Financial Management Capacity Research Articles

Budget politics in Indonesia

Budget politics in Indonesia is a very complex process, ranging from central to local government. The budget planning process involves planning, approving, executing, and evaluating, all of which require close coordination and cooperation between institutions. The main challenges in Indonesia's budget politics are the misallocation of funds, inequality between regions, growing debt, inflation, and unstable prices. The economic implications of inefficient budget politics are far-reaching. Imbalances between revenues and expenditures can increase the debt burden and interest costs, reducing the space for productive public spending. Inequalities in budget allocations can slow economic growth and increase social inequality. In addition, uneven financial decentralization exacerbates inequality between regions. Inflation rates fuelled by increased public spending without an increase in goods and services can reduce people's purchasing power. Budget policy uncertainty also brings uncertainty for investors, which can reduce private investment and hamper economic growth. Overall, reforms in the budget distribution process, improved financial management capacity, and a commitment to inclusive and data-driven policies are urgently needed. These measures are essential to meet the challenges and ensure sustainable and equitable development for all Indonesians.

Education Financing Planning Strategy in the Field of Middle School Education Development, Maybrat Regency Education Office

This research aims to examine education financing planning strategies in the field of junior high school education development at the Maybrat District Education Office. This study was carried out using a bibliographic approach, which involved collecting secondary data from various relevant literature sources. The main findings of this research show that the main source of education financing in Maybrat Regency comes from the Regional Revenue and Expenditure Budget (APBD) and School Operational Assistance Funds (BOS). However, this funding allocation is often insufficient to meet school operational and development needs. In addition, some schools are trying to find alternative funding sources through collaboration with private institutions and non-governmental organizations, although these initiatives are still limited. This research also found that transparency and accountability in the management of education funds need to be improved through financial management training and the implementation of an integrated financial information system. In addition, annual budget planning carried out by schools in Maybrat Regency needs to be performance-based and more flexible in dealing with changing needs. Other challenges include limited facilities and infrastructure, as well as limited accessibility due to remote geographical conditions. Recommendations from this research include diversifying funding sources through developing partnerships with the private sector and non-governmental organizations, strengthening financial management capacity through regular training, optimizing the use of funds through performance-based budgeting, and increasing community involvement in planning and monitoring education financing. It is hoped that the implementation of these strategies can improve the quality of education and create a more conducive learning environment for students in Maybrat Regency.

Manajemen Pembiayaan Pendidikan di Pondok Pesantren

This study aims to analyze the financial management of education at Bustanul Wildan Islamic Boarding School. The primary focus is on how the boarding school manages its funding sources, budget allocation, and financial sustainability efforts to support educational activities and daily operations. The methodology used is a case study with a qualitative approach, involving in-depth interviews with the school's administrators, direct observation, and financial document analysis. The study reveals that Bustanul Wildan Islamic Boarding School has diverse funding sources, including community donations, student fees, and government aid. Budget management is conducted transparently and accountably, although challenges remain in maintaining a balance between income and expenditures. For financial sustainability, the boarding school has developed self-sustaining businesses such as agriculture and handicrafts involving student participation. The findings indicate that effective and innovative financial management is crucial to ensuring high-quality education continuity at the boarding school. The implications include recommendations for enhancing the financial management capacity of school administrators and diversifying income sources to reduce dependence on external donations.

Світовий досвід державно-приватного партнерства для фінансування соціального житла

