Financial Management Service

Financial Services

The Financial Management Service (FMS) is a bureau of the United States Department of the Treasury and its main function includes providing several financial services to the federal government. These services include:

  • Collection
  • Reporting services
  • Centralized payment
  • Oversight of a daily cash flow

Financial support services are:

  • Knowledge base
  • FIS Support Center

Financial Management Service also provides some central payment services to federal agencies, which are listed below:

  • To operate the federal government's collections and deposit systems
  • To provide government wide accounting and reporting services
  • To management the collection of delinquent debt owed to the government.

Federal agencies and financial management improvement efforts are supported by the FMS in the areas of consulting, accounting, and education.

The following is a list of various Financial Management Services:

  • Account management
  • Account payable
  • Account receivable
  • Auxiliary Accounting
  • Financial policies
  • Student loans
  • Cash control
  • Operations

The purpose of financial management in health and family planning organizations is to support and enhance the delivery of health services to the community. Expansion of areas served or consideration of new population in need are considered as viable options to make programmatic decisions, which emphasizes the fact that everything is possible in an organization by good financial management.

Public-sector health organizations are known to have poor know-how about the high quality financial information and also have negligible control over the budgets and costs. Financial management is all the more critical in this environment and yet hard to achieve effectively. Public sector manager have to face lot of difficulties while implementing the described concepts, such as improving efficiency, managing existing source of funds effectively, limiting the focus to reducing costs, and lobbying the government's planners and financial managers to get better information.

Non-governmental health organizations operate as non-profits in the private sector. "Want to be economically healthy" organizations must hold to their net value in reserves. Organizations can sustain their current services, sustain in periods of cash-flow crisis, grow, or even subsidize services that need to be affordable, by these reserves or surpluses. Some non-profit organizations believe that the nature of their mission is inconsistent, with an emphasis on cost recovery or revenue generation, and they operate with very low reserves.

Using multiple funding sources and donor requirements, the non-profit governmental health organization's financial management is usually complicated, which is further strengthened by the following points:

  • Financial information is presented in distinct reporting formats, as required by different donors or governmental agencies.
  • Accounts are made for costs of volunteer workers.

Generation of money for owners, shareholders, or other financial partners is the operating principle of for-profit health organizations. In addition, they also work to meet community health needs, such as private hospitals and clinics. Based on their financial management skills, for-profit organizations hire managers. One must focus on balancing the goals of cost, quality and expansion, as a manager in a for-profit health organization.

Financial Management considerations for health and family planning organizations

Some health organizations feel that cost should be a secondary consideration whereas services should be delivered even when they cannot be adequately funded. The services will no longer be provided when bills are not paid, which is a greater loss to the community. The following strategies can be adapted by the managers of health, family planning, or service-oriented organization that are used by for-profit businesses:

  • Employment of financial analysis, including comparative performance analysis, for the identification and addressing of the organization's inefficiencies. A competitive position and cost-effective services are maintained by the financial analysis.
  • Some strategies help to balance the high costs of providing health services, such as receiving and reinvesting program income and charging fees.
  • Investing money is always an advantage, such as buying a facility, making capital improvements, and marketing. These improve and broaden access to services.

Circular No.A-127 is meant for executives' agencies and departments and this circular mentions various policies and standards, which follow in the development, operation, evaluation, and reporting on financial management systems.

An established financial system supports the financial services, which needs tracking of financial events for the preparation of financial statements. Such a system also provides financial information, which is of relevant importance to the financial management of the agency or organization.