Question

Financial management is more than procurement of funds. Comment

Answer 1

Financial management is generally concerned with procurement, allocation and control of financial resources for a project. The objectives of financial management under the non-profit making social programme are:

To ensure regular and adequate supply of funds under the programme.
To ensure optimum and effective fund utilization that leads the programme towards its predefined objectives.
To prepare the budget and budget calendar for all the planned activities.
To avoid misuse of funds/ resources available for the project.
To enable decision makers to take corrective measures during the course of program implementation of its business

Answer 2

Financial management is the efficient and effective management of money in such a manner that the objectives of the organisation are accomplished. In ideal situations, the financial management team report to the top management as they garner, allocate and distribute money within the organisation. This management function does budgeting, undertakes reviews and controls costs wherever and whenever necessary.