| "Education is the foundation." Education plays an important role in national development with no doubt. Therefore, the whole world is seeking to develop higher education, and expand the scale of development of higher education in various ways. Since 1999 China’s higher education enrollment, school size and the rapid expansion of school autonomy have been making China’s higher education change from "elite" education to "popular" education. However, a series of problems are hidden behind the development. Therefore, how to use the existing human and material resources effectively, cut down costs, raise the level of the financial management of universities become of immediate practical significance. In this context, a study of university financial management issues is particularly necessary.The general idea:this paper firstly sketches out the background of problems occurring, then tells the financial management problems of universities, and then tries to find ways to solve the problems on the analysis of system building, asset management, liabilities management and financing. The main features of the article embodied in the topics first of all. Today, the deficiencies of university financial management system lead to a shortage of funding for education and a serious impediment to the rapid development of higher education. That is why so many universities have chosen the way of debt to develop the model school. Therefore, study of this topic has a strong practical significance. Secondly, in the illustrative process, especially when the liabilities are referred, the paper quotes a large amount of data, some of which are new and persuasive. Meanwhile, in the process of the proposed measures, it has also sum up and drawn some of the predecessors’ theories, hoping to solve the problem by and large.First of all, the paper analyzes the background and significance of the study, as well as the management and research conditions at home and abroad. University management financial management capacity is an important component of university management capacity, reflecting the university’s integrated situation of teaching, research, social services and all aspects. How to use the limited manpower and resources to run a modern higher education in Chinese universities becomes a problem in development. At present, the university’s financial management concepts and financial management systems and methods need to be innovated, to predict and adapt to the changes of financial environment, avoid financial risk, make financial management more scientific, legal, standard, and promote of higher education developing in a health and sustainable way. The Modernization of higher education in western developed countries started much earlier than our country, many of whom stay at the top of the world. Universities’ fund-raising activities are more mature, with a wealth of experience in institutional reforms. In China, the financial management of universities is still in the initial stage. A lot of theories and practices are drawing on foreign experiences. With the rapid development of our universities today, a financial management system that suit to China’s national conditions and sentiments is urgently in need.Secondly, the paper elaborates the characteristics of the university financial management. University financial management is mainly aimed at the activities of financing management, whose object is teaching and learning management, as well as the flow of funds in carrying out research activities, including the organization, mobilization, allocation, intermediation, use, settlement, distribution and efficiency use of funds in universities. It is an important part of school management. University financial management system is the basis of the university financial managements, which is necessary to ensure that the normalization of the financial situation of universities, pursuit economic goals in the conditions of the market economy and make contribution to the improvement of university management system. With the development of economy and continuous expansion of universities,, the phenomenon of running school with liabilities has been commonplace in the national higher education, and become a typical characteristics of university financial management. Liabilities for the development of universities are a double-edged sword:it has temporarily solved the problem of funding required for the development of universities, but also changed the capital structure of universities with increasing the risk of affecting normal financial payments and failing to pay the schedule repayment of loan and interest due to excessive debt.Then, the paper presents the current major problems of university financial management. Firstly, the university enrollment increased fiscal spending. Because of the limit investment for higher education, universities have adopted a debt ways to meet the demand of capital. Therefore, at the same time of school scale expansion, the debt also increased. Secondly, university financial management system is behindhand with weak concept of financial management, no clear objectives, less financial awareness and serious waste of educational resources. The budget preparation process and methodology is unreasonable and cannot receive general recognition and participation of faculty. It cannot be carried out effectively or without deviation. There is no strict internal control system but security risks of funds, which not only bring out adverse social impact, but also hinder the school’s construction and development. For the lack of performance evaluation and incentives, the enthusiasm and creativity of faculties and staff can not be aroused. Management responsibilities are not clear and economic responsibilities are difficult to implement. Thirdly, the university financial management lags behind, lack of understanding of asset management, and resulting in waste or loss of a large number of assets. And unsound financial management team and politically and professionally unqualified staffs also make it difficult to carry out financial management smoothly and efficiently.And then, the article brings out three approaches to improving university financial management. Firstly, institutions of higher learning should try to further improve the financial management system, changing management philosophy, finance scientifically, legally and efficiently, controlling time value of money, investing in risk prevention, and cooperating with the masses. It is necessary to have a long-term, sustainable development objective of the pursuit for both social benefits and economic efficiency. At the same time, we should implement the financial management system of "unified leadership, decentralized management, financial concentration, and decentralization of financial power", establish a scientific and comprehensive budgeting systems and sound internal control system, strengthen prevention-oriented supervision system on the basis of the combination of internal audit, external audit and supervision of democratic, rationally use funds, eliminate waste, and reduce the likelihood of violations. The second approach is to improve the political and operational level of the financial management personnel and establish a qualified financial management team. And the third one is a reasonable balance and flexible financing. From the perspective of economics, science and rational liabilities would promote the development of universities; while over-indebtedness will bring them great financial risk. Therefore, a reasonable way to conduct debt management is an important part of financial management for institutions of higher learning, and also an important topic in the financial management of universities today. In addition to managing the various liabilities of institutions of higher learning, the loan system should also be improved. More importantly, universities can also ease the financial crisis and avoid financial risks by means of using broad social forces and flexible financing.Finally, a conclusion is drawn. Establishing a rational financial management system, reasonable liabilities, and flexibly financing from various social forces are the direction for the development of university financial management.Inadequacy:Due to the limitations of data collection and the individual level, many problems are shown without deeply exploration and research. Also because of the special nature of universities, some specific financial data are unavailable for research. So it is difficult to carry out a specific exhaustive analysis on certain object. What it has in this paper is mainly theoretical discussion, unable to integrate theory with practice and put forward more feasible proposals. In addition, there are many details, such as the establishment and implementation of government more "policy parameters" formula for universities, needs further investigation. |
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