Financial Management Practices or Systems in Public Sector Report

This report investigates the critical role of financial management practices in the public sector, analyzing their impact on financial statements and overall performance. It explores the significance of these practices, including policies, guidelines, and rules, and their influence on public sector companies. The research identifies both dependent and independent variables, focusing on how financial practices affect the financial performance of public entities and the implications for stakeholders. The literature review synthesizes various research papers and articles to support the findings. The report concludes that financial practices are a dependent factor affecting the performance of public sector companies, and variations in these practices can significantly alter outcomes. The report uses a Gantt chart to show the timeline and concludes that time constraints impacted the quality of the outcome. The report includes references to relevant studies and publications.

Running Head: Financial Management
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Financial Management Practices or Systems in Public Sector

Financial Management
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Contents
Introduction:.....................................................................................................................3
Research question:............................................................................................................3
Literature review:..............................................................................................................4
Data collection and methodology:....................................................................................7
Time scale:........................................................................................................................7
Conclusion:.......................................................................................................................9
References.......................................................................................................................10

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Introduction:
in the public sector, the practices of the financial management plays a crucial role as
there are various factors which impacts on the performance and the position of the public
companies. The financial practices involve various kinds of policies, guidelines and the rules
which are followed by the businesses to present and report their financial transaction in the
financial statement. The changes in these practices, guidelines and rules could affect the
financial performance of the business. The financial management practices in the public
sector makes the positive changes in the public institutions, government and stakeholders of
the business to make better conclusion about the position of the business. The financial
practices are the independent variable which is not affected by the other factors, but few
changes into the policy could affect the public sector performance. It has been found through
the study that recording the financial transaction and presenting them in the financial
statement is one of the important and mandatory processes for all the public sector companies
in order to represent the financial performance and policies to the stakeholders of the
business. The research paper mainly focuses on the impact of financial practices on the
financial statement of the business.
Research question:
Research question entitles about the main research topic which would be studied in
the report. The main research questions are as follows:
 what is the meaning of the financial practices
 what are the dependent and independent variable in the financial practices and
the performance of the public sector
 How the financial practices impact over the financial performance of the public
sector?
 What is the impact over the public sector due to the financial performance of the
business?

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Literature review:
Author
(year)
Dependent
variable
Independent
Variable
Sample Findings Further
Research
( Monir Mir
and Wahyu
Sutiyono,
2013)
Indonesian
company’s
financial
performance
and the
impact level
on the public
sector
The
financial
management
practices
Indonesian
companies
and the
public
finance
sectors are
the sample
for the
report.
The article
explains that the
few changes into
the financial
practices have
affected the
financial
performance of
the Indonesian
company at a huge
level.
The researcher
should also
study on the
other factors
such as IT and
the improved
changes because
of the financial
practices.
(Mr. Patrick
Mutai
Cheruiyot,
Mr. Julius
Robert
Oketch,
Professor
Gregory S.
Namusonge
, Professor
Maurice
Sakwad,
2017)
Public sector
performance
the
government
influential
level
The
financial
management
practices
Kenya
companies
and the
public
finance
sectors are
the sample
for the
report.
Along with the
changes in the
financial practices
of the Kenya
companies, the
stakeholder’s
decisions have
been affected
because they got
different outcome
than expected
from the market.
The financial
policies and the
accounting
standards must
also be studied.
(Wouter Development The Public Changes into the Financial

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Van Dooren
and John
Halligan,
2010)
of the public
companies
and their
performance
financial
management
practices
finance
sectors are
the sample
for the
report.
financial
accounting system
lead the changes
into the financial
performance of
the company. It
has affected the
outcome,
integration level,
the trust level of
the stakeholders in
the company.
factors,
information
technology etc
are the few
factors which
must be studied
in depth.
( Frank
Verbeeten,
2008)
Performance
of the public
sector
Public
financial
management
practices
Public sector
company’s
financial
practices
It explains that
mainly the
government
policies and the
amendments in the
financial policies
lead the different
among the
financial
performance of
the public sector
companies.
Different
evaluation
method could be
considered by
the researchers.
(Karen
Fryer Jiju
Antony
Susan
Ogden,
Public sector
performance
Financial
management
practices
Government
institutions
There are various
factors and the
internal financial
changes which
could lead the
The
independence
level and the
awareness could
be developed in

