MED713 JANUARY 2024: COST ANALYSIS AND FINANCIAL RESOURCE

MANAGEMENT
Facilitator: Mbabazi Annet
Office: KG, Cavendish University Uganda
Telephone Contact: (+256)784939802
Lecturer’s E-mail: ambabazi@cavendish.ac.ug
COURSE DESCRIPTION
This course focuses on managing financial resources as one of the
significant tasks of heads of educational institutions. The way an institution
handles its financial resources considerably determines the success of its
programs and the overall performance of the institution or school. This
course addresses the basics of financial management, including the
principles and practices of accounting, the management of institutional
finances, sources of funds, and financial planning and expenditure
budgeting for schools. Managers of educational institutions need to know
how to mobilise financial resources and effectively manage the institution's
finances. The course, therefore, emphasises the basic framework and
mechanisms of financial management in educational institutions and that of
educational projects.
WEEK 1: INTRODUCTION TO FINANCIAL RESOURCE MANAGEMENT
Subtopics
 Meaning of financial resources
 Sources of financial resources
 The purpose of managing financial resources in an institution
 Assessing financial resources in an education institution.
The Meaning of the Term “Financial Resources”
 Financial resources are assets from which institutions obtain funds they
need to finance their investments, capital, and current activities like
paying salaries and buying. They include:
 Cash
 Holdings of stocks
 Holdings of publicly traded bonds
 Foreign currency holdings and checks.
Sources of Financial Resources
 The main activity of an educational institution is the provision of
services.
 The financial resources in an educational institution are used to carry
out the main operations, like buying goods and services, and to carry out
long term investments.
 The main funding sources of education institutions include tuition and
other fees; grants in aid; accounts facility user fees; donations; trust
funds; gains from business ventures and education levy on employees
and loans (Okwuchukhu, Agha, Julia and Odinakachi, 2019).

1
The purpose of managing Financial Resources in Education institutions
Assessing Financial Resources in an education institution
 The primary goal of managing financial resources in an institution is to
interpret financial management risks.
 There are two main approaches for managing financial risks; Gain/Risk
and liquidity gain approaches.
1. The gain risk approach supposes that the effective achievement of
institutional goals must be a framework in which institutions
maximize gains in terms of outputs (equating marginal revenue with
its marginal costs) while minimizing risks in terms of inputs.
2. Liquidity/gain approach supposes that an institutions’ success in
achieving its financial goals depends on the degree of availability of
liquid cash and the arrangements of long term goals (saving enough
money for education investment).
 To achieve this, institutions should enhance financial discipline by
putting in place mechanisms to achieve long term goals.
Assessing Financial Resources in an Educational Institution
 Education financial resources are obtained from the external
environment support and create learning activities for students.
 Education institutions are allocated budgets to purchase real resources
in form of goods and services.
 Budgets need to be assessed to determine the resources necessary for
sustaining education programs and services.
 Financial decisions should fulfill institution mission.
 There is a need for financial resource analysis and overview of an
institution’s macro, micro-financial conditions and balance sheet.
WEEK 2