Composite financial index as a method to improve management at higher education institutions

Abstract

Key development directions of Latvia and both national and social key tasks until 2013 are determined in the National Development Plan of Latvia. Education and knowledge for the growth of national economy and technological excellence are determined as the main strategic target.

Within the national educational system the sector of higher education gives more impact on other sectors of national economy and processes of social life areas. In academic year 2010-2011 there were 34 national and 26 private higher education institutions operating in Latvia. Regardless of sources of financing available to each institution, they are obliged to provide competitive services – to offer maximum quality with the financial resources available. Therefore improvement of financial management and complete methodology of analysis of financial strategy are the components necessary for professional management of higher education institutions (HEI).