Responsibilities to achieve the financial objectives

1. Financial Management in Educational Institutions
RICHARD M. BAÑEZ
Presenter
JUDGE AMY BELULIA
Professor
Chapter II Relationship of Financial Objectives to Organizational Strategies and Objectives
Responsibilities
to Achieve the Financial Objectives

2. Think-Pair-Share Activity
You are assigned as the principal of a
newly-established elementary school
in a nearby community. Your school
is committed on enhancing ICT
integration in classrooms. It is
composed of teaching staff who are
well verse in audio visual
presentation and pupils who easily
engage in ICT-based activities.
However, the school is only provided
with two empty audio visual rooms.
What would you do to support the
ICT integration?

3. CHAPTER II RELATIONSHIP OF FINANCIAL OBJECTIVES TO ORGANIZATIONAL STRATEGIES AND OBJECTIVES
Responsibilities to Achieve the Financial ObjectivesLearningOutcomes
Investment
Decision
Financing Decision
Asset Management
Contents
Describe financial
management in terms
of the three major
decision areas that
confront the financial
manager.
Explain the
responsibilities of
Finance Manager to
achieve the firm's
financial objectives.
Contents

4. CHAPTER II RELATIONSHIP OF FINANCIAL OBJECTIVES TO ORGANIZATIONAL STRATEGIES AND OBJECTIVES
Responsibilities to Achieve the Financial Objectives
Financial
management
is concerned with the
acquisition,
financing, and
manageme
ntof
assets with some overall
goal in mind.
Investing
Financing
Operat
ing

5. CHAPTER II RELATIONSHIP OF FINANCIAL OBJECTIVES TO ORGANIZATIONAL STRATEGIES AND OBJECTIVES
Responsibilities to Achieve the Financial Objectives
Investing
 Determining how scare resources or
funds are committed to projects
Financing
 Determining ways in which the firm
obtains and manages the financing it
needs to support its investment
Operating
 Managing the firm’s short-term assets
and liabilities

6. CHAPTER II RELATIONSHIP OF FINANCIAL OBJECTIVES TO ORGANIZATIONAL STRATEGIES AND OBJECTIVES
Responsibilities to Achieve the Financial Objectives
Evaluation and selection of capital investment proposal
Determination of the total amount of funds that a
firm can commit for investment
Prioritizations of investment alternatives
Determination of the levels of investment in
working capital
Determination of fixed assets to be acquired
Asset replacement or Purchase/lease decisions
Securities analysis and portfolio management
Investing

7. CHAPTER II RELATIONSHIP OF FINANCIAL OBJECTIVES TO ORGANIZATIONAL STRATEGIES AND OBJECTIVES
Responsibilities to Achieve the Financial Objectives
Determination of the financing pattern of short-term,
medium-term and long-term functions requirements
Determination of the best capital structure or
mixture of debt and equity financing
Procurement of funds through the issuance of
financial instruments such as equity, shares,
preference shares, bonds, long-term notes, and
so forth
Arrangement with bankers, suppliers, and
creditors for its working capital, medium-term
and other long-term funds requirement
Evaluation of alternative sources of funds
Financing

8. CHAPTER II RELATIONSHIP OF FINANCIAL OBJECTIVES TO ORGANIZATIONAL STRATEGIES AND OBJECTIVES
Responsibilities to Achieve the Financial Objectives
Level of cash, securities and inventory that
should be kept on hand
Credit policy
Source of short-term financing
Financing purchases of goods
Operating

9. CHAPTER II RELATIONSHIP OF FINANCIAL OBJECTIVES TO ORGANIZATIONAL STRATEGIES AND OBJECTIVES
Responsibilities to Achieve the Financial Objectives
 Special Trust
Fund (STF)
 Fiduciary Fund
 Student
Services
 Infrastructure
Development
Source of Fund
 Tuition Fees
 Comprehensive Exam
 Exam Fee
 Reservation Fee
 Other Charges
 Medical and Dental Fee
 Registration Fee
 Library Fee
 Athletic Fee
 Cultural Fee
 Guidance and Counseling Fee
 Internet Fee
 Related Learning Experience Fee
 Security Fee
 Laboratory Fee
 Higher Education Modernization Fee
10%
Administration
10% Research
10% Extension
10% Reserve
Fund
60% Instruction
 College
 Department
Project Procurement Management Plan (PPMP)
 Personal Services
 Maintenance and Other Operating Expenses (MOOE)
 Capital Outlay

10. CHAPTER II RELATIONSHIP OF FINANCIAL OBJECTIVES TO ORGANIZATIONAL STRATEGIES AND OBJECTIVES
Responsibilities to Achieve the Financial Objectives