Research Of The Financial Management And Control In Linyi Mining Group’s Parent&Subsidiary Company

. As large energy production company administrated by Shangdong SASAC, Linyi Mining Group a wholly state-owned enterprise based on the former Linyi Mining Ministry. Now, it has developed into a large modern conglomerate with many industries such as coal production, iron ore production, coal machine manufacturing and processing, fiberglass manufacturing and power generation and so on, which makes its among top50coal mining enterprises in China and key industrial enterprises of Shandong province.By means of data access and on-the-spot interview, it is found out the corporate governance structure of Linyi Mining Group leaves much to be desired and lacks a financing strategic planning matching the whole development strategy. The outdated consolidated statement of accounting affects the authenticity and integrity of the financial information. Comprehensive budget management system is not developed enough yet and it does not realize the organic combination of budget enforcement and performance assessment. Financing management system still needs improvement and funds monitoring mechanism is far from being found. Internal auditing force are not strong enough to supervise the budget enforcement and investment efficiency. Accountant professionals of middle and high level are not enough to efficiently manage the accounting staff. Therefore, there is still gap between the finance management and control of Linyi Mining and the management requirements of modern conglomerate. Its’ failure of achieving the best synergistic effect of group’s financial resource restricts the smooth implementation of its whole development strategy.By the methodology of data study and comparative analysis, a conclusion is drawn: Linyi Mining Group must improve the management structure between parent and subsidiary companies and establish a financial management and control model to the affiliated company according to the property relations and location. It should combine the finance strategic planning with the reforming of financial control and thus to realize its function of value support to the group development. The means of consolidated statement needs to be improved in order to exert financial information’s function of proactive prediction and efficiency examination. A scientific and thorough management system of comprehensive value should be established by means of achieving the all-around combination of budget planning, implementation and performance assessment. The funds monitoring and early warning mechanism should be strengthened to prevent and control possible finance risk. The independence of internal auditing institution should be strengthened and meanwhile the combination of financial auditing. budget enforcement auditing and the following evaluation of investing projects. The whole professional quality of the financial personnel should be improved further and CFO should be appointed to wholly owned and holding subsidiaries. The optimal design of the financial management and control system of parent and subsidiary companies can maximize the synergistic effect of group’s financial resource so as to achieve a healthy, coordinated and sustainable development.