In the current socio-economic environment, the issue of providing vulnerable population with affordable and accessible housing has become acute, requiring the public authorities to invest heavily in this area. This problem is relevant not only for Ukraine, where many residential buildings were destroyed as a result of military aggression, but also in other European countries, as quarantine restrictions have caused significant damage to their economies. Another reason for the growing demand for social housing is urbanization, migration, and growing social inequality. The solution to this problem is complicated by the fact that the growing demand for social housing increases the necessary costs for territorial communities, which they cannot always fully cover with budget revenues. On the other hand, private investors need a return on their investments, so they cannot finance social housing projects on their own. As a result, the public-private partnership model has become one of the ways to finance social housing. The purpose of the article is to analyze various public-private partnership mechanisms to provide financing for the construction and allocation of social housing. Since 1980s, public private partnership (PPP) is gaining global popularity as a viable alternative to public funding for building and financing infrastructure projects. PPP is a means to effectively deliver projects in the public sector because it emerges against the backdrop of financial constraints and management capacity in the public sector to support largescale infrastructure projects. PPP not merely means a way to accomplish financial problems by bringing private capital, but it also aims to bring private sector efficiency and best practices in delivering infrastructure. Although, focus of the current debates is primarily on economic infrastructure, but investment on social infrastructure has received surprisingly little attention and it is predicted to continue growing. Governments have a central role in policies and regulations to provide a transparent and fair 'investment field', as well as providing payments to private parties. In investing, the private sector actually requires stability, predictability and a framework that supports their investment in social infrastructure. Meanwhile, the private sector has a role to provide expertise in building social infrastructure efficiently and has added value in innovation. It is recommended to implement a modified PPP model in Ukraine to include international public and private partners as financial donors to compensate for lack of the national budget resources at the moment.

Assessment of Kaduna State Primary Health Care Board Financial Management Capacity on Primary Health Care Service Delivery in Kaduna State, Nigeria

The establishment of the Kaduna State Primary Healthcare Board was passed into law in 2015 to tackle fragmentation in primary healthcare and ensure preventive healthcare services are accessible and affordable to all. The institutional capacity of the SPHCB is aimed at tackling several issues, including poor release of funding, poor infrastructural services, inadequate health personnel capacity, poor supply of essential drugs and other commodities, poor referral system, poor monitoring, and supervision affecting the PHCs across the state. The paper specifically assesses the financial management capacity of the SPHCB in ensuring the funding of PHC services across the health centres. Both primary and secondary data were used and analysed using descriptive and inferential statistical tools. Linear regression analysis was used in testing the hypothesis postulated. It was revealed that the financial capacity has improved the funding for routine immunisation and family planning programmes at the PHCs in the LGAs. A timelier release of funds is necessary to ensure efficiency and transparency in PHC service delivery. Keywords: Financial management, PHC, service delivery, funding.

Penguatan Kapasitas Pengelolaan Keuangan Badan Usaha pada Status Perguruan Tinggi Negeri Berbadan Hukum

This social service is held in a workshop with the aim of increasing education and strengthening the financial management capacity of business entities at Brawijaya University with the status of a Legal Entity State University. The social service is carried out with the target of financial staff and business unit stakeholders under the Business Management Agency with a workshop location at UB's Guest House. The research method uses case study research by collecting data from observations through focus group discussions, interviews and documentation. using quantitative analysis based on data interpretation by delivering information in the form of texts and narratives. The results obtained, there are several things that need to be considered in financial management on PTN-BH status, such as changes in regulations, technical reporting and imposition as local taxpayers in several business units.

Midpoint Reflections on USAID HIV Local Partner Transition Efforts.

<h3>Key Messages</h3> Strengthening local systems through direct partnerships with local organizations and partner governments is a critical pathway to locally led development and achieving sustained epidemic control of HIV/AIDS. The U.S. Agency for International Development (USAID) has made substantial progress toward the U.S. President’s Emergency Plan for AIDS Relief goal of funding 70% of its portfolio directly through local organizations, including partner country governments. Five key factors that facilitated localization of the HIV/AIDS portfolio include: (1) developing strategic and intentional plans grounded in local reality; (2) customizing data systems to monitor progress toward goals and adapting them as needed; (3) investing in strengthening local partner organization and financial management capacity; (4) changing the way USAID does business; and (5) ensuring consistent USAID and local leadership and advocacy. Efforts in the first part of the HIV local partner transition have focused on reducing barriers on the USAID side; over the next 3 years, the HIV programs will need to focus on reducing barriers on the local partner side.

Financial literacy for farmers – the case of vineyard farmers in Kosovo

Summary One of the key factors influencing agricultural development and farm performance is access to finance. There are several factors that influence access to finance, including financial management capacity, which is linked to financial literacy. The paper analyzes the factors which determine farmers’ financial management behavior, in the case of Kosovo, based on a structured farm survey focusing on the vineyard sector. The findings suggest that half of the interviewed farmers did not keep records regarding costs and incomes. The likelihood to keep financial records is linked to several household and farm attributes. Market-oriented farmers who had contracts were more likely to keep financial records than those who did not. Policymakers through public advisory services as well as financial institutions should address the need to improve financial literacy among farmers.