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2009) impact on the
financial
institution in the
company.
the business to
improve the
overall
performance of
the business.
through the study, it has been found that the study of Monir Mir and Wahyu Sutiyono,
2013, Mr. Patrick Mutai Cheruiyot, Mr. Julius Robert Oketch, Professor Gregory S.
Namusonge, Professor Maurice Sakwad, 2017 and Frank Verbeeten, 2008 have been taken
into the context to perform the study.
According to Mir and Sutiyono, 2013, it has been found that the few changes into the
financial practices have affected the financial performance of the Indonesian company at a
huge level. The Indonesian accounting standards had made few changes into the accounting
and recording policies which have lead towards the different result of the financial
performance ad because of it the stakeholder decision have been affected along with the
investment level in the companies. The article explains that the demand of the stock of the
companies depend on the financial statement and the performance of the business. If there is
different practices followed by the company than the outcome of the company would be
automatically different and it could affect the overall position of the business.
Along with the research of Mir and Sutiyono, 2013, it has been found that few
changes could be done by them in order to improve the research outcome. Further, the article
of Cheruiyota et al (2017) explains that along with the changes in the financial practices of
the Kenya companies, the stakeholder’s decisions have been affected because they got
different outcome than expected from the market. It explains that the financial practices are
always the independent variable which would impact over the financial performance of the
public sector companies and the economical position of the country.
Further, the Verbeeten, 2008 has explained that mainly the government policies and
the amendments in the financial policies lead the different among the financial performance
of the public sector companies. The article explains that the demand of the stock of the
companies depend on the financial statement and the performance of the business. The

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financial practices are the independent variable which is not affected by the other factors, but
few changes into the policy could affect the public sector performance.
On the basis of the study on the different articles and the research paper, it has been
found that the IT factors and other factors could also be researched in depth in order to reach
over a better conclusion and outcome of the business.
Data collection and methodology:
The design of the research is basic for picking a reasonable strategy to gather data
about the examination matter and efficiently meet the point and destinations of the
examination matter. There are sure devices, procedures, and strategies as it would be basic
getting a possible result. Moreover, there are sure strategies of the examination that could be
utilized by the researchers to get data about the exploration issue like research reasoning,
investigate philosophy, inquire about methodology, look into configuration, investigate
techniques, and information accumulation strategy, testing, and foreseen constraint. The few
of the strategies have been taken into the concern to perform this study.
The data collection method encourages choosing the reasonable wellsprings of
collection of the data and meeting research point and goals. Likewise, it is inspected that
primary and secondary information is utilized in the research to reach over a conclusion about
the research topic and get the answer of the research questions. In this investigation, both
primary and secondary information gathering methods is utilized to acquire data about the
research issues. Through the essential information, the researcher will acquire new data with
regards to the examination issue. There are creation sources as it could be considered by the
researchers like perception and overview through asking some questions. Aside from this,
secondary data collection method instrument is utilized to get reasonable data about research
issues like a diary, articles, books, and on the web and disconnected sources. It would be
basic for the achievement of the research goals.
Further, the sample size is also one of the important factors which must be evaluated
while conducting the study. In the report, the sample size of the research report has been
taken 3 companies. the financial data and the financial practices change of the 3 companies of
last 5 years have been studied in order to identify that how the financial performance of the
companies are affected by the financial practices and the policies of the company.

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Time scale:
The time scale is one of the most important studies of a research paper which explains
that how much time would be consumed to conduct the study and at what time which study
and the method must be applied in the research to get accurate data. In the research report, the
time has been demonstrated as below:
Activity name Start Day Last Day
Duration
(Days)
Research
investigation
proposal 25/10/2018 21/11/2018 26
Study on
various
articles and
research
papers 28/11/2018
22/01/2019
54
Collecting the
information
and other
related facts
and figures 31/01/2019 24/03/2019 54
Assessment of
data 1/01/2019 31/01/2019 30
the research
submission 31/01/2019 1/02/2019 1

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Figure 1: Gantt chart
In the respect of the above given Gantt chart, it has been found that the time was
limited in the business and because of it, the quality of the outcome has been affected.
Conclusion:
On the basis of the study, it has been concluded that the financial practices are
dependent factor in the public sector which affects the performance and the activity level of
the public sector companies. If the public sector companies are following the different
practices than the outcome of the company would be automatically different and it could
affect the overall position of the public sector.

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References:
Cheruiyota, M. P. M., Oketchb, M. J. R., Namusonge, G. S., & Sakwa, M. (2017). EFFECT
OF PUBLIC FINANCIAL MANAGEMENT PRACTICES ON PERFORMANCE IN
KERICHO COUNTY GOVERNMENT, KENYA: A CRITICAL REVIEW. [online].
retrieved from: http://www.ijern.com/journal/2017/December-2017/18.pdf
Fryer, K., Antony, J., & Ogden, S. (2009). Performance management in the public
sector. International Journal of Public Sector Management, 22(6), 478-498.
Mir, M., & Sutiyono, W. (2013). Public sector financial management reform: A case study of
local government agencies in Indonesia. Australasian Accounting, Business and
Finance Journal, 7(4), 97-117.
Van Dooren, W., Bouckaert, G., & Halligan, J. (2015). Performance management in the
public sector. Routledge.
Verbeeten, F. H. (2008). Performance management practices in public sector organizations:
Impact on performance. Accounting, Auditing & Accountability Journal, 21(3), 427-
454.