The concept of financial management must be observed in the process of managing and using the allocations approved in the annual Budget. The concept of financial management is a process in which an organization:

• It is necessary to follow specific steps to obtain and then allocate resources based on certain priorities.
• Uses specific methods and controls to achieve objectives efficiently and effectively.

• Determining the scope and content of fiscal policies;
• Establishing general guidelines and standards; and
• Providing organizational structure and control.

• Budgeting – the preparation of a specific and detailed work plan to achieve certain goals within a set time frame;
• Financing – the allocation of financial resources to implement programs in order to achieve their objectives; and
• Control – ensuring that activities are carried out according to the predetermined work plan through established accounting systems, reporting, and auditing.