Study On The Optimization Of Accounting And Financial Management System Of Social Insurance Fund In China

Social insurance fund has special economic connotation. It is embedded in the pension, medical, unemployment, work injury and maternity, at the same time it is crossed at the dual structure of urban and rural. The social insurance fund which contains the process of financing, investing, paying must rely on the specification of "management regulations and codes of conduction" to restrain its financial activities. As a result, the accounting and financial management system of social insurance fund arose at the historic moment. In our country, the financial management system includes accounting, budget management, performance evaluation and information disclosure, and it experienced the process from single to diversity, from scattered to unification.In the late 1990s, the ministry of finance issued "The Financial Management System of Social Insurance Fund" and "The Accounting System of Social Insurance Fund". The two policies summarized the previous highly, and they had some functions which provided basis for another related regulations or notice. However, system's life is the result of implementation and effects. Facing the reform of law, auditing, finance, the financial management system of social insurance fund began to show some issues which it gradually lagged behind the social security system. First of all, cash basis of accounting regulation made the individual account go wrong, and it caused inefficiency of management. Secondly, fund budget began to meet difficulties due to the setting of government structure was unreasonable, the budget subject lacked for a long term, while budget statistics caliber and the preparation method were also affected severely. In addition, profit-driven and "power rent-seeking" made the social insurance fund shrink severely. In conclusion, the accounting and financial management system of social insurance fund gradually restricted the fund's operation because of its worse adaptability, some restrictions appeared to be adjusted and corrected.Based on the reality of our country, therefore, this paper will focus on the current issues at the operation of the financial management system, as far as possible to clarify relationship between social insurance fund and accounting characteristics. At the same time, I will combine present situations with the reform practice at home and abroad, and will try to find the optimization way in order to provide certain ideas and norms for reform in the future.Full-text consists of six chapters, the main content of the chapters and the view is as follows:The first chapter introduces the research purpose and significance of writing, my own ideas was developed based on the scholars'research achievement.The second chapter will be divided into three parts, the contents involve the connotation of social security fund, the characteristics of financial management system, the history of the system development, etc.The third chapter mainly reveals some problems in the operation of the financial accounting system, and it details on setting accounting subject and confirmation basis; or funds on the pilot budgeting and execution; or the foundation of the value management problems.The fourth chapter explains why the financial management system faces challenges is that the social security system itself was undergoing change, the government accounting reform was starting to the tendency of accrual basis, and the capital market was not instability.The fifth chapter will conclude experience and lesson of reform, and will summarize the specific methods to inherit on the basis of large amounts of information.The sixth chapter will make suggestions from the introduction of accrual accounting, the adjustment of budget balance, the performance increasing of value, and efforts to add financial information sharing platform.In this paper, the innovation points were reflected respectively:From the topic, it broke the boundary which scholars were only interested in accounting or financial balance. This article always stood in the perspective of system optimization to find out the cause of the financial system that lagged behind the development of social security funds, thus to put forward effective solutions.Secondly, from the importance perspective, paper combed the evolution of financial system, and it summed up the different stages of system development characteristics with three time node. And from the necessary perspective, publishing "Social Insurance Law", the emergence of comprehensive audit, the trend of the accrual basis of accounting and market-based reform of interest rates were the reasons why financial management system must be repaired and optimized.Thirdly, in terms of the accounting confirmation basis, paper put forward the concept of "composite cash basis" to ensure it could measure the fund management costs efficiently and improve the endurance of accounting.Fourthly, paper shows province Anhui, Shenzhen and Hubei made some efforts to reform financial management system of social insurance fund.