The Simulation Model Research On Cash Flow Management Of The Universities Based On System Dynamics

The country has implemented expansion policy since 1999, the recruitment students scale of higher education obtains the rapid expansion and advances popularity development of the higher education. Because universities expands the scale with students population growing year by year, they spend several million Yuan even several hundred million Yuan in investing construction, teaching, scientific research and other aspects. Along with this tendency, universities inevitably face difficult problems between permanent development and finite resources. Therefore, it is very important to make the early warning for unbalanced risk , and pay attention to make master plan and use efficiency on cash.At present, most universities haven't unobstructed finance information feedback channel and establish an effective information feedback mechanism ,they also haven't considered these problems that how to make the best cash remaining sum by applying the quantitative method to analysis cash flow-in and flow-out according to the college economic activity character- istic , and how to carry on effective finance forecast ,guard and warn finance risk from the angle of cash flow. Thus the financial report and financial analysis can't provide the reference function for universities' development plan so that the finance forecast and the policy-making function can't be displayed. Therefore, in order to carry on the finance forecast, analyze cash demand and grasp its development tendency correctly , universities must utilize the system analysis thought.This article uses the system dynamics as an essential method, mostly because this method can grasp the causal relation, clear about its feedback and delay, reflect quantitative forms from qualitative relations by establishing the mathematical model and examine the model by policy analysis to provide forecast information for the policy-makers at the right moment in order to serve the future management decision-making. The article combines accounting method to analysis qualitative relations between the teaching ,the scientific research, teachers, students, the government appropriate money, service industry, attached department and cash flow, then analyzes quantitative relation and variation regular between variables ,sets up forecast model about cash flow ,and uses system dynamics simulation software VENSIM to analyze certain ordinary university cash flow management.Building system model on dynamic cash flow can provide the strategic decision lab for universities and assist finance manager to pursue the better financial policy under its goal. It can't only make the best use of resources, but also enable to avoid abnormal consequence which the financial crisis and risk brings about, in order to achieve the best social efficiency and the economic efficiency in fund .