Exploration Of Comprehensive Budget Management Of The State Grid Corporation Under The FMIS

Electric power industry is one of the most important fundamental industries of China. According to national long-team development plan of electric industry, the separations of generation from electric grid, distribution from transmission, selling from distribution, core business from peripheral business are put in practice gradually. Competition is also introduced into generation sector and sale sector.1. Background and IntentionThough State Grid Corporation of China (SGCC) is still a monopoly company which have never worried about its sales, it is now facing the blooming pressure from society and government. Several factors, such as high cost, government restrains on price and lacking of adjusting ability, have made SGCC lose some profits. Thus, Comprehensive Budget Management (CBM) should be adopted in SGCC to get better plan or strategy of budget management. It would help SGCC get competition advantages, increase the ratio of energy consumed by end-users and gain more social and economic benefits. CBM is a strategic option SGCC needs.2. Brief introductionFirst chapter would describe the reasons why writer choose this research and necessity of CBM.Based on the status and features of SGCC, second chapter would analyze the characters of FMIS and theoretically analyze the structure,concept and function of CBM.Third chapter would describe FMIS in detail, especially describe the way how different modules in FMIS cooperate and the functions these modules have. It would also compare FMIS with intrinsic accounting system.The fourth chapter would simply introduce the development of budget management in SGCC; introduce budget planning,budget control,budget analysis and budget assessment; Find out the flaw and deficiency in budget management; tell how to establish budget assessment system and CBM.Taking Yibin Electric Power Bureau as an example, the fifth chapter would analyze how important CBM was to YEPB, and how it helped the company to gain competitive advantages and realized maximal profit.3. Brief contributionThis paper, taking SGCC as an example, would introduce both the way how CBM is implemented under the background of electric industry reform and resulted it had already achieved. Furthermore, it would also discuss the existing problems and methods to solve them to establish CBM structure and implement CBM more effectively. Finally, it would discuss how to combine company strategies and CBM, and find a way to improve budget management information system and CBM and to construct an open,competitive and healthy electric market.