Discussion On Financial Risk Control Of Public Universities

Since 1999,the scale of college students under the policy of expanding enrollment is rapidly expanding,and the infrastructure and running conditions of colleges and universities demand more.At the same time,the source of funding for provincial colleges and universities is very limited and bank loan seems to be a must.The development of university debt is the product of college enrollment under certain historical conditions.As of 2010,as Audit Commission revealed,there are a total of 1164 local colleges and universities which operate on borrowings,and the amount of the loan reach up to 263,498 billion yuan.As of the end of 2012,there are 98.69 billion's debt in Guangdong province;as of June 2011,many provincial colleges and universities have 300 million to 500 million's debt.Referred to the provincial colleges and universities' external financial liabilities,in August 2011,within 5 to 8 years time,the provincial local university loan balance of 13.3 billion would be resolved in Hubei Province.Jilin University also had to rely on land sales to pay back 20 billion's debt.In 2016,Guangdong Province issued a notice on the fees for public colleges and universities,and decided to increase the tuition fees for ordinary public schools by 20.2% from the fall semester of 2016.In addition,Jiangxi,Hainan and Inner Mongolia also held a hearing on the adjustment of tuition fees.Cheng Fangping in college of Education of Renmin University of China School takes for that the construction of colleges and universities at every few thousand acres of campus,the hardware on a one-time investment is too large,leading to some financial problems of college hard to return.But tuition is not a way out,education has lost its original meaning.The corruption of leading cadres in colleges and universities has also become a difficult problem for colleges and universities.In 2016,the Central Commission for Discipline Inspection of the Ministry of Supervision reported a total of 27 leading cadres in colleges and universities.Chinese Academy of Social Sciences Research Bureau,China's Independent Commission Against Corruption of the Chinese Academy of Social Sciences Research Center,Social Science Literature Publishing House issued "China's anti-corruption construction report No.6"("Anti-corruption Blue Book").The report argues that the main problems that need to be solved urgently in the construction of anti-corruption in colleges and universities include the problem of rent-seeking in key areas,collective corruption,lack of supervision on account of intersecting management.Corruption infiltrates almost all the key areas and links of the university,mainly in the concentration of power and sensitive positions and so on.University acts as a "ivory tower",which is responsible for teaching and educating people,and the public tolerance of corruption in colleges and universities is very low,so it should maintain high pressure on corruption in colleges and universities.The financial risk of colleges and universities is so urgent and significant,and the control of financial risk in public universities is especially important.Because the financial risk of public colleges and universities relates to awareness,implementation,supervision and evaluation of any risk point of all aspects of college internal control,so any out of control may lead to a great adverse social influence.In view of the uniqueness of financial management in public colleges and universities,this paper argues that the financial risk of colleges and universities has the characteristics of latent,policy relevance,relative complexity of financial management and soft budget constraints.This paper analyzes the current situation and problems of the overall financial control of public colleges and universities by analyzing the current regulations of the public colleges and universities and the current understanding and coping methods of the financial risks in most colleges and universities,using the framework of risk management theory and internal control.And through the analysis of the results,the past scholars' research on public colleges and universities in all aspects of the system and the environment,the past financial risk control process of the difficulties,financial risk control awareness,the financial risk control environment,the financial risk control business activities,the financial risk control system design and implementation,the intention of public colleges and universities to better fulfill the obligations of the state,the paper aims at ensuring the safety and integrity of state-owned assets,preventing and resolving the potential and the current financial risk.This paper analyzes the financial risk mainly from three major categories,debt risk,financial environmental control risk,economic business risk.It analyzes four directions,including financial risk control identification,financial risk control environment,financial risk control business activities,financial risk control evaluation and supervision.