Financial control at the homes for the elderly belonging to the Archdiocese of Malta

Abstract

At present, all the homes for the elderly that belong to the Archdiocese of Malta are running at a loss and the subsidy being provided by the Diocese to these homes is at an unsustainable level. The closure of one or more of these homes will result in greater pressure, financial and otherwise, on the homes for the elderly that belong to the government. In spite of this, the government does not provide any financial assistance. Since fees cannot easily be increased, it is imperative that a good system of financial control is in place. The objective of this study is to analyse, discuss and critically evaluate financial control at the homes for the elderly. The main topics examined are funding, the budgetary process, and capital and current expenditure. An evaluation of secondary data was first carried out for the production of the literature review. Primary data was later gathered by means of interviews carried out with Curia Officials. The study revealed some areas that needed improvement. The Diocese lacks proper control over these homes and there is also a lack of discipline in the overall budgetary system. More penalties and restrictions should be implemented whereas a remuneration package could be established as a reward for when targets are met. Specific ratios and variances, as well as standard ones, can be used to address specific problems. The results obtained should then be presented in a control report. Another deficiency is that capital expenditure is carried out as and when needed and no official long term plans are made. Poor planning sometimes results in the acceptance of projects that are only viable for the short term and also results in a large number of emergency projects being carried out without proper planning. Thus, long term strategic planning s The adoption of more efficient financial control measures will result in the homes for the elderly being more financially viable. However, because of the high day to day running costs, and the expenditure needed to get the homes up to standard, co-operation and financial support will still be needed from the government. Further requests should be made by the Archdiocese to the government for financial aid.