ation of College Financial Risk and Prevention4340.doc

formation of college financial risk and prevention 【abstract】 with the establishment of market economy system, chinas colleges and universities have gradually prominent financial risks, this article from the external environment and internal causes of two aspects of financial risk analysis of the formation of our colleges and universities, and financial risk from a major university participants: government , universities and banks made three risk prevention measures. 【key words】 financial risk; formation; prevention financial risk (financial risk) the concept first appeared in the financial management area, the starting point is based on enterprise financial management decision-making process uncertainty in an enterprises financial system, the objective existence of a variety of difficult or impossible to anticipate and control factors that enable enterprises to realize the financial benefits and the expected departure from the financial returns took place, hence the possibility of loss of opportunities. colleges and universities specializing in training senior specialized personnel to carry out scientific research, to provide the community multi-service agencies, depending on the supply of national financial institutions, is different from the financial risks faced by businesses. colleges and universities of this non-profit institutions, its financial risk is defined as: colleges and universities in operation during the movement of funds risk. as the market economy system, the establishment of colleges and universities are also highlights the financial risk. 1, chinas colleges and universities to form the external environment for financial risk (a) the legal liability of the corporate entity expressly the peoples republic of china higher education act clearly states: the establishment of colleges and universities from the date of approval to obtain legal personality, institutions of higher learning in civil activities, legally entitled to civil rights and bear civil liability. colleges and universities to obtain legal personality, although the expansion of the universitys educational autonomy, but at the same time due to bear civil liability, and thus the formation of the financial risk to the colleges and universities to lay a hint. the peoples republic of china higher education act, also provides: the state financial allocations to establish the main funding for a variety of other sources, supplemented by a system of financing higher education, obviously, this will give college financing, capital composition bring about change, while difficult to to avoid the formation of financial risk. (b) the change in the way investment in higher education as the economy changes, macro-management system, changes in the way of change and investment in colleges and universities will be pushed to the tide of the market economy. the growing scale of higher education and societys growing demand for higher education, educational inputs and educational needs of the contradiction between the obvious follow. universities in the absence of sufficient funding for education, expand the financing channels, improving teaching conditions and ease a career in the development of practical difficulties. these colleges and universities expand their financing channels, but also increased the risk of a fund-raising. (c) the current financial system is difficult to meet the colleges development in colleges and universities with the deepening of reform of higher education is no longer simply rely on the states financial allocation, colleges and universities sponsoring their own income and self-funding, including tuition, lodging, loans and some leasing capital and social donations has become a source of funding of higher education an important component. in order to cash basis accounting system for colleges and universities based accounting, in some respects, had limitations, can not be fully and accurately record and reflect the universitys liabilities, and hence difficult to detect and ward off financial risks. at the same time in the cash basis of accounting for loans on the basis of the implicit debt, in colleges and universities accounting accounts accounts and statements are not reflected in colleges and universities unwittingly exaggerated the disposable financial capital, virtually on the college decision-making and the macro - financial operation are misleading. such as infrastructure, accounting independent accounting by the school to repay the loan principal and interest in the schools financial statements did not reflect, resulting in schools false balance sheets that might arise from blind expansion of investment in schools could bring about a series of financial risk. (d) teaching assessment at the various colleges and universities accept the teaching assessment, the basic requirement is that the software conditions, hardware, together with the condition, and some colleges and universities for such pressure is difficult to bear. intensified the war for talent between the colleges and universities, forming a mutual competition of the wind, you have appointed a professor with the millions he spent tens of millions yuan plus villa into an academic leaders, individuals personnel file can be re-done. however, these people whether the introduction of a contribution from, and there is no specific evaluation system, the viewer is not liking people will jump ship, college ultimate wealth (only) two empty. talent management not perfect, is a direct result of the financial risk of capital loss. (v) the highly competitive market, biogenic after several years of my college fee system reform has taken shape higher education in the recurrent cost-sharing mechanism, tuition income, the proportion of total school revenues up 30% in some areas the proportion