Exploring the 2023 Reformation of Financial Systems in Higher Education Institutions and Examining the Practical Aspects of its Execution

Abstract

As China’s economy has experienced rapid growth, the economic landscape for higher education institutions’ financial systems has become increasingly intricate. Consequently, there has been a heightened demand for enhanced financial management in these institutions. Notably, in 2012, the country’s Ministry of Finance and Ministry of Education introduced a new financial system for higher education institutions, and in 2022, the Ministry of Finance publicly revised this system to further standardize financial practices within higher education institutions, align with financial management requirements, and foster the development of these institutions. This paper offers an extensive examination of the updated financial system for higher education institutions compared to the previous version, delving into aspects such as the financial management framework, professionalization criteria for financial directors, enhancements in managing the proceeds from technology and research achievements, and the incorporation of management accounting reports. Additionally, it provides a comprehensive analysis of the challenges faced by financial management in higher education institutions and outlines strategies for addressing these issues.