THE COPPEBELT UNIVERSITY

In association with

THE TECHNICAL AND VOCATIONAL TEACHERS’ COLLEGE (TVTC)

AN INVESTIGATION ON THE EFFECTIVENESS OF FINANCIAL

MANAGEMENT IN SCHOOLS: A CASE OF SELECTED SCHOOLS IN
MWANSABOMBWE DISTRICT OF ZAMBIA

NYAMBE NAMWAKA
STUDENT NUMBER: 12464

Bachelor of Business Studies Teacher Education, Copperbelt University

The Project Report submitted in partial fulfilment of the award of Bachelor of

Business Studies Teacher degree of the Copperbelt University

April, 2020
COPYRIGHT
All rights reserved. No part of this dissertation may be reproduced, transmitted, stored, or used in
any form or by any means graphic, electronic, or mechanical, including photocopying, recording,
scanning, web distribution, or any information storage and retrieval systems, without permission
from the author or the Technical and Vocational Teachers’ College.

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DECLARATION
I, Nyambe Namwaka, do declare that this dissertation is my own work and that it has not
previously been submitted for a degree at the Technical and Vocational Teachers’ College
(TVTC)

Date…………………………signature ………………………………………….……

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DEDICATION
This study is dedicated to my husband, Mr. Ngambi Mosted, my mother Mrs Nyambe R.C, my
father, My Father Mr Nyambe H.M, my sisters, Juriet Namponje N, Rosa Namukoko and Sarah
Kafunda for their understanding and support during my academic life. The other dedication goes
to my lovely daughter Mwizukanji Namwai and my son Wantula Ng’ambi.

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CERTIFICATION OF APPROVAL
This dissertation of Nyambe Namwaka is approved as partial fulfilment of the requirements for
the award of the degree of Bachelor of Business Studies with Education of the Technical and
Vocational Teachers’ College (TVTC).

Signed by…………………………………………………..Date……………………

Signed by …………………………………………………..Date……………………

Signed by…………………………………………………... Date…………………

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ACKNOWLEDGEMENTS
My un-measured gratitude goes to my supervisor, Mrs. Nzobokela .C.T. for her guidance and
assistance rendered to make this work successful. My other thanks go to Mr. Mushani Misheck
who proof read my thesis. May God bless you.

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ABSTRACT
Financial management is fundamental to the improvement of the efficient and effective use of
finances in schools. If the school management and school board chairpersons are well trained on
their roles and responsibilities regarding financial management, they will be able to effectively
deal with financial matters of schools. Financial management is an integral part of efficient and
effective financial management in schools.

This study provides a literature discussion on funding provided to schools by the government, as
well as the essences of financial management in the school setting. The fieldwork sought to
determine the extent of possible problems that schools experience regarding financial
management and aimed at providing possible solutions for efficient and effective financial
management in schools.

School management and school board chairpersons made up the sample of this study.
Questionnaires were used to determine the views and opinions of these participants regarding the
efficiency and effectiveness of financial management in their schools. The data gathered through
the open-ended questionnaires were analyzed and reported on qualitatively and quantitatively
using Statistical package for social science (SPSS).

The key findings were that school management and the school board chairpersons wish to play
an important role in financial management in schools, but lack financial management skills to do
so. The lack of financial management skills was more evident on the side of the school board
chairpersons. The result of this lack of financial management skills has the effect on the budget
control of the school and fund mismanagement which invites audit queries.

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Table of Contents
COPYRIGHT...................................................................................................................................................i
DECLARATION..............................................................................................................................................ii
DEDICATION................................................................................................................................................iii
CERTIFICATION OF APPROVAL....................................................................................................................iv
ACKNOWLEDGEMENTS................................................................................................................................v
ABSTRACT...................................................................................................................................................vi
LIST OF TABLES............................................................................................................................................ix
CHAPTER ONE..............................................................................................................................................1
INTRODUCTION...........................................................................................................................................1
1.0 BACKGROUND OF THE STUDY............................................................................................................1
1.1 PROBLEM STATEMENT......................................................................................................................2
1.2 GENERAL OBJECTIVE OF THE STUDY..................................................................................................3
1.2.1 Specific Objectives......................................................................................................................3
1.3 GENERAL QUESTION OF THE STUDY..................................................................................................3
1.3.1 Specific questions.......................................................................................................................3
1.4 DELIMITATION OF THE STUDY...........................................................................................................3
1.5 LIMITATION OF THE STUDY................................................................................................................3
1.6 SIGNIFICANCE OF THE STUDY............................................................................................................3
1.7 SUMMARY.........................................................................................................................................4
CHAPTER TWO.............................................................................................................................................5
LITERATURE REVIEW....................................................................................................................................5
2.0. Introduction......................................................................................................................................5
2.1 Overview of literature.......................................................................................................................5
2.2 THE ESSENCE OF FINANCIAL SCHOOL BOARD....................................................................................7
2.3 THE EXTENT OF POSSIBLE PROBLEMS THAT SCHOOLS EXPERIENCE REGARDING FINANCIAL
MANAGEMENT........................................................................................................................................8
2.4 POSSIBLE SOLUTIONS FOR INEFFECTIVE FINANCIAL MANAGEMENT IN SCHOOLS..........................12
2.5 CONCLUSION...................................................................................................................................18
CHAPTER THREE........................................................................................................................................19
METHODOLOGY.........................................................................................................................................19
3.0. INTRODUCTION..............................................................................................................................19
3.1 Research Design...............................................................................................................................19

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 3.2 Study Population and Study Sampling.............................................................................................19
3.3 Sampling Technique.........................................................................................................................20
3.4 Data Collection Instruments............................................................................................................20
3.5 Data Analysis...................................................................................................................................20
3.6 Operationalization of Research Variables........................................................................................20
3.8 Ethical Considerations.....................................................................................................................21
CHAPTER FOUR..........................................................................................................................................22
PRESENTATION AND DISCUSSION OF FINDINGS........................................................................................22
4.1 PRESENTATION OF FINDINGS..........................................................................................................22
4.1.0. Introduction.............................................................................................................................22
4.1.1 Description of data...................................................................................................................22
4.1.2 Presentation of data.................................................................................................................22
4.1.3 Biographic information.............................................................................................................23
4.1.4 What would you consider to be good financial management?.................................................25
4.1.5 The essences of financial School board....................................................................................25
4.1.6 Problems experienced regarding the management of school finances....................................26
4.1.6 Possible solutions with regard to financial management in schools which can be brought forward
...............................................................................................................................................................28
4.2 DISCUSSION OF FINDINGS...............................................................................................................29
4.2.0 Introduction..............................................................................................................................29
4.2.1 SUMMARISED FINDINGS OF THE STUDY.......................................................................................29
4.2.1.1 Findings from the Literature study........................................................................................29
4.3 SUMMARY.......................................................................................................................................34
CHAPTER FIVE............................................................................................................................................35
CONCLUSION AND RECOMMENDATIONS..................................................................................................35
5.0. Introduction....................................................................................................................................35
5.1. Conclusion......................................................................................................................................35
5.2 RECOMMENDATIONS......................................................................................................................35
References.................................................................................................................................................38
Appendix I: Proposal..................................................................................................................................39
Appendix II: Questionnaire........................................................................................................................46

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LIST OF TABLES
Table 1, types of budgets..........................................................................................................................16
Table 2, Gender.........................................................................................................................................23
Table 3, Age...............................................................................................................................................23
Table 4, Experience...................................................................................................................................23
Table 5, qualifications................................................................................................................................24
Table 6, qualification in finance.................................................................................................................24

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 CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
Finance is one of the school resources which needs much needed attention by administrators.
The Zambian education act of 2011 prescribes how schools should develop School board for
supervision and financial management. The act further prescribes how schools should manage
their funds. It also presents guidelines for the School managers on their roles and responsibilities
in managing the finances of a school. There are many School managers who lack the necessary
financial knowledge and skills and are placed under incredible pressure because they are
incapable to find practical solutions to practical problems. The management of school finances
can be one of the most challenging of head teachers‟ responsibilities, because for many it is an
area in which they have little or no training or expertise. It is also likely that the appointed
School manager may be equally ill equipped for the task. (MoGE, 2013).

According to MoGE (2013) prior to 1994 various systems in education lacked both financial and
management accountability. The last ten years have seen major changes in the nature of
governance of schools. As a result of new legislation in Zambia, such as the Education Act
considerably more authority and responsibility for decision-making has been devolved to the
school level than was previously the case. There is a move towards self-managing schools
regarding authority and responsibility to make decisions related to the allocation of resources,
including finances. According to the Education Act, the governance of a public school is vested
in the School managers that stand in a position of trust towards the school.

However, the decentralized model of school governance is not without problems. According to
Zambia Yearbook (2011), at 20% of the total state expenditure, Zambia has one of the highest
rates of government investment in education in the world.

Chisholm (2003) states that, “Although decentralization allows school stakeholders to participate
at a level in which they can have direct impact on matters that concern them, it also allows
different capacities and inequalities of power and influence at that level to be expressed more
strongly” According to Mestry (2006), management of school finances is an integral part of
effective School board and it is essential that the head teacher and members of the finance

1
committee are trained to deal with these financial issues. Most head teachers and school accounts
personnel are always found wanting after auditing by trained senior officers from headquarters.
This is because most of accounting personnel in schools do not qualify for such a responsibility.
Head teachers are always culprits when it comes to mismanagement of school finances because
they lack adequate knowledge about financial management.

