Finance and Financial Management

Top PDF Finance and Financial Management:

Integrated Financial Management Information System Implementation and Public Finance Management in Kilifi County, Kenya

Integrated Financial Management Information System Implementation and Public Finance Management in Kilifi County, Kenya

Strong public finance management in developing countries has remained the only hope for social and economic development. Sound system, solid lawful and regulatory outline works as well as a competent and beneficial workforce are the foundations of an productive public financial management (PFM). According to pretorious and pretorrious (2008) Public financial management changes have been recognized as the key drivers to productive public service creation and delivery of riches and work world over. This acts as a catalyst for financial development and advancement. It guarantees the government and its offices raise, spend and oversee the public assets in a transparent and proficient way. Bae and Ashcroft (2004) expressed that numerous companies enormously depend on computers and software to supply exact data to effectively manage their business. It is getting increasingly vital for all businesses to incorporate information innovation solutions to function effectively. One way that many enterprises have received information technology on a huge scale is by introducing enterprise resource planning (ERP) frameworks to achieve their business transaction and information processing needs.

80 Read more

Public financial management in Indonesia: Review of Islamic public finance

Public financial management in Indonesia: Review of Islamic public finance

Based on the description of the meaning of public finances, then discipline is most do not have a scope that includes: (1) the state expenditures; the mechanisms through which the state government spending to develop the course of the financial economy in accordance with the pattern of demand and supply. In carrying out their functions of government not only use money, but also includes economic resources, including the use of human resources, natural, equipment, capital, goods and other services; (2) revenues; discusses some of the sources from which countries earn revenues / funds; (3) the state administration; concerning all financial activities including all the problems of the state administration; (4) stabilization and growth; to discuss the government's economic policies in a specific time and situation; (5) the effect of state budget revenues and expenditures to the economy, especially the impact on the achievement of objectives of economic activities, such as economic growth, price stability, income distribution, and increased efficiency, as well as the creation of employment opportunities.

19 Read more

MEDIATING FACTORS FOR THE PROVISION OF EFFICIENT FINANCIAL SERVICES

MEDIATING FACTORS FOR THE PROVISION OF EFFICIENT FINANCIAL SERVICES

According to Andres and Vallelado (2008: 2570-2580), good governance on financial issues could take several years to bear tangible results in local municipalities. The research work done by the authors shows that adherence to MFMA regulations and guidelines by local municipalities is a key requirement for ensuring optimal utilization of public finance and resources. According to Bebchuk, Cohen and Ferrell (2009: 783-827), the reforms introduced by the MFMA are quite helpful for ensuring overall economic growth in South Africa, and for preserving the credit rating South Africa has at the moment. The MFMA is the cornerstone of the broader reform package for local government outlined in the 1998 White Paper on Local Government. The MFMA, together with the Municipal Structures Act (1998), the Municipal Systems Act (2000), the Municipal Property Rates Act (2004) and the Municipal Fiscal Powers and Functions Act (2007), sets out frameworks and key requirements for municipal operations, planning, budgeting, governance and accountability. The MFMA was introduced in 2003. At that time, the system of local government finance was characterized by practices such as one-year line-item budgeting, which did not support strategic planning and the alignment of budgets with priorities over the medium term. This generally resulted in councils allocating resources based on historical commitments rather than looking at current priorities and the future needs of communities. Municipal finance practices were also not rooted in a culture of performance and regular reporting. Reports were often irregular or inaccurate, or contained too much data and too little useful information. Often municipalities did not publish annual reports and did not submit their financial statements for audit on time or at all. Compared to where local government was in 2003, significant strides have been made with implementing the new financial management arrangements spelt out in the MFMA and its regulations. However, progress is uneven and many municipalities are yet to implement both the letter and the spirit of the MFMA. This is to enable managers to manage’ within a framework of regular and consistent reporting so that they can be held accountable for their decisions and actions on financial matters by the City of Tshwane (Brunnermeier, 2009: 77-100).

