The Financial Risks Prevention Of Public Universities In China

With the deepening reform and the establishment of legal person status in higher education,universities,especially public universities have gained more and more independent management power.This trend,which reflecting in the financial management,is public universities commit the self-financial management,but also bear the corresponding risks.Universities,as a large amount of financial operation of the economic entity,if occurring financial risk,not only the university itself would bring economic loss and ruin reputation,but also cause the community question for the quality of higher education.At the beginning of the 21 st century,due to the loosening of the state's credit and loan policy and the large-scale expansion of universities,public universities have erupted serious debt-servicing crisis.The government has strictly controlled the external financing of public universities,but due to the lack of risk awareness,management and investment management mode backward,seasonal income of universities and the rigidity of spending,and large-scale loans in the early issue of public universities,financial risk prevention still need to be taken seriously.This research is to present the financial risk analysis and the construction of financial risk prevention.This paper first defines and elaborates the research concept and basic theory and through the analysis of domestic and foreign financial risk research,this paper has learned the focus and methods of domestic and foreign university financial risk.And finally established a combination of literature research and case study methods in this paper.According to literature,this paper summed up the financial risk of public universities in China which can be referred to the following reasons: university operational risk,investment risk and financing risk.It is found that the reasons of the above risks can be concluded from the external environment such as the lack of financial investment,the increase of capital demand,the seasonal income and the fou ndation of university accounting recognition.Moreover there are some reasons can be concluded from the university itself like the lack of risk awareness and the unreasonable budget management.In order to make a more detailed analysis on the financial risk of public universities,this paper takes T University as an example to identify and evaluate the financial risk from three aspects.(daily operational risk,investment risk and financing risk)This paper analyzes the problems of funds shortage and structural problems of income and expenditure of T University through the preparation of college cash flow statement;by analyzing financial statements of three auxiliaries of T University,this paper concludes the existence of operational and management problems of T University.Through the analysis of the capital loan situation of T university,this paper discusses the problems caused by the large-scale loans.In the end,this paper referred the above risks to the reasons of as follows: the limitation of risk prevention,budget management,inefficiency school operation system,backwardness of investment management and so on.In order to find out the institutional reasons of financial risk in public universities,this paper further discusses the different financi al recognition of T University under the different accounting confirmation,and finds that the financial risk level of T university is higher than the risk level under the existing modified receipt and payment system.In addition,this paper analyzes the reasons that lead to the above financial risks which includes the limitations of risk prevention,the budget management,the low efficiency of school-run enterprise operation monitoring,the backwardness of investment management and so on.Finally,according to the unique financial risk of T University,the paper gives suggestions on risk prevention from the three aspects of cash flow monitoring,budget control and investment project inventory.In the end,this paper puts forward some suggestions on how to prevent the financial risks of public universities from the logic of external supervision and internal control,in the light of the common financial risk analysis and the identification and attribution of specific financial risks of T universities.Internal control should start from the construction of control environment,strengthen budget contoland carry out the whole process management of investment.The internal control should start from the reform of accounting recognition foundation,perfect the financial report system of university,strengthen the external audit and strictly control the financing channels.So as to play a comprehensive control and prevention of financial risks of public universities.In the end,the author summarized the conclusion of the researchand pointed out that the financial risk control is not only the problem of the method but also the problem of the system,and puts forward the shortcomings of this paper and the prospect of future research.