To Research The Hunan Railway College's Debt Risk And Control

The government has advocated developing higher education from “elite education” to “mass education” since 1998, so as to promote the national economic growth and alle viate the emplo yment pressure. This has made colleges and universit ies expand the scale of enro llment and construct the infrastructure. In the same t ime, the fiscal educationa l funding is insuffic ient, and colleges have to do the heavy borrowing from banks. In 2009, the high debt risk is faced by ma ny colleges w ith t he arriva l of the repayment peak. Therefore, in order to guard against and dissolve of college debt risks, we should take the initiative to analyze its debt risk when college takes debt.Based on the Hunan Ra ilway M inistry loan 350 million Yuan in order to build the new campus, we analys is of the current situat ion of railway ministry school debt risk. We find that Huna n Railway College's debt is higher than wit h places in Hunan province debt. Embrace debt is the same. We use the debt risk early warning ana lys is index system to analys is Huna n Railway College's financ ial s ituat ion after it loans 350 million Yuan, and find that debt early warning index is 0.0548. This means that Railway College's current financ ial sit uation is in the incubation period of debt risk. And we use the debt risk warning model to analysis, found that Railway Colle ge will not be able to repay t he debt accumulated in the next 12 years. Because its the biggest debt paying abilit y in t he next 12 years is only 255.8296 million Yuan. The debt cris is respons ibilit y is not determine d in Ra ilwa y Colle ge because the property r ight is not clear. Railwa y Colle ge has only a single invest ment and financ ing channe ls because of excessive dependence on funding.To this, we put forward four Suggest ions. First, try to get more income, includ ing seeking for a higher financia l educational funds and expanding other income; Second, to questio nable loans, including changing loan time or the amount and to seek he lp of Policy Banks; Third, to perfect the interna l control system and strengt hen the manage ment of t he project budget; Fourth, in order to improve the fina ncia l manage ment skills, college should strengt hen the account ing personne l training, and government sho uld speed up the pace of legis lation to perfect the system o f higher education development environment.