20 Read more

The Track of History: Finance and National Governance in Ancient China

The Track of History: Finance and National Governance in Ancient China

3.3.4. Financial Management and Supervision System China’s ancient financial institutions had a well-organized division of labor and each performed its own functions. It was recorded in Rites of Zhou that the country's financial management institutions were “DaFu”, “Zai Shi”, “SiKuai”, “ChanRen”, etc. The financial management institutions included “ShaoFu” and “ZhisuNeishi” during the Qin and Han Dynasties. The Tang, Song, Ming and Qing dynasties all had “the Ministry of Revenue” to manage the country’s financial matters. In addition, ancient China attached great importance to managing finances in the form of digitization. As proposed in “Rites of Zhou” local governments should report statistical data by time nodes, which would serve as the basis for governing the country and finance after analyzed by the central government. Liu Yan of the Tang Dynasty set up the specialized agency named “Xun Yuan” in each local area, and extensively collected data from all over the country, which would be easy for the country to make decisions. There was also a strict system of fiscal supervision in ancient China. Many dynasties had special supervisory

6 Read more

DETERMINANTS OF SERVICE QUALITY AMONG FINANCIAL SERVICE
PROVIDERS IN GAUTENG PROVINCE

DETERMINANTS OF SERVICE QUALITY AMONG FINANCIAL SERVICE PROVIDERS IN GAUTENG PROVINCE

According to Andres and Vallelado (2008: 2570-2580), good governance on financial issues could take several years to bear tangible results in local municipalities. The research work done by the authors shows that adherence to MFMA regulations and guidelines by local municipalities is a key requirement for ensuring optimal utilization of public finance and resources. According to Bebchuk, Cohen and Ferrell (2009: 783-827), the reforms introduced by the MFMA are quite helpful for ensuring overall economic growth in South Africa, and for preserving the credit rating South Africa has at the moment. The MFMA is the cornerstone of the broader reform package for local government outlined in the 1998 White Paper on Local Government. The MFMA, together with the Municipal Structures Act (1998), the Municipal Systems Act (2000), the Municipal Property Rates Act (2004) and the Municipal Fiscal Powers and Functions Act (2007), sets out frameworks and key requirements for municipal operations, planning, budgeting, governance and accountability. The MFMA was introduced in 2003. At that time, the system of local government finance was characterized by practices such as one-year line-item budgeting, which did not support strategic planning and the alignment of budgets with priorities over the medium term. This generally resulted in councils allocating resources based on historical commitments rather than looking at current priorities and the future needs of communities. Municipal finance practices were also not rooted in a culture of performance and regular reporting. Reports were often irregular or inaccurate, or contained too much data and too little useful information. Often municipalities did not publish annual reports and did not submit their financial statements for audit on time or at all. Compared to where local government was in 2003, significant strides have been made with implementing the new financial management arrangements spelt out in the MFMA and its regulations. However, progress is uneven and many municipalities are yet to implement both the letter and the spirit of the MFMA. This is to enable managers to manage’ within a framework of regular and consistent reporting so that they can be held accountable for their decisions and actions on financial matters by the City of Tshwane (Brunnermeier, 2009: 77-100).

19 Read more

THE EFFECTIVENESS IMPLEMENTATION OF THE REGIONAL FINANCIAL MANAGEMENT INFORMATION SYSTEM CLOUD AT THE JEMBER REGENCY

THE EFFECTIVENESS IMPLEMENTATION OF THE REGIONAL FINANCIAL MANAGEMENT INFORMATION SYSTEM CLOUD AT THE JEMBER REGENCY

Based on data collection techniques, this study uses questionnaires. Researchers took respondents of 75 SIMDA Finance Cloud operators on all SKPD in Jember District Government as the first local government in East Java region that implements SIMDA Finance Cloud (Noer 2015). The data analysis used in this research is t paired sample test / parametric statistic test if the data is normally distributed and if the data is not normally distributed.

5 Read more

The private finance initiative (PFI) and finance capital: A note on gaps in the "accountability" debate

The private finance initiative (PFI) and finance capital: A note on gaps in the "accountability" debate

Despite the differences between the two schemes, the approaches of the financial institutions to the “financial management” of these projects were broadly similar. The key consideration of the financiers was that, under PFI procurement, their risks were allied with the risks of the borrower, the SPV. Therefore, a series of actions were taken to ensure that an “acceptable” approach to risk management had been taken. In this context, the banks scrutinised the contractual risk allocation while attempting to ensure that all important risks were passed through the SPV to the parties that had definite control over them. Meanwhile, the capital providers themselves largely steered clear of substantial risk taking. Very few residual risks were allowed to remain with the SPV and even for those risks, the financiers required strong evidence, particularly in terms of past experience, skills and resources. For the financiers, the “proper” allocation of crucial commercial risks was a key criterion for determining the “financeability” of the particular transaction. Most risks were investigated on the basis of the full contractual

