Annals of the University of Oradea: Economic Science (Jul 2014)
ANALYSIS OF THE FINANCIAL MANAGEMENT OF THE UNIVERSITY OF DEBRECEN
Abstract
Today, the general statement that due to the insufficiency of resources and the unlimited of user demands budgetary organisations have to act with strong, targeted rationalism becomes increasingly accepted. Hungary witnesses a full-scale transformation of the financing of its system of higher education, and therefore the management is required to monitor the changes of the environment continuously, and modify its objectives accordingly. A gradually emerging need is that these educational units have to frame operating structures that are suitable for flexibly following the changes occurring in their environment. This is a terrain where the management is supported by management control system, which is in fact means of regulating operations and driving preparations for decision-making. The purpose of this study is to examine to what extent the actual financial management data of the University of Debrecen coincide with the plans for the given budgetary year. The empiric research relies on the received reports, and embraces the years of 2008–2012; in this manner, a comprehensive view can be formulated in relation to the efficiency of planning in the past 5 years. To ascertain the correctness of operative management, mathematical, statistical and calculation methods are used. The study is conducted in view of the three major questions defined by the methodology of management control system; realistic grounds of the planned data, deviation analysis, identification of causes. The plan fulfilment indicator is used to present the efficiency of planning both on the institutional and the key budgeting levels. In the context of deviation analysis – supervision of the implementation of planned figures –, figures are prepared for better demonstrability. For the detailed identification of the underlying causes, structure analyses are performed for the income and expenditure sides alike. With respect to expenditures, it is examined whether there is any correlation between remunerations, tangible and other current expenses, because they are the two largest budgetary groups of expenditures, while the work of the personnel indeed necessitates the availability of tangible assets. My analysis has concluded that the obtained results confirm the University does not perform its planning operations appropriately. At the time of planning, historic experience and the available information are neglected. The completed analysis directs attention to the importance of the management control system, and the fact that by today this tool for the support of decision-making has become indispensable even for budgetary organisations.
