Study On Universities Financial Risk And Its Prevention Under The Perspective Of Internal Control

Universities, as educational institutions, which is based on the feature of non-profit, purchase the balance of economic and social effectiveness. With the introduction of market mechanism, the economic attribute of Chinese universities is more and more highlighted. Since universities carried out the policy of enlarging the enrolling of new students in 1999, the financial risk and dilemma in universities are more and more highlighted and serious. The universities’financial risk has become the obstacle of development. With the executive of related regulations, such as Financial Regulation of Universities, Accounting Regulation of Universities and Audit Guide on Financial Statement, we can come to the conclusion that universities’financial risk has become the key problem of Chinese colleges’reform.This thesis introduces the connotations of college’s economic attribute and financial risk at first. Then aiming at colleges, we gave out a lot of questionnaires named the study of universities’financial risk from the perspective of internal controls. Based on the results of the questionnaires, the writer conclude current situation of universities’financial risk and analyze the reason of it followed the introduction of general guard structure and detail measures.After studying the questionnaires of universities’financial risk, the writer deems that the key causes of the problem of universities’financial risk are the weak environment of internal control, the imperfection of financial risk warning system, the weak executive of financial control, the lack of information disclosure and passageway transmission and not well organized internal audit system and so on. The writer comes up with some measures of improving of environment of internal control, establishing financial risk warning system, enhance the control of finance, perfecting information and transmission system and complete the connection of internal and external audit system in college.This essay uses the research thought of the connection of quantitative analysis and qualitative analysis and many comprehensive study measures, and studies the universities’financial risk and guarding measures from the perspective of internal controls.In the first instance, The writer gave out the questionnaires to the colleges in Chinese, investigating the current situation of internal controls and financial management. Through reading a lot of literatures and referring the experiences of others, the writer comes up with the general structure and detail measures of universities’ financial risk, based on the analysis of causes of colleges’ financial risk and five elements of internal controls.In the environment of reform of administrative institution and establishment universities’financial and accounting regulations, this essay studies universities’ financial risk from the perspective of internal controls and tries to propose some related suggestions based on the results of questionnaires and data statistics. There are two innovation points in the thesis. One is the analysis of universities’financial risk from the perspective of internal controls and proposing the guarding measurements in the view of internal controls. There are little studies of universities’financial risk from the perspective of internal controls, which leaves the space for further studies; the other is from the perspective of internal controls and connecting the results of questionnaires and data statistics, this essay analyzes the reason of universities’financial risk and proposes some guarding measurements.There is no doubt that some deficiencies must exist in the thesis. On one hand, because of the special feature of colleges, some sensitive data are hard to be achieved. The data are mainly from Chinese Statistical Yearbook, Chinese Educational Fund Statistical Yearbook and primary data of colleges’financial data; on the other hand, the writer gave out 120 questionnaires to some colleges’ finance departments in Liaoning Province and Jilin Province and got back 109. Because of the different natures and scales, the objects must have different understandings for the same question, which lead to the limitation of the statistical results. This thesis tries to correct the above shortcomings and hopes to make some innovations in this studying area.