Mher Parvanyan – Director of Finance at Armenian State University of Economics

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Mher Parvanyan was appointed as Director of Finance of Armenian State University of Economics according to acting Rector Ruben Hayrapetyan’s decree on March 12. Here we present the interview with Mher Parvanyan conducted by ASUE Media and Public Relations Division.

-Dear Mr. Parvanyan, first I congratulate you on appointment as Finance Director of the Economic University and thank you for the readiness to give an interview.

- I also thank you for congratulations and also for the interview.

-Mr. Parvanyan, I would like to talk about Your career .

- Certainly, let me briefly describe it. I am this University alumni /State and Municipal Management specialty/, have trained in Germany - in a NATO school, and then in the UK. For many years I have been dealing with the issues of economic security in Armenia, occupying the position of the head of financial department of National Defense Research University, MOD, RA. I have been involved in the problems of Armenia's economic security and public finances at the level of the above-mentioned institution. Besides, I have founded and manage "Parvanyan Consulting" company, which is one of the few known consulting companies in the Republic of Armenia.

-What basic functions would you carry out and what will be the priorities?

- As a director of finance functions can be divided into two major groups - coordination and control, which supposes coordination of the subdivisions' activities, controlling and increasing efficiency. And the second group is the functions of financial management, which supposes the introduction of a new financial management system, the revision of an existing one, aimed at increasing the efficiency of not only in finance, but commonly in management, because financial management and general management are interconnected. Therefore, the functions of the second group are very important within the frames of the reforms announced by Mr. Hayrapetyan.

- According to the new structure of ASUE, there will be two divisions under your coordination, can you speak about their activities, what changes are expected?

-Frankly, as I have just been appointed, I am not yet aware of the qualitative side of the work, although I am sure that good specialists are gathered and do a good job. To speak about the functions it should be stated - the most important part of the accounting division is that accounting should be in accordance with international standards. As for the procurement division the main function here is to be the head’s active involved in logistics resource planning process, including the procurement coordination process. In addition, I ‘ll certainly cooperate with the University other subdivisions.

- Financial management is one of the most important activities of any organization, which is your formula for effective financial management?

- The financial management formula is not a low cost, i.e. saving, rather than financing the outcome. It means that when we say saving, we mean not to spend a lot of money, which is a Soviet period approach and, unfortunately, it’s also used nowadays, but efficiency means calculated and justified costs for achieving targeted issues. Here the “targeted issue” formulation is of great importance, because there may be a corresponding cost, but not the targeted outcome. Here we should talk about the methodology of program budgeting, which has been introduced in the state system since 2018 and the state budget has been developed by this methodology since 2019. One of our next steps will be the application of this methodology in the university. Program budgeting is of great importance, finances should be planned: at the same time, their measurable non-financial outcomes should be planned.

The University budgeting for the 2019 is already ready, but in the upcoming period we will prepare the ground for planning 2020 budget with program budgeting methodology. This is one of the key tools aimed at implementing the university strategy.

And I would like to touch upon the indicator of efficiency, which means that a differentiated approach to labor remuneration based on the outcome will be introduced, and therefore, when the employee solves the measurable issues he or she is facing, and will get the appropriate salary.

Here are the main directions we want to implement and considering my experience in these areas Mr. Hayrapetyan has invited me to occupy this position.

- As a director of the company established in the Armenian consulting companies market, how did you accept the invitation to work at ASEU?

-Yes, it’s an important question. Actually, as Director of “Parvaryan Consulting” company, I agree to take this position. I am sure that any brand-maker business should have a social responsibility. “Parvanyan Consulting” and I as a citizen of Armenia have social responsibility for supporting the economy, and I come up with my authoritative statement, economic, legislative initiatives and analyzes. In this context, when I got an invitation from Mr. Hayrapetyan, I realized that this was unique opportunity to accomplish that mission. I consider that ASUE is obliged to become one of the locomotives of the economic revolution announced by the new authorities and I think I should be here as a director of finance. That is, the reforms that are declared by the University strategy and realistic I should contribute to them with my work and analysis as a director of finance, as an economist and as a scientist. I hope, ASUE will become the locomotive of the mentioned process and I am responsible for it.

-The creation of a financial separate direction means that our university will pay great attention to financial management, what are the expectations?

- Of course, financial management should be of a great importance. The institute of director of finance is the institute of manager of finance, manager. When we speak about this institute, we speak about management of finance, which means involving finance and spending them in such a way as to have clear outcomes. That is, the connection of the outcome and the cost is of great importance in other words, the direct connection of non-financial and financial indicators, and yes, ASUE acting Rector attaches great importance to all the mentioned in the context of carrying out the University new strategy.

ASUE Media and Public Relations Division