Building The Performance Audit Evaluation System Of Universities

Currently, colleges and universities in China are showing trends of diversification inresource utilization. Although the colleges and universities are getting increasingappropriation from government, the low-effective utilization of these funds can be foundwidely. With the rapid development of colleges and universities in size and managementscale, simple finance audit can’t satisfy their needs. Therefore, it is desperately essential tobuild the performance evaluation system, which can improve the effectiveness of utilizingthe funds and optimize the resource allocation, to boost the flourish of various businessesof colleges and universities. It is also helpful in providing not only decision-making basisfor executive level but also convenient service for all the teachers and students.At present, performance audit of colleges and universities already has made someprogresses, however, improvement is still needed to fix the existing shortcomings. Thecurrent performance audit are mainly focusing on the exploring and analyzing on thesurface level. The practical and operable procedures, and quantitative analysismethodology of performance audit are still lacking. These lacks lead to the missing ofobjectivity and impartiality and low-effective work. These factors make the performanceaudit for colleges and universities still in the bottleneck phase. This paper will explore andanalyze some current issues of performance audit and then design a complete set ofpractical and operable procedures along with quantitative analysis methodology, in order toimprove the effective and efficient of performance audient of colleges and universities.This paper firstly provides the overview for the definition, current issues and existingproblem about performance audit of colleges and universities. Then, it will talk about theimportance, principle and method of building performance audit system. Here comes thekey point of this paper, the selection of performance audit metrics, which are the core ofperformance audit system. Considering the diversification of resource in colleges anduniversities, it is necessary to evaluate the effective, efficient, and utilization of differentfunds from different perspectives. The performance audit system in this paper will includethree first-level metrics, ten second-level metrics, and twenty-two third-level metrics, suchas the ratio of input and output, grow space and results evaluation etc. This system willapply Analytic Hierarchy Process (AHP) and Delphi method to calculate the matrix for onespecific college or university by using four-level scores, excellent, good, fair and poor.This system builds a multiple-layer fuzzy and comprehensive model through fuzzy mathematics to calculate the general evaluation result. Lastly, this paper will apply thismethodology into an example to validate practicality and operability of this evaluationsystem.