Sound Financial Management Research Articles

Funding Illiberal Democracy: The Case for Credible Budgetary Conditionality in the EU

This paper argues that without conditioning access to EU funds on respect for the founding values in a credible manner the EU runs the risk of funding many more illiberal governments in the years to come. It explores the literature on the impact of EU financial assistance on domestic politics to argue for budgetary conditionality. The paper also argues for measures of sound financial management to counter the risks of illiberal governmental practices, proposing to draw on existing anti-fraud methods in order to counter oligarchic-clientelistic practices in the member states.

Finansijsko upravljanje i kontrola - novi koncept upravljanja u kontekstu javnog sektora Srbije

Bearing in mind the legislation that sets out the principles of sound financial management, a good understanding of the internal control mechanisms and how they work in practice is necessary. The established level of financial management and control among users of public funds is of unequal quality and has not sufficiently contributed to reducing weaknesses in internal control and raising management responsibility to the optimum level. In order to implement modern management concepts, public companies have to have large access to internal control mechanisms or "tools" to assist in management.Integrated management systems with their modern process approach in business organization and comprehensive and fast processing of information on business changes can significantly contribute to the quality of business control. Research on this issue is based on the fact that the introduction of control standards increases the orderliness and documentation of the system, which significantly contributes to the control of business processes. The aim of this paper is to show that the mutual interdependence of integrated management systems through the overall organization structure with the system of financial management and control, as their final outcome, ensure financial integrity and compliance with policies and procedures and promote effective management processes.

A Good Job: Campus Employment as a High-Impact Practice

A Good Job:Campus Employment as a High-Impact Practice Erin Morgenstern George S. McClellan, Kristina L. Creager, & Marianna Savoca Sterling, VA: Stylus, 2018, 260 pages $35.00 (paperback) $125.00 (hardcover) Though student employment can have positive benefits, such as increased persistence and engagement, many students struggle to connect their work with their academics and future career (Hansen and Hoag, 2018). A Good Job: Campus Employment as a High-Impact Practice (2018) is a new resource for university leaders that desire theoretical knowledge and practical techniques for aiding students in making those connections while working in departments and offices across campus. Beginning with the foreword written by Dr. George Kuh, the founding director of the National Survey of Student Engagement (NSSE) and a leading expert on high-impact practices in higher education, the message that is infused throughout this book is clear. With so many undergraduates today working while pursuing their studies, it is incumbent on college and university leaders, faculty, academic advisers, student affairs professionals, and others committed to helping students to become more informed about how to harness the benefits of employment and both student engagement and education outcomes" (p. xiii) Throughout A Good Job, the authors delve thoroughly into a vast array of theories and historical frameworks associated with student, career, learning and identity development. The first few chapters are or ganized by different theoretical models and how they connect to campus employment, such a student development and campus employment. Latter chapters connect to overarching themes of retention and persistence, supervision and management and legal issues in higher education with regard to student employment. Additionally, the authors sprinkle in current trends, federal data and historical truths of student employment in higher education such as recent data from NSSE and other formidable studies and reports from higher education scholars. These facts encouraged me to think more critically and systematically about the serious influence that on-campus employment could have on the success of an undergraduate student and caused me to immediately consider addressing ways I currently run my own student employment program. In order to broaden their audience-base, the authors of A Good Job generate a seamless flow from theory to practice and then embed implications that urge readers to recognize how on-campus employment can have a broader impact on student retention, persistence and success. By connecting "retention theory and practice, focusing specifically on elements related to the retention and success of student employees throughout varying institutional types and [End Page 215] positions," the authors strategically bring a perspective that would be directly relatable to other university leaders who must think regularly about the business of higher education, as opposed to learning initiatives and outcomes (p. 102). For example, the authors note a statistic that encourages university leaders to consider the sound financial management associated with connecting on-campus employment to the success of degree completion. Knowing that a student who could be retained for four years might generate the same income as four new students who leave after one year should encourage any university leader to take a second look at on-campus employment as an easily applied practice that would help their budget bottomline, not hurt it. By connecting the essential elements of a high impact practice to student employment, A Good Job welcomes prior research offered by George Kuh (Kuh, Kinzie, Buckley, Bridges & Hayek, 2007; Kuh, 2008; Kuh, Kinzie, Schuh & Whitt, 2010; Kuh, O'Donnell & Reed, 2013). The fundamentals of a high impact practice such as time on task, authentic problem-solving, and feedback on performance are just a few applications for in and out of class experiences. Through research provided by Kuh and other colleagues, the authors persuade their audience that these tenets could easily be adopted to enhance student learning in the workplace because on-campus jobs offer students the opportunity to create knowledge and build skills, think critically and function effectively in our rapidly changing and complex world. According to a 2019 report published by the National Association of Student Personnel Administrators, 80 percent of students are currently employed in order to manage the rising tuition costs and other obligations that former generations did not face. This high percentage...

