Yantai Port Group's Financial Management System Design

The financial management system is an essential part of the overall management system of the corporation group. A scientific and efficient financial management system plays an important role in the realization of the financial target of the group. This thesis concerns the re-design on the financial management system for Yantai Port Group in terms of its actual situation and the requirement of establishing modern enterprise system, with a purpose of promoting the faster development of the port and providing reference to the other corporation group. The thesis consists of the following three parts: The first part is about the concept of corporation group and the general description of Yantai Port Group. The present financial system is detailed in respect of: (i) leadership and decision making system of finance; (ii) financial organization system; and (iii) financial management system. Problems analysis and corresponding reform proposals have also been included in this section. The second part involves the design principle for the financial management system and various relevant factors, including internal and external ones on the basis of analyzing the characteristics of Yantai Port Group. The third part is the essential section of the thesis. In light with the actual situation of Yantai Port Group, recommendations have been given on establishment of the generally centralized financial management system as well as the specific measures such as: (i) separation of financial management and accounting management; (ii) establishment of accounting center; (iii) defining the financial decision making system; (iv) set-up of financial supervisor system; (v) strengthening cash management by separated control of revenue and expenditure. In addition, the necessity and feasibility of these measures as well as the implementation plan and possible problems have also been detailed in this section. At last, comparison is made between the new and outdated financial management systems, which is followed by an analysis of the shortages and defects.