| CMI 520 Managing Finance |
Managing Finance in Public sector
Introduction to Managing Finance in Public Sector
Every organisation needs to be very specific in the management of their finance. However, for a public sector business, this aspect becomes very crucial as there is great intervention of government in each activities of the organisation (Flynn, 2007). This study has been carried out for understanding various concepts of public sector organization and their management of finance within the business. For attaining the objectives of this report, proper analysis has been carried out concerning different accountability of public sector organizations (Bovaird and Loffler, 2009). It will also be including the different financial information that can be used for the purpose of strategic decision making. This will entirely be based upon varieties of techniques and methods. Report will also be discussing regarding the management of tender process within public sector organisations.
Research has selected Independent Age UK which is one of the charity organizations functioning in London and looks after elderly people. The study will analyse financial management of Independent Age UK.
TASK 1
1.1 Analyses of the different organizations in the public sector
Every enterprise whose operational activities are looked upon by government of the nation comes under public sector organization (Christensen and Lygaeid, 2007).
Difference between public and private sector organizations of United Kingdom:
Public Sector Organizations
These are those associations whose entire functioning are looked upon by the government of the country.
It majorly consists of sectors such as central, local, states or municipal government, public authority and body.Their major strategic goal is to enhance the overall effectiveness of the products and services.
It includes institutions such as educational organizations, health care bodies, police and military.
Private Sector Organizations
It includes the organization which carries its operations and functions privately (Pollitt, Van and Homburg, 2007). Under such type of business, government do not play any kind of interventions.
These kinds of organization can comprise both profit and non- profit organizations. The major strategy or goal of these organizations is to be competitive in the market (Starling, 2010).
They are the institutions such as Retail markets, credit unions and local businesses.
Structure of different public sector organizations of United Kingdom:
Public sector organization structure can be divided into five types which includes public business, municipal firm, trust, public/ private partnership, local authority business activity, etc. These are the organizations which are unambiguously incorporated for attaining some specific objectives (Organizational structure, 2013). One of the examples that can be initiated in the respect of public corporation of UK is Competition commission.
In order to provide enhanced services to the public, there is formulation of district and local government which has built up corporations such as municipal undertakings (Patel, 2005). Services provided by such corporations are water distribution, proper construction of roads and clean environment. Examples that can be initiated in this regard includes Large Borough council, Strabane District council, etc.
There is various trust which operates their functioning based upon different government hospitals and health care centres (Alford and Hughes, 2008). Their main purpose is to provide effective medical services to the individuals who require them. Examples which can be drawn in this respect are Foyle community trust and Local authority business activity.
Even there are many private businesses who collaborates with public sector enterprise for carrying out different activities (Pynes, 2008). This is majorly known as public and private partnerships. Hence, it can be said that public sector organizations can be divided into different segments for achieving various objectives and characteristics of services.
Independent Age UK in order to provide effective government services carries out their functioning in three divisions. These includes policy and performance, resources and development as well as support from the agency function (Thomas and Davies, 2005). These divisions look that Independent Age UK following all the set guidelines, rules and regulations in providing services to the public at large in the most ethical manner.
1.2 Assessment of the accountability of public sector managers in relation to finance
Public sector organizations need to look after various financial responsibilities in order to complete their accountabilities in an effective manner. Need for accountability: Various responsibilities are required to be looked upon by the finance manager of the enterprise. It includes aspects such as legal, political and professional dominations of accountabilities (Lapsley, 2009). One of the major aspects that need to be looked after by management of Independent Age UK includes carrying out appropriate actions towards charity number of stakeholders. There accountability also stands for carrying out appropriate decision making will be most favourable in the operations of enterprise and even guides stakeholders of company. For being effective, it is important to be transparent in each decisions and even proper fund maintenance