1.1 PROBLEM STATEMENT

Most schools have been staggering from their inception because of nonexistence of school
managers who understand the value of financial management and have not been trained in the
area of financial management. Financial management allows a school manager to make decisions
about investment, finance and allocation of surplus and not only sitting in the office waiting for
cash inflows in terms of school fees and government grants.

School managers must be able to invest in profitable projects for example; productive unit, tuck
shop and other revenue generating projects. Keng (2019) states that, “An investment is a
monetary asset purchased with the idea that the asset will provide income in the future or will
later be sold at a higher price for a profit.” The only assets schools dream about after collecting
school fees from pupils are thing without future value such as school buses, teacher outing etc.

On the other hand, financial management allows school head teachers to provide funds for
business activities and investing. Financing involves budgeting, borrowing and lending. The only
budgeting head teachers know creating huge allowances for themselves and not creation of long
term funds. Some even issue/contract debts to pay allowances. No school manager has been
noticed lending out school income which may be paid back with interest.

The consequences of lacking financial management skills by school managers are that; the
school owns no property, misunderstanding between teachers and administrators because of lack
of motivation and schools fail to secure funds for rehabilitation/innovation of the school
infrastructure and many more observed consequence.

Henceforth, there is need for school head teachers to be trained about the importance of financial
School board before they are entrusted with schools. The paper at hand therefore, asses the
effectiveness of financial management in schools: a case of selected schools in Mwansabombwe
district of Zambia.

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1.2 GENERAL OBJECTIVE OF THE STUDY
To establish the effectiveness of financial management in schools in Mwansabombwe district.

1.2.1 Specific Objectives

In order to reach this aim, the following objectives were realized by the study:

1. To ascertain the essence of financial School board;

2. To determine the extent of possible problems that schools experience regarding financial
management.
3. To determine possible solutions for ineffective financial management in schools.

1.3 GENERAL QUESTION OF THE STUDY

How effective is financial management in schools in Mwansabombwe district?

1.3.1 Specific questions

Research questions that emanate from the research problem include:

1. What are the essences of financial School board?

2. What are the possible problems experienced regarding the management of school
finances?
3. What possible solutions with regard to financial management in schools can be brought
forward?

1.4 DELIMITATION OF THE STUDY

The research study will be based in the field of business studies teachers’ education and will be
conducted in Mwansabombwe District.

1.5 LIMITATION OF THE STUDY

The study will not consider the confirmed head teachers or chattered accountants. Whoever is
going to be found in the office of the head or anyone responsible for school finances shall be
issued with questionnaires because the research is not experimental.

1.6 SIGNIFICANCE OF THE STUDY

The research about the effectiveness of financial management in schools is vital in such a way
that, it will cover the research gap on the effectiveness of financial management in schools. The
study will also help stake holders do further studies basing on financial management in schools.

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1.7 SUMMARY
The study was conducted to develop a sustainable approach to Financial Management in School.
This chapter discussed the background of the study, problem statement, research purpose,
research hypothesis/research questions/propositions, limitation of the study, and delimitation of
the study and significance of the study.

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 CHAPTER TWO
LITERATURE REVIEW
2.0. INTRODUCTION
This chapter reviewed the literature from various sources to enable the researcher know what
others have done about the proposed research topic. By reviewing various literature, the
researcher was able to identify the existing knowledge gap. The chapter therefore, discussed the
key areas of research.
2.1 OVERVIEW OF LITERATURE
Financial Management means planning, organizing, directing and controlling the financial
activities such as procurement and utilization of funds of the organisation. It means applying
general management principles to financial resources of the enterprise. The school manager must
be able to apply the general management principles to financial resources of the school. The
scope of financial management includes investment, financial and dividend decisions.
Investment decisions includes investment in fixed assets (called as capital budgeting).
Investment in current assets are also a part of investment decisions called as working capital
decisions. School managers are supposed to be investing in real estate and also financial assets.
The school can for example acquire land and build houses for teachers and outsiders to be
renting. The school can also revamp productive unit so as to completely get lead of dependency
on school fees and government grant.

Meanwhile financial decisions relates to the raising of finance from various resources which will
depend upon decision on type of source, period of financing, cost of financing and the returns
thereby. The school can initiate projects for example, fish farming which requires huge capital
where the school will be required to draft up a business plan then borrow money from banks.

Dividend decision involves the school manager to take decision with regards to the net profit
distribution. Net profits are generally divided into two: Dividend for shareholders which is
dividend and the rate of it has to be decided and also retained profits which is the mount of
retained profits has to be finalized which will depend upon expansion and diversification plans of
the enterprise. A good school managers re-invests the profit made so that in the long run the
school runs without facing financial challenges.

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Finance is the art and the science of managing money and is concerned with the process,
institutions, markets and instruments involved in the transfer of money among individuals,
institutions (including schools) and governments. (Gitman, 2003). According to Hellriegel,
Jackson and Slocum (2005), management includes the tasks and activities involved in directing
an organisation or institution. General management rests on four main pillars, namely; planning,
organising, leading and controlling. Therefore, financial management in education is the
distribution and use of money for the purpose of providing educational services and producing
learner achievement. (Oosthuize, 2003). Therefore, from the above assertion, finance is based on
identifying a project and provision of money to fund the project.

Major changes in the nature of governance of schools have been proposed and implemented in
Zambia. As a result of new legislation, such as the education Act, considerably more authority
and responsibility for decision-making has been devolved to the school level than was previously
the case. According to Campher, (2003), the financial management of a school must be
organized if it is to be effective. An organizational structure must be put into place if one does
not already exist. It is also wise to re-educate existing structures, particularly in the context of the
many changes that have occurred in the Zambian education system. A school must function
within such an organizational structure. This implies that there must be an understanding of
authority in the school as well as a delegation of authority. The concept of authority goes hand in
hand with the concept of responsibility. Responsibility means that people will carry out given
duties to the best of their ability.

Mestry (2006) asserts that the Schools Act prescribes how schools should manage their fund.
Guidelines for the school manager and Finance committee on their roles and responsibilities in
managing the finances of the school are also provided in the Education Act cap 135 of the laws
of Zambia. According to Education Act, the financial committee must be involved in all the
financial functions of the school. (MoGE, 2019). The mandatory functions include policy issues
such as adopting a constitution, drafting a mission statement, drawing up policies such as an
admission policy and relevant to this study, also a financial policy.

According to Schreuder and Landley (2001) schools obtain finances from three main sources:
government funding, school fees and special fundraising campaigns. Provincial education
authorities divide funds according to the National Norms and Standards for the funding of

6
schools and each school’s share is calculated on the basis of the physical condition of the school,
the relative poverty of the community (social economic factor) and the relative poverty of the
school.

A school is therefore part of a system. Financial School board is thus not simply economics and
accounting as applied to schools. It is a broad field of study that touches on many disciplines as
part of the education system. In order to understand and apply school financial management, it is
necessary to have an understanding of the school context, basic accounting procedures, economic
policies, the law relating to education and schools, as well as management skills such as
planning, reporting procedures and leadership (Campher et al., 2003). According to Dunn
(2005:70), internal controls are an integral part of careful financial management in every school
setting. Internal controls provide a system of checks and balances to detect financial errors and
irregularities in a timely fashion. Most internal controls are designed and used as measures to
prevent mistakes from occurring or to correct operational or recording errors. Financial
accounting is an essential component of the financial management of a school. A school needs to
process, analyze and interpret financial data and information in order to function effectively
(Campher et al., 2003).

2.2 THE ESSENCE OF FINANCIAL SCHOOL BOARD

According to the MoGE, (2013), it is evident that the drafting and controlling of the budget is an
important role of the school board. It is also clear that legally it is the responsibility of the school
board to draw up the school budget, but in most cases due to a lack of financial information it is
done by the Head teacher and the staff and then presented to the school board.

It is the role of the school board is to draft the budget and present it to other stakeholders for
comments, questions, contributions and approval during the general parents meeting. The role of
the school board is to control expenditure and income as well as the budget. The role of the
school board of a public school is to prepare a budget each year according to guidelines
determined by the member of the executive council which shows the estimated income and
expenditure of the school for the following year. The school board is to draw up the budget based
on the needs that are identified by the educators and the Head teacher.

Further, it is the role of the school board at their school is to see to it that the school stays within
the budget. The school board checks from time to time whether the school does not exceed the

7
budget during the year. They must monitor, mandate and approve payments and purchases
according to the budget.

The school board legally govern the school in partnership with all stakeholders. The role of the
school board is to establish committees, to buy books and minor items and also to monitor and
control funds. It was also mentioned that in some cases the Head teacher and staff draft the
budget and then present it to the school board. This in itself is not necessarily incorrect, but
school board members should be able to spend time on a drafted budget to familiarize
themselves with its contents prior to signing it off.

2.3 THE EXTENT OF POSSIBLE PROBLEMS THAT SCHOOLS EXPERIENCE

REGARDING FINANCIAL MANAGEMENT.
Educational institutions are the special havens for learning and development. Most schools are
non-profit organizations and they must manage their finances judiciously. Schools mostly rely on
school fees collection as the primary source of finance and have to adhere to budget lines
through close monitoring. The management of school finances is a key duty of school heads in
consultation with school development committees or associations. The application of
organization development principles and values is essential in addressing the increasing cases of
funds embezzlement and misappropriation within schools. The poor adoption organization
development principles and practices in financial management remains a key challenge in
educational institutions.