Sound Financial Management and Happiness: Economic Pressure and Relationship Satisfaction as Mediators

This study examines the relationship between sound financial management behaviors and happiness using a national sample of adults collected in 2009 (N = 1,014). We used Maslow's hierarchy of needs (1943) as a theoretical framework to examine associations between sound financial management behavior, economic pressure, relationship satisfaction, and happiness. Findings suggested that economic pressure and relationship satisfaction both mediated the association between sound financial management and happiness, but the mediator effects were only partial. That is, even after accounting for participants' actual financial context, feelings of economic pressure, and relationship satisfaction, a positive association between sound financial management behavior and happiness remained.

An Overview on the Development of Internal Control in Public Sector Entities: Evidence from Kosovo

Purpose: The development and implementation of Public Internal Financial Control (PIFC) in the management processes plays an important role in providing sound financial management, transparency, efficiency and effectiveness in the public sector entities. Design/Methodology/Approach: In this paper we have analysed the annual reports on the functioning of the PIFC system in the public sector of Kosovo for the 2014 – 2017 period. The analysis has been completed even more, based on the annual reports of National Audit Office, progress reports published by the European Commission, showing the progress achieved under the EU directives as well as the data from the monitoring reports of SIGMA (Support for Improvement in Governance and Management). Findings: The findings show that the implementation of rules and procedures for internal control in budget organizations lags behind the development of the overall framework. Practical Implications: Continuous improvements in the field of Public Internal Financial Control are important steps in the process of European integration, while Kosovo has made considerable efforts to develop the control environment and implement the PIFC principles, particularly by establishing the appropriate legal, and institutional framework to support the PIFC system. Originality/Value: PIFC development is a continuous process and is part of the public administration reform, hence this paper contributes in identifying possible gaps and weaknesses in the system of internal control in Kosovo and provides recommendations for their improvement.

How Does Sound Financial Management Impact Hospital Patient Satisfaction? A Linear Dynamic Longitudinal Study

How Does Sound Financial Management Impact Hospital Patient Satisfaction? A Linear Dynamic Longitudinal Study

EFFECT OF CASH MANAGEMENT AUTOMATION ON FINANCIAL MANAGEMENT IN MERU COUNTY GOVERNMENT

Purpose The main purpose of the study was to find out if ICT adoption has a significant effect on financial management in the Meru County Government. Effective public financial management has attracted attention of many scholars in identifying the best practice and how to install fiscal disciplines. In search of good governance and sound financial management, the World Bank has been at the forefront in championing this aspect. Lack of effective financial management practices hinders effective service delivery. Methodology: Technology Acceptance Model (TAM) theory is one of the models used to explain how technology is accepted by users. Descriptive survey research design study was used. The population for this study composed of the Meru county government staff. The sample size was 70 respondents in total, a questionnaire was used as the research tool whose validity and reliability was measured accordingly. Mean and regression analysis was computed when analyzing data.Results: The findings established that Cash management automation enables county leadership to understand the true cost of service delivered by the county per activity; that Through Cash management automation, the county finance department is able to reconcile transactions data in real-timeOn Cash management automation the study concludes that successful cash management automation in any institution is essential due to difficulties that come with accessing credits whenever an organization is facing liquidity several constraints.Unique contribution to theory, policy and practice: From the findings on cash management automation the study recommends that automation systems should be fully implemented as it increases cash management. For Meru county Government to realize growth, investment in technology should be made in order to enhance service delivery and transparency in cash management.

The Hungarian Experiences with Handling Irregularities in the Use of EU Funds

Abstract Using European Union funds involves a complex process; Member States must adhere to wide-ranging EU and domestic legislation, non-compliance can lead to irregularities. Besides accordance with the letter of the law, also the general EU budgetary principles, in particular sound financial management, must be given full consideration. The paper presents Hungary’s evolving approach to handling irregularities and her experience in creating the corresponding legal and institutional framework. The research also assesses how the perspective of the European Commission, in particular of its auditors, has contributed to legal uncertainties. In the draft legislation for the 2021 – 2027 budgetary period, the European Commission proposes a new requirement, namely the rule of law conditionality.3 Its clarity and objectivity, however, are still being widely discussed. Additionally, cohesion policy conditionalities have always contained an obligation for the proper functioning of the institutions – including the courts. Nonetheless, the European Commission has not previously examined the performance of the courts in relation to proceeding irregularity and recovery disputes. The presented Hungarian case study not only explains the particular challenges that call for revisiting the appeal system in Hungary; it warns of the general difficulties Member States may face when embedding the irregularity and recovery management functions into their national legislation, whereas the paper also gives notice to the long-awaited analysis of the root problems invoking irregularities.