Strengthening financial management systems at primary health care: Performance assessment of the Facility Financial Accounting and Reporting System (FFARS) in Tanzania.

Universal coverage remains a challenging pursuit around the world, even among the highest-income countries. Strengthening financial management capacity is essential towards attaining the three universal health coverage (UHC) goals, namely, expanded coverage, quality service, and financial protection. In this regard, Tanzania introduced the Facility Financial Accounting and Reporting System (FFARS) in line with the introduction of the Direct Health Facility Financing (DHFF) initiative in primary health care (PHC) in 2017-2018. We aim to assess the functionality of the FFARS in management, accounting, and reporting funds received and disbursed in the stride forward strengthening public financial management in PHC facilities towards UHC. The study applied implementation research using a concurrent convergent mixed-methods design to assess sources of revenue, expenditure priorities, and changes of revenues and to explore the usability and benefits of FFARS in improving facility finance and reporting systems in more than 5,000 PHC facilities in Tanzania. Quantitative methods assessed the changes in revenues and expenditure between the financial years (FYs) 2017-2018 and 2018-2019, while the qualitative part explored the usability and the benefits FFARS offers in improving facility finances and reporting systems. Data analysis involved a thematic and descriptive analysis for qualitative and quantitative data, respectively. Of the 5,473 PHC facilities, 88% were in rural areas; however, the annual average revenue was higher in urban facilities in FYs 2017-2018 and 2018-2019. Overall, district hospitals showed an increase whereas health centers reported a decline of more than 40% in revenue. The user fee was the predominant source of revenue, particularly in urban facilities, while revenue from health insurance was not among the top three highest sources of revenue. Expenditure priorities leaned more towards drugs and supplies (25%) followed by allowances and training (21%); these did not differ by facility geographies. In health centers, expenditure on facility infrastructure was predominant. Key Informant Interviews revealed an overall satisfaction and positive experiences related to the system. The implementation of FFARS in Tanzania demonstrated its high potential in improving facility financial management, including its ability to track revenue and expenditure at PHC facilities. Staffing shortages, ICT infrastructure, and limited opportunities for capacity building could be the limiting factors to reaching the potential of the implementation of FFARS and the attainment of its full impact on Tanzania's pursuit for UHC.

Automatic SDG Budget Tagging: Building Public Financial Management Capacity through Natural Language Processing

Automatic SDG Budget Tagging: Building Public Financial Management Capacity through Natural Language Processing

Automatic SDG budget tagging: Building public financial management capacity through natural language processing

Abstract The “budgeting for SDGs”–B4SDGs–paradigm seeks to coordinate the budgeting process of the fiscal cycle with the sustainable development goals (SDGs) set by the United Nations. Integrating the goals into public financial management systems is crucial for an effective alignment of national development priorities with the objectives set in the 2030 Agenda. Within the dynamic process defined in the B4SDGs framework, the step of SDG budget tagging represents a precondition for subsequent budget diagnostics. However, developing a national SDG taxonomy requires substantial investment in terms of time, human, and administrative resources. Such costs are exacerbated in least-developed countries, which are often characterized by a constrained institutional capacity. The automation of SDG budget tagging could represent a cost-effective solution. We use well-established text analysis and machine learning techniques to explore the scope and scalability of automatic labeling budget programs within the B4SDGs framework. The results show that, while our classifiers can achieve great accuracy, they face limitations when trained with data that is not representative of the institutional setting considered. These findings imply that a national government trying to integrate SDGs into its planning and budgeting practices cannot just rely solely on artificial intelligence (AI) tools and off-the-shelf coding schemes. Our results are relevant to academics and the broader policymaker community, contributing to the debate around the strengths and weaknesses of adopting computer algorithms to assist decision-making processes.

