A Study On Financial Internal Control Of Colleges

In recent years, the economic activities of colleges are more complex and diverse than before. The funds of colleges were used not only in teaching and scientific research, but also in teaching construction, procurement, logistics, and so on. With more and more autonomy, more and more universities gradually become "independent school-running, independent operation, self-discipline, self-development" of corporate sponsoring entity. Such a new situation demanded the introduction of the market mechanism and financial risk to Colleges and universities, however, different from universities abroad, China’s Colleges used administrative financial management system. Most of the administrative staffs of colleges have failed to realized the importance of the college financial internal control. In recent years, due to the financial management loopholes, many financial problems have arisen in many China’s colleges and universities. H college, as a local university, its internal control system is still in the primary stage and imperfect. There are many problems. It’s urgent to introduce the internal control mechanism and system to state-owned colleges including H college. The use of Accounting Law of the People’s Republic of China, the internal control of the administrative units and other laws and regulations and the improvement of financial internal control system can adapt to the new situation of the development of colleges and universities, so that the raise and use of University’s funds become safer, more stable and more efficient.This paper firstly introduced the theories of internal control system in Colleges and universities, including the principle of internal control, objectives, principles and methods of internal control, objectives, principles and methods of financial internal control, concepts, functions, objectives and basic contents of financial internal control of colleges and universities. The financial internal control of H college was set as an Example, Its financial internal control problems were analyzed including poor concepts of financial internal control, unsmooth management system, imperfect system construction, imperfect budget management, the lack of risk control measures, unsmooth information and communication, the lack of effective internal control and supervision. This paper then introduced advanced financial internal control of foreign universities. It is worth to be studied by domestic colleges and universities. The methods of the financial internal control of H college were established including the improvement of the financial internal control awareness, perfection of financial leadership system, establishing a sound financial internal control rules and regulations, establishing a general accounting system, strengthening financial personnel training, scientific allocation of assets, strengthening budget management, strengthening the budget management, the establishment of financial risk management system, strengthening financial information disclosure, strengthening financial internal supervision.Studies on financial internal control of colleges have not only theoretical significance, but also practical significance. The importance of financial internal control of colleges should be fully realized, financial internal control concept should be strengthened, financial risk should be reduced so as to improve benefits in running a university and enhance competitiveness of universities.