The management of school finances comprises planning, controlling and implementing a

financial plan, accounting, reporting and protection of assets from loss, damage and fraud. This
demand inculcating essential leadership values and traits among the custodians of school funds,
strong internal controls and setting robust internal audit standards. (Campher, 2002). Here is a
brief review of some of the financial management challenges in schools:

Budgetary control

Lack of planning affects the effectiveness of schools as it complicates reporting on achieved

objectives and results. The planning process helps to develop objectives, key activities,
milestones, Key Performance Indicators (KPIs), financial policies and procedures. (Lewis,
2003). Most schools struggle to effectively implement their budgets and this hinders or delays
the schools to improve the quality of education. In most schools, budgets are not being

8
effectively monitored to the extent that numerous budget amendments and adjustments are being
done without the requisite authority’s approval. In any organization, budgets serve as guides or
benchmarks to financial planning and projects management. In view of the poor financial
policies and procedures, most school heads and bursars are being found wanting during the audit
process. It is imperative that all budget amendments and adjustments should be authorized by the
relevant authorities. In Zambia the office of Provincial Education officer is responsible for the
authorization of budgets amendments based on cash flows rather than on accrual basis. The
school development plan should inform budget management and as such minimize deviations
from set targets.

Deficit school accounts

Most schools’ books of accounts are running with deficit balances. Deficits interrupt or restrict
operational activities. The deficit school accounts are mostly caused by lack of internal controls
and as such increased misappropriation of funds and failure to adhere to financial policies and
procedures when making payments. (Beckmann, 2002).

Lack of budget reviews.

Xaba (2010) says, “Lack of budget reviews contributes to poor financial management. Financial
control is a fundamental aspect of effective financial management.” Budgets are not being
reviewed after every end of School Terms hence there will be no budgets analysis being done.
Budget reviews are part of financial controls to determine any variances between planned and
actual results. The determination of variances is useful as a spur to immediate remedial action if
actual performance is below expectation. Budget reviews help to enhance financial control, and
this is a continuous process to ensure school’s resources are mobilized and distributed
effectively. The process also enhances monitoring and evaluating the school’s financial progress
and initiating corrective action.

Lack of financial accountability

Financial accountability is a moral or legal duty, placed on an individual, group or organisation,

to explain how funds, equipment or authority given by a third party have been used and asserts
that those who have invested not just money but also time, effort and trust in the organisation,
are interested to see that the resources of the organisation are used effectively and for the purpose

9
for which they were intended. (Nanamela, 2014). There is a lack of accountability in school
financial management. This is exhibited through the seemingly pervasive abuse of offices by
school heads. School heads are regarded as the accounting officers of schools and as such they
use their power to ‘force’ bursars to release funds or make other payments without following
procedures. This emanates from improper and ineffective School board and lack of stringent
accounting rules and procedures. Such practices exhibit a lack of values and Values-based
leadership among those in positions of authority and decision-making. Internal control systems
comprise a system of procedures and methods with the objective to assure compliance with the
principles of legality, transparency, efficiency, effectiveness and management economy. A good
leader should conscientiously manage and execute the organization’s budgeting activities among
other diverse responsibilities. A competent school leader exhibits healthy human relations,
trustworthy advice, commendable leadership and a two-way communication with staff. These
qualities can be enhanced through Appreciative Leadership and engaging purposely in methods
of enquiry.

Use of cash before banking

The Zambian economy relies mainly on cash payments and as such most schools use receipted
cash before banking, which is a chargeable offence in financial management. All cash received
must be banked first before being used. Ibid. The digitization of school fees payments should be
a top priority in most schools as a method of enhancing the financial management function.

Collusive and corrupt conduct

There is a challenge of collusive and corrupt conduct during procurement process. This
culminates as a violation of procurement procedures. Procurement is the process of purchasing
goods and services. The procurement process is one major source of conflict of interest between
school manager and agents in an agency relationship. This is because collusion and corruption
are rampant in procurement procedures. (Clarke, 2007). Procurement procedures, though clearly
defined and communicate are not being followed in schools and this causes major financial
problems for schools. The distortion of the procurement process via collusion and corrupt
practices typically has a particular detrimental effect on schools. The resulting failure to achieve
best value for money has a negative impact on the range and depth of services and infrastructure
development within schools. An effective procurement policy promotes efficiency or the

10
achievement of the “best value for money”. (Du Preez, 2003). This is normally achieved through
a competitive bidding process. It is critical that schools protect the integrity of the procurement
process, so as to maximize the resulting benefits for society. Bid rigging is the typical
mechanism of collusion which leads to the predetermination of the outcome of the procurement
process by the participants rather than the competitive process. To protect the integrity of the
procurement process, schools need to design and implement the procurement procedure. This
requires values and the right attitude among those involved in the procurement process. A bigger
picture consideration when engaging in procurement processes is essential rather than self-
centeredness behaviors.

Mismanagement of school projects

Cohen (2000) averred that, “Mismanagement of school projects is another drawback in financial
management.” School projects are another secondary source of funding for schools, if properly
managed and integrated into the school financial management system. In most school projects,
staff takes loans of items with the idea of paying on month end, but they do not own-up their
obligations.

Poor records keeping and management

Schools also face the challenge of failing to account for expenses incurred as a result of the
absence of supporting documents (receipts) to support the expenditures incurred. Poor records
management leads to difficulties in administering, developing and supervising education
systems. (Mestry, 2008). Record keeping is a vital financial management responsibility because
of the indispensable role of records and information in the operational activities of the school
system. Quality performance, task accomplishment, and measurable outcomes are important
responsibilities which depend on the accessibility of usable records. Without records, it is
virtually impossible to determine responsibilities for actions and hold individuals accountable.

Fraudulent activities

Reports show that some School Bursars are being caught of fraudulent activities such as under
receipting of fees. This is mainly a result of poor internal monitoring of the school’s financial
resources. (Schreuder, 2001). Internal monitoring supervises the entire school financial
management system. In most schools, the school heads oversee the budgeting, accounting and

11
auditing functions of financial management. This multiplicity of roles performed by school heads
is controversial and problematic, as the school heads can remarkably derail and decentralize
governance structures by retaining control for themselves.

Economic challenges

The issue of ethics is highly compromised in schools’ financial management practices. It is

essential that schools’ administration staff and the subordinate employees be educated with the
knowledge of ethics and ethical practices. (Campher, 2002). There seem to be rampant abuse of
travelling and subsistence allowances by most staff in schools. Most staff abuses such benefit by
always travelling in order to get allowances, that is, staff creates unnecessary journeys in order to
get the allowance. There is also the challenge of discriminations between teaching and non-
teaching staff. Some schools regard the teaching staff as the most important staff than other
administrative staff. The issue of values and ethical practice should be ingrained in the schools’
corporate culture. School heads, teachers and non-teaching staff must go for financial
management training to enhance leadership skills and proper financial management in
educational institutions. A financial dashboard system should be incorporated in school financial
management as part of the Performance Management System. More effort should be directed at
inculcating essential OD values and leadership traits that sustain the performance of schools.

2.4 POSSIBLE SOLUTIONS FOR INEFFECTIVE FINANCIAL MANAGEMENT

IN SCHOOLS.
Financial Accountability

Lewis (2003:8) defines financial accountability as;

A moral or legal duty, placed on an individual, group or organisation, to explain

how funds, equipment or authority given by a third party have been used and asserts
that those who have invested not just money but also time, effort and trust in the
organisation, are interested to see that the resources of the organisation are used
effectively and for the purpose for which they were intended.

Du Preez, (2003) maintains that financial accountability is an essential component of the

financial management of a school. A school needs to process, analyse and interpret financial data
and information in order to function effectively. The financial information must measure and

12
reflect the financial position of a school at a specific date. Treasurer of the management, who is
also the treasurer of the finance committee, must prepare annual reports on budget, income,
expenditure and balance sheet. The treasurer and bookkeeper must have knowledge of
accounting and bookkeeping. In practice, this demand is difficult to fulfil, since one is unlikely to
find a parent with such skills.

In terms of the requirements of the Public financial management Act, as mentioned earlier, it is
imperative to examine the challenges relating to financial accountability at schools. Xaba (2010)
defines school financial accountability as a function of proper financial accounting and reporting
processes. Financial accountability is the cornerstone of ensuring that schools disburse funds
allocated to them for the sole purpose of advancing the best interests of the learners. The
prescriptions of the Zambian general education school Act of 2016 clearly locates financial
accountability on management and, as such, make financial accountability a legal requirement.
The issue at hand therefore presupposes that it is essential that the school manager makes sure
that she/he has the knowledge and understanding of the basic processes involved in managing the
school's accounts, the budgeting process and the systems as well as controls necessary to ensure
that the school's monies are not misappropriated (Clarke 2007:278).

Moreover, financial accountability is a very important principle of financial management.

Accountability not only helps the school to keep track of what has been done with the money,
but also allows the school to explain its activities to the stakeholders.

The Financial Accountability Model

13
Figure 1, the financial accountability model

Source: Adapted from Maritz (2005:32)

Financial management process involves three activities:

 Financial planning is a process that an organisation uses to work out what resources it has
available, what resources it needs and where extra resources can be found. Financial
strategy and the budget are the two most important tools of financial planning.
 Financial control involves maintaining reliable financial records, protecting the assets of
the organisation, authorizing transactions and providing accountability.
 Financial monitoring is a never-ending and ongoing activity in the financial management
process. It involves recording, analyzing and reporting on the finances of the
organisation.

