The Internal Analysis of Colleges and Universities’ Financial Control under the Administrative Institutions Internal Control Standard

Abstract

With constant deepening of reform of higher education in our country, control of colleges and universities gets more and more attention and application. This paper based on institutions control standard, discusses completion of colleges’ financial control framework, provides basis for further strengthening construction of colleges and universities’ financial control. In addition, this paper also constructs evaluation index system of financial control in colleges and universities, aimed at providing basis for colleges and universities effectively grasping financial control Introduction According to accounting law of People's Republic of China, the budget law of People's Republic of China and other laws and regulations and related regulations, ministry of finance issued administrative institutions’ control standard (try out) on November 29, 2012, which comes into force on January 1, 2014 [1] . The purpose of this specification is to further improve management level of administrative institution, standardize control. Along with constant deepening of reform and development of higher education in our country, status and role of university control constantly improves, sound and effective control is key to healthy and sustainable development of colleges and universities. Strengthen college financial control has great significance in ensuring safety of college assets, preventing debt risk in colleges and universities, strengthening cultivation of clean government of colleges and universities and promoting healthy and continuous development of colleges and universities. Colleges and universities’ financial control On November 29, 2012, “the administrative institutions control standard (try out) (hereinafter referred to as control standards) issued by ministry of finance provides a standard for establishing control system in colleges and universities. According to definition of control in control standards, this paper defines colleges and universities’ financial control as: to realize goal of college financial control, ensure safety of assets, reduce financial risks, prevent and control risk of universities’ financial management activities through formulating system, implementing measures and implementing procedures. According to internal controlintegrated framework released International Conference on Economic Management and Trade Cooperation (EMTC 2014) © 2014. The authors Published by Atlantis Press 417 by COSO committee in September 1992, control system includes environment, risk assessment, control activities, information and communication, supervision five elements [2] . So universities should constantly improve financial control construction in accordance with provisions of five elements. The of colleges’ financial control The environment.Internal environment is foundation of colleges and universities’ implementing control. It affects staff's control consciousness, which is also foundation of all other control elements. A good environment can effectively achieve goal of financial control. Using COSO framework, elements of environment in colleges and universities can include institutions and division of duties, audit, human resources policy three aspects. The risk assessment.Risk assessment is through identifing, analyzing and assessing various uncertain factors affecting control goal, namely nature of potential risks and crisis to get a comprehensive evaluation conclusion, and then seek reasonable risk coping strategies. College financial risk points are mainly debt risk, capital budgeting risk, operation risk, etc. Only by analyzing risk of financial activities, identifying risk points,can respond appropriately to risk, thus to ensure effectiveness of financial control. Control activities.Control activities is to take corresponding control measures to guide staff to follow management instructions and control risk within a reasonable range. College financial control activities are embodied in monetary fund, budget, income and expenditure, distribution, investment, financing, etc. Information and communication.Information and communication refers to timely and accurately collecting, transferring information about control to ensure that information can be effectively communicated among college, enterprises and external. The control standard is mainly around and external information’s collection, transmission of information between and external stakeholders and information technology platform, etc. Among them, information includes financial information, personnel changes, integrated management information, external information includes policies and regulations, social and cultural information, science and technology progress, etc. Therefore, colleges and universities should set up a high efficient and open information communication platform, in order to achieve barrier-free communication. Internal supervision.Internal supervision is through supervising over establishment and implementation of control, evaluate effectiveness of control, discover and improve control defects in time, ensure that control system can be effectively implemented in a certain period. Construction of colleges and universities’ financial control’s evaluation index system Evaluation index system of control is inspection of effectiveness of control and monitoring of execution in colleges and universities’ organizations. Setting up scientific and strict control evaluation system is not only requirement of control system’s implementation, but also cornerstone of effectively implementing financial control in colleges and universities. According to design, implementation and operation of control of entire process, we can assess rationality of design , effectiveness of