IMPROVING THE EFFICIENCY OF FINANCIAL MANAGEMENT AND PROFITABILITY OF PRIVATE HIGHER EDUCATION INSTITUTIONS: A DIAGNOSTIC ASPECT

Abstract

The article discusses the tools for improving the diagnostics of the financial condition and profit management in private educational institutions on the example of the University of Ukraine. The monitoring of the situation in the field of higher education in the country is carried out to assess competitive trends between the subjects of state and private ownership. The importance of ensuring a systematic approach to the management of financial resources of educational institutions to ensure the stability and efficiency of their functioning in the context of modern economic challenges is proved. The financial indicators of a comprehensive assessment of the financial condition of a private higher education institution are structured. Based on the analysis of the practical experience of the University of ‘Ukraine’, the main directions of financial management used to manage the financial resources and profit of a private educational institution are allocated. The content of the following processes is detailed: management of formation of financial resources, management of internal turnover of financial resources, management of distribution of financial resources in the financial management system. Particular attention is paid to the analysis of the European practice of financial management in private higher education institutions, in particular, to the diversification of funding sources through the development of fundraising and the creation of endowment funds. Practical tools for implementing an effective endowment fund management system in Ukrainian private higher education institutions are proposed, including the development of an investment policy, the use of international reporting standards, the introduction of CRM systems for fundraising and the creation of advisory boards for the fund. The importance of combining financial diagnostics, profit controlling and innovative fundraising tools to ensure financial sustainability and increase the competitiveness of private higher education institutions in Ukraine is emphasised. The results of the study can be used to develop practical recommendations for strengthening the financial stability and profitability of private higher education institutions in the context of global competition in the market of educational services.