Financial Management Essay: Energy Policy

Financial Management Essay: Introduction

Financial management is essential for federal policies or programs because financial management’s primary focus is to evaluate the sources and prepare financial reports. In this sense, and more specifically, this paper is focused on analyzing the energy policy and its relation to financial management. Firstly, the energy policy of the United States addresses issues of energy production, distribution, and consumption, such as building codes and gas mileage standards (“Wikimedia,” 2020). Also, energy policy’s responsibility is managing energy sources and organizing these sources’ continuity. Secondly, energy policies are liable for finding reproducible sources for the United States of America. One can infer that energy policies management is highly related to financial management because financial reports provide analyzing financial numbers in order to make investments for reasonable areas.

Body Paragraphs

Financial management’s strengths are managing all costs and proving efficient investments. Also, financial management’s strengths include financial accounting, financial planning, and financial strategy. More specifically, financial management provides all numbers, organizes cash flow; specifically, financial management tends to direct costs and spends. In this sense, capital budgeting is an essential variable for financial management because it provides to make decent investment decisions. In other words, the financial decision is related to making investments on new sources or raising finance from various sources of the policy.

Weaknesses in financial management controls have clear causes and remedies. It only has to identify the problem areas, determine why these controls are not adequate and apply the corresponding corrective action (Markgraf, 2016). In other words, financial management’s weaknesses are not providing solutions for the problems; specifically, it merely determines areas that have problems in the policies. In this sense, inefficient areas in the policy can be seen in the financial reports, but it cannot be solved by financial reports, and biggest weakness in financial management is not providing solutions for the inefficient areas, and problems.

Expenditure management is a part of financial management, and expenditure management involves all the procedures are necessary to ensure that the payments of sums owed by the department are controlled in an efficient, effective and timely manner. The main focuses of expenditure management are processing invoice payments from necessary sources of the department, and managing the relationships between the department’s payroll and accounting system. In other words, expenditure management is responsible for managing spending and payments in the most efficient way. Also, expenditure management provides efficiency and effectiveness in financial management.

Conclusion

To sum up, energy policy is liable for managing all energy sources and providing security in energy sources for the United States. Also, energy policies are liable for finding and managing reproducible sources. More specifically, energy policies manage all energy sources and provide employment opportunities. In this sense, financial relations in energy management provides investment areas and preparing financial management reports for energy policy. In other words, these financial reports include energy policy’s revenue and cost reports in order to provide energy policy to see current costs and revenue. Also, another improvement suggestion for energy policy should focus on combining expenditure management and financial management in order to see the most efficient numbers in its current reports. Eventually, energy policies have already made their investments on reproducible sources or new sources. Therefore, energy policy’s financial management is adequate for improving, and it should aim to be more effective in future.

References

Markgraf, B. (2016, October 26). Weakness in Financial Management Internal Controls.

Wikimedia Foundation. (2020, June 20). The public policy of the United States. Wikipedia.