51 Read more

MICRO FINANCE AND FINANCIAL INCLUSION

MICRO FINANCE AND FINANCIAL INCLUSION

Traditional finance institutions rarely lend money to serve the needs of low-income families and women-headed households. However, the income of many self-employed households is not stable, regardless of its size. A large number of small loans are needed to serve the poor, but lenders prefer dealing with large loans in small numbers to minimize administration costs. They also look for guarantee which many low-income households do not have in hand. Over the last ten years, however, successful experiences in providing finance to small entrepreneur and producers demonstrate that poor people, when given access to responsive and timely financial services at market rates, pay back their loans and use the profits to increase their income and assets. This is not shocking since the only realistic alternative for them is to borrow the money from informal market. Community banks, NGOs and credit groups around the world have shown that these microenterprise loans can be profitable for borrowers and for the lenders, making microfinance one of the most effective poverty reducing strategies.

9 Read more

Negotiating the Banking Union   A trade   off between Germany and France?  
Policy Choice Patterns between two Integration Projects

Negotiating the Banking Union A trade off between Germany and France? Policy Choice Patterns between two Integration Projects

As we could already see in the previous chapter, these coalitions differ in size and economic power. This is reflected by their strong vs. weak economies, population size and level of sovereign debt. Due to the fact that economic power represents a determinant factor in the liberal intergovernmentalist theory, we are soon able to establish among the two coalitions that Germany (Western Coalition) and France (Southern Coalition) - in this order - stepped into the negotiations with the highest economic strength. Germany, the strongest economy among the EU member states, could have jeopardized the bargaining process and create serious consequences for the Southern coalition, by putting in place the issue linkage of withholding their agreement on financial assistance and settling for the status – quo. Thus its strong bargaining position, enabled Germany to make changes to the draft on the ESM. They argued for a limitation of funding through bail–in measures in exchange for direct recapitalization of banks through the ESM. The other coalition wasn´t left with little options because of its minority and not having other alternatives, but the countries were nevertheless more than satisfied with the result. This course of action can also be explained by the liberal intergovernmentalist assumption, according to which decisions are based on rational choices, even if it sometimes means making sacrifices and accepting the second – best option. The best example for this is Germany´s decision on the ESM. According to Merkel, her actions “followed a political cost – benefit calculation, as a Germany victory over an Italian technocrat government being crushed by interest rate burdens would have been more expensive than this defeat” 198

85 Read more

Convergence or divergence in finance journal ranking?

Convergence or divergence in finance journal ranking?

In this paper, we apply the Phillips and Sul (2007; 2009) methodology to investigate the convergence pattern of finance journals across thirteen established academic journal lists. The results reveal that the majority of sample journals do converge across the academic lists. The estimated transition paths confirm the empirical analysis, revealing a “focal” point for the research institutions to minimize the discrepancies appeared by the journal lists proliferation.

15 Read more

The Financial System and the Financial Literacy Imperative in Developing Countries

The Financial System and the Financial Literacy Imperative in Developing Countries

Financial leverage is also a very relevant issue for firms in the real world and three alternative methods available for estimating the NPV of an investment project to take account of financial leverage were outlined as: the adjusted present value (APV) which is equal to the project’s unlevered present value (PV) plus the present value of the interest tax shields gained from additional debt financing; the flows to equity (FTE); and the weighted average cost of capital (WACC) which is an estimate of the project’s PV by discounting the expected unlevered after tax cash flow and then subtracting the full investment outlay (Bodie et al., 2009, pp. 451-454). The implications for a firm’s use of financial leverage are: stockholders can maintain control without increasing their investment; if a firm earns more on investments financed by borrowings, shareholders’ returns are increased but risk is also increased; and the higher proportion of owner equity, the lower is the credit risk (Ehrhardt & Brigham, 2009, p.123).

