Modelling of public finance administration processes

Abstract

THE AIMS OF THE PAPER

Identifying and modelling objects/information flowing through business systems is a key topic in examining the efficacy of public finance administration processes. One of the important scientific results of the research was the development of mathematical models applicable to service processes. It is a process rationalization method based on heuristic simulation that is capable of efficiently reorganizing not only processes but also their connections and the object-flowing between these nodes by reorganizing service processes.

Improving public finance processes is a major challenge for those interested in the topic, as public finance processes are highly regulated. This means, on the one hand, the legal environment and, on the other hand, the bound, internal regulation based on it. The purpose of this study is to present a new mathematical application, which is better suited to the public finance management system, using the previous scientific results (improvement of service processes) in the field of efficiency improvement.

METHODOLOGY

In the applied mathematical model, we primarily characterize the state changes in the nodes from process and flow aspects, thus creating interdependent transformation systems. If the processes disclosed herein are not considered from the conventional flow point of view, but from the aspect of internal state changes, their treatment and repair can be solved in the same way as in other more flexible service process systems.

MOST IMPORTANT RESULTS

Process analyses have shown that processes can be handled separately from an object-flow perspective, that is, we can significantly improve them using the model of independent transformations. This is also valid for highly regulated process systems - public finance administration processes. Mapping the model to a public finance administration system will result in more transparent organizational units and easier process improvements without breaking regulatory requirements.

RECOMMENDATIONS

In working management systems, no process improvement measure can be conceived in an isolated manner, but targeted interventions should be carried out at all relevant nodes. When implementing organizational changes, it is necessary to apply the model of independent transformations to modify the processes only in the “good direction” and “without side effects”.

Following the introduction, this paper focuses on reviewing the literature, the second part detailing the efficiency improvement tool developed to the public finance sector. A summary concludes the study where we evaluate the results obtained.