A Study On Efficiency Of Investment Management Of The Education Foundation Of “Z” University

The development and construction of universities require multiple assistances.Education Foundatin can play an important role in universitie's development through the financial support,which is also a powerful addition to the financial appropriation.Education Foundation starts in the 1990's in China.By the end of 2015,there were already 51 University Foundations whose net asset had exceeded 100 million RMB in China.This was truely a gratifying achievement,but at the same time,the Matthew effect between different foundations appeared.Usually,large foundations can launch out diversified and highly active investment based on their abundant financial resources;but small foundations can only make conservative investment,even just let a large number of cash "sleep" in the current account.As the gap of financial scale between foundations is getting wider and wider,how to improve the efficiency of investment management of foundations in general,has an important realistic meaning to the development of all universities in China.This dissertation chooses the Education Foundation of “Z” University as the main study subject.Based on the annual reports and auditing reports,I make a deep analysis on its financial activity and condition,compared with other university's foundation,and discuss about its merit in investment management.For the purpose of making a fair and quantized comparison,I create 10 analysis indicators which can be divided as the following five categories:1.Guarantee Times of Commonweal Expenditure;2.Efficiency of Cash Management;3.Initiative of Investment;4.Yield of Investment;5.Contribution Degree of Investment.The 10 indicators,which are created from six basic accounting subjects(Net assets,Investment assets,Income from investments,Monetary funds,Commonweal expenditure,Endowment income),have formed a totally new Analysis System on Foundation's Efficiency of Investment Management.By this Analysis System,and draw lessons from Du Pont Analysis,we can make the "Indicator decomposition" and horizontal comparison about the sample foundations,which can clearly show their advantages and disadvantages in investment management.Furthermore,I make a vertical comparison about the "Z" Education by the Analysis System.Obviously,this Analysis System will establish a new method for the financial analysis of NPO.In the end,based on the horizontal comparison and further research above,this dissertation summarizes the features of "Z" Foundation's investment management,and general conclusion on improving the efficiency of foundations' investment management.Besides,I make two innovated suggestions about foundations' investment management: Set a "Multilevel Graded Accounts" system in every foundation;and set a unified institution on product-investigating for the whole industry.Wish the suggestions may be useful and provide valuable reference to our university foundations.