The Study Of Problems In Rural Financial Supervision Management

Rural financial management is always the hot points which attract the great attention of leaders at all levels and the broad masses, enhancing rural collective financial management is an important component of the work concerning agriculture, countryside and farmers. For many years governments at all levels have been trying their utmost to enhance rural financial management, intensify management and promote the management level. After agriculture and rural economic development in China enter into a new stage, rural economy in China is witnessing unprecedented development with significant measures of new rural construction being carried out. Rural collective financial management is confronted with some new situations and new problems, and how to manage well and make good use of the collective capitals and properties is a social problem as well as a economic one. Rural financial supervision can play a critical role in rural economic development in China and new rural construction project. The resolution of problems in rural financial management and the establishment and perfection of rural financial supervision system has become the important issue yet to be tackled in new rural construction.In connection with the new situations of rural economic development ,such as reform concerning rural taxes and administrative charges, this paper has further explored how to perfect rural financial supervision system by fully analyzing the problems of reform concerning rural taxes and administrative charges. Several theories which can provide a source of reference for rural financial management has been introduced in this paper: Asymmetric theory, principal-agent theory, theory of corruption economy and Game theory. In this paper all stages of rural financial management in China have been reviewed: primary stage, development stage and reform stage, and the management characteristics and historical significance of respective stage have been summarized. With Shandong Province as an example, the common problems existing in rural financial management have been found out according to the questionnaires of rural financial management in 17 prefecture-level cities, including informal financial management, imperfect financial system, serious rural debts problem, imperfect accounting system and unhealthy supervision and control. The reasons are as follows: leaders' under-emphasis and wrong understanding ;lack of management normative; instable management, low qualification and dim legal consciousness of rural financial management; lack effective auditing and supervision; imperfect village administration. The sources and solutions of the problems has been dug out. In the study of rural financial supervision system, other theories concerning management science have been utilized: enterprise financial management theory, principal-agent theory, agriculture policy theory, and the common points out of the management subject have been put into use in rural financial supervision. Lastly the five aspects ,rural financial examination and approval system of revenue and expenditure, rural financial auditing system, rural financial disclosure system, rural democratic financing supervision system and rural finance post duty system, constitute rural financial supervision system. In this system rural financial examination and approval system of revenue and expenditure has been described in great detail from 5 aspects, rural financial auditing subject constitution, content and procedures have been definitely prescribed; the principles, forms, contents and procedures of rural finance disclosure have been pointed out; Emphasis has been put on the procedure, requirements and responsibilities of rural democratic financing group, and rural financial management rights and liabilities and its employment methods also have been stated clearly. The study of the five aspects help further normalize and perfect rural financial supervision system.Perfecting and intensifying rural financial management can effectively stop the loss of state assets, protect farmers' benefits, promote healthy rural economic development, fully implement rural policy of the Party and speed up new rural construction. The perfection of rural financial supervision system can help guarantee the smooth implementation of reform of rural taxes and administrative charges, reinforce its fruit and escort this reform; The perfection can help perfect rural financial management and provide referential lessons for rural financial supervision; It can ease the rural leader-masses relationship and contribute to the construction of harmonious society. In this reform farmers' burden relief and income increase come together with the exposure of such problems as lack of normative, debts payment and internal control. In connection with the new situations and problems perfecting rural financial supervision system finance well and lay the theoretical foundation for the solution of issues concerning agriculture, countryside and farmers, which can provide a source of reference for rural financial supervision in China at the present.