Szabálytalanságok az Európai Unió kohéziós politikájában – magyar tapasztalatok és tanulságok

Using European Union funds involves a complex process; Member States must adhere to the wide-ranging EU and domestic legislation, non-compliance can lead to irregularities. In addition to the accordance with the letter of the law, the general EU budgetary principles, sound financial management, in particular, must also be given full consideration. The paper essentially focuses on the development and effectiveness of the legal-institutional system related to irregularities, while the approach Hungary has adopted to handle the various types of irregularities is discussed, too. The research also assesses how irregularities are dealt with at the EU level and explains the contribution of EU audits to legal uncertainties. Particular attention is placed on the regulatory controversies implementing entities have long struggled with and the author provides commentary on the effective handling of these issues. It is a fact that the Hungarian institutional system (Nyikos, 2012) was not fully-equipped to detect irregularities at the start. Although improvements have been made and recognised since then, the current system still suffers from unclear rules and inconsistent judicial interpretations.The use of conditionalities in cohesion policy has been significantly extended lately using macroeconomic conditionality, ex-ante conditionalities and infringement conditionality. (Nyikos, 2014) In the legislative proposals on the 2021–27 financial period, the European Commission proposes a new one, most notably: the so called rule of law conditionality (COM[2018] 324 final); however, a lot of political discussions concentrate on the clarity and objectivity of it, even though cohesion policy conditionalities have always contained the obligation of the proper functioning of the institutions – including the courts.

Financial Management of Small Organizations Based on a Cognitive Approach

In most cases small business organizations insufficiently justify economic calculations for the formation of financial resources, which adversely affects their sustainable development. Under the current circumstances, the need for sound financial management increases, which ensures a stable financial status of the organization and the prospects for increasing its value. The aim of this paper is to identify the conditions for the dynamic financial management of small organizations based on a cognitive approach. The proposed cognitive model allows establishing the mechanism of mutual influential factors of internal and external environment on the effective use of financial resources. Using the proposed model, it is possible to forecast changes in financial results. Read the Full Paper here

Students Financial Problems in Higher Education Institutions

This study aims to identify the financial problems faced by students in Higher Education Institutions (HEI). This study uses questionnaires as an instrument for data collection method. A total of 480 samples among the undergraduates in HEIs responded to the questionnaires. Data were analyzed using the descriptive statistics. The results showed the majority of respondents suffered from financial problems because of their limited financial resources and were faced with high cost of living. Their spending levels were still in control and within the boundaries of being a student. Sound financial management will have a positive impact on the financial health of the students on campus.

The Public Health Uniform National Data System (PHUND$): A Platform for Monitoring Fiscal Health and Sustainability of the Public Health System.

Leaders of government agencies are responsible for stewardship over taxpayer investments. Stewardship strengthens agency performance that is critical to improving population health. Most industries, including health care, and public enterprises, such as education, have policies for uniform data reporting and financial systems for the application of theoretical analytical techniques to organizations and entire systems. However, this is not a mainstreamed practice in local and state government public health. The Public Health Uniform National Data System (PHUND$) is a financial information system for local health departments that advances the application of uniform practices to close financial analytical gaps. A 10-year retrospective overview on the development, implementation, and utility of PHUND$ is provided and supported by documented program and agency improvements to validate the analytical features and demonstrate a best practice. Benefits found from utilizing PHUND$ included reducing financial risks, supporting requests for increased revenues, providing comparative analysis, isolating drivers of costs and deficits, increasing workforce financial management skills, enhancing decision-making processes, and fostering agency sustainability to support continuous improvements in quality and population health. The PHUND$ financial data definitions in the data dictionary provided the structure needed for standardized data collection and confirmed the feasibility of a standardized public health chart of accounts. PHUND$ analysis provided evidence on the relationship between financial and operational performance, as well as informing strategies for managing risks and improving quality. Such analysis is critical to identifying financial and operational problems and essential to mitigating financial crisis, avoiding disruption of services, and fostering agency sustainability. PHUND$ additionally serves as an instrument that can guide development of standards that measure for agency sound financial management systems.

