FINANCIAL MANAGEMENT CAPABILITIES AND FINANCIAL HEALTH OF PUBLIC SECONDARY SCHOOLS IN NYERI COUNTY, KENYA
Abstract
Purpose of the Study: This study sought to establish the relationship between principals’ financial management capabilities and financial health of public secondary schools in Nyeri County. The study objectives were to determine the relationship of principals’ accounting and bookkeeping capabilities on financial health of public secondary schools, establish the relationship of principals’ budgeting capabilities on financial health of public secondary schools and assess the relationship of principals’ auditing capabilities on financial health of public secondary schools.
Methodology: This research applied the causal research design. Principals of public secondary schools in Nyeri County were targeted. Slovin's formula was used to calculate a sample of 140 principals. For the purposes of data collection, questionnaires were used. Regression was used to establish the effect of principals’ financial management capabilities on financial health of public secondary schools in Nyeri County.
Results: The vast majority (96.2%) of the respondents had undertaken the KEMI diploma course. Majority (63%) of respondents had high accounting and bookkeeping capabilities. Majority (69%) indicated that there was strict adherence to budget plans in the school. There was a strong positive correlation between principals’ financial management capabilities and financial health of public secondary schools. Evidence shows that 67.9% of financial health of public secondary schools in Nyeri County can be attributed to principals’ financial management capabilities. Accounting capabilities (p=0.031) and budgeting capabilities (p=0.000) were statistically significant.
Conclusion: The study concluded that principals’ financial management capabilities have a strong and positive influence on financial health of public secondary schools in Nyeri County.
Recommendations: The study recommended that secondary school principals should involve board of management in scrutinizing budget draft to enable better decision making.
Keywords: Financial management capabilities, financial health, budgeting capabilities, bookkeeping capabilities and auditing capabilities.
References
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Mestry, R. (2014). Financial accountability: the principal or the school governing body? South African Journal of Education Copyright © (Vol. 24). Retrieved from https://www.ajol.info/index.php/saje/article/viewFile/24977/20661
Mgandi, E. N., Mathuva, E., & Egondi, P. (2017). Factors influencing principal’s financial management capability in public secondary schools in Kaloleni and Rabai Sub-Counties, Kilifi County. International Journal of Scientific Research and Innovative Technology (Vol. 4). Retrieved from https://www.ijsrit.com/uploaded_all_files/3080116908_u2.pdf
Miriti, J. M., & Moses, N. W. (2014). Financial Management: Training Needs of Public Secondary School Principals in Machakos County, Kenya (Vol. 4). Retrieved from www.iiste.org
Mncube, V. S., & Makhasane, S. (2013). The dynamics and intricacy of budgeting in secondary schools in Lesotho: Case studies of three high schools. Africa Education Review, 10(2), 347–363. https://doi.org/10.1080/18146627.2013.810903
Mukundi, J. W. (2012). The role of secondary school principal in the management of school finances: the case of Olkalou Division, Nyandarua District. Retrieved from http://ir-library.ku.ac.ke/handle/123456789/2500?show=full
Mutua, V. M. M., Chiriswa, A. P., & Thinguri, R. (2014). Journal of Education and Practice www.iiste.org ISSN. Journal of Education and Practice, 5(23). Retrieved from www.iiste.org
Njeru, J. W. (2004). Financial management practices of the head teachers in public secondary schools in Central division, Embu district, Kenya. Retrieved from http://erepository.uonbi.ac.ke/handle/11295/18453
Oboegbulem, A. I., & Kalu, F. A. (2013). Journal of Education and Practice www.iiste.org ISSN (Vol. 4). Online. Retrieved from www.iiste.org
Otieno, S. (2013). Effectiveness of Internal Control Procedures on Management Efficiency of Free Primary Education Funds: a case of Public Primary schools in Kisii central District, Kenya Simeyo Otieno. Journal of Sociology and Social Work, 1(June), 22–41.