Financial reporting

According to Xaba (2010:150) financial reporting, the most important element of financial
accountability, entails producing regular financial reports for those with an interest and a right to
know. Section 43 of the Zambian education school Act, No. 84 of 1996, stipulates

the governing body of a public school must appoint a person registered as an accountant and
auditor in terms of the Public Accountants and Auditors Act, 1991 (Act No. 80 of 1991), to audit
the records and financial statements referred to in Section 42; if the audit referred to in
subsection (1) is not reasonably practicable, the governing body of a public school must appoint
a person to examine and report on the records and financial statements referred to in Section 42

14
of the Act, who: is qualified to perform the duties of an accounting officer in terms of Section 60
of the Close Corporations Act, 1984 (Act No. 69 of 1984); or and is approved by the Member of
the Executive Council for this purpose.

The Zambian education school Act, 1991 (Act No. 80 of 1991), stipulates that no person, who
has a financial interest in the affairs of the public school, may be appointed under this section. If
the member of management committee deems it necessary, he or she may request the Auditor-
General to undertake an audit of the records and financial statements of a public school. A
governing body must submit to the HoD, within six months after the end of each financial year, a
copy of the annual financial statements, audited or examined in terms of this section. At the
request of an interested person, the governing body must make financial records, and the audited
or examined financial statements referred to in this section, available for inspection.

According to Kruger (2003:242), an important characteristic of the present approach to education

management in general and financial management specifically, is the emphasis on transparency
and information sharing among all stakeholders. Accountability has become a collective
responsibility, which should include all stakeholders. For the Head teacher and governing body,
this means that they must deal with the funds in a responsible manner and that they are
accountable to the parents, the learners, the community and the ministry of general education.

School Finance Policy

In order for a school to manage its finances effectively and efficiently, a school finance policy
must be developed, adopted by all the relevant stakeholders and implemented accordingly. The
policy must comply with available legislation, such as the Zambian education school Act and it
should set direction and give guidance. Schools and systems need policies and the financial
policy may eliminate or reduce the mismanagement of school funds (Mestry 2004:131).

According to Joubert and Prinsloo (2008:96) every public school should have a policy document
drawn up by the finance committee and approved by the School board after consultation with all
relevant stakeholders; it must spell out in legal detail the responsibilities of the parties concerned,
who they account to, and liabilities where applicable. Naidu (2008) states that the purpose of the
financial policy is to provide guidelines on how persons are to exercise their powers and
decisions for managing the school’s finances.

15
The ministry of general education (2009) maintains that a school financial policy should provide
a clear understanding of the responsibilities of the treasurer, the finance officer, the Head teacher
, and other persons delegated for specific jobs. The financial policy should include the principles
of transparency, accountability, delegation, consultation, equity and redress.

School Finance Committee

In terms of Section 30 of the Zambian education school Act, No. 84 of 1996, the School board
may establish a finance committee and sub-committees, such as a fundraising committee, tuck-
shop committee or a school fees committee. According to the Revised Prescripts on Management
of School Finances (2011) issued by the MoGE (2011), a finance committee must be established
and consist of the head teacher, the management chairperson, treasurer and finance officer.

It further stipulates that the number of members should not exceed nine and members from
parent component must be in the majority. These people are appointed on the grounds of their
expertise. Mestry (2004:131) further recommend that where members of the School board have
no or little financial knowledge, then the School board should solicit the services of an expert
with sound financial knowledge from the parent community.

School Budget

Kruger (2003) defines a budget as a management tool or mechanism, by which the management
team and the governing body of the school can estimate and plan, as well as utilise, coordinate,
monitor and evaluate the allocated resources of the school in financial terms. Tunica (1995:90)
furthermore defines the school budget as an expression of the school plan in fiscal terms. Section
38 of the Zambian education school Act, No. 84 of 1996 makes provision for the School board to
prepare a budget each year. It is therefore imperative that School board members are trained to
execute this legal mandate.

According to Davidoff (1997), the first step in an attempt to obtain money or in managing money
that has been allocated to the school by the MoGE is development of school and project budgets.
These budgets need to include items, such as (a) capital expenditure (computers, desks), and (b)
operating or running costs (for example wages, telephone, stationery). Budgeting requires the
estimating of costs that are likely to occur over a period. Estimates can be developed through
looking at previous costs, as well as looking ahead at what is likely to be needed during the

16
period concerned (usually a year). Although estimates are not exact, they should be as close to
the actual costs as possible. Smit, Cronje (2011) summaries types of budgets that can be used to
make financial control possible across the financial spectrum in the table below:

Table 1, types of budgets

In the case of private funders, the budget needs to be preceded by a funding proposal, which
includes a clear motivation for the reason this money is needed, and how it will be used.

Once the budget has been completed and accepted by all concerned, some system of accounting
needs to be set up. Generally, all that is required at school level is an income and expenditure
statement. An income and expenditure statement comprises a list of all expenses, usually under
the same headings as indicated in the budget. The income and expenditure accounting should be
kept up to date so that whoever is responsible for the financial management of the school
(usually the treasurer on the governing body, or an administrator allocated to this task), can see
what the state of affairs is at any time. Budgets and financial statements need to be available for
perusal and comment by the school community if the principle of democracy (in particular,
‘transparency’ and ‘accountability’) is to be pursued.

Schreuder and Landey (2001:45) further contend that the following steps may be taken when
drawing up a school’s budget:

 Study the applicable national and provincial policies and guidelines.

 Collect information about the needs of the school as revealed by the strategic plan.
 Obtain quotations for items of capital expenditure (such as computers, desks, cupboards,
etc.)Draw up the expenditure budget by asking for input from the various departments in
the school.

17
  Take VAT and the possibility of price rises into account when drawing up the
expenditure budget.
 Prioritise expenditure from most important to least important.
 Draw up the income budget to determine where funds will be obtained to cover
expenditure (state funding is given; contributions by parents to school funds are
calculated according to their ability to pay; and the rest is raised by special fundraising
programs).
 Consolidate the income and expenditure budget (put them together) and determine the
expected surplus (when income is more than expenditure) or shortfall (when expenditure
exceeds income).
 If there is a shortfall, the budget must be reconsidered and reworked until there is a small
surplus.
 If there is a large surplus, make ensure the budgeted income and expenditure is realistic
and that important items have not been left out by mistake.
 Determine whether the school’s objectives for success can be reached with the budget,
and make any necessary adjustments.
 Submit the draft budget to the interested parties for their comments.
 Finalize the draft budget.
 Submit the budget to the governing body and make adjustments.
 Submit the budget at an official parents’ meeting for consideration and approval.
 The School board approves the final draft of the budget.
 The school implements the budget.

2.5 CONCLUSION
The management of school finances was discussed as this is still a contentious issue in many
schools. Although some research in Zambia has been done on this problem, solutions have not
yet been reached and the finances of many schools seem to still be in disarray. Decentralizing
school finances by the government has empowered and given the school finance committee the
authority to manage and administer the finances of the school. The school finance committee and
the parents must be involved where they can make a meaningful contribution, for example in the

18
finance committee and through fundraising endeavors. It is clear that the financial statements of
schools need to be audited on a yearly basis to ensure its authenticity.

CHAPTER THREE
METHODOLOGY
3.0. INTRODUCTION
This chapter discusses the methodology that was used in the study. It covers a number of issues
such as the research design that the researcher used, sampling and sampling procedures, study
area or site, study population, study sample, sampling techniques, instruments used during data
collection, procedure for data collection, data analysis, ethical considerations, validity and
limitation of the study.

3.1 Research Design

According to White (2003:42), research design refers to the plan and structure of the
investigation used to obtain evidence to answer research questions. The design describes the
procedures for conducting the study, including when, from whom and under what conditions the
data is to be obtained. In other words, design indicates how the research is set up, what happens
to the participants and what methods of data collection are used.

19
The design followed in this study was quantitative in nature. Quantitative research can either be
survey or experimental research. Quantitative research design relates to the design of research
project which uses quantitative research methods. The design varies depending on the method
used, which could be telephone interviews, face to face interviews, online surveys, or surveys by
post. Data will be collected using questionnaire and later analyzed using statistical package for
social science (SPSS).

3.2 Study Population and Study Sampling

Population is the complete collection of items or persons who are the target of the research.
Population is a statistical term that refers to the collection of persons, groups, events or things
that the research will focus on. The population of this study included School managements and
finance committees of secondary schools in Mwansabombwe District.

In this study, the sample consisted of school management, school board chair persons and
Finance committees from 7 sampled secondary schools in Mwansabombwe district of Luapula
province.

3.3 Sampling Technique

Given the above sample, the sampling technique that was used was non-probability sampling
technique because respondent were not selected at random hence, it sampling technique was
convenient, quotas and snowball.

3.4 Data Collection Instruments

The questionnaire as data collection instrument was used in this study. A questionnaire is an
instrument with open- or closed-ended questions or statements to which a participant must react.
Different kinds of questionnaires can be distinguished, such as mailed or posted questionnaires
or a group questionnaire. (White, 2003: 66).

3.5 Data Analysis

Data was collected and analysed using Statistical package for Social Sciences (SPSS). Factor
analysis was embraced to measure the reliability and validity of the questionnaire.

3.6 Operationalization of Research Variables

Financial efficiency

20
Financial efficiency refers to the allocation of financial resources to the school in such a way that
the allocated resources, once deployed, will match the financial needs of the school (Mahishane
& Botha 2004:96).

Assets and liabilities

Assets, which are possessions, are the resources controlled by an organisation (such as a school)
and from which future benefits are expected (Kerdachi, Kriel & Viljoen, 2005:11). In the context
of the school environment, examples of assets would be Cash in the bank, class and office
furniture and equipment, textbooks and vehicles.

