U.S. Bureau Of Labor Statistics (2)
Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. Our member firms work with clients to align their finance organizations with the strategies and needs of their businesses to realize and sustain value over the long term. An ever popular choice of Business Finance for a new business venture is a business angel.
Financial managers usually have experience in another business or financial occupation such as a loan officer, accountant, auditor, securities sales agent, or financial analyst. Management controls are used to cover all the plans, policies, procedures, and practices needed for employees to achieve the entity’s objectives. Profit maximization occurs when marginal cost is equal to marginal revenue This is the main objective of Financial Management. Excellent communication skills are essential because financial managers must explain and justify complex financial transactions.
Therefore, to carry out effective delivery of public services in the local government areas, the key issues to be examined, inter alia,involve the quality of the budget process which include degree of discipline, efficiency in revenue mobilization and extent of transparency, accountability and control in the local government administrative system.
A World Bank Consultant, Feridoun (2005) remarked that a familiar symptom of weak public financial management in developing countries, identified in the public finance development literature, is completed capital projects that lack the recurrent funds they need to function properly: hospitals that lack funding for medical staff and supplies; schools with no funding for teaching staff, supplies, and books; or roads with no funds in the government budget to maintain them.
While the format of regular reports and information disseminated on revenues and expenditure should be adequate to enable good decision-making, enforcement of transaction controls for management and reporting purposes, they do not achieve these objectives.