Research On Comprehensive Budget Management Issues Of Liaoning Wind Power Company And Solution

Comprehensive Budget Management comes of the1920s’USA. After applications in General Electric Company, DuPont, and General Motors, it soon became a standard management system for large-scaled industrial and commercial enterprises. From the initial mechanism for planning and coordinating production, now it has been developed as a management and operation system, which completely carries out company’s strategy and policy, integrating functions such as control, motivating and evaluating, etc., and it gradually occupied the core position of enterprises’ inner management. Comprehensive Budget Management continued to mature in1980s, and became the core of modern enterprises’ inner management, being popular around the world. David Otley once said that Comprehensive Budget Management was one of countable management and control methods, which can integrate all key issues of enterprises into one system.Comprehensive Budget Management takes the establishment of sound organization structure as basis and guarantee. The budget system includes budget management system and budget executive system. Different subjects for budget should have different budget contents, and the Comprehensive Budget Management should take efficient inspection and drive mechanism as basis.Datang Corporation Liaoning Wind Power Generation Company (hereinafter Liaoning Wind Power Co.) is owned by the China Datang Corporation, one of state-owned corporations directly managed by the CPC Central Committee, is the full-funded branch company of the listed company, Datang International, and it’s fully responsible for Datang International’s all works including wind power development, construction, operation and management within Liaoning Province. At present, the company has carried out Comprehensive Budget Management. However, Liaoning Wind Power Co. has deficient understanding to the meaning of Comprehensive Budget Management, and has not established standardized, systemic Comprehensive Budget Management system yet. Each section of the whole process of Comprehensive Budget Management has issues, which are required to be reformed and completed.This paper starts research in view of the actual conditions of Liaoning Wind Power Co. with comprehensive use of the Comprehensive Budget Management principles, and analyzes current Comprehensive Budget Management status of the company completely and deeply. It points out the issues of Liaoning Wind Power Co.’s Comprehensive Budget Management, namely without an organization system adapting comprehensive budget, unsuitable budget system, lack of budget contents and subjects, too simple budgeting process, without supplementary systems of supervision, analysis, adjustment and evaluation. If the company establishes comprehensive budget system, it should further confirm the target and principles of Comprehensive Budget Management system, set up independent budget control department, implement centralized management control, set up cost-focused budgeting method, reform its system of adjustment and evaluation, and further complete relevant systems, to ensure real and perfect function of the Comprehensive Budget Management system. This paper expects to make a breakthrough on the practice ability of Liaoning Wind Power Co.’s Comprehensive Budget Management system within a certain scope, and to provide some reference for domestic wind power companies’Comprehensive Budget Management.