26 Read more

A Review of Role and Challenges of Non-Banking Financial Companies in Economic Development of India

A Review of Role and Challenges of Non-Banking Financial Companies in Economic Development of India

As articulated by the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households (Mor Committee) in its report, on both Financial Inclusion (defined as the spread of financial institutions and financial services across the country) and Financial Depth (defined as the percentage of credit to GDP at various levels of the economy) the overall situation remains very poor and, on a regional and sectoral basis, very uneven. While the Reserve Bank’s model for financial inclusion is essentially bank-led, we believe that non-bank entities do have space to partner banks in the financial inclusion initiatives. We have enabled non-bank entities as Business Correspondents of banks to achieve the larger goal of financial inclusion. NBFCs and MFIs form the significant part of the financial sector which has deeper reach in the rural areas. NBFC-MFIs do not formally figure in the bank led model of financial inclusion but they by their wider and deeper reach can be catalysts in providing the necessary handhold to the poor borrowers to gain access to essential financial services. The Mor Committee has observed that each of the channels, be they large National Banks, regional cooperative banks, or NBFCs have a great deal of continuing value to add by focusing on its own differentiated capabilities and accomplish the national goals of financial inclusion by partnering with others that bring complementary capabilities to bear on the problem.

9 Read more

Application of Three Lines of Defence in Islamic Financial Institution

Application of Three Lines of Defence in Islamic Financial Institution

Rahman (2013) in his thesis suggested that the scope of Shariah audit should cover every aspect of organizational activities as required by Islamic religious teaching. Furthermore, the scope of Shariah audit is broader than conventional audit in the sense that it comprises of an extra attribute of making sure that an IFI must comply with Shariah (Othman and Ameer, 2015). In 2011, PricewaterhouseCoopers (PwC) conducted a survey on the practice of Shariah auditing in Malaysia. The study of PwC found that more than half of the 15 institutions surveyed extended the scope of Shariah audit to credit administration, financing, recovery, treasury operations, settlements/ disbursements, legal and Shari’ah fatwa process. Additionally, half of the respondents had extended the scope of the audit to risk management and human resources functions. It thus appears that contemporary Shariah auditing in Malaysia covers nearly all relevant organisational process and business functions in financial services.

14 Read more

Islamic Financial Wealth Management: Empowering Women in Islamic Societies

Islamic Financial Wealth Management: Empowering Women in Islamic Societies

Islam has honoured women and hence has considered their status as inheritors equal to that of men. The Quran declares in verse 7 surah An Nisa’. “For men there is a share from what their parents and close relatives leave, and for women there is a share from what their parents and close relatives leave, be it little or considerable; a definite share.” [An-Nisa’: 7]. This verse clearly states that women, like men, have a definite share and the share of women’s inheritance is half of the men’s portion. Furthermore, women can also accumulate wealth through inheritance (wasiyyah) if a person has made iqrar during his lifetime with respect to his property after his death. Besides, women can also acquire wealth from the nafaqah or financial support given by their husbands. In marriage it is the duty of every husband to provide financial support to his wife. To that extent, the wife is given the right in law to ask for a divorce if the husband refuses to provide financial support within a period of three to four months of their marriage (Abdullah et al., 2015). In Malaysia, a divorced wife has the right to obtain post-divorce financial provisions and this right is guaranteed under the Islamic Family Law Act in section 59 (Laws of Malaysia Act 164).

14 Read more

The financial management and accountability of brazilian political parties: a theoretical study and qualitative on the divergences between accounting legislation and the legislation of the superior electoral court

The financial management and accountability of brazilian political parties: a theoretical study and qualitative on the divergences between accounting legislation and the legislation of the superior electoral court

The Balance Sheet is a financial statement which has the objective to highlight and present the financial position of the company, at any given time. The Law 6.404/76, which deals with the corporations, determines in its art. 178: On the balance sheet, accounts will be classified according to the assets that will register, and grouped in order to facilitate the knowledge and analysis of the financial situation of the company. Second Iudícibus (2009) the great importance of the balance lies in the vision that he gives the applications of resources made by the organization (Active) and how these resources are due to third parties (Liabilities). This shows the level of indebtedness, the liquidity of the organization, the proportion of equity (Net Worth) and other analyzes. The balance sheet required for political parties is the same required the other entities, whether they are for profit or not. The difference is scheduled by the resolution of the CFC Number 1.409/12, approving the interpretation of ITG - Technical Interpretation of 2002 - Entities without aims of profit. As noted in the accompanying balance sheets both in the balance of the fund in favor of the balance of own resources, it appears that there is compliance with the law number 6404/76 which determines that the asset is divided into Current Assets and asset stock, and that the latter in turn is subdivided into Long Term Assets, Investments, Property and intangible. The person should be divided into Liabilities Current Liabilities, not stock and net worth.

