Finance Management in Education

MGT202
Lecture # 06
School Site Budgeting

Muhammad Toseef Aslam

M.B.I.T (Finance), MSBA
 Recap (Lecture # 05)
Budgeting ..vs.. Budget
Budgeting in Education
Budget an instrument for planning
Budgetary accounts of school systems
Budgetary practices around the globe
Modernized approaches to budgeting
Educational Budgets (A Study of Selected Districts of Pakistan)
 School Site Budgeting

Also known as School-based Budgeting or Site-

based Budgeting
Considered as the most practical for budgeting
within educational environment
Provides greater control and reporting;
emphasizes the decentralization of budgetary
decision-making
Places local managers and other staff at the
center of the budget preparation process
 Advantages of School Site Budgeting

Those who best understand the needs of a

particular organization are empowered to make
resource allocation decisions
The decentralization of budgetary authority may
also increase local accountability
The increased level of participation of the public
and staff in budget development
 Limitations/Disadvantages
of School Site Budgeting

Organizations with limited resources may not be

capable of granting a meaningful level of site-
based budgetary authority
May be burdensome to some local managers
May increase conflict between staff or
departments
May limit the organization's ability to ensure
quality and sufficiency in the services it provides
 AN INVESTIGATION INTO
THE PROSPECTS AND PROBLEMS OF
SCHOOL BASED BUDGETING
IN PAKISTANS PUBLIC SCHOOLS

A Project of
Sustainable development policy Institute
Action Aid Pakistan
Centre for Peace and Development Initiatives

Islamabad, 2009

This project was financed by:

- ActionAid Pakistan
- Save the Children Fund, UK
- Voluntary Services Overseas (UK)
The project was implemented by:
- Sustainable Development Policy Institute, Islamabad
- Centre for Peace and Development Initiatives, Islamabad
 An Excerpt from INTRODUCTION

School Based Budgeting (SBB) or School Based

Management is an increasingly popular strategy for managing
education in many countries. The starting point of the concept
is determination and allocation of resources on the basis of the
needs of individual schools. Further, it seeks to maximize
discretionary power of schools and communities on the
utilization of available funds. The underlying assumption is
that if schools are given more funds and authority to utilize
the funds, they would use the funds more innovatively and
effectively, which would eventually impact positively on
students learning (Levin, 1987). It will also hold schools
more accountable on students learning achievements.
 Objectives of the Study
The study was conducted in seven selected districts, one district from each
administrative unit; Sindh, Balochistan, Punjab, Khyber-Pukhtunkhwa,
Gilgit-Baltistan, Federally Administered Tribal Areas, and Azad Jammu
and Kashmir. The chosen districts were, respectively, Khairpur, Sibi,
Multan, Mardan, Gilgit, Kurram Agency, and Muzaffarabad. Both
qualitative and quantitative data was collected with the objective of
determining:
The needs for baseline as well as quality education in Pakistani
public schools
The present and recommended per pupil expenditure on education
in Pakistan; and
Any class-based or rural-urban divide or gender biases in the
provision of education in the public sector
 Theme of the Study

In this study, the issues of school based budgeting

have been seen in the light of:
1. Fund allocation and disbursement;
2. Nature of need assessment of schools;
3. Mechanisms for fund disbursement and
reimbursement;
4. Level of provision or otherwise of basic facilities
to schools; and
5. Mechanisms of oversight over functioning of
schools.
 Islamabad Capital Territory
Major Issues and Concerns
The salaries of teaching and other staff in government schools are low, which
makes it difficult for the education sector to attract high quality staff. The
living expenses in Islamabad are very high, so staff must take additional jobs,
such as offering tuition services in private academies or at homes. This
situation makes it difficult for the staff to focus exclusively on their own
profession.
As few funds are available to cover operating expenses, equipment, repair
and maintenance, the facilities in government schools cannot be mobilized or
kept in working condition. So, while toilets exist, funds are not sufficient to
keep them in a hygienic and working condition. Likewise, science
laboratories and playgrounds are not maintained.
Schools face problems in accessing the funds allocated for them. The
directors of primary and middle schools do not have the power of drawing
and disbursing and, therefore, they must seek approval from the concerned
authorized officers i.e. drawing and disbursing officers. The process is
inefficient and can facilitate corruption.
 Islamabad Capital Territory
Major Issues and Concerns
The budget making process is not open, transparent or participatory. It is
dominated almost exclusively by the bureaucrats, while the views of parents,
students and communities regarding the needs and priorities are neglected.
Elected representatives exercise few or no rights, as there is no elected body
for Islamabad. On the other hand, the federal parliament, which has the
authority to exercise this privilege, does not have the time to discuss these
matters.
The procedure relating to utilization of funds is not transparent and lacks
effective public oversight and accountability. As a result, there are complaints
regarding inefficient utilization and delays in implementation of projects.
Insufficient funds are allocated to meet special or additional needs of schools
or teachers in rural areas. For instance, teachers serving in rural schools,
especially in girls schools, are not provided with transport, which makes it
difficult for them to get to work and affects their morale. The teachers working
in rural areas should be encouraged through providing incentives to overcome
the hardships involved in working in those areas.
 Islamabad Capital Territory
Recommendations
The overall allocation for education in Islamabad Capital Territory
should be increased.
The condition of primary schools should be improved by providing
adequate resources, facilities and technical support.
Needs for operating expenses should be determined through an
open consultation process, involving all the stakeholders. When
determining needs, it is important to take into account the necessity
of more frequent communications and interactions among teachers
and parents as well as improving the classroom environment for
higher quality learning.
An appropriate and relatively easy mechanism should be
established, by which the directors (heads) of primary and middle
schools can claim and utilize the funds allocated for them.
 Islamabad Capital Territory
Recommendations
In the absence of a local government system in Islamabad, a
citizens consultative forum should be established to discuss
education-related matters pertaining to Islamabad Capital Territory
and advise the federal government on important issues and needs.
The elected members of the National Assembly from Islamabad,
eminent citizens, civil society representatives, heads of selected
educational institutions and representatives of the FDE and Ministry
of Education could constitute this forum.
The special needs of girls schools and rural schools should be
carefully identified and emphasized.
Annual budgets must make necessary provisions with the primary
objective of providing high quality education services to all.
 Recap
School Site Budgeting
Advantages of School Site Budgeting
Limitations/Disadvantages of School Site
Budgeting
An Investigation into the Prospects and Problems
of School Based Budgeting in Pakistans Public
Schools
Educational Budgets (A Study of Selected Districts of Pakistan)
Issues and Concerns in Education Budget of Islamabad Capital
Territory
Recommendations to address the identified issues
 Precap

Lesson # 07
Zero Based Budgeting
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