Combating political and bureaucratic corruption in Uganda: Colossal challenges for the church and the citizens

This article formulates a new approach to combating corruption in Uganda. In pursuit of this research, the author highlights the chronicity of corruption in Uganda, which is uniformly political and bureaucratic. Bureaucratic corruption takes place in service delivery and rule enforcement. It has two sides: demand-induced and supply-induced. Political corruption occurs at high levels of politics. There are ‘political untouchables’ and businessmen who are above the law and above institutional control mechanisms. The established institutions of checks and balances in Uganda have assiduously continued to have a limited bearing on corruption. Neither coherent anti-corruption norms nor severe formal sanctions are able to dishearten certain politicians and civil servants in Uganda from the deviant behaviour of structural corruption. Corruption is a spiritual departure from the law and standard of God. It is an action conceived in the human mind and carried out by the corrupt. Therefore, corruption deterrence not only lies in sound public financial management systems but depends to a large extent on having people with positive human character in all aspects of national life. This article thus provides the framework of corruption and discusses the manifestation of political and bureaucratic corruption in Uganda. It also exegetes the biblical stance regarding corruption. Finally, it proposes a panacea for combating political and bureaucratic corruption.

Implementasi Sistem Informasi Penggajian Untuk Membantu Manajemen Keuangan Dalam Pengolahan Usaha

Era globalisasi juga berpengaruh pada lingkungan bisnis dalam pengolahan data berupa transaksi seperti penggajian. Jika proses perhitungan penggajian lambat dan rentan terhadap kesalahan dapat menimbulkan ketidakpuasan antara karyawan dengan manajemen serta penggunaan sistem yang masih konvensional juga menyebabkan keamanan data tidak terjamin maka diperlukan sistem yang mendukung kebutuhan manajemen berupa sistem informasi penggajian untuk meminimalkan kesalahan yang dapat digunakan dalam pengambilan keputusan dan berpengaruh terhadap kelancaran usaha. Metode yang digunakan adalah System Development Life Cycle (SDLC) yang menjadi pedoman dalam merancang dan mengembangkan sistem informasi. Sistem informasi penggajian yang sudah diimplementasikan mampu menghasilkan laporan penggajian yang akurat berupa bukti pinjaman, rekap gaji karyawan sehingga memudahkan dalam mengontrol usaha yang berkaitan dengan keuntungan untuk menciptakan manajemen keuangan yang bagus.

Tracking user satisfaction of rural water services in northern Ghana

Abstract The article discusses the level of user satisfaction with actual handpump service levels and performance of service providers. In this paper, we outline some contradiction between actual service levels, performance of service providers and perception of water users. The findings suggest that users appeared satisfied with quantity and reliability of water facilities. In contrast, they were not satisfied with the time it takes them to access water, especially when the quantity of water diminishes. The sad irony is that tariffs are perceived affordable yet users are unwilling to pay for water. Their responses paint a picture of a payment system that is geared at reactive maintenance over preventative maintenance regime. It is worth noting here that this phenomenon raises questions on the sustainability of water systems when sound financial management is key to sustaining services. Service providers were perceived to perform better than they actually did. Perhaps this was due to lack of information and ignorance on the roles of service providers. In this regard it is imperative that the Community Water and Sanitation Agency (CWSA), implementing partners, the district assemblies and Water and Sanitation Management Teams (WSMTs) take steps to address the technical, social, financial and institutional factors during the planning, implementation and post-construction support which invariably affect sustainability.

Particularities of The Controlled Exercise on Projects Financed From European Funds

This article aims to highlight the importance of control measures of the institutions implementing and managing EU funds. Both from a legal standpoint and in terms of practical application there are differences and similarities in the performance of control to the public institutions and its application in private companies. In this article is a synthesis theory on the notion of control, the importance of control to prevent irregularities and fraud, legal issues related to control of the implementation of European projects in view of the principles of sound financial management and fairness granting and use of funds, application control both in public institutions and in private entities.

Pricing determinants in hotels: The case of luxury, upscale, and mid-scale price segments

Investigating the role of pricing and revenue management is a continual concern as successful businesses rely on sound financial management. This paper examines the pricing objectives, strategy determinants, and strategies employed by hotels while taking managerial concerns into account. The study determines managers’ key pricing concerns and investigates value-informed pricing strategies, making comparisons against the findings of past research to address calls for further investigations. Employing an embedded mixed methods research approach, the study used structured questionnaires and semistructured interviews to gather data from hotel managers influential in price setting. Overall, the study indicates similarities and differences in price determination factors in the hotel industry. Formality in determining prices suggests that pricing is integral to hotel management and hotels employ different pricing strategies depending upon the pricing objectives and strategy determinants. A significant finding is that upscale hotels place high importance on pricing due to intense competition related to their wider product portfolio in comparison to luxury and mid-scale hotels and tend to rely on competition-based pricing. Although exploratory in nature, the results are valuable and provide compelling practical implications and suggestions for future research. Hotel managers can benefit from the wider issues stressed in the paper related to short-term versus long-term, firm-based versus market-based, and relationship versus revenue considerations.