Kerdachi et al. (2005:11) further define liabilities as the obligations of a school arising from past
events. They have to be paid, which result in an outflow of resources from the organisation.
Examples are loans from banks, bank overdraft and accounts held by the school at shops or
suppliers (creditors).

Financial planning (budgeting)

Campher et al. (2003:19) explain that financial planning is normally done for the period known
as financial planning year. A budget is a document showing the estimated income for a specific
financial year and everything that must be financed with that income.

School Finance Committee

School finance committee is composed of school manager, school accountant and teachers. The
committee is primarily there to provide financial oversight for the organisation. Typical task
areas for small midsize groups include budgeting and financial planning, financial reporting and
the creation and and monitoring of internal controls and accountability policies.

3.8 Ethical Considerations

Ethical considerations were taken into account in this study. All the data collected were strictly
treated as confidential and not used for any purposes other than the intended one. Consent was
sought from the respondents and the researcher ensured that the respondents voluntarily
participated in this study and maintained an open and honest approach to the study. The names of
the participants were protected and kept confidential and if the participant wishes to withdraw,
they were free to do so. The researcher also issued with an introductory letter from the college so

21
as to facilitate data collection. The researcher also got permission from the District Education
Board Office so that she could be allowed to collect data from the selected schools.

CHAPTER FOUR
PRESENTATION AND DISCUSSION OF FINDINGS
4.1 PRESENTATION OF FINDINGS
4.1.0. Introduction
This chapter presents the findings of the study using the specific research objectives as follows:
to ascertain the essences of financial School board? To determine the extent of possible problems
experienced regarding the management of school finances? And to determine possible solutions
with regard to financial management in schools can be brought forward? In order to make proper
recommendations, this chapter discusses in detail the results of the collected data. A study to
obtain these data was conducted at 7 schools in Mwansabombwe district. The instrument used in
obtaining data was an open-ended questionnaire. Analysis of data obtained from questionnaires
was done through identifying common themes and responses. The relevant information is broken
into sentences or phrases which reflect a single or specific thought. Two questionnaires were
used to gather information (one for head teachers and one for chairpersons of school board). The

22
similar and different opinions identified from the data are used to develop an overall description
as seen by the participants.

4.1.1 Description of data

Section A of the questionnaire consisted of questions requiring the biographical information of
the participants, as well as their academic qualifications and level of seniority and occupation.
This data provided information on how experienced the participants are in their current positions.

4.1.2 Presentation of data

In this section the data collected from the questionnaires are reported on. The data in this study
has first been reduced to manageable patterns, after which certain themes and patterns have been
identified and reported on. Geographical data is presented in numbers, but data obtained from
open-ended questions is reported on in a narrative way as is characteristic in qualitative
reporting. The relevant information is broken into sentences or phrases which reflect a single or
specific thought. The different meanings identified are used to develop an overall description as
seen by the participants. Opinions, views, feelings, perceptions and attitudes of participants were
captured.

Biographic information: due to the nature of the biographical data, this section is reported on in
numerical format. The reporting of data is done in accordance with the sequence of the questions
on the questionnaire.

4.1.3 Biographic information

The following questions are asked to gather information regarding the gender, age and
experience of head teachers, deputy HODs and senior teachers participating in this study. The
qualifications of the participants are also sought as it may have an influence on the opinions
provided by them. The school head play an important role in managing the finances within the
school.

Table 2, Gender

Gender Frequency %
Male 18 90
Female 2 10
Total 20 100
The above outlines the biographic information of the participants with regard to the gender of the
head teachers. The study reflects that males formed the majority with 18 (90%) with females

23
constituting only 2 (10%). This information still reflects the current trend that female head
teachers are by far in the minority in schools.

Table 3, Age

Age Frequen %
Years cy
30-40 2 10
41-50 8 40
51-60 10 50
60+ 0 0
Total 20 100
Only 2 (10%) of the participants are between the ages of 30 and 40 years. 18 of the participants
are above 40 years (90%), with 10 of these between 51-60 years. This is an indication that most
of those in school management are senior people in education. It also reflects the trend where
head teachers seem to stay at a particular school for long periods of time, and that younger head
teachers are in the minority.

Table 4, Experience

Experience as school Frequency %

management Years
1–5 8 40
6 – 10 1 5
11 – 15 6 30
16 – 20 3 15
21 – 30 1 5
31 – 40 1 5
Above 0 0
Total 20 10
Eight (40%) teachers in management have between 1 to 5 years’ experience as in management
position, which is normally not considered as very experienced. The rest (60%) have been in
management for more than 6 years and 11 (55%) of these has experience as head teachers of
more than 10 years. One could thus deduce that most of the Head teacher s in this study are not
novice Head teacher s.

Academic qualifications

Table 5, qualifications

Qualification Frequency %
Certificate 0 0
Degree 3 15

24
 BEd Hon 13 65
Masters 4 20
Doctorates 0 0
Total 20 100
The academic qualifications of the participants are outlined above. 13 (65%) have furthered their
studies and completed a BEd Honours degree. 4 (20%) participants have completed a Master’s
degree. Although this table shows that 3 (15%) participants have only a degree as academic
qualification, one must keep in mind that this qualification is followed by a professional teaching
qualification.

Qualifications in finance

Table 6, qualification in finance

Qualification Frequency %
Qualification 3 15
in finance
No 17 85
qualification
Total 20 100
The above outlines some form of formal qualification of participants in financial management.
Only 3 (15%) participants have obtained some form of formal qualification in finances. The
majority of participants do not have any qualification in finance. A formal finance qualification
does not necessarily mean that participants will experience no financially related problems at
their schools, but it may assist them in understanding the fundamentals of finance.

4.1.4 What would you consider to be good financial management?

Most of the participants responded that good financial management is where there is
transparency, accountability responsibility and where openness serves as a norm. The following
are types of responses received from these participants:

 Where the school is abiding by all norms and standards of the Public Finance
Management Act.
 Where there are sound mechanisms and instruments in place to prevent any possibility of
fraud.
 Where all the stakeholders work strictly according to the budget and are accountable for
income and expenditure.

25
  Where finances are managed according to the Zambian education school Act, No. 84 of
1996, and financial policies as set out by the MoGE
 Management of finances that intends to disclose all discrepancies and mismanagement of
funds.

From the various responses one could state that school managers in general have an
understanding of what good financial management is. The major points link to transparency and
accountability where school finances are managed according to the Zambian education school
Act, No. 84 of 1996, financial policies as set out by the MoGE and keeping to budgets. Financial
management in education is the distribution and use of money for the purpose of providing
educational services and producing learner achievement. Although the Head teacher is
accountable for the accuracy of the books, the managing of school finances is a primary function
of the school board, of which the head teacher of the school is a member.

4.1.5 The essences of financial School board

Most of the participants stated that the finance committee, as a sub-committee of the school
board, must meet quarterly to check whether the expenditure incurred and income received was
according to the budget. The school board draw up, approve, manage and implement the budget
and review it every six months. The school board also approves the purchases made by the
school. The school board drafts the budget from the information they obtained from different
stakeholders and table it during the annual general parents‟ meeting for approval.
A few participants stated that each year the Head teacher together with the finance committee
must appoint a person who should manage the approved budget portfolios, i.e. stationary, sports,
cultural activities, hostels and workshops.
A few stand-alone responses were also received and they are listed here:
 The school board monitors the application of the budget, verify the correctness of all
payments and negotiate with relevant service providers on standard of service that has to
be observed.

 The school board controls the use of funds, compares quotations with purchases,
scrutinize the requisitions and also updates parents regarding finances.

26
  It is the responsibility of the finance committee to control financial records and the
executive committee of the school board sees to the day-to-day duties of the school board
in this regard.
The participants understand that legally it is the function of the school board to manage finances
and to draw up the school budget. One could assume that, although they have given different
responses, they understand the procedure for drafting the school budget and handling of funds
received and spent.
4.1.6 Problems experienced regarding the management of school finances
In your opinion, what are some of the problems or obstacles that you encountered in fulfilling
your financial management role?

Many participants indicated that the school board is ill informed about the extent to which they
are involved in the day to day running of the school, including the finances. The school board
often have a lack of fundraising strategies to supplement the departmental allocation in order to
improve the quality of education that is provided by the school. Poor financial procedures and
control is one of the obstacles that they have encountered in fulfilling their financial control role.
The lack of financial support by the parent community and the department is another problem
they encountered.

A few of the participants mentioned that they requested training on financial management issues
from the district office in writing, but that their request was turned down (the reason for this was
not provided by the participants).

Collated comments of participants are mentioned here:

 A lack of knowledge of financial management skills by most members of the school

board, especially the parents component who sometimes want to deviate from the budget
without thinking of the control measures that are in place.
 Delays with money (funding) receivable. Budgeted items cannot be dealt with prior to the
receipt of funding. Schools then struggle to execute plans as per their budgets.
 The non-availability of proof of payments.

From the responses above it is clear that most of the participants did not encounter any problems
regarding the execution of their financial role. Lack of fundraising strategies, poor financial
procedures by the school board is a problem. Lack of financial support by the community is also

27
a problem. It is also clear that some of participants encountered problems with regard to their
financial management role.

Most of the participants indicated that a lack of knowledge of financial management acts,
policies and expertise by many members of the school board is a problem. Some of these
participants elaborated and mentioned that many school board members do not want to confront
the financial decisions taken, as their lack of knowledge may be exposed. This allows decisions
taken by the Head teacher to be implemented unopposed.

Some of the participants linked to the above and mentioned that some head teachers take
advantage of the ignorance of the school board to benefit their own agenda at the school. The
lack of formal schooling of some school board members is also an obstacle, as they basically
make up the numbers and vary rarely contribute to meetings and financial decisions.

