Modul de formare-Managementul resurselor financiare - uefiscdi

Chapter 4. Patterns of financial resource allocation
Professor Dr. Vasile Cocris
University Alexandru Ioan Cuza, FEEA, Iasi
Professor Dr. Elena Dobre,
University Ovidius, Constanta
Professor Dr. Carmen Comaniciu
University "Lucian Blaga" from Sibiu
The theme "Patterns of financial resources allocation" makes a presentation of the basic
principles and details of revenue and expenditure budget at the university level on the example
of England with applicability for Romania. More and more arguments advocate for the use of
budgets at the level of faculties, departments, chairs and even on each item from the function
chart.
As such, the main problem is the one of identifying the sources of funding and costs at all the
organizational levels. This model should include along with the public funding support of
universities, study fees and bank loans. Only when the level of resources that should be
allocated to each functional unit (faculty, department, chair, etc..) and the costs of education
and research services will be known, we can shift to a flexible level of incomes and expenditure
considered.
4.1. Patterns of resource allocation in the United Kingdom universities
Over thirty years ago, in 1984, the Public Surveillance Organism for the Public Sector of Higher
Education in the United Kingdom of Great Britain was asked to formulate a good practice
management guide for this sector. Thus, at that time, the university management was defined as
"the planning and resources utilization from which the universities have the greatest opportunity
to improve their efficiency and effectiveness 25 ”. It was suggested the idea that the management
solution for the private sector -the practice of corporate sector- applies to public sector
problems.
The ”managerialism” supporters think that the public sector efficiency could increase by
introducing the performance management in the organizations traditionally characterized by
inefficient bureaucratic systems. Since then there are expectations of development and
improvement of the management control systems. A specific component of the managerial
control is the planning and the resource allocation. The planning and the resource allocation is
closely related to activity based budgeting. This concept starts from the premise that the first
step in achieving the goals is the understanding of the operational and financial resources mix
necessary to achieve them.
In financial terms, the revenues are input resources and the direct and indirect costs are outputs,
the absorption or the resources utilization. Moreover, the information on current and future
resources serves both as inputs and outputs for the budgeting process. The term "Resource
allocation model” is used to describe the formula or the methods used by both business and
25 Woods, M (2008) The theory, history and practice of resource allocation models in UK
universities. The Journal of Finance and Management in Colleges and Universities, 5(6), 139-155- „it is
planning and the use of resources that universities have the gratest oppotunity to improve their
efficiency and effectiveness”
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