Question 3

The principal’s primary job as a school administrator is to manage the school’s finances. The
school administrator is fully responsible for ensuring that the financial management of the school
runs in accordance with the rules and regulations set by the government. Therefore, knowledge in
all aspects of financial management must be mastered by headmasters to enable them to make
financial planning while supervising clerical work effectively. The headmaster as a controlling
officer or a person delegated authority is obliged to ensure that financial affairs are always in
perfect condition. Headmasters should not use the excuse of not knowing the rules or instructions
to avoid being prosecuted if there is non-compliance with the rules and laws in performing his
duties.

One of the causes of financial management weaknesses that are often raised by the General
Auditor is the lack of management involvement in financial and accounting matters. This results in
a lack of supervision and oversight over officers and staff who deal directly with various
transactions and procurement. The lack of involvement of head teachers in financial management
is likely due to their lack of knowledge as most head teachers only receive formal financial
management training after they are appointed as head teachers. However, there are also
headmasters who have not yet attended any formal financial management course. Although
they’re have been appointed for long time.

Involvement and effectiveness are two important elements to ensure that the school's financial
management runs efficiently and effectively because both of these variables are indicators that
reflect that a headmaster has sufficient knowledge to lead the school. The involvement of
principals in financial management refers to their seriousness and commitment in managing
school finances in a transparent, integrity and responsible manner by engaging in every aspect
and level of school financial management. Head teachers who have high knowledge and
competence in financial management should be able to monitor and supervise every aspect and
level of school financial management.

The effectiveness of principals ’financial management refers to the consideration of principals’

confidence in managing, administering, and addressing various issues and problems that arise in
school financial management matters successfully. Headmasters who have the knowledge and
experience should have high financial management effectiveness to ensure that school financial
management is carried out in an orderly manner and in accordance with the law. The involvement
of the headmaster in the financial management of the school is very important to ensure that the
financial management runs in accordance with the rules and laws enacted for it.
The involvement of principals in school financial management is related to the knowledge they
possess and the attitude of accountability towards all aspects of school financial management.
Therefore, headmasters should have knowledge in school financial management to enable them
to monitor and supervise every aspect and level of school financial management. All head
teachers should be actively involved in every aspect and level of school financial management to
ensure the effectiveness and efficiency of school financial management. It is possible that this is
because the headmaster has given full trust to the governance assistants in carrying out financial
management activities and they only look from afar and drop signatures when necessary. Such a
situation should not occur as any mistakes made by the staff under the supervision of the
headmaster will be the responsibility of the headmaster to provide answers to certain parties.

If headmasters themselves are not confident or less confident in managing school finances, they
will be vulnerable to manipulation from various parties either from within the school itself or the
suppliers who deal with the school. Headmasters should have a high level of effectiveness in
managing school finances so that they can avoid things that could lead to mistakes or
irregularities. To achieve a high level of financial management effectiveness principals must learn
either formally or informally.

Thus they appear to approach administrative assistants or certain people who manage the
financial affairs of the school and this seems to mean that they are indirectly actively involved in
the financial management of the school. Head teachers who have attended the course are able to
improve their knowledge in financial management and ultimately improve the effectiveness of
financial management. School financial management is the most important element to manage a
school more effectively. The government will lose millions of ringgit if school managers are
disabled in managing school finances efficiently and effectively. Therefore, school managers
must be given adequate exposure in aspects of school financial management to ensure the
continuity of government policies can be realized. School managers must be exposed to school
financial management courses once they are appointed to the course in order to improve the
effectiveness of their financial management.