is even higher institutions, reaching about 50%. fund-raising channels for changes to university funding more dependent on biogenic market. college enrollment since 1999, graduates face an increasingly severe employment situation. the pursuit of brand-name schools and key institutions are more and more parental choice. all these pairs of some colleges and universities have had a serious impact on new students so that tuition fees be affected, increasing their financial risk. second, chinas colleges and universities the internal causes of the financial risk (a) awareness of risk management is not strong college financial risk managers to monitor and all the signs of attention to pre-crisis was not able to take timely measures, so that the crisis broke out, caught by surprise constitute an important component of university financial risk. as colleges and universities in a very long time in the national budget constraints, without consideration of financial risk management problems, leading to the risk of the colleges leadership is not strong sense of responsibility for financial risk management is not enough attention, there is no effective implementation of the financial risk monitoring and prevention. (b) the universitys financial management system is not perfect although the cause of rapid development in colleges and universities, but the financial management system, lagging behind in education development needs. were as follows: first, the emphasis on accounting, light management; second, on the allocation of the next use, allocate more multi-purpose, reducing the allocation of less; third and decentralization of funds. bookkeeping calculations, such as accounting personnel are accustomed to the daily accounting work, to demonstrate the importance of financial management did not fully understand, whether in financial management, financial management, or the level of consciousness with the cause of higher education there is a big development and requirements of the gap. (c) the enrollment trigger over-indebtedness with the implementation of the strategy through science and education, large-scale enrollment expansion into chinas higher education in the development of an important phenomenon. chinas credit risk report 2007 display: 2005 years ago, chinas public higher learning institution to the total bank lending to 1 50 billion -2000 yi yuan. while the 2007 vice chairman of the cppcc national committee zhang meiying special investigations showed that the current college loans has reached 2500 million yuan, and there is widening. at present, almost all colleges and universities have a loan, the average college loans in 400 million yuan -8 million, a high of 20 billion yuan. the construction of such a large scale investment by the formation of the debt burden of financial risk and pose a direct colleges and universities are critical issues facing colleges and universities, plus colleges and universities lack the size of loans and repayment feasibility study, loan repayments brought about structural imbalances period of excessive concentration of colleges and universities increased the financial risk. (d) the lack of financial early warning system financial early-warning analysis is the financial statements and related information through a comprehensive analysis, forecasting, timely use of financial data and use of data-based management, in colleges and universities existing financial management and accounting based on the provision of the relevant quantitative indicators of various aspects of university operations occurred or may occur in the risk of early warning signals provided for management decision-making basis. but most colleges and universities in technology, staff quality and management reasons, none of the establishment of the financial early-warning systems, and even failed to recognize that the establishment of the financial early warning system in this road firewall in importance; the other hand, the financial early warning system has been established schools, due to the limitations of the current financial early warning system, which is still at the surface, the lack of qualitative analysis. (e) an unreasonable investment in colleges and universities, resulting in the loss of assets some colleges and universities loan to build a project there is blindness, repetitive, over-ambitious, the lack of scientific feasibility study on the future economic benefits were uncertain, a long construction period, repayment policy is not perfect, the loanable funds in excess of actual ability to repay. and in severe cases a lot of bad debt, affect the whole schools development. is the share of foreign investment enterprises run by colleges and universities a means of pressure on school debt. even led some colleges and universities to change the use of university funds, with zuo gupiao investments and other risky bond investments, such as former the former president of tianjin university, shan ping stocks due to irregularities caused by 3 750 million loss. regardless of number of units of teaching, research and career development needs, free conversion of assets to carry out business activities, engage in income-generating for themselves, so that a serious drain on the state-owned colleges and universities, financial risk further increase. reposted elsewhere in the paper for free download http:/ third, colleges and universities financial risk government, universities and banks are lending our colleges and universities sponsoring the main game participants, although the role of three different, but any one mistake can lead to increased risk of college loans. therefore, the universitys financial risk prevention and control needs through the joint efforts to prevent its further expansion. (a) the government should strengthen the supervision experts analyze that: the government