Effects of Internal Control Weaknesses, Financial Independence and Size on Quality of Financial Statements in the Tanzanian Local Government Authorities

This study examines the relationship between internal control weaknesses (ICWs), independence, and size on the quality of financial statements of local government authorities (LGAs) in Tanzania. The analysis is based on data from a large sample of LGAs’ financial statements for four years from FY 2010/11 to FY 2013/14. The study employed logistic regression to examine whether ICWs (fraud prevention plan, risk management, accounting system, and IT controls), financial independence, and size of LGAs determine financial statement errors/restatements in the LGAs. The study shows that large and financially dependent LGAs with accounting system ICWs are more likely to have lower financial statement quality. However, other ICWs (IT controls, fraud prevention, and risk management) results were insignificant. These results may be attributed to the level of compliance and implementation of the parent ministry’s directives among LGAs. Therefore, practitioners and policymakers should ensure that LGAs not only adopt directives/policies but also fully comply and implement with their requirements as well as build financial management capacity to increase LGAs’ financial independence.

Nonprofit capacities and emergency management during the COVID-19 pandemic: Insights from a Taiwan-based international nonprofit organization.

During the COVID-19 pandemic, some nonprofit organizations (NPOs) have been struggling to maintain their operations, while others are able to coordinate with partners to provide programs and services locally and globally. This study explores how NPOs are able to survive and actively engage in local and global COVID-19 responses by investigating the organizational capacities of the Tzu Chi Foundation, a Taiwan-based international NPO. This study employs interview data and secondary data from a variety of sources to answer the research questions. Through this case study, we find that Tzu Chi Foundation's capacity to coordinate local and global COVID-19 issues quickly, broadly, and effectively can be attributed to three main factors: (1) clear mission and charismatic leadership, (2) rich experience of disaster relief and recovery strategies, and (3) committed and active volunteers. Moreover, we find that financial management capacity and adaptive capacity are two crucial kinds of capacity for enabling the Tzu Chi Foundation to survive and continuously engage in emergency responses during the pandemic. We conclude with implications for future nonprofit capacity and emergency management research.

Good Financial Grant Practice: A Tool for Developing and Demonstrating Institutional Financial and Grant Management Capacity in Global Health.

The administration and governance of grant funding across global health organizations presents enormous challenges. Meeting these challenges is crucial to ensuring that funds are used in the most effective way to improve health outcomes, in line with the United Nations’ Sustainable Development Goal 3, “Ensure healthy lives and promote well-being for all at all ages.” The Good Financial Grant Practice (GFGP) Standard (ARS 1651) is the world’s first and, currently, only international standard for the financial governance and management of grant funding. Through consensus building and global harmonization between both low- and middle-income and high-income country players, the GFGP Standard has achieved a leveling impact: GFGP applies equally to, and can be implemented by, all types of organization, regardless of location, size, or whether they predominantly give or receive funding.GFGP can be used as a tool for addressing some of the challenges of the current funding model. Here, we describe our experiences and lessons learned from implementing GFGP across 4 diverse research institutions in India, Nigeria, Colombia, and the Philippines as part of our National Institute for Health Research Global Health Research Unit on Genomic Surveillance of Antimicrobial Resistance.

Personal Financial Management Behaviors during the Covid-19 Pandemic: Evidence from Vietnam.

This paper is aimed at investigating the factors affecting personal financial management behaviors in Vietnam during the Covid-19 pandemic. With data of interviewing online 477 individuals, the research team used the reliability test with Cronbach’s Alpha, exploratory factor analysis (EFA), Pearson correlation analysis’s results, and linear OLS model. The key findings are: First, four factors have strong impacts on personal financial management behavior are: (i) Covid-19 pandemic; (ii) Financial habits from parents; (iii) Financial education from parents; (iv) Financial well-being. Of which, the factor of socialization has been separated in to “financial habits from parents”, and “financial education from parents”. Second, differently from previous studies, two variables of financial knowledge and financial attitude have no impact on personal financial management behavior. These differences come from the special characteristics of Vietnam culture: First, parents are the main financial sources for the youth, and also the model of financial management for children. Second, as financial management capacity building courses are not much available in Vietnam, people depend on family own’s experiences to build up their financial management behaviors. Basing on the results, the recommendations are focusing on improving financial management capability of parents in order to improve individual financial management capacity.

