FEATURES OF COMMUNAL ENTERPRISES’ FINANCIAL MANAGEMENT

Abstract

The article highlights the features of financial relations in the communal economy. Based on this, it was found that one of the important elements of the functioning of local finances is the formation of financial resources of communal enterprises. After all, effective management of financial resources of these enterprises ensures the stability and development of local communities, promotes economic growth and increases the attractiveness of investment routes. The sources of formation of financial resources of communal enterprises are revealed, which include: own revenues, budget financing, credits and loans, investments and other sources. Also, the main part of the study analyzes the key financial indicators of the stability of utility companies. It has been determined that in the world and domestic practice, such basic indicators as income, expenses, profit, profitability, debt and investment activity are mostly used. Disclosure of the mechanism of financial management of communal enterprises, which includes the object, subject, tools and technologies of management. The latter include the development of the institutional strategy and financial policy of the enterprise; financial planning (strategic, current and operational); budgeting; operational management; monitoring and control; analysis and audit; financial management and evaluation of its effectiveness. The final part provides a comparative analysis of the financial support of communal enterprises in Ukraine and countries with developed economies. Ways to increase the efficiency of management are proposed. It is determined that an alternative to domestic pacts in public utilities can be public-private partnership approaches, which are widely used in developed economies to attract private investment in public services.