FISCAL MANAGEMENT By: Ruth Ann L. Musngi When I first came across the topic of Fiscal Management and read the outline of the course, I realized that effective and efficient fiscal management is tantamount to good economic governance. Good governance is considered to synonymous with sound development management (Bertucci, 2000).
As discussed, an effective and efficient financial management would include thorough and advance planning in order to develop budgets and to guide expenditures, establishing levels of funding, using the best techniques for budget development and management, maximizing efficiency procedures for accounting, reporting, business, purchasing and delivery, payroll, payment of vendors and contractors, and all other areas of fiscal management. An effective and efficient fiscal manager for me is one who does all these mentioned but also one who follows the principles of good governance.
Two of the principles discussed by Estanislao about Good Governance as cited in Back to Basics Fundamental Principles and Values for Nation Building of Tuazon (2005), are Transparency and Accountability. Arrangements and mechanisms must be put into place so that transparency in all aspects of operations are properly and systematically monitored, and reports on operating results are assessed and analyzed. Moreover, a system of check and balance is essential and this should be one that delegates, limits, and clarifies authorities (Estanislao, 2005).
Practices of good economic governance can somehow prevent bad financial practices that could affect financial productivity and stability of schools. However, some of the hindrances in correct financial management which I have experienced in the past were due to other factors that are imbedded in the system. One of which is the culture and tradition of the organization. A concrete example of which is the culture of the religious institution. Management of finances can sometimes be affected by the religious congregation’s culture and tradition which express the charisms of their congregation.
How can this affect financial management? If the nuns , for example, are not careful, they can make decisions beyond what is normally practiced because they want to fulfill the call of charity. Without check and balance, the congregation might engage in practices which can be considered by some as “immoral” or absurd. This made me think that religious congregations must not only make decisions based on “good feeling” but must also have some business sense or strong knowledge of fiscal management to avoid unintentional unethical acts.
In summary, I can consider fiscal management as an ethical act of stewardship because it involves right practice in handling finances and result to development and growth of the organization. References: Bertucci, G (2000). Economic governance: guidelines for effective financial management. UN New York. Estanislao (2005) Good Governance as cited in Back to Basics Fundamental Principles and Values for Nation Building of Tuazon (2005), Foundation for Community Building in the Asia-Pacific, Inc.