A few participants stated that in some cases they sign blank cheque on the request of the Head
teacher, as certain things have to be bought. They indicated that they trust the Head teacher to
buy the items as discussed, but that they do not always follow up to verify what was bought with
the cheque.

One of the participants said that the day-to-day running of funds is not possible for many school
board members as they have their own work to do.

The responses vary, but indicate that many school board chairpersons clearly are not conversant
with all the financial policies that guide the role of the school board. It is therefore no surprise
that some Head teacher s take advantage of this situation. School board chairpersons should not
be that involved in the day to day running of finances, but should ensure that they are regularly
kept abreast of financial issues of the school.

4.1.6 Possible solutions with regard to financial management in schools which can be
brought forward
What measures do you have in place to ensure that transparency, accountability and
responsibility, in terms of your schools finances, are adhered to?

Most of the participants stated that reports on receipt books, deposit books, analysis books and
cheque books must be made quarterly to the School board. The schools have external auditors

28
who check the school financial records annually. The correct accounting procedure is adhered to.
These procedures contribute to transparency and accountability.

A few participants indicated that records are kept and there is constant reporting to all
stakeholders i.e. parents and educators. All stakeholders‟ involvement contributes to
transparency and accountability.

Other participants provided similar opinions, but added more information:

 All requisitions are in writing and support materials are provided when needed.
Invitations of quotations, receipts and invoices should serve as proof of purchases and
they must be reviewed by the School board. No blank cheques should be handled and
cheques must be authorized by the chairperson and the treasurer.
 Control measures for income, expenditure and petty cash are in place.
 Even though finance committee meetings sometimes do not occur, all other procedures
are followed by the Head teacher .

The important characteristic of the present approach to education management in general and
financial management specifically, is the emphasis on transparency and information sharing
among all stakeholders. For the school Head teacher and the School board this means that they
must deal with funds in a responsible manner and that they are accountable to the parents, the
learners, the community and the MoGE.

4.2 DISCUSSION OF FINDINGS

4.2.0 Introduction
This chapter discusses the findings according to the objectives of the study. The objectives of
this study were: to ascertain the essence of financial School board, to determine the extent of
possible problems that schools experience regarding financial management and to determine
possible solutions for ineffective financial management in schools in Mwansabombwe district
Luapula province. The literature study, which forms the foundation of this research study, has
been used to create principles and guidelines for effective financial management in schools by
identifying facts that have been found to be important in managing finances of the school. In this
chapter findings are reported and recommendations are made.

29
4.2.1 SUMMARISED FINDINGS OF THE STUDY
The findings are discussed in two fold. Findings from the literature study will be discussed first,
followed by the findings derived from the questionnaires completed by Head teacher s and the
chairpersons of school board.

4.2.1.1 Findings from the Literature study

These findings aim to answer the following research questions:

What are the essences of financial school management?

 The four main pillars of management which is organizing, planning, leading and
controlling, is essential in the management of school finances. Delegation refers to the
process of transferring the responsibility for a specific activity or a task to another
member of the organization and empowering that individual to accomplish the task
effectively.
 The task of financial management involves monitoring and/or controlling the financial
position of the school and it can be divided into three main functions, which are
analyzing the financial position of the school, managing the asset structure of the school
and managing the financial structure of the school. The head teacher as a leader of the
school needs to employ all the management functions and principles in order to properly
manage the funding received by the school.
 Financial management in contemporary education management aims to:
o estimate the needs of local educational training;
o obtain finances in accordance with the estimated needs;
o Administers the finances thus obtained in a legally correct manner
 One of the most important functions of school board is the provision to set a budget and
to recommend school fees as part of the budgeting process. Whereas school governance
used to be characterized by authoritarian and exclusive practices, the SASA requires
broad and democratic participation by parents, teachers and learners in the life of the
school through the medium of. The school board must ensure the existence of and the
effective execution of a sound firm financial policy and also management procedures
 An important characteristic of the present approach to education management in general
and financial management in particular, is the emphasis on transparency and information

30
 sharing among all stakeholders. For the school Head teacher and school board, this means
that they must deal with funds in a responsible manner and that they are accountable to
the parents, the learners, the community and the MoGE. Training in financial
management is very important in preparing and capacitating school Head teacher s and
finance committee members of the school board with financial skills.
 The school board is going to form a finance committee to assist in handling the financial
matters of the school. According to Section 30(1) of the Zambian education school act,
the school board may establish committees including a finance committee and executive
committee, appoint persons who are not members of the school board to such committees
on the basis of their expertise, and each committee must be chaired by a member of the
school board. The role of this committee is made much easier with the existence of a
financial policy at the school. This financial policy may differ from school to school, but
should be used as the guideline for all financial matters at the school. A good financial
policy identifies and articulates the values and the basic principles to be applied to
specific needs in schools. A financial policy should not only set direction, but should also
give direction. It is therefore essential that all stakeholders involved in the financial
matters of the school to be directly involved in the drafting and implementing of the
school’s financial policy.
 The Zambian education school act makes provision (by means of Article 21), for public
schools to become more responsible for managing certain functions themselves. The
Zambian education school act places a duty on the school board to keep written record of
everything that has to do with money or property of the school.
 The budget cannot be finalized unless it is approved by the majority of parents present
and voting at a meeting. Before a budget can be approved by the school board, it must be
presented to a general meeting of parents convened on at least 30 days notice, for
consideration and approval by a majority of parents present and voting.
 The school board of a public school must take all reasonable measures within its means
to supplement the resources that is supplied by the state in order to improve the quality of
education that is provided by the school to all learners at the school.
 The school board of a public school must appoint a person registered as an accountant
and/or auditor in terms of the Public Accountants and Auditors Act (Act No. 80 of 1991

31
 of the laws of Zambia), to audit the records and financial statements of the school.
Auditing of the financial records is essential to prove that the finances of the school are
managed correctly, effectively and efficiently and to make sure that they are not
mismanaged.

The extent of possible problems that schools experience regarding financial management
 Males still form the largest percentage of School management. A formal finance
qualification does not necessarily mean that School management will experience no
financially related problems at their schools, but it may assist them in understanding the
fundamentals of finance.
 Good financial management is regarded as management where transparency,
accountability, responsibility and openness serve as a norm.
 Most schools have a finance committee as a sub-committee of the school board. This
committee drafts a financial policy that should guide the financial matters of the school.
The School managements form part of the finance committee. School managements seem
reluctant to comment on their own ability to manage the finances at their schools.
 School management seems to have a general knowledge of financial management, but
seem to lack more specific financial skills to ensure ultimate financial management of
their schools.
 A lack of fundraising strategies, poor financial procedures by the school board is a
problem perceived by School managements. The lack of financial support by the
community is also seen as a problem impacting on the teaching and learning delivery of
the school.
 The level of cooperation that School management receives from their respective school
board differs from school to school. It is good to see that in some schools the School
management and school board work together to the benefit of the school. In some cases
School management perceives the cooperation from the school board as below standard.
 School management mostly receive continual support from the district office with regard
to financial management, although it seems that this support is not sufficient as some still
lack the necessary financial knowledge. Information provided also indicates that the

32
 District office sometimes seems unwilling to support individual School managements that
need assistance.
 School management indicated that although steps in the right direction are made in terms
of sound financial management at schools, certain areas still need attention. For schools
to really function effectively, school boards should be in a position to assist the School
management in all financial endeavors.

Possible solutions for ineffective financial management in schools

On the basis of the findings obtained from the questionnaires of the School management and the
chairpersons of school boards the following are possible solutions:

 Both the School management and the school board chairperson must be trained on
financial management by accounts professional boards for example, Zambia institute of
chartered accountants (ZICA), or someone appointed by the MoGE. External service
providers or Higher Education Institutions (HEIs) also offer an option to be involved in
basic financial training. A short course can be developed by the MoGE in conjunction
with HEIs and offered to School managements and school board members.
 School communities must ensure that people with the necessary skills are elected to
school boards. This should include a person with sound financial skills, who could be
chairing or co-opted to the finance committee. Relevant people with skills who are
parents should be headhunted to serve on the school board.
 The School management and the school board (through the chairperson) must devise
strategies to obtain additional funds from the parents, the community and private
institutions to benefit the learners. Such strategies can be discussed at a parents meeting
where each grade could be asked to organize one project for the year to raise funds.
 The School managements and the school board chairperson must ensure that all the funds
that are received by the school are controlled and used properly. This means that all the
money that the school receives must be written into journals or books of prime entry.
This can be done either manually or electronically. The MoGE should consider buying
and downloading Accounting software for each school in the district. Designated people
per school should receive training to capture financial information on such a software
Programme.

33
  School managements and MoGE Chairpersons must have sound mechanisms and
instruments in place to prevent fraudulent transactions and misuse of funds. Not only
should a finance committee be in place, it should be chaired by MoGE member with
sound financial knowledge.
 The MoGE should take the lead during the discussion on financial matters. The School
management may be most knowledgeable regarding how funds should be distributed, but
school board should not be bullied into making decisions due to a lack of financial
knowledge.
 There must be openness, transparency, trust and communication in financial management
processes in schools. A close relationship between the School management and the
school board chairperson is of the utmost importance to ensure proper financial
management at the school.
 The current school board training material must be written in the language that all school
board members understand. Zambia is a multilingual country and school governance is
too important an issue not to ensure that members of school boards are trained to the level
that they can positively contribute in meetings.
 Education related policies change often. Continual training is necessary to keep school
boards on par with the changes that affect the budget of the school.
 The school must form partnership with audit firms or financial companies with good
financial standing to assist them with their financial records. This can be a community
project for such firms and companies. The school can also be assisted by the MoGE
should take the initiative to make contact with these institutions. Part of the corner stone
of HEIs is community service and this may be an excellent opportunity to form a lasting
partnership.

