ASSESSING THE FACTORS AFFECTING FINANCIAL RESOURCE MANAGEMENT IN HIGHER EDUCATION INSTITUTIONS

Abstract

This article examines the system of factors determining the effectiveness of financial resource management in higher education institutions. The expansion of higher education enrollment, changes in the proportion of government-funded and tuition-based financial resources, and the growing need to finance research and innovation activities require a qualitative improvement in financial management. The purpose of the study is to systematize the factors affecting the formation, allocation, and control of financial resources and to develop an integrated assessment methodology. The research applies a systems approach, comparative analysis of regulatory and legal documents, the indicator method, the Analytic Hierarchy Process (AHP), normalization techniques, and sensitivity analysis. The findings classify the influencing factors into five interrelated groups: the institutional and regulatory environment, diversification of funding sources, the quality of internal financial management, the efficiency of resource allocation, and transparency and financial risk management. Based on these groups, a Financial Resource Management Efficiency Index for higher education institutions is proposed. The index can be used to diagnose the financial sustainability and development potential of higher education institutions, identify priority expenditure areas, and improve the quality of managerial decision-making. The research findings may also be applied in developing medium-term financial plans, introducing responsibility centers for budgetary and extra-budgetary funds, and establishing internal financial monitoring systems