Rentowność kujawsko-pomorskich grup i organizacji producentów owoców i warzyw

Celem artykułu było ukazanie relacji pomiędzy czynnikami kształtującymi rentowność kapitałów własnych grup i organizacji producentów owoców i warzyw za pomocą modelu Du Ponta. Analizy dokonano na podstawie danych ze sprawozdań finansowych w/w podmiotów funkcjonujących na terenie województwa kujawsko-pomorskiego w latach 2005-2014. Uzyskane wyniki wskazały na zmniejszającą się rentowność funkcjonujących jednostek, która wynikła z wysokich kosztów obsługi kapitału obcego, zmniejszonej zyskowności sprzedaży a także mniejszej rotacji posiadanych aktywów. Czynniki te powodowały iż mieliśmy do czynienia z ujemnym działaniem dźwigni finansowej. Mimo niesprzyjających czynników wartość średniego wskaźnika zwrotu z kapitału własnego w całym badanym okresie była dodatnia. Pozwala to sądzić, że przy odpowiednim zarządzaniu finansami grupy i organizacje producentów owoców i warzyw będą w przyszłości miały możliwość generować środki, które spowodują utrzymanie, a nawet rozwój koncentracji podaży na tym rynku. Zwiększenie zyskowności tych jednostek będzie miało przełożenie na zaspokojenie oczekiwań ich członków.

Identification of strengths and barriers among Pakistani SMEs: A financial management viewpoint

In Pakistan, Small and Medium Enterprises (SMEs) are considered as key indicators of the status of the national economy through contributing 90% in total businesses establishments and 80% employments in the non-agriculture sector. Pakistani government with the assistance of Small and Medium Enterprise Development Authority (SMEDA) and other associated organizations are undertaking multiple activities to boost awareness and importance of adopting prudent financial management practices by SMEs. This research endeavor aimed at exploring the strengths and barriers faced by SMEs in planning and undertaking sound financial management practices. Keeping in view the exploratory nature of this research, based on qualitative research paradigm, semi-structured interviews were conducted with managers/owners of thirty SMEs. The study findings demonstrated that the component of capital found to act as strength and barrier among SMEs. On one side, the absence of external capital (loan) appeared beneficial for SMEs due to minimizing financial risk for the business and offering more freedom to managers in their decision making without having any fear regarding any restrictions imposed by external finance. However, on the other side, lack of financial resources due to having difficulty in acquiring external capital (loan) might restrict SMEs capability to undertake viable business opportunities. This study highlights the crucial role of adopting appropriate financial management practices in developing a sound capital structure for SMEs. This study finding could provide useful insight to SMEs pertinent to dealing with multiple business challenges and acquiring sustainable profitability.

Constructing of Management Indicators for Artificial Turf Football Fields

The purpose of this study was to construct the management directions and specific indicators for eleven artificial turf football fields of 2017 Summer Universiade, and to enhance the usage efficiency of the sports venues and facilities. We used the literature analysis method to collect the literatures pertaining to sports venue management, thus forming the preliminary indicator dimensions. Additionally, through the semi-structured interview method, experts' opinions were collected to compile specific indicator dimensions and questions. The Delphi method was subsequently adopted to form the expert questionnaire, which was provided to ten experts and scholars. Then experts and scholars were modified the dimensions questions and used AHP to sort the dimensions and questions in terms of degree of importance. The results showed that artificial turf football fields mainly divided into event competition conduction, course planning diversity, venue rental management, sound financial management, regular cleaning and maintenance, promotional marketing activation, and related ancillary facilities. Total there are seven dimensions, consisting of 36 questions, Among the indicators for the management of artificial turf football fields, ＂activity and competition holding＂ accounted for the highest. It is also indicated that activity and competition holding are the primary tasks to be undertaken by football fields in the future. A robust financial management system should be established, which would give particular emphasis on venue rental and management, as well as regular maintenance and cleaning in order to meet the management needs and achieve the goal of football development in Taiwan. We conclude that the outcome of this study may serve as a management reference for relevant units in the future after the 2017 Summer Universiade.