Financial sustainability of higher education institutions in the context of ensuring their development

Abstract

The article presents a strategic approach to the formation of financial sustainability of higher education institutions (HEIs), aimed at its development. It is determined that financial sustainability in the context of the strategy of the development is provided by the current solvency, as well as the created financial space, which contains two interrelated components: current (operational) financial space as financial opportunities created by exceeding the university income (for functioning), as well as strategic financial space as financial opportunities created by exceeding the income of the university its necessary expanses for the development. The indicators of financial stability have presented, which are taken into account during the financial management and setting appropriate strategic objectives that allows to assess the gap between the declared goals of the development strategy and financial opportunities, to make decisions about the optimization of operating and investment activities of HEI.It is proposed that operating financial space is also evaluated on the basis of its characteristics, such as: diversification of funding sources and revenues, their stability and flexibility of use. To maintain the financial sustainability of the university, it is also important to increase the profitability of educational programs and educational activities. It is justified that profitability maintains the financial sustainability of the HEI, thatmakes the increasing the profitability of educational programs and educational activities an impotent issue of financial management. Margin of safety in the income of the special fund from the main activity relative to the break-even point by the number of students of the university (faculty) one of the crucial profitability indicator, that requires appropriate managerial accounting system.