Conceptual approaches to formation of financial strategy of a higher education institution

Abstract

The article is studying the actualization issues of higher education institutions' financial strategies. Basing on the summary of the analyzed information a conclusion is made concerning replacing the conceptual model used to finance education in Russia. World trends of educational institutions' financing were analyzed and interpreted, especially those, which are characteristic of the countries -members of the Organization for Economic Co-operation and Development (OECD). General conclusion is drawn concerning the condition of higher education institutions' funding; prevailing function of such institutions is the providing of high-quality education services. The conclusion is that functioning of the higher education institutions is performed under the conditions of limited public funding, budget fund's economy, partial regulation of extra budgetary funds spending which certainly should activate the modernization of financial strategies and particular elements of higher education institutions' financial management. Basing on theoretical research and empiric material, using the methodology of the study and world-wide experience, the authors made a conclusion of the increase in tendencies of orientation toward market mechanisms during the forming of conceptual methodological approaches used for higher education institutions' financial management, of applying the result-oriented budgeting principles and integrating financial management projects allowing to simultaneously improve the quality of education services and cause growing results from financial, productive and business activities of education institutions