Financial Policies of Higher Educational Institutions

Abstract

In the context of legal regulation and restrictions on public funding of higher educational institutions and competition in the search for additional resources, the efficiency of the use of funds, openness and accountability of the expenditures are extremely important. The implementation of university financial policies will help to support a system of financial management, increase the level of financial autonomy, promote publicity and transparency in financial decision-making and facilitate management decisions towards achieving strategic goals. The article considers the theoretical foundations of financial policies in higher education institutions. University financial policies is defined as a purposeful activity of the management team aimed at making effective financial decisions to achieve and maintain financial sustainability and stable development of the university, achieving its strategic goals and current tasks, based on developing alternative algorithms with clear distribution of the powers and responsibilities. Arguments for the necessity to implement university financial policies as a mechanism to expand the financial autonomy, increase the competitiveness of the institution, reduce financial risks, ensure integrity and social responsibility, increase the efficiency of financial management, simplify of financial processes, and improve the quality of educational services are substantiated. The recommendations of projects and guides on financial policies and procedures and the experience of British universities on the content of financial policies are analyzed, as well as the main components of financial policies for Ukrainian universities are proposed.