Research On Accounting Mode Of The Public Sector

Different from the governmental bureaus and the state-owned enterprises, scientific research institutions are a special form of organization, and their financial management, including the source of their funds, the expenditure and the cash flow involved in economic activities, could greatly influence the effectiveness and efficiency of the use of their funds. In China’s economy transforming period, with the implementation of the national innovation strategy, the state’s investment on scientific researches is growing rapidly, which has greatly enlarged the total amount and also varied the sources of the funds that scientific research institutions could raise. However, it’s difficult for the traditional accounting modes formed in the long-term planned economy to adapt to the current existing market economy. Therefore, scientific research institutions need to be equipped with a complete set of scientific accounting mode.The good running of scientific research institutions should owe to the full-time involvement of the financial management in organizational capital activities in terms of various economic relations. But driven by economic interests, the individual materialism concept was strengthen, causing a specific phenomenon of "internal control" in public sector, resulting in the difficulties in accounting and supervision and serious distortion of accounting information. Meanwhile, the outdated administration mode in scientific research institutions also caused the low efficiency in their management, social benefits production and public resources utilizing processes, making them unable to adapt to the requirements of rapid economic growth. Therefore, the reformation of scientific research institutions is of great necessity.There are many problems existing in scientific research institutions’ accounting process. In this context, how to strengthen and improve their financial management system appears particularly important. This paper mainly uses deductive and inductive methods, assisted by the method of case study. From the angles of accountability, public management theory, public finance theory and agency theory, this study focuses on the public accountability of the Public Sector. Firstly, based on the historical-perspective analysis of the current accounting modes, the Public Sector and the whole industry, this paper tries to point out the advantages and disadvantages of various accounting modes and find out the influential factors of institutions’ different accounting mode choices, thus build the Public Sector accounting mode selection model. Then this research also take the evolution of S Province Academy of Agricultural Sciences’accounting system and its innovative accounting mode choice as an example, to verify the correctness of the proposed institutions accounting choice model. Lastly, the paper discusses the feasibility of this innovative financial outsourcing accounting model for S Province Academy of Agricultural Sciences from the aspects of policy and environmental support, financial outsourcing risk measure, the scope and manner of financial outsourcing and outsourcing service provider selection in order to provide references for other scientific research institutions.