Park, J. (2011). School Finance - Education Week. Retrieved February 27, 2019, from https://www.edweek.org/ew/issues/school-finance/index.html
Polston-Murdoch, L. (2013). An Investigation of Path-Goal Theory, Relationship of Leadership Style, Supervisor-Related Commitment, and Gender. Retrieved from https://www.regent.edu/acad/global/publications/elj/vol6iss1/2elj_vol6iss1_polston_murdoch.pdf
Rafiei, M. F., Manzari, S. M., & Bostanian, S. (2011). Financial health prediction models using artificial neural networks, genetic algorithm and multivariate discriminant analysis: Iranian evidence. Expert Systems with Applications, 38(8), 10210–10217. https://doi.org/10.1016/J.ESWA.2011.02.082
Rangongo, P. N. (2011). The functionality of school governing bodies with regard to the management of finances in public primary schools. Retrieved from https://repository.up.ac.za/dspace/bitstream/handle/2263/27257/dissertation.pdf?sequence=1&isAllowed=y
Shaw, S. G., Pedersen, S., Cooley, D., & Callingham, R. A. (2013). Intentions and Behaviours: Record-Keeping Practices of Pre-Service Teachers During Professional Experience. This Journal Article is posted at Research Online (Vol. 38). Retrieved from http://ro.ecu.edu.au/ajte/vol38/iss6/5Availableat:http://ro.ecu.edu.au/ajte/vol38/iss6/5
Torak, M. A. (2015). SURFACE Audit, Accountability and Commitment: School Business Officials’ Perceptions of an Audit Regime. Retrieved from http://surface.syr.edu/etd
Wiedermann, W., Artner, R., & von Eye, A. (2017). Heteroscedasticity as a Basis of Direction Dependence in Reversible Linear Regression Models. Multivariate behavioral research, 52(2), 222–241. https://doi.org/10.1080/00273171.2016.1275498
Wushe, T., & Shenje, J. (2014). An Analysis of Basic Management and Financial Skills By School Development Committees ( Sdc ) in Selected Harare Schools, 1(10), 378–386.
Xaba, M., & Ngubane, D. (2010). Financial accountability at schools: challenges and implications. Retrieved from https://repository.nwu.ac.za/handle/10394/17960
Aiello, M., & Watson, K. (2010). The Role of the Headteacher in Teachers’ Continuing Professional Development. In Teachers as Learners (pp. 199–216). Dordrecht: Springer Netherlands. https://doi.org/10.1007/978-90-481-9676-0_10
Akinfolarin, A. V. (2017). Analysis of principals’ managerial competencies for effective management of school resources in secondary schools in Anambra State, Nigeria. IJSSHE-International Journal of Social Sciences, Humanities and Education, 1(4). Retrieved from https://files.eric.ed.gov/fulltext/ED580924.pdf
Beyers, L. J. E., & Mohloana, T. (2015). Financial Management Capacity of Principals and School Governing Bodies in Lebowakgomo, Limpopo Province. International Journal of Educational Sciences, 9(3), 343–350. https://doi.org/10.1080/09751122.2015.11890324
Deacon, J., Colditz, P., Van Rooyen, J., Mellet, S., Van der Merwe, J., Swemmer, D., & Van der Bergh, R. (2017). Financial Management in Public Schools: A practical guide to legislative compliance - Juta. Retrieved February 27, 2019, from https://juta.co.za/print/catalog/Product/3305
Doussy, F., & Doussy, E. (2014). Financial statements and the discharging of financial accountability of ordinary public schools in South Africa. Journal of Governance and Regulation (Vol. 3). Retrieved from https://virtusinterpress.org/IMG/pdf/10-22495_jgr_v3_i4_p3.pdf
Fitzgerald, S., & Drake, J. (2013). Responsibility for financial management in primary schools. Management in Education, 27(3), 96–105. https://doi.org/10.1177/0892020613490501
Hernández, M. J., & Martínez, M. A. (2016). Bringing headteachers’ voices to the professional development debate: A case study from Spain. Journal of Research in International Education, 15(1), 52–66. https://doi.org/10.1177/1475240916635431
Indiazi, P. L. (2018). Challenges Influencing Head Teachers Training In Public Primary Schools in Lugari Sub County, Kenya. European Journal of Education Studies.
Inganga, A. J. (2014). Evaluation of effectiveness of principal’ s in-service training in financial management of public secondary schools in Butere sub-county , Kenya.
Jabareen, Y. (2009). Building a conceptual framework: philosophy, definitions, and procedure. International journal of qualitative methods, 8(4), 49-62.
