Research On The Countermeasures Of Financial Risk Management In Local Public Universities

Under the background of continuous reform and opening up,China's higher education has gradually entered the stage of popular education from elite education mode.Local public institutions of higher learning,which provide intellectual and talent support for the rapid development of national and local economy and society,play an extremely important role in economic and social development.Due to the expansion policy and the construction campaign of new campuses of public colleges and universities,and the teaching evaluation activities initiated by the ministry of education in order to promote the development of public colleges and universities,the result is as follows: huge borrowing,huge expenditure of higher education cost,and deriving the debt financing,operation,investment,four big financial risks.At present,the income of local public colleges and universities can no longer meet the rapidly rising demand of capital expenditure,which inevitably leads to the financial debt risk that the income cannot cover the expenditure.Thus,the other three risks are continuously affected,which directly affects the sustainable development of local public colleges and universities in the future.Based on the comprehensive analysis of relative literature at home and abroad,this paper studies the current financial risks status of local public universities.It also explains the causes of financial risk practices in public universities in China from the perspectives of the sources and methods of funding,financial risk consciousness,projects spending,budget management of colleges and universities,colleges and universities financial information construction,the internal control system construction,the audit and supervision system of the school itself and the establishment of institutions.It points out that the local public universities have problems such as insufficient government financial allocations,low income of various kinds of public colleges and universities business,high bank loan amount,excessive needs of capital spending on expansion enrollment and new campus construction,increasing input in teaching assessment,high proportion of teaching staff spending,insufficient financial risk consciousness of the policy makers,behindhand financial system technology,low quality of financial personnel,weak internal control system,and incomplete audit supervision mechanism,which makes the financial risk of the colleges and universities began to manifest themselves in the breeding of these factors.Then,it conducts an empirical analysis of the case of University E's financial risk management and analyzes the current financial status and the reasons of the problems of University E.Finally,according to the reasons behind financial risk problems of local public universities as well as the empirical analysis results of the financial risk management case of University E,solutions to the current financial risks of colleges and universities are designed from the external and internal perspectives.From external aspect,we should raise funding per student to relieve financial pressure,strengthen the positive budget constraint,strictly control the loans of colleges and universities,improve the supervision and evaluation mechanism,and improve the efficiency of the use of funds.From internal aspect,we should broaden the channels of fund raising,reduce the proportion of loans,strengthen budget management,arrange expenditures scientifically and reasonably,optimize the internal control of colleges and universities and so on.This paper makes a beneficial discussion on solving financial risks in reality,which provides ways and methods for local public university administrators and financial administrators to avoid risks,so as to make a contribution to the healthy,stable and orderly sustainable development of local public universities.