is the ultimate college credit risks and stakeholders, therefore, relevant government departments have the responsibility to strengthen the universitys financial management and supervision, to ensure the safety of university funds and effective. in the current circumstances, on the one hand, the government should be in accordance with relevant policies and regulations to further increase the actual investment in higher education, the adoption of cppcc proposals such as distribution of educational debt, or other effective measures to protect chinas development of higher education. on the other hand, the government has the financial risks currently faced by colleges and universities should take active measures to guide and monitor a number of colleges and universities face in the current teaching level assessment of the ministry of education to adopt some of the more realistic and feasible methods to help colleges and universities to enhance both the school level, but not so high in order to assess further increase the financial risk. ji baocheng, president peoples congress, said that starting in 2009, chinas higher education of school-age population will decline year by year, by that time, a number of colleges and universities may be faced with the problem of inadequate biogenic. ji principals believe that, after eight consecutive years, 24.3% annual growth, it is now the task of higher education in china should not be to continue to be, but to the stronger should seriously study how the time. therefore, the relevant government departments should strengthen their monitoring, and guide rational development of various colleges and universities to form a higher education in china the right size to meet the resulting risk. the government should be based on the status of chinas higher education to develop scientific and rational development plan, according to the program to guide and monitor the development of colleges and universities to prevent blind investment and duplicated construction, colleges and universities to actively monitor the financial risk. (b) to strengthen self-discipline and the construction of colleges and universities the development of higher education in colleges and universities, as the debtor is the person directly responsible for financial risk, we must strengthen self-discipline and the building to guard against financial risks colleges and universities. first of all, colleges and universities colleges and universities must have a correct understanding of the financial risk, cut costs, and further broaden the diversity of sources of financing. financial provisions are college major component of the source of funding for this part of the funding, management, mainly by cutting expenditure, while also measures to raise revenue. at the same time, colleges and universities should make great efforts to solve outstanding tuition fees, and secondly, we must strive for more research projects and funding to accelerate the transformation of scientific and technological achievements. colleges and universities to change the traditional mode of financing to overcome the financial allocations of the dependency, and actively seek new sources of financing. according to some schools, the experience and the current situation in colleges and universities, through land replacement, school-run industries, cooperative education and other measures to improve the universitys own income-generating ability to diversify financial risk. the external financing, in addition to bank loans, colleges and universities should also focus on other financing sources to expand, enhance and promote the financing lease, and other new modes of financing. second, to establish a scientific accounting system of higher education. according to the characteristics of university finance, it is recommended that the existing cash basis of accounting instead of accrual basis of accounting. in colleges and universities to implement the accounting system, although to a more complete accounting of each accounting period and the provision of cash income and expenditure information, but can not be a true reflection of the accounting period the resources consumed in colleges and universities and higher education costs, for example, there is no real savings to cope with and occasional reflects the schools debt, infrastructure set up separate accounts system, not included in the business accounts, and does not truly reflect the financial position of colleges and universities. third, universities must establish a scientific assessment of the financial risk index system to fully reflect the status of college debt and financial risk tolerance. the establishment of financial risk early warning system, meaning the existing financial management in colleges and universities and accounting, based on the sensitivity of the establishment of scientific and financial indicators, through analysis and evaluation of the changes in these indicators, timely reveal the potential problems that may or will be faced with the prevention of financial crisis, a financial analysis system. colleges and universities on the one hand make full use of borrowing to expand the scale of this educational opportunity, at the same time to prevent excessive borrowing arising from financial risk. fourth, establish a risk awareness and improve decision-making more scientific. universities should foster risk awareness, especially in the leadership of the need to risk prevention awareness throughout the entire decision-making from beginning to end. to prevent risks, schools must adopt the scientific approach to decision making and in decision-making process to fully take into account various factors that influence decisions. construction projects should be based on priorities, selective launched. the basis of the current colleges and universities are mos