AN APPRAISAL OF FINANCIAL MANAGEMENT ON SECONDARY SCHOOL ADMINISTRATION
Background of the Study
The growth and development of any educational sector solely depends on the management of its finances. When finance is judiciously used, the success of an educational institution is achieved but when finance is misappropriated, the reverse becomes the case. Financial management has been looked at from different perspectives by different authors. Pandit (2015) conceptualized it as that management activity which is concerned with the planning and controlling of an organization’s financial resources”.
This means that financial management is concerned with decisions on how to produce, raise money, expand and give accounts of funds provided for the implementation of programmes of an organization or a school. Ogbonnaya (2016) asserted that the main purpose of financial management, be it in government, business or school, is the raising of funds and ensuring that the funds realized are utilized in the most effective and efficient manner. He explained further that resources are scarce and that all efforts should be made by educational administrators and planners to ensure optimal utilization of funds.
Financial management is the fundamental element on which the success of any organization depends. Where the management is weak, success is hard to ascertain. No institution or school has ever succeeded in history without proper utilization of its resources. Poor management of finance results in financial misappropriation, embezzlement, diversion of finance for different projects and so on.
Mgbodile (2010) summarizes some factors that leads to mismanagement of school funds to include the following: delay in release of funds to schools, mismanagement of funds, diversion of funds to other sectors of the economy, lack of training or inadequate training of heads of educational institutions in issues of finance, financial clerks negligence in school finance matters, outright appointments by politicians of unqualified personnel to head schools; attitudes of form teachers in remitting fees collected to principals and due to delay or non-payment of their salaries. School finances are used for the day-to-day running of the organization.
It is of paramount importance to note that every school manager or head teacher needs to plan the school budget either termly or annually to achieve optimal school objectives and for the effective management of finance. It is solely the responsibility of the school administrator to see to it that the necessary funds regularly solicited for, meet the demands of their schools. The availability of such funds will help handle school projects which will go a long way to enhance better learning and teaching. However, Tims (2012) observed that some head teachers (Principals) or school managers are found to be inefficient in the way and manner they manage the finances in their schools.
This may not be mismanagement or embezzlement but because of ignorance of simple techniques of budgeting and management. In Benue State in particular, financial management in secondary schools has not been given the desired attention over the years and therefore it affects secondary schools adversely. Each level of educational system has its own objectives that it aims at. According to the National Policy on Education (FRN, 2014), the objectives of secondary school included preparation of the youths of this country for useful living within the society and preparation for higher education. The achievement of these objectives requires funds. Hence, Ogbonnaya (2010) opines that funds are necessary for the payment and employment of staff and procurement of educational materials, which in themselves are indices of effective management.
Principals are the chief accounting officers of their respective secondary schools. They are supposed to generate funds internally to run their schools as well as ensure that funds provided by stakeholders are properly managed. In most cases, some principals claim they lack enough funds to run their schools, but the reality sometimes may be that it is the manner the little funds available to the principal is managed that constitute great management problem. The acute shortage of teaching aids, seats e.t.c could be instances of the negative effects of financial management on secondary schools. Most of the roofs of the classrooms are blown off without receiving attention of principals. Inadequate supply of instructional materials like audio visual equipment, laboratory equipment and even standard textbooks are speculated to be instances of the effects of financial management on secondary schools.
The growing interest of both the public and government on how funds provided for the implementation of secondary school programmes are managed makes financial problems become a central issue. The public and the relevant stakeholders in education expect school principals to ensure proper management of the funds provided for implementation of school programmes. This is because effective and efficient implementation of any school programme depends on the proper way financial inputs are managed.
It is therefore clear that the poor state of schools in Ikere Local Government Area of Ekiti State could be attributed to the financial management problems such as mismanagement of available finances as result being unable to pay teachers’ salaries and allowances and inability to generate revenue internally. It is for this reason that this research is being conducted to find out the impact financial management on secondary school administration in Ikere Local Government Area of Ekiti state.
Statement of Problem
The importance of finance in the education sector cannot be over emphasized. Ezeocha (2010) opines that the importance of funds to school organization like educational institution is over whelming. However, Agada (2015) opines that the poor state of secondary school environment could be attributed to financial problems such as mismanagement and the economic crunch in the country.
It is clear that poor financial management is one of the greatest obstacles of effective management of secondary schools in in Ikere Local Government Area of Ekiti state. The problem usually emanates from the inability of many school managers or principals to plan and execute school budgets in line with the objectives of the school.
Akpa (2009) observed that many school administrators fail in their statutory functions in the identification of sources of school finances, methods employed in its collection and how the collected revenue are effectively applied to the school system. It has been observed that the condition of secondary schools have worsened so much that teaching and learning have received poor attention despite all the financial contributions of the federal government and other sources of funds available to schools.
Most schools are in a dilapidated state because of poor management of school finances by principals. Ifere (2007) observed that the way principals of secondary schools make use of the school money was alarming. She remarked that: The mismanagement of fees and money meant for the education of our children is one of the causes of the deterioration of standard of education in in Ikere Local Government Area of Ekiti state. It is regrettable that school fees paid by parents for the welfare of their children were embezzled by some principals and financial clerks.
The future and academic performance of our children depend on the judicious management of scarce resources. (Nigerian Voice, August 9, 2007). This study therefore investigates the impact of financial management on secondary schools administration in areas of payment of staff salaries and allowances, and school fee and generated revenue for provision of instructional materials, in secondary schools in Ikere Local Government Area of Ekiti state.
Purpose of the Study
The main purpose of this study is to find out the impact of financial management on secondary school administration in Ikere Local Government Area of Ekiti state. Specifically, the study intends to:
- find out if prompt payment of staff salaries and allowances impact on secondary schools administration;
- establish impact of internally generated funds on the provision of instructional materials in secondary schools;
The following research questions have been formulated to guide the study; 1 1. 1. How does prompt payment of staff salaries and allowances impact on the management of secondary schools?
- In what ways does an internally generated fund impact the provision of instructional materials in secondary schools?
The following research hypotheses were tested at 0.05 level of significance.
- Prompt payment of staff salaries and allowances do not significantly impact on the management of secondary schools.
- The internally generated funds do not significantly impact the provision of instructional materials in secondary schools
Significance of the Study
This study will create awareness to the Ekiti State Ministry of Education as well as teaching Service Board on the impact of financial management on secondary schools in the impact financial management on secondary school administration in Ikere Local Government Area of Ekiti state. It will also be useful to educational policy makers for proper and adequate allocation of finances to schools. The result of study will also be useful to the Parents Teachers Association (PTA), the general public and stakeholders who have continued to render financial assistance towards the sustenance of the schools.
Scope of the Study
This study is delimitated to Ikere Local Government Area of Ekiti state. It involves secondary school teachers in the Local Government Area of Ekiti State.
Definition of Terms
The following terms were operationally defined in this study:
Finance: the management of money by governments, large organizations etc:
Management: is the act and manner of handling, controlling and directing the affairs of a group
Financial Management: is part of the total management function which is concerned with the effective and efficient rising and use of funds
Administration: the activities that are involved in managing the work of a company or organization
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