Financial management of State Forests National Forest Holding in relation to challenges of sustainable development of forestry

Kuźma, Magdalena

doi:10.15290/oes.2018.04.94.08

Cited by 2 publications

(1 citation statement)

References 6 publications

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“…These determinants also impact the financial management of forest holdings, which differs considerably from that of other economic entities, such as public sector organizations and state-owned enterprises and private companies. The lack of close correlations between the efforts undertaken and their effects leads to disproportions between expenditures on production and the value of the obtained timber or other forest products [20]. The financial and accounting systems of forest holdings are shaped by the specific natural and economic determinants of forestry production [21,22].…”

Section: Introductionmentioning

confidence: 99%

The Effects of Natural and Economic Factors on the Financial Performance of Forest Management Units: The Example of Forest Districts of the State Forests National Forest Holding from Eastern Poland

Kożuch

Marzęda²

2021

Forests

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Given the changing market conditions and uncertainty arising from climate change, forest management tends to focus on the financial functioning of forest holdings. The objective of this work is to study the financial performance of forest districts using ratio analysis, synthetic financial indicators, as well as the relationship between synthetic indicators and forest district categories defined in terms of forest site type, site fertility, compatibility stand species composition, species composition, harvesting system, harvesting intensity, fragmentation of forest complexes and management difficulty level. The study material consists of financial documentation from 82 forest districts of the State Forests National Forest Holding (SFNFH) in eastern Poland from the years 2015–2019 and 2005–2009 (for comparison purposes). Synthetic indicators were calculated using two sets of financial ratios as well as two variants of accounting data. In the study period, forest districts were found to differ in terms of their financial performance, which was affected by the natural and economic factors. The synthetic indicators were significantly higher (p > 0.05) for forest districts operating on low-fertility lowland sites, those managing stands with dominant pine, and those implementing a clearcutting regeneration system. The findings concerning the effects of selected natural and economic factors on the financial condition of forest districts may be used for financial planning and management by SFNFH, in particular in decision-making processes to optimize forest management. The applied methods may stand as a basis for the construction of a sectoral evaluation tool.

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Section: Introductionmentioning

confidence: 99%

The Effects of Natural and Economic Factors on the Financial Performance of Forest Management Units: The Example of Forest Districts of the State Forests National Forest Holding from Eastern Poland

Kożuch

Marzęda²

2021

Forests

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The Forest Fund as an instrument for addressing budget deficit in Polish forest districts

Snarski

2023

ASPAL

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Motives: The forest fund was established to ensure the financial stability of forest districts whose operations are financed by the State Forests National Forest Holding in Poland. However, the main role of the forest fund is to distribute funds from high-income forest districts to districts reporting a budget deficit. Aim: The purpose of this paper was to analyse and evaluate the model of managing forest fund resources in view of the provisions of the applicable legal regulations. Results: Between 2013 and 2020, the allocation of funds to forest districts reporting losses did not contribute to fair and rational distribution of resources, nor did it eliminate differences in the financial performance of forest districts operating under various environmental and economic conditions and implementing nature promotion and social education activities. The mechanism by which timber sales (operating costs that reduce profit) can be deducted from the forest fund raises serious doubt. Districts that benefit from such write-offs can program the amount of deductions in the forest fund. The above violates the principle of tax equality which states that tax laws should be applied in an identical manner to all taxpayers. A decrease in profits posted by forest districts reduces the central government’s revenues in virtue of the taxes paid by the State Forests.

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Financial management of State Forests National Forest Holding in relation to challenges of sustainable development of forestry

Cited by 2 publications

References 6 publications

The Effects of Natural and Economic Factors on the Financial Performance of Forest Management Units: The Example of Forest Districts of the State Forests National Forest Holding from Eastern Poland

The Effects of Natural and Economic Factors on the Financial Performance of Forest Management Units: The Example of Forest Districts of the State Forests National Forest Holding from Eastern Poland

The Forest Fund as an instrument for addressing budget deficit in Polish forest districts

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