Financial diagnosis of the „Baia Mare Art Center” County Art Museum

The difficult financial situation that many countries struggle with has made it necessary to find solutions. Particular emphasis is being increasingly placed on a more effective use of state resources within each public institution. To this aim, several legislative restrictions have been passed, aimed at ensuring a more economical use of public money. However, unless each public institution proves to be interested in improving the effectiveness of its activities, such legislative restrictions fail to result in significant financial improvements at a national level. In order to improve the “health” of the Romanian public system, each public institution needs to analyze its own activity on a continuous basis, so as to identify the options for improving its financial performances. Such a financial analysis may be performed based on the data provided by the budgetary income and expenses account. A structural and dynamic analysis of the itemized revenues and expenses, correlated with an analysis of other elements such as stocks and customers, allows the institution both to identify its current situation and to find solutions towards improving the efficiency of its activity. By performing the above-mentioned analysis, this paper aims to establish the current financial status of the “Baia Mare Art Center” County Art Museum, to identify the causes that have led to this situation, as well as to point out solutions that might improve the efficiency of this institution.