Financial management at the broadcasting authority

Abstract

Purpose: This research sets out to understand the financial management procedures undertaken by the Broadcasting Authority. In view of the financial instability in the European Union, many governments, including the Government of Malta, have increased their attention on how public sector entities are being financially managed. Design: To achieve the objectives of this study, extensive documentary research has been carried out, including a thorough analysis of the Authority's financial reports, and a series of interviews with the Financial Controller at the Broadcasting Authority. Findings: The findings show that the Authority manages its finances in an efficient way and above all, several cost-cutting measures and efficiency improvement exercises are being made. There is always room for improvement, however, and a number of recommendations have been put forward that can enhance the financial management procedures undertaken by the Authority, in particular, better debt collection and investment appraisal. Conclusions: Through an analysis of the Broadcasting Authority, this study identifies that although profit making is not its main aim, it is highlighted as a secondary objective: that of obtaining a surplus, to be able to sustain operations and function efficiently. Implications/Value: This research highlights the importance of introducing the ideology of new public management, whereby public sector entities move towards being more independent and thus being able to manage their finances and operations more efficiently and effectively.