ANALYSIS OF THE LACK OF IMPLEMENTATION OF THE COST SYSTEM IN A PUBLIC HIGHER EDUCATION INSTITUTION

Abstract

Objective: This article aims to analyze the impacts of the non-implementation of an efficient costing system in a Brazilian public higher education institution (HEI) and propose recovery strategies based on the Spanish Costing Model (SCM). Methodology: The research follows a qualitative approach, using descriptive and exploratory methods. Data collection included documentary analysis, semi-structured interviews with managers and employees, and participant observation of the HEI's administrative and financial processes. Gap: Despite the detailed recommendations and benefits projected by the study "Analysis of student costs as a tool for managerial decision-making in a public higher education institution" by Luiz Antonio de Oliveira Dantas (2022), the Brazilian public HEI analysis, which did not authorize the disclosure of its name, did not adopt these practices, resulting in ineffective management and deterioration in the quality of services. Results and Contributions: The analysis revealed that the absence of an efficient costing system led to financial mismanagement, operational inefficiency, a decline in the quality of services, and a lack of transparency. The late implementation of the MCE proved effective in reversing these problems and improving resource allocation, operational efficiency, and service quality. This study contributes to the academic literature by demonstrating the importance of standardized cost systems for the sustainability of public HEIs. Relevance: This study reinforces the critical importance of efficient cost systems for financial management and service quality in public HEIs, offering valuable insights for managers and policymakers. Impact: The experience of the studied HEI serves as a guide for other institutions facing similar challenges, highlighting the need for continuous capacity building and adoption of efficient cost management practices to ensure financial sustainability and transparency.