CHALLENGES FACING SCHOOL HEADS IN CONTROLLING FINANCES IN

PRIMARY SCHOOLS IN ZIMBABWE. A CASE STUDY OF PRIMARY SCHOOLS

IN GLEN VIEW MUFAKOSE DISTRICT OF ZIMBABWE
CHAPTER ONE

Background to the study

Financial control deals with organizations’ ambition to use funds and to manage financial
resources effectively through determined accountability procedures. It is a base for the
success of any organization (Fung, 2015). According to Ozmete and Hira (2021), financial
control measures refer to the acceptable practices supporting the overall activities of the
organization. Effective financial control enables the school to achieve desired goals. Watson
and Head (2020) stated that financial control is all about managing, controlling, and
organizing finances in better ways towards the attainment of organizational targets. It deals
with the appropriate distribution and utilization of available financial resources. The main
aim of financial control is to realize better allocation and utilization of scarce financial
resources. Financial control is therefore an important activity that leads to making sure that
schools attain their purposes

Financial management in Zimbabwean schools is governed by Statutory Instrument 87 of 1992.

This instrument stipulates the key roles of stakeholders in schools including the need to set up
the school development committees or associations. Most schools are non-profit organizations
and they must manage their finances judiciously. Schools mostly rely on school fees and have
to follow budget lines through close monitoring. , (Nyandoro, 2018). 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 is
essential in addressing the increasing cases of funds embezzlement and misappropriation
within schools. The poor adoption of organization development principles and practices in
financial management remains a key challenge in many schools. The fundamental question is
what are the main challenges affecting effective school management? What could be done to
improve the school management activities and ensure organization effectiveness? The Public
Finance Management Act Chapter 22:19 does not give proper information on how Schools'
finances are being managed but rather gives more information on Parastatals which are being
run by Ministers using funds allocated to them by the Ministry of Finance, unlike schools that
rely on fees paid by parents. In 2017 the Ministry of Education crafted a manual called
Financial Management for Non-Finance Education Managers (Nyandoro, 2018).
Understanding the specific challenges faced by school heads in controlling finances in
primary schools is crucial for devising appropriate strategies and interventions to address
these issues. By identifying the key obstacles and gaps in financial management practices,
policymakers, education authorities, and school administrators can work collaboratively to
establish effective financial control mechanisms and improve the overall financial
management of primary schools. Thus, this study aims to explore and analyze the challenges
faced by school heads in controlling finances in primary schools in Zimbabwe. It seeks to
provide an in-depth understanding of the factors that contribute to these challenges and their
impact on the financial management of primary schools. The findings of this study will
inform policymakers, education authorities, and school administrators in developing targeted
interventions and policies to enhance financial management practices in primary schools and
ultimately improve the quality of education in Zimbabwe.

CHAPTER TWO

Theoretical Framework

The agency theory is a crucial component of the theoretical framework for the study
"Challenges Facing School Heads in Controlling Finances in Primary Schools." According
to Pearson (2019), Agency theory focuses on the relationship between the principal and the
agent in a given organizational setting. In the context of primary schools, the principal can be
represented by the school governing bodies, education authorities, or other oversight entities,
while the agent is the school head. In the primary school context, the school governing bodies
or education authorities (principals) are responsible for setting the overall financial policies
and objectives, while the school heads (agents) are tasked with the day-to-day financial
management and decision-making. This separation of ownership (principal) and control
(agent) can lead to potential conflicts of interest and information asymmetry. Agency theory
suggests that the agent (school head) may not always act in the best interests of the principal
(governing bodies, education authorities), as the agent may have their own personal or
organizational goals that diverge from the principal's objectives. This conflict of interest can
manifest in the school head's financial decision-making, resource allocation, or reporting
practices (Pearson,2020).

School heads, as agents, often have more detailed and up-to-date information about the
school's financial situation and operations compared to the principal (governing bodies,
education authorities). This information asymmetry can give the school head an advantage in
financial decision-making and potentially lead to opportunistic behavior. Agency theory
highlights the importance of effective monitoring and oversight mechanisms to align the
agent's (school head's) actions with the principal's (governing bodies, education authorities)
interests. This can include financial reporting requirements, audits, and other control
measures to ensure accountability and transparency in the school's financial management. In
the context of this study, agency theory provides a valuable lens to understand the potential
challenges faced by school heads in controlling finances (Pearson, 2020). It helps explore the
dynamics between the school heads and the governing bodies/education authorities, the
inherent conflicts of interest, and the need for robust monitoring and oversight frameworks to
ensure effective financial management in primary schools.

CHAPTER THREE

The researcher will use a qualitative research approach. Qualitative research is a research
methodology that focuses on exploring and understanding phenomena in-depth through non-
numerical data. It aims to gain insights into people's experiences, perspectives, beliefs, and
behaviors. Qualitative research employs various data collection techniques, including
interviews, focus groups, observations, and document analysis. These methods typically
involve open-ended questions and encourage participants to express their thoughts and
experiences in their own words. The researcher will use a qualitative approach due to its
suitability in social research, which can be done in the subjects’ natural setting. As Cohen and
Manion (2005) posit, the descriptive survey method looks with intense accuracy at the
phenomenon of the moment and then describes precisely what the researcher sees. The
selected schools will be randomly selected and purposive sampling will be employed to select
the head, deputy head, one senior teacher, and the school development committee treasurer
from each of the schools. The questionnaire and the interview will be used as the instruments
for collecting data