The Research On Problems And Strategies Of Village-level Accounting Principal-agent Work In Beibei District

For a long time, the rural financial problems have always been the main source of various contradictions in rural areas.In order to solve the hot issues that peasant masses concerned about, the financial workers in rural areas successively explore the mode of village-level financial management, like Properties of village are managed by village mode, the accountant appointment system mode, the accountant acting system mode,the accountant principal-agent institution mode,etc. Since Beibei District of Chongqing started to implement the village (community) financial town (street) escrow mode in2006,it has accumulated amount of experience can be summed up, therefore, this study has realistic significance.This paper based on the theory of principal-agent, internal control, accounting rent-seeking, and use the means of field survey, interviews with experts to understand and analyze the current situation, the existing problems of Beibei District’s village-level accounting principal-agent institution, the problem causes and policy recommendations.The main contents of this study:(1)The implementation process of Beibei District’s village-level accounting principal-agent institution is mainly divided into three stages. Firstly, unified the thinking, and then checked assets, established regulations, lastly, cleared the implementation rules. The village (community) financial town (street) escrow mode not only helped farmers to find out the real situation, to achieve democratic financial management, but also help to improve the village-level financial management level of Beibei District, to promote the development of the rural collective economy.(2)This paper minutely describe the main problems in four aspects, including financial management, accounting system, audit and supervision, thinking and understanding during the implementation of principal-agent institution, like basic accounting work is non-standard, the examination and approval procedures are not strictly executed, the low efficiency of audit, some doubts in mind, etc.(3)The causes of these problems are attributed to lack of punitive principles and incentives in the implementation of the mechanism, the information asymmetry between the village cadre and accounting principal-agent center, the difficulty in identifying responsibility, inefficiency of internal supervision, the weakness of external audit,village cadres’weak sense of serving villager, and the farmers’weak sense of democracy.(4)This paper propose four policy recommendations to perfect the Beibei District’s village-level accounting principal-agent institution. First one is to improve the implementation of the mechanism through by giving enough funds, establishing the early warning and punishment mechanism. The second is incenting village cadres in three aspects of remuneration, reputation and development. The third one is the envisagement of CPA entering the area of village financial audit, including prospects, service design and supporting measures. Fourth,to improve the existing democratic management and decision-making,so that farmers participate in village affairs more willingly and conveniently, and it can ensure that farmers exercise their voting rights accessibily.