Financial Management Practices in Public Sector: Supply Chain, Budgeting, Asset Management

Financial Management Practices or
Systems in Public Sector

Contents
1. Introduction.....................................................................................................................3
2. Literature review.........................................................................................................3
3. Description..................................................................................................................3
3.1 Supply chain management system...............................................................................4
3.2 Budgeting....................................................................................................................5
3.3 Asset management..........................................................................................................6
5. Case Analysis..................................................................................................................7
6. Discussion....................................................................................................................8
7. Conclusions.................................................................................................................8
8. References...................................................................................................................9

1. INTRODUCTION
The literature review is conducted in order to identify the financial management practices that
are followed in the public sector. The financial management is important for the organization
in order to attain the objectives within the available resources and attain the profitability in an
effective manner. The practices related to financial management provides with the ability to
manage the finances and carry out the activities of the organization. It is important for the
organization to follow the practices that can help in the financial management. The lack of
the effective financial management system can result in inability to attain the organizational
objectives and profitability.
2. LITERATURE REVIEW
The financial management system and the practices followed in the public sector are focused.
It is important for the organization to adopt the methodologies and the practices that can help
in enhancing ability to manage the finances so that the operations of the organizations can be
carried out in an effective manner with the help of effective allocation of the resources. The
supply chain management, asset management and budgeting are the practices that contributes
in effective financial management.
3. DESCRIPTION
The financial management of the public sector is associated with the government’s economic
behavior in context to the rules, methodologies, policies and regulations that helps in
budgeting, directing, planning, influencing, forecasting and governing the flow of funds for
attaining the objectives. It basically deals with managing the taxation borrowing, spending of