The government provides several services more so in the provision of the society. This it achieves by implementing the powers it has. For instance, one service provided by the government is the investment in debt. First the government institutions are capable of making investments in programs which bring benefits to the rural communities. The second, the government can invest in venture capital funds which would go along way in creating new economic opportunities as well as jobs in the communities found in the rural areas.
The aim of the venture capital funds would be geared towards providing start-up capital to small and medium sized business organizations (Smith, 2008). Services provided by government As earlier stated, the government plays a very significant role in the financial management of projects. Firsts, the government is responsible for setting up financial management standards. Many methods of implementing financial management systems are available. It is therefore important that an organization only makes use of the financial system which is appropriate to it (Withrow, 2008).
The emphasis here is that the financial systems chosen provide not only accurate but also complete information which relates to all projects supported by the federal state National (Endowment for The Arts Office of Inspector General, 1999, p. 3). At the same time, the government offers services aimed at achieving basis standards of financial reporting, which would ensure the preparation and submission of accurate financial statements. Second, the government has the role of setting up internal control ands audit standards.
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With regards to internal control, the aim of the government would be to ensure that organizations guard all their resources (Oswald, 2001). At the same time, the government would be seeking an assurance that all the resources are utilized solely for their intended purposes. Internal control is achievable when the duties and responsibilities of organizational human resources are divided in a way that one individual is in charge of all the transactions from the inception to the end (Brown, & Kreklow, 2006).
Regarding audit standards, the government plays a service of ensuring that all organizational financial information regarding government grants can readily be accessed for purposes of audit (Endowment for The Arts Office of Inspector General, 1999, p. 7). Special challenges affect funding of government-sponsored projects One special challenge which affects the funding of government sponsored projects is the lack of a statutory basis aimed at meeting the existing as well as the future needs of the community. Investing in the rural areas is still a special challenge to the government.
This is owing to the fact that it is difficult to provide adequate and flexible flow of flow of financial capital to finance the activities of the government in the rural areas (Smith, 2008). The other special challenges with regards to the government project in the rural include finding viable projects in terms of liquidity as well as risk management. This has the implication that the government faces the challenge of managing liquidity risks as well as other business any financial risks which usually accompany any investment project in the rural areas.
Still the government faces the challenge of providing long-term funds to development projects in rural areas owing to budgetary constraints (Withrow, 2008). The other special challenge the government faces is that of approving new rural related investments. In other words it is still a challenging task for the government to come up with regulations and programs aimed at establishing the correct investment to undertake in the rural areas having considered the financial needs of the communities.
The implication here is that the government faces the challenges of providing loan activities to the rural agricultural farmers, ranchers and cooperatives among other eligible categories of individuals who can benefit from the government activities in the rural areas (Vogt, 2004). Still the government faces the challenge of financing rural infrastructure as well as housing in the rural communities. In other words, the government still faces the challenge of financing all the necessary agricultural activities in the rural areas.
Other challenges include flexible and affordable transport as well as disease care (Smith, 2008). Possible solutions to problems of funding government-sponsored projects Several possible solutions to the above problems can be identified. First, it is necessary that the government allocates more funds to the program of the rural area. At the same time, the transportation problems can be solved by employing pilot programs aimed at emulating rural transportation systems which have been successful in other communities.
With regards to funding systems, the government needs to strengthen its cost saving efforts with regards to community projects (Greene, 2005, p. 3). At the same time, as a solution to the problem of funding, the government needs to develop effective partnerships with local individuals and businesses found in the rural areas, civic organizations as well as volunteer community organizations in providing financial assistance towards sponsoring projects in the rural areas (Nashahi, 2008). Conclusion
In conclusion, the government needs to empower institutions to fully invest in rural business opportunities more so in agricultural housing and infrastructural activities. These efforts would go along way in contributing essential services village residents as well as towards achieving economic growth. Still there is need to strengthen the available legislations more so the ones which support venture capital which would create opportunities for economic development as well as jobs in the rural areas (Vogt, 2004).
At the same time, there is need to implement the rural community projects on a pilot basis in order to achieve more success. Pilot programs would permit the consideration of specific community needs, the end result of which would be more sustainable and revitalized economic development programs in the rural areas (Withrow, 2008). Still the government needs to in the area of transportation infrastructure more so in the rural areas such as roads and bridges more so in the rural areas more so in the to ease transportation of agricultural produce. References
Brown, M. & Kreklow, S. (2006). Staying on Track: Crafting a Capital Program Reporting System, Government Finance Review. Greene, M. (2005). White House Conference on Aging. Post-Event Summary Report, Georgia pp. 1-5. Nashahi,M. A. (2008). Project human resource management. Elyse Nielsen National Endowment for The Arts Office of Inspector General. (1999). Financial Management Guide for State & Local Governments, pp. 1-13. Retrieved from http://www. nea. gov/about/OIG/FMGSL. pdf Oswald, P. , (2001). Construction cost Analysis and Estimating. Prentice Hall, Upper
Saddle River, New Jersey. Smith, R. (2008). Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; Mission-Related Investments, Rural Community Investments. Farm Credit Administration (FCA). Vogt, J. (2004). Capital Budgeting and Finance: A Guide for Local Governments, ICMA, Withrow, S. (2008). How financial analysis can impact project initiation. UK :CBS Interactive. Available at http://www. builderau. com. au/strategy/projectmanagement/soa/How-financial-analysis-can-impact-project-initiation/0,339028292,339178420,00. htm
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