7. CONCLUSION In managing financial operations on the institutional level, the chief financial officer should first the conscious of the presence of the various competitors in the education industry, coming from both the public and the private sectors of education. An in-depth analysis of this aspect is one of the uses of Porter’s Five-Forces model. In addition, there is a need for further analysis of opportunities and threats by undertaking an external forces analysis (EFA), internal forces evaluation (IFE) and the Comparative Profile Matrix (CPM). Having conducted the above-mentioned analysis and secured the competitive status of the
8. institution in the education industry, one is then prepared to look into the financial operations of their respective educational institutions. In this study , financial statements from four proprietary educational institutions and five sectarian educational institutions are presented. Each institution shows some uniqueness in its financial operations. However, there are some commonalities within the cluster of educational institutions. Proprietary institutions show such main concerns as having huge investments in physical plant and facilities, focusing on the generation of surplus, a more intensive use of assets and very prudent management of
9. of borrowings by complying with a good current ratio and keeping loans minimal and having a strategic location that allows for a significant level of value appreciation. Just like proprietary educational institutions, sectarian educational institutions also invest heavily in physical plants and facilities. However, generating surplus is not a primary concern, possibly because of their orientation as sectarian institutions. From the analysis of the financial operation of both proprietary and sectarian institutions, there are lessons that can be learned in the effective management of educational institutions consisting of the following:
10. 1. Productivity of Assets 2. Collection of Receivables 3. Loan Management 4. Investment Fund 5. Reliance Tuition Income 6. Salaries and Wages as Component of Expenditures
![Financing Education on the Institutional Level ,[object Object],[object Object],[object Object]](https://image.slidesharecdn.com/financingeducationontheinstitutionallevel-110319212849-phpapp01/85/Financing-education-on-the-institutional-level-1-320.jpg)
![[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)