Research On China Electric Power Research Institute Of Financial Management Mode

With the development of market economy, the energy and power demand has keen increasing rapidly, which has made it much imperative to speed up the electric power grid construction and improve electric power supply security and resources allocation capability of the power grid. The power grid is not only the power feeding carrier to connect power supply and end-users, but also a crucial part in the energy strategic layout and an important step in energy industry chain. The improvement of power transmission technology and power grid resource allocation efficiency is of great significance to the sustainable development of the energy in China. As a comprehensive scientific research institute directly affiliated to State Grid Corporation of China, China Electric Power Research Institute (referred to as the Research Institute) has been engaged in the arduous task of power grid construction in China and is an important driver in improving the overall technology level in electric power industry in China. Over recent past years'development, the Research Institute has turned from a single research institute to a diversified corporate combining research, production, sales and services. A intergal product chain has been formed,including power generation, power transmission and distribution, power supply technology, power engineering design, construction, new energy, new materials and so on.While; being engaged in the research tasks assigned by the. country, the Research Institute has also been proactively participating in the market competition, enlarging its business scope with more management objects; thus the previous financial management system and related governance structure can not adapt to the needs of its own rapid development. Therefore, to build up a set of reasonable and scientific financial management model has become much imperative. Only by this means can the continuously rapid and harmonious development of the Research Institute be ensured so as to reach the future target of the Research Institute "becoming an authoratitive research institute in China power grid industry and a competitive hig-tech enterprise.By adopting a standardized research methodology, this thesis conducts an in-depth and step by step analysis on the construction and operation of financial management mode of the Research Institute. The thesis consists of five parts:ChapterⅠ:The basic profile of the Research Institute. First, analyzing the organizational structure of EPRI and describing its complex organizational system; second, describing the development environment of EPRI faced, from advantages to weaknesses. The main advantage is reflected in scientific research and technology, politics advantage and talent advantage and so on. The disadvantages are mainly including weak economic strength, management System and Industrial need to be improved and enhanced; Third, the paper analyzing the basic features of EPRI from a business model and the common problems of electric science house. Research and technology companies in the overall management structure Power Research Institute are in different location. Research institutions are headquarters of the institute, not an independent legal person. The technology companies are an independent legal entity with corporate enterprises, market-oriented, independent management and losses. But how clearly defined the commitment to participate in social scientific research tasks and functions of these two limits is very difficult.ChapterⅡ:"The current status and problem analysis of financial management of the Research Institute". Currently, EPRI financial management system has many features, just like the complexity of property rights, inadequate management practices of accounting and so on. Financial information should be more truly, decentralized fund management. A comprehensive budget management is not fully implemented. The role of performance appraisal is not full. The existence of such issues has a historical inevitability, but the basic reason is a scientific and rational financial management system has not been established.ChapterⅢ:"Selection in financial management mode". Financial management mainly has three species, centralized model, decentralized mode and mixed mode. No pros and cons exist in the three models. Therefore, the choice of financial management should follow incentive, sustainability, adaptability three basic principles. By referring to group companies' financial management experiences and based on the analysis over basic theories on financial management mode selection, it is concluded that "a relatively centralized mixed financial management mode is a reasonable choice for the Research Institute at current stage. Its biggest strength is that it can combine limited resources to the largest extent to keep its flexibility while playing the role of management coordination to make all financial resources of the Research Institute allocated in a reasonable way under the supervision of the headquarter.ChapterⅣ:"construction of financial management mode". First, the rational allocation of financial management responsibilities is very important. The Headquarters of EPRI is the core role, responsible for the overall development planning, investment decisions, capital operation and financial control; technologies and professional subsidiary institutions similar to the division, is the profit center. It is responsible for the supervision of the division for receiving and assessment. Such as micro-financing decision-making and the disposition of assets; other companies are cost center. Second, an effective organizational structure system should be formed. School leadership is decision-making body. Finance Department is financial management institutions. Audit department and financial settlement centers are financial oversight bodies. Third, a sound practice measures should be implemented, including a comprehensive budget, integrated accounting management, centralized funds management and so on.ChapterⅤ:"Conclusion". This part is a summary to the exposition of this thesis. By the above argument, the following conclusions exist:First, the financial management of EPRI can learn form Group Company. Second, the relative concentration of power and mixed financial management is the better choice for EPRI; third, supporting system and measures can fully reflect the advantage of financial management.