Financial Mismanagement as an Impediment to Effective Administrations: Challenges and Way Forward

Abstract

The success of any given organisation whether public or private depends largely on the management of its finance for effective administration and sustainability. This paper, therefore, discussed financial mismanagement as an impediment to effective administrations: Challenges and way forward. It also highlighted budgeting, auditing, accounting and financial reporting, internal control system, and risk management as the core components of financial management practices. It further discussed miss-allocation of resources, weak internal controls, inadequate financial planning, lack of transparency and accountability, and over-dependence on government subventions as some the challenges encountered by public institutions. It equally discussed the adoption of performance-based budgeting, strengthening internal control systems, improving financial planning, promoting transparency and accountability, reducing overdependence on government subventions as some of the way forward for strengthening financial management in public tertiary institutions. It was suggested that top management and administrators of tertiary institutions should establish strong internal control structures, ensure effective budgeting, conduct regular internal audits, and provide timely financial reports to promote accountability, prevent fraud, and enhance financial and administrative performance.