The Research On Financial Control Model Of The Z Group

Z group is a large state-owned military enterprises. Through many years striving, Z group gradually developed into the path "civil-military integration, Military technology to civilian". Z group bloom into a full range of scientific research, production, sales and service, not only produce in accordance with the order of production, into the financing channel diversification, from rely on the state financial allocations, into the diversified development by merger from the single military industry.Now Z group involving more than a dozen different civilian industry, and owned dozens of a subsidiary company. After the fast development of "eleven five", the core competitiveness of the Z group enhancement, the performance increased year by year, the size continued expansion, showing a good momentum of development.In order to meet the need of Z group’s development, it’s particularly important to design and select the financial control system. Because the system will be the basic means of the enterprise group control and the core of enterprise internal control, it permeates all aspects of enterprise production and management activities. If we select the appropriate financial control model, and take moderate control efforts, we can not only inspire the enthusiasm and creative of the subordinate industry, but also integrate the resources effectively and control the financial risks. Based on stable, efficient financial control system, we can motivate the scale effect and realize the maximize value of the enterprise.Based on the theory of internal control and enterprise group financial control, linking theory with practice research, motivation, in the stage of rapid development of Z group,such as financial control problems, the financial control system model selection, construction, framework implementation safeguard measures are analyzed in detail.This thesis mainly divided into four parts:The first part, summarizes the basic theories of internal control and enterprise financial control, introduces the connotation and theoretical development of internal control, the definition and characteristics of enterprise financial control, the relationship between internal control and financial control, the classification and characteristics of financial control model.The second part, introduced the basic situation of Z company, analyzes the development trend of the Z group in recent years. summed up the motivations and characteristics of the financial control:to achieve the enterprise’s financial strategy, saving transaction cost, solve the principal-agent problem, realize the synergic effect and improve the ability of resisting risk, etc.The third part, constructed the overall framework of the financial control model of the Z group. The framework is composed of financial system control, full-budget control, capital control, the direct appointment of the CFO and financial staff assessment, and financial risk control. The financial policy setting forms the basis of the framework. The full-budget control supports the strategic objectives resource allocation of the group and the performance appraisal. By the comparatively centralized capital control, we can establish the fund resources sharing platform and "the cash pool", improve the effective control of the subordinate company’s capital operation, improve the efficiency of the use of funds, and reduce the cost of capital and capital risk. Responsible for the direct management of the subordinate company by appointing financial (CFO) would strengthen the control of the group company on decision-making and supervision over its subsidiaries. The financial risk control in advance, during and after timely of risk control, ensure enterprise overall sustained, rapid, coordinated development. The control supplement each other, not independent of other measures exist, to support financial control model of Z group, in order to ensure the company for sustainable development, provide a solid guarantee for realization of Z group’s strategic development objectives and value maximization.The fourth part, analyzed the implementation of measures to protect the financial control model of Z group. The financial system control, full-budget control, capital control, the direct appointment of the CFO and financial staff assessment, and financial risk control are the process control. To ensure its implementation, it’s necessary to set up a security measures and evaluation system. The main contents are:the financial information integration platform, internal bond audit and external audit, strengthen the financing and investment management, standardized the internal financial reporting and financial analysis, continuing to carry out performance evaluation.