7 Read more

Financial Inclusion and bank accounts

Financial Inclusion and bank accounts

The Adult Financial Capability Framework is a document which covers a broad range of money management and consumer issues. It is for all those involved in financial capability education including money advisers, teachers, trainers and helpers interested in improving financial capability skills, knowledge and understanding. The Framework aims to bridge the gap between personal finance education which is taught within the school curriculum and full engagement with financial services systems through the Financial Services Authority adult learning programme ‘Learn on Line’. It is a working document which will be a practical tool to assess potential financial capability needs and identify how they can be supported by basic skills learning.

60 Read more

Using data to improve financial behavior : designing the personal finance platform

Using data to improve financial behavior : designing the personal finance platform

From literature a lot of elements that assist in promoting financially responsible behavior can be identified. Figure 4.3 provides an overview of the elements discussed in this chapter. It can be concluded that there are a lot of elements that help people improve their behavior and activate them to improve their financial situation. It starts with knowledge, general knowledge about the financial market and products, and specific knowledge about the per- sonal situation. After knowing that, (Specific, Measurable, Acceptable, Realistic and Timely (SMART)) goals and plans can be made. Using several elements such as binding techniques, partitioning resources, showing future perspectives, increasing self-efficacy and social com- parison the user can be motivated to keep to the plan they have set out. The combination of these elements will provide guides to create a software solution that assists users in getting their finances in order and securing their financial future.

115 Read more

Management Control System and Financial Performance of Micro Finance Institutions in Central Region Uganda

Management Control System and Financial Performance of Micro Finance Institutions in Central Region Uganda

Available online: https://pen2print.org/index.php/ijr P a g e | 813 Most of the studies on financial performance of microfinance institutions apply and use different methodologies as in the case of Tilahun (2009) , however this study employed a descriptive research design based on quantitative data. The researcher collected and analyzed annual reports using descriptive statistics. A number of theories have been used to explain what influences the financial performance of the firm but their applications have no terminal point. Theories that have been used to explain firm financial performance include, among others Resource-Based View of the firm (RBV), agency theory (Jensen and Meckling 1976), stakeholder theory (Freeman 1984), and stewardship theory. All these theories provide a detailed account of firm performance using available resources inspite of the limitations in their application. Though there is no agreed theoretical base for research on financial performance of microfinance institutions (Parum, 2005), a review of the literature indicates that the above four main theoretical frameworks have been used to explain and analyse the association between management control system and financial performance of microfinance institutions.

23 Read more

Critical Analysis of Financial Crisis on Micro Finance in Reference with India

Critical Analysis of Financial Crisis on Micro Finance in Reference with India

Microfinance is beingness practiced as a tool to attack poorness the world over. The terms Microfinance could be characterized as "activity of thrift, achievement and remaining business services and products of very small amounts to the poor in rural area, semiurban or urban areas, enabling them to increase the income slabs and improve their life style". Micro Finance Institute which provide credit, thrift and other finance service & products of very small amount more to the poor people in rural areas, urban or semi urban area for activating them to raise the income slab and improve life style. Later on the possibility of MFI as auspicious institutions to meet the expenditure and micro enterprise demands of the poor has been realised.

5 Read more

ASSESSMENT OF FINANCIAL CONTROL PRACTICES IN POLYTECHNICS IN GHANA: A CASE STUDY OF SUNYANI POLYTECHNIC, GHANA

ASSESSMENT OF FINANCIAL CONTROL PRACTICES IN POLYTECHNICS IN GHANA: A CASE STUDY OF SUNYANI POLYTECHNIC, GHANA

The research revealed that Sunyani Polytechnic has an Internal Control Unit which is commonly referred to as the Internal Audit Unit which is made up of six staff and the internal auditor is head of the unit. The researchers identified that, as part of their good corporate governance mechanisms, the internal audit department on regular basis carries out routine audit and look at the high risk areas and gives proper recommendations to management. These reviews are normally done to check the overall efficiency and the effectiveness of the internal control and the accounting systems in Sunyani Polytechnic. It was discovered that it takes one month for the polytechnic to pay its creditors and suppliers. Again, it came out that the bills forwarded to the polytechnic for payments are not overstated and are thoroughly vetted by the internal audit unit before payment is made and laid down laws governing payment are followed to the latter. It was also revealed that management interferes in the activities of the internal audit unit and this is a challenge to financial practices in the institution.

38 Read more

Show all 10000 documents...