4.3 SUMMARY
This chapter reported on the data gathered from the participants in this study. Views and
opinions were reported on in the narrative. In general, head teachers seem more comfortable with
their financial role than the school board chairpersons. It appears as if school board members are
not always playing a leading role with regard to financial management at the schools, but allow
Head teachers to take the lead in many instances.

34
 CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
5.0. Introduction
Generally, this study brought to the fore a number of issues that needed to be addressed if the
effectiveness of financial management in schools in Mwansabombwe district was to be

35
established. This study focused on achieving the following objectives: to ascertain the essence of
financial School board, to determine the extent of possible problems that schools experience
regarding financial management and to determine possible solutions for ineffective financial
management in schools in Mwansabombwe district Luapula province.

5.1. Conclusion
This study dealt with financial management in schools in Mwansabombwe District. The study
aimed to establish the understanding the school management and the chairpersons of the chair
persons of school boards have on financial management in schools. The researcher’s concern
was whether financial management policies and practices were implemented properly in the
schools.

The development of financial skills and the training needs of the school management and the
school boards chairpersons were also of great concern. Before the investigation was undertaken,
literature was reviewed to gain insight into financial management systems. Responses from
school management and school board chairpersons lead the researcher to provide the findings
and recommendations of this study. These were linked to the research questions to ascertain
whether the study successfully answered these research questions. It is the view of the researcher
that these research questions were successfully answered.

5.2 RECOMMENDATIONS
 Both the School management and the school board chairperson must be trained on
financial management by accounts professional boards for example, Zambia institute of
chartered accountants (ZICA), or someone appointed by the MoGE. External service
providers or Higher Education Institutions (HEIs) also offer an option to be involved in
basic financial training. A short course can be developed by the MoGE in conjunction
with HEIs and offered to School managements and school board members.
 School communities must ensure that people with the necessary skills are elected to
school boards. This should include a person with sound financial skills, who could be
chairing or co-opted to the finance committee. Relevant people with skills who are
parents should be headhunted to serve on the school board.
 The School management and the school board (through the chairperson) must devise
strategies to obtain additional funds from the parents, the community and private

36
 institutions to benefit the learners. Such strategies can be discussed at a parents meeting
where each grade could be asked to organize one project for the year to raise funds.
 The School managements and the school board chairperson must ensure that all the funds
that are received by the school are controlled and used properly. This means that all the
money that the school receives must be written into journals or books of prime entry.
This can be done either manually or electronically. The MoGE should consider buying
and downloading Accounting software for each school in the district. Designated people
per school should receive training to capture financial information on such a software
Programme.
 School managements and MoGE Chairpersons must have sound mechanisms and
instruments in place to prevent fraudulent transactions and misuse of funds. Not only
should a finance committee be in place, it should be chaired by MoGE member with
sound financial knowledge.
 The MoGE should take the lead during the discussion on financial matters. The School
management may be most knowledgeable regarding how funds should be distributed, but
school board should not be bullied into making decisions due to a lack of financial
knowledge.
 There must be openness, transparency, trust and communication in financial management
processes in schools. A close relationship between the School management and the
school board chairperson is of the utmost importance to ensure proper financial
management at the school.
 The current school board training material must be written in the language that all school
board members understand. Zambia is a multilingual country and school governance is
too important an issue not to ensure that members of school boards are trained to the level
that they can positively contribute in meetings.
 Education related policies change often. Continual training is necessary to keep school
boards on par with the changes that affect the budget of the school.
 The school must form partnership with audit firms or financial companies with good
financial standing to assist them with their financial records. This can be a community
project for such firms and companies. The school can also be assisted by the MoGE
should take the initiative to make contact with these institutions. Part of the corner stone

37
 of HEIs is community service and this may be an excellent opportunity to form a lasting
partnership.

References
Beckmann, J.L. (2002), ‘The legal position of the Head teacher as school governing body
member and employee of the Department of Education’, Paper read at the Head teachers’
Conference: Oppenheimer Theatre, Welkom, 24 April 2002.

38
Campher, T. & Lock, C. (2002). Effective education management series. Module 3. Education
leadership. Sandown: Heinemann Publishers.
Campher, T., DU PREEZ., P. GROBBLER, LOCK, C. & SHABE, S.M. 2003. Managing school
finances, Module 5. Sundown: Heineman.
Clarke, A. 2007, Handbook of School board, Cape Town: Kate McCallum.
Cohen, L., Manion, L & Morrison, K. (2000), Research Methods in Education, 4th edn, New
York: Routledge.
Du Preez, P., Grobler, B., Loock, C. & Shaba, S.M. 2003, Managing School Finances, Sandton:
Heinemann.
Kruger A.G (2003), an educator ‘s guide to management skills.’ Pretoria: Van schailk
Lewis T. (2003), Course Handbook: Practical financial management for NGOs - Getting the
Basics right, available at: www.mango.org.uk accessed on 2012/12/12.
Mestry, R. (2008), ‘The legal position of head teachers in school financial management: A South
African perspective’, Paper delivered at South African Education Law Association – Aug 2008.
MoGE, (2013). Financial management wing journal
Oosthuizen, I.J. & Botha, P. (2002). Aspects of education law. 3rd Ed. Pretoria: Van Schaik.
Schreuder, J. & Landey, V. (2001), Compass for School-Based Management, Cape Town:
Renaissance. Mestry, R. 2006, ‘The functions of school governing bodies in managing finances’,
South African Journal of Education, vol. 26, no. 1, pp. 27-38.
Xaba, M. & Ngubane, D. 2010, ‘financial accountability at schools: challenges and
implications’, Journal of Education, vol. 50, pp. 139-160.

Appendix I: Proposal
1.1 INTRODUCTION

39
Finance is one of the school resources which needs much needed attention by administrators.
The Zambian education act of 2011 prescribes how schools should develop school management
for supervision and financial management. The act further prescribes how schools should
manage their funds. It also presents guidelines for the School managers on their roles and
responsibilities in managing the finances of a school. There are many School managers who lack
the necessary financial knowledge and skills and are placed under incredible pressure because
they are incapable to find practical solutions to practical problems. The management of school
finances can be one of the most challenging of principals‟ responsibilities, because for many it is
an area in which they have little or no training or expertise. It is also likely that the appointed
School manager may be equally ill equipped for the task.

1.2 BACKGROUND OF THE STUDY

Prior to 1994 various systems in education lacked both financial and management accountability
and can be ascribed to the problem of over centralization of control and limited legitimacy of the
provincial education authorities. The last ten years have seen major changes in the nature of
governance of schools. As a result of new legislation in Zambia, such as the Education Act,
considerably more authority and responsibility for decision-making has been devolved to the
school level than was previously the case. There is a move towards self-managing schools
regarding authority and responsibility to make decisions related to the allocation of resources,
including finances. According to the Education Act, the governance of a public school is vested
in the School managers that stand in a position of trust towards the school.

However, the decentralized model of school governance is not without problems. According to
Zambia Yearbook 2010/11 (2011:151), at 20% of the total state expenditure, Zambia has one of
the highest rates of government investment in education in the world.

The post-apartheid school funding policies of Zambia views every school as a cost centre and
each public school manager, as a responsible manager, is expected to accept accountability for
the investment that the state makes in his or her school. The study’s significance revolves around
school managers embracing their role of responsibility manager, assisted and supported by their
school governing bodies, tasked with leading their schools towards self-reliance.

40
Chisholm, Motal and Vally (2003:246) state that although decentralization allows school
stakeholders to participate at a level in which they can have direct impact on matters that concern
them, it also allows different capacities and inequalities of power and influence at that level to be
expressed more strongly. According to Mestry (2006:28), management of school finances is an
integral part of effective school management and it is essential that school principals and
members of the finance committee are trained to deal with these financial issues.

1.3 PROBLEM STATEMENT

There are school managers who have little knowledge of the contents of the Schools Act with
regard to the financial aspects therein, with the result that too many schools are falling victim of
mismanagement or misappropriation of funds in the form of embezzlement, fraud and theft.

The problem to be investigated focuses mainly on the possible lack of financial management
skills of School managers and financial management committee, which result in an inability to
control the funds of the school properly.

Mestry (2003:26) states that many school managers and financial management committee are
placed under tremendous pressure to manage their school finances. They are unable to construct
practical solutions to financial problems, mostly on account of their lack of financial knowledge,
skills and expertise. In many instances it has been reported that school School managers and
financial management committee have been subjected to forensic audits by the ministry of
finance due to the mismanagement of funds through misappropriation, fraud, pilfering of cash,
theft and improper control of financial records (MoGE, 2013).

1.4 GENERAL OBJECTIVE OF THE STUDY

The aim of this study is to establish the effectiveness of financial management in schools in
Mwansabombwe district

1.4.1 Subordinate Objectives

In order to reach this aim, the following objectives shall be realized by the study:

1. To ascertain the essences of financial school management;

2. To investigate the impact of related policies on financial management in schools;

41
 3. To determine the extent of possible problems that schools experience regarding financial
management; and
4. To determine possible solutions for ineffective financial management in schools.

1.5 RESEARCH QUESTIONS

Research questions that emanate from the research problem include:

1. What are the essences of financial school management?

2. What is the impact of policy related documents on the financial management in schools?
3. What are the possible problems experienced regarding the management of school finances?
4. What possible solutions with regard to financial management in schools can be brought forward?

