The mathematical model for financial provision of project-based education programmes

The main purpose of this work is to develop a new financial and mathematical model for managing higher education institutions in conditions of normative per capita financing, as well as to elaborate a dynamic descriptive model, which would take into account the specificity of financial support for universities’ educational and research activities in implementing project-based education programmes. The research has been carried out within one of the areas of education economics dealing with developing strategic financial management methods and algorithms.Over the past decade, there have been at least two major changes in the operating conditions of higher education institutions. Firstly, the principle of education institution financing has radically changed: from estimated budget financing to normative per capita one. Meanwhile, the vast majority of education institutions have yet not been able to realign their financial management systems according to new requirements. This problem is being addressed, inter alia, by developing new models and algorithms for financing all areas of university activities. Secondly, transition to new models of university complexes is currently under way. Thus, it has become necessary to build mathematical models for financing, staffing and administering university transformation into a regional centre of innovative, technological and social development. New approaches to resourcing relevant programmes are needed in order to establish an innovative and entrepreneurial university with an academic core and inter-disciplinary infrastructure which would provide staffing and intellectual support for developing region’s high-tech economic and social sectors through the effective integration of science, education, industry, development institutions and non-profit socially-oriented organizations. Addressing these two problems requires developing financial and mathematical models for financing, staffing and administering university transformation into the regional centre of innovative, technological and social development.This paper presents a dynamic economic and mathematical model for budgeting structural subdivisions of higher education institutions, which introduce project-based training into the educational process on the basis of the current educational standards, curricula and financial plans of education programmes, and the methodology of normative per capita financing.