with the requirements of the principal-agent theory, and is more in accordancewith the requirements of building a exhaustive and complete financial supervision system. In theperspective of building a public financial system, with the rapid development of urban economyand social undertakings, how to grasp its developing trend and make it work effectively areparticularly important.This paper is a systematic analysis of Changchun government’s appointment of CFO. Thepaper combines the practical difficulties in this work with the characteristics and experience incarrying the system out to analyze the current situation of the government’s implementation andgive a reasonable evaluation. In order to solve real problems, the paper also suggests about themain direction and countermeasures for the reform in Changchun government’s CFO appointmentwork. The paper is expected to deepen the understanding of Changchun government’s CFOappointment system and provide reference for the development of future work and for other cities’reform. This paper is divided into five chapters.Chapter1, the introduction, elaborates on the research background, significance,research methods and thesis framework of the paper combining with theimplementation of the government appointing CFO system.Chapter2is a description on the mode of the Changchun government’s CFOappointment work. This chapter begins with the domestic related literature about thistheory and the introduction of the system’s origin, discuss the necessity of thegovernment appointing CFO system, and then, it describes the working mode of theappointment of CFO.Chapter3is a theoretical analysis of the government appointing CFO system.This chapter analyzes the differences between the government appointed CFO andcommon CFO; brings out the related theoretical foundation; summarizes thecharacteristics of the government appointing CFO; discuss the relationship between the supervision of CFO and the financial supervision. And finally, it analyze thenature of such a system.Chapter4describes the current situation and problems of this system. After adetailed analysis on the independence, the competency, the achievement assessmentand the tied mechanism of the appointing CFO, this chapter explains the realisticmeaning implementation of the system in Changchun government, and summarizesthe working effect, and then finds out the existing problems.Chapter5is about measures to improve the government appointing CFO systemin Changchun and the reforming direction of this work. The government shouldunderstand the working relationships of CFO and the nature and position of CFO’swork. It should also control the transition of a government appointed CFO’s workfrom accounting to financial supervision, understand related laws and grasp thedevelopment trend of financial supervision. Finally, this chapter suggests the reformorientation and measures to perfect this job.As government’s reforming work, the system of government appointing CFOhas gained success of a certain level, and has finished the transformation formaccounting appointment function to financial supervising function. What we shoulddo now is gasping the development trend of financial supervision, administratingaccording to law and realizing the function of this system based on the developingsituation of Changchun. All this is in order to meet the need of security and validity ofthe government expenditure, to build a system belonging to a new era which is inaccordance with government public administration and Changchun’s financialadministration.