1.6 PRELIMINARY LITERATURE REVIEW

According to Gitman (2003:4), finance is the art and the science of managing money and is
concerned with the process, institutions, markets and instruments involved in the transfer of
money among individuals, institutions (including schools) and governments.

According to Hellriegel, Jackson and Slocum (2005:7), management includes the tasks and
activities involved in directing an organisation or institution. General management rests on four
main pillars, namely; planning, organising, leading and controlling.

Therefore, according to Oosthuizen (2003:213), financial management in education is the

distribution and use of money for the purpose of providing educational services and producing
learner achievement.

Major changes in the nature of governance of schools have been proposed and implemented in
Zambia. As a result of new legislation, such as the education Act, considerably more authority
and responsibility for decision-making has been devolved to the school level than was previously
the case.

According to Campher, (2003:36), the financial management of a school must be organized if it

is to be effective. An organizational structure must be put into place if one does not already exist.
It is also wise to re-educate existing structures, particularly in the context of the many changes
that have occurred in the Zambian education system. A school must function within such an
organizational structure. This implies that there must be an understanding of authority in the

42
school as well as a delegation of authority. The concept of authority goes hand in hand with the
concept of responsibility. Responsibility means that people will carry out given duties to the best
of their ability.

Mestry (2006:28) asserts that the Schools Act prescribes how schools should manage their funds.
Guidelines for the school manager and Finance committee on their roles and responsibilities in
managing the finances of the school are also provided in the Education Act. According to
Education Act, the financial committee must be involved in all the financial functions of the
school. The mandatory functions include policy issues such as adopting a constitution, drafting a
mission statement, drawing up policies such as an admission policy and relevant to this study,
also a financial policy.

According to Schreuder and Landley (2001:39), schools obtain finances from three main
sources: government funding, school fees and special fundraising campaigns. Provincial
education authorities divide funds according to the National Norms and Standards for the
funding of schools and each school‟s share is calculated on the basis of the physical condition of
the school, the relative poverty of the community (social economic factor) and the relative
poverty of the school. In calculating the allocation made to a school, social-economic factors and
the relative poverty of a school are each given a weighting of 50%. The School financial
committee is given full responsibility of managing these funds allocated to the school, such as
establishing school fees, preparing an annual budget, collecting and administering school fees,
keeping the financial records, appointing an accountant and supplementing the school resources
(Landley 2001:39).

A school is therefore part of a system. Financial school management is thus not simply
economics and accounting as applied to schools. It is a broad field of study that touches on many
disciplines as part of the education system. In order to understand and apply school financial
management, it is necessary to have an understanding of the school context, basic accounting
procedures, economic policies, the law relating to education and schools, as well as management
skills such as planning, reporting procedures and leadership (Campher et al., 2003:2).

According to Dunn (2005:70), internal controls are an integral part of careful financial
management in every school setting. Internal controls provide a system of checks and balances to
detect financial errors and irregularities in a timely fashion. Most internal controls are designed

43
and used as measures to prevent mistakes from occurring or to correct operational or recording
errors. Financial accounting is an essential component of the financial management of a school.
A school needs to process, analyze and interpret financial data and information in order to
function effectively (Campher et al., 2003:2).

1.7 THEORETICAL FRAMEWORK

It was the American political scientist Luther Gulick and the British management consultant
Lyndal Urwick who elaborated Henri Fayol’s management ideas in their management paper
notes on theory of organizations, which they published in 1037. Their results was the acronym
POSDCORD, which stands for planning, organizing, staffing, directing, coordinating, reporting
and budgeting. With the concept of POSDCORD, they demarcated the various important tasks of
supervisors, managers and directors. The concept lists all the tasks that school managers have to
deal with on daily basis for the purpose of financial management.

1.8 CONCEPTUAL FRAME WORK

The conceptual frame work of the study is as bellow;

Source: Du Toit (2007:130)

1.9 RESEARCH DESIGN

According to White (2003:42), research design refers to the plan and structure of the
investigation used to obtain evidence to answer research questions. The design describes the
procedures for conducting the study, including when, from whom and under what conditions the
44
data is to be obtained. In other words, design indicates how the research is set up, what happens
to the participants and what methods of data collection are used.

The design followed in this study is quantitative in nature. Quantitative research can either be
survey or experimental research. Quantitative research design relates to the design of research
project which uses quantitative research methods. The design varies depending on the method
used, which could be telephone interviews, face to face interviews, online surveys, or surveys by
post.

1.10 STUDY POPUPLATION

Population is the complete collection of items or persons who are the target of the research.
Population is a statistical term that refers to the collection of persons, groups, events or things
that the research will focus on. The population of this study include School managers and finance
committees of primary and secondary schools in Mwansabombwe District.

1.11 STUDY SAMPLING

In this study, the sample will consist of 5 school managers, 5 accountants (accredited or non-
accredited) and 15 members of the Finance committees from 5 sampled primary and secondary
schools in Mwansabombwe district of Luapula province.

1.12 SAMPLING TECHNIQUE

The study will use purposive sampling technique in selecting the study sample because it
considers the small population of variables which will be the, school managers, school
accountants and Finance committee members. According to Palys (2008), Purposive sampling,
also referred to as judgment, selective or subjective sampling, is a non-probability sampling
method that is characterized by a deliberate effort to gain representative samples by including
groups or typical areas in a sample. The researcher relies on his/her own judgement to select
sample group members. Purposive sampling is mainly popular in qualitative studies. Palys
(2008) further contends that purposive sampling is virtually synonymous with qualitative
research. Purposive sampling represents a group of different non-probability sampling
techniques. It relies on the judgement of the researcher when it comes to selecting the units such
as people, cases/organizations, events, or pieces of data that are to be studied.

45
1.13 DATA COLLECTION INSTRUMENTS

The questionnaire as data collection instrument will be used in this study. A questionnaire is an
instrument with open- or closed-ended questions or statements to which a participant must react.
Different kinds of questionnaires can be distinguished, such as mailed or posted questionnaires
or a group questionnaire. (White, 2003: 66).

1.14 DATA ANALYSIS

Data will be collected and analyzed using Statistical package for Social Sciences (SPSS).

1.15 ETHICAL CONSIDERATIONS

Ethical considerations shall be taken into account in this study. All the data collected will strictly
treated as confidential and not used for any purposes other than the intended one. Consent will be
sought from the respondents and the researcher will ensure that the respondents voluntarily
participate in this study and maintained an open and honest approach to the study. The names of
the participants will be protected and kept confidential and if the participant wishes to withdraw,
they will be free to do so. The researcher also will be issued with an introductory letter from the
university so as to facilitate data collection. The researcher will also get permission from the
District Education Board Office so that she is allowed to collect data from the selected schools.

1.16 DELIMITATION OF THE STUDY

The research study will be based in the field of business studies teachers’ education and will be
conducted in Mwansabombwe District
1.17 LIMITATION OF THE STUDY

This study will not include other education districts in Luapula province.

Appendix II: Questionnaire

QUESTIONNAIRE FOR SCHOOL MANAGEMENT AND SCHOOL BOARD ON
FINANCIAL MANAGEMENT OF SCHOOLS

46
INSTRUCTIONS TO PARTICIPANTS/RESPONDENTS
 Please note that there is no right or wrong responses to the items or questions in this
questionnaire. Your opinion is valuable to me.
 Also note that through your responses you will be making a valuable contribution to the
study.
 Please answer all the questions.
YOU COMPLETE THIS QUESTIONNAIRE ANONYMOUSLY
SECTION A:
Biographic information of participants.
Please furnish the following biographic information:
1 Gender:
M F
2 Age:
3 Qualifications:____________________________________________________
4 Type of school:____________________________________________________
5 What is the quintile of your school? ___________________________________
6 How long have you been a principal?
7 Any formal qualification in finances? __________________________________
SECTION B
1 What would you consider to be good financial management?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
2 Comment on your ability to manage the financial responsibilities of your school.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
3 Who do you think should be responsible for the training of principals in terms of their new
financial responsibilities?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
4 According to you, what should be covered in the training of financial school management for
principals?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
47
5 What would you want to gain from such a training programme?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________
6 Who is ultimately responsible for the drawing up of the school budget and what is your role
function in drawing up the budget?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
7 Legally it is the function of the SGB to manage the school budget. What role does the SGB
play in this regard at your school?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________
8 Comment on the procedure of budgeting at your school?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
9 How do you monitor the budget at your school? Explain.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
________________________________________________________
10. Comment on your success to keep to the budget. You may mention any budgeted items that
cause problems in this regard.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
11 Does a Finance Committee exists (is it properly constituted) and what is your role in the
Finance Committee
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
12 What measures do you have in place to ensure that transparency, accountability and
responsibility, in terms of your school‟s finances, are adhered to?

48
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
13 Are you able to delegate any of your financial role functions to your senior management
team, if so, what functions are you able to delegate?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
14 Who oversees the financial records of the school?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
15 In your opinion, what are some of the problems or obstacles that you encountered in fulfilling
your financial management role?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
16 What level of cooperation do you receive from your SGB regarding financial matters of your
school?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________
17 What level of continual support (if any) do you receive from the District Office with regard to
financial management?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
___________________________________________________
18. What impact did decentralisation of funds to schools have on you as financial manager of the
school?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________

19 How would you describe your success with regard to the day-to-day financial administration
at your school?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________

49
20 Are there any other comments you would like to share regarding the financial management of
a school?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
__________________________________________________________

50