Examining the Consequences of Welfare Conditionality: A Case Study of Compulsory Income Management in the Regional Community of Ceduna, Australia

Welfare conditionality, whereby eligibility for income support payments is linked to prescribed forms of behaviour or values, is intended to encourage responsible behaviour in marginalised populations. However in practice, it may have consequences that worsen rather than improve their life chances. One of the most invasive forms of conditional welfare is income management (IM), involving the quarantining of up to 90 per cent of income that cannot be spent on excluded items in order to reduce substance abuse and gambling and enhance financial management and parenting capacity. This qualitative study examines the views of IM participants and community stakeholders in the regional community of Ceduna, Australia. Its findings are presented – pertaining to practical experiences of IM, the impact of IM on participant wellbeing, and community divisions around IM – and the study discusses whether or not it has advanced key program objectives. It is concluded that the negative effects of IM exceed any perceived benefits.

Financial Management Capacity, Accountability, Own Income Generation, Revenue Diversification and Financial Sustainability in Charities Of Malaysia

Malaysian charities have been reported to face problems in raising funds in the face of the current challenging economic environment. Some evidence has been provided by past research, in for-profit organisations, on the influence of accountability, financial management capacity, own income generation and revenue diversification on financial performance. This study examines their impact on non-profit financial sustainability, utilising as sample 212 active charities in 2017. The quantitative approach is adopted whereby data on financial management capacity, accountability, own income generation and revenue diversification, and their inter-relationships, were tested for strength and influence of the relationships, if any, with financial sustainability. Analysis of data was performed using the structural equation modeling method using lavaan on R. Global fit values (RMSEA = 0.00; SRMR = 0.04) showed a good model fit and standardised residuals justified retaining the model at the pairing levels of the observed variables; as such the original model is retained and not respecified. The findings suggest positive and significant indirect relationships between financial management capacity and accountability with the financial sustainability, as mediated by revenue diversification and own income generation. The implications and contributions arising from the findings are also discussed.

Factors affecting business performance of manufacturing enterprises

The study has surveyed 285 manufacturing enterprises in central Vietnam as a representative sample, through which the research has analyzed the current status of operation of manufacturing enterprises in Central Vietnam. The research results also pointed out 5 factors: (1) Labor; (2) Enterprise size; (3) Financial management capacity (4) Capital structure and (5) System of policies and legislation in descending order of affecting the performance of enterprises through regression model. Besides, the study has given specific policy suggestions through the current situation and research model to improve business performance for manufacturing enterprises in Central Vietnam in the future.

School financial management development programme for Eswatini principals: Lessons, challenges and implications

Efficient and equitable use of financial resources has been one of the education policy objectives to achieve quality in education. Subsequently, the achievement of efficient and equitable use of financial resources in schools depends on the principals’ understanding of their role in managing financial resources. However, evidence spanning developing countries suggests the existence of principals’ various inadequacies and inefficiencies in this regard. To respond to this, the Kingdom of Eswatini’s Ministry of Education and Training has developed a training programme to build financial management capacity of school principals. Through qualitative, semi-structured interviews with 4 principals, we explored how principals in that country who had undergone professional development (PD) in financial resource management experienced different aspects of the training they had received. Principals’ experiences suggest the existence of various limitations of the programme. From these experiences, we draw lessons about the effectiveness and challenges of the programme and illuminate implications for how PD programmes can be offered to build principals’ capacities in school financial management.

Auditor or Adviser? Auditor (In)Dependence and Its Impact on Financial Management

AbstractFiscal transparency entails government financial reporting and independent audits. This study postulates and tests the dual functions of external auditors: an examiner who assesses government compliance with accounting rules and an adviser who supplements government financial management capacity. Computational text analyses show that localities, especially those with lower financial management capacity, are likely to adopt similar languages in summarizing the governments’ financial conditions if they share the same auditor, suggesting auditor input in government disclosure. The auditor advisory role intensifies with a longer tenure. Further analyses show that auditor tenure is positively associated with the timeliness of audited financial reports. On the other hand, a long tenure reduces the likelihood of auditors' identifying internal control deficiencies and thus points to accountability concerns. These findings highlight the importance of government capacity‐building in fiscal transparency initiatives and the unique challenges to auditor independence in the public sector.