Jiang, N., Sumintono, B., Perera, C. J., Harris, A., & Jones, M. S. (2018). Training preparation and the professional development of principals in Henan Province, China: formal and informal learning. Asia Pacific Education Review, 19(1), 41–51. https://doi.org/10.1007/s12564-017-9513-6
Kabue, L. W., & Kilika, J. M. (2016). Journal of management and strategy. Sciedu Press. Retrieved from https://ir-library.ku.ac.ke/handle/123456789/17866
Kahavizakiriz, R., Walela, K. B., & kukubo, D. wanyonyi. (2015). Financial Management In Public Secondary Schools In Kenya A Case Study Of Lurambi Sub-County Kakamega County. International journal of scientific & technology research, 4(9). Retrieved from https://www.ingentaconnect.com/content/doaj/22778616/2015/00000004/00000008/art00624?crawler=true
Kamau, K. W. (2012). Financial management practices in Kenya secondary schools : problems and issues. Retrieved from https://ir-library.ku.ac.ke/handle/123456789/5039
Khan, M. G. M., Reddy, K. G., & Rao, D. K. (2015). Designing stratified sampling in economic and business surveys. Journal of Applied Statistics, 42(10), 2080–2099. https://doi.org/10.1080/02664763.2015.1018674
Kiyondi, N. O. (2016). Influence of auditing practices on management of finances in public secondary schools. A case of Kisii South sub-County, Kenya. Retrieved from http://ir.jooust.ac.ke/handle/123456789/294
Liu, T., Ullah, B., Wei, Z., & Xu, L. C. (2017). The Dark Side of Transparency in Developing Countries: The Link between Financial Reporting Practices and Corruption. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2905078
Madhani, P. M. (2009). Resource Based View (RBV) of Competitive Advantages: Importance, Issues and Implications. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1504379
Mestry, R. (2013). A critical analysis of legislation on the financial management of public schools: A South African perspective. De Jure, 46(1), 162–177. Retrieved from http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S222571602013000100010
Mestry, R. (2014). Financial accountability: the principal or the school governing body? South African Journal of Education Copyright © (Vol. 24). Retrieved from https://www.ajol.info/index.php/saje/article/viewFile/24977/20661
Mgandi, E. N., Mathuva, E., & Egondi, P. (2017). Factors influencing principal’s financial management capability in public secondary schools in Kaloleni and Rabai Sub-Counties, Kilifi County. International Journal of Scientific Research and Innovative Technology (Vol. 4). Retrieved from https://www.ijsrit.com/uploaded_all_files/3080116908_u2.pdf
Miriti, J. M., & Moses, N. W. (2014). Financial Management: Training Needs of Public Secondary School Principals in Machakos County, Kenya (Vol. 4). Retrieved from www.iiste.org
Mncube, V. S., & Makhasane, S. (2013). The dynamics and intricacy of budgeting in secondary schools in Lesotho: Case studies of three high schools. Africa Education Review, 10(2), 347–363. https://doi.org/10.1080/18146627.2013.810903
Mukundi, J. W. (2012). The role of secondary school principal in the management of school finances: the case of Olkalou Division, Nyandarua District. Retrieved from http://ir-library.ku.ac.ke/handle/123456789/2500?show=full
Mutua, V. M. M., Chiriswa, A. P., & Thinguri, R. (2014). Journal of Education and Practice www.iiste.org ISSN. Journal of Education and Practice, 5(23). Retrieved from www.iiste.org
Njeru, J. W. (2004). Financial management practices of the head teachers in public secondary schools in Central division, Embu district, Kenya. Retrieved from http://erepository.uonbi.ac.ke/handle/11295/18453
Oboegbulem, A. I., & Kalu, F. A. (2013). Journal of Education and Practice www.iiste.org ISSN (Vol. 4). Online. Retrieved from www.iiste.org
Otieno, S. (2013). Effectiveness of Internal Control Procedures on Management Efficiency of Free Primary Education Funds: a case of Public Primary schools in Kisii central District, Kenya Simeyo Otieno. Journal of Sociology and Social Work, 1(June), 22–41.
Park, J. (2011). School Finance - Education Week. Retrieved February 27, 2019, from https://www.edweek.org/ew/issues/school-finance/index.html
Polston-Murdoch, L. (2013). An Investigation of Path-Goal Theory, Relationship of Leadership Style, Supervisor-Related Commitment, and Gender. Retrieved from https://www.regent.edu/acad/global/publications/elj/vol6iss1/2elj_vol6iss1_polston_murdoch.pdf
Rafiei, M. F., Manzari, S. M., & Bostanian, S. (2011). Financial health prediction models using artificial neural networks, genetic algorithm and multivariate discriminant analysis: Iranian evidence. Expert Systems with Applications, 38(8), 10210–10217. https://doi.org/10.1016/J.ESWA.2011.02.082
Rangongo, P. N. (2011). The functionality of school governing bodies with regard to the management of finances in public primary schools. Retrieved from https://repository.up.ac.za/dspace/bitstream/handle/2263/27257/dissertation.pdf?sequence=1&isAllowed=y
Shaw, S. G., Pedersen, S., Cooley, D., & Callingham, R. A. (2013). Intentions and Behaviours: Record-Keeping Practices of Pre-Service Teachers During Professional Experience. This Journal Article is posted at Research Online (Vol. 38). Retrieved from http://ro.ecu.edu.au/ajte/vol38/iss6/5Availableat:http://ro.ecu.edu.au/ajte/vol38/iss6/5
Torak, M. A. (2015). SURFACE Audit, Accountability and Commitment: School Business Officials’ Perceptions of an Audit Regime. Retrieved from http://surface.syr.edu/etd
Wiedermann, W., Artner, R., & von Eye, A. (2017). Heteroscedasticity as a Basis of Direction Dependence in Reversible Linear Regression Models. Multivariate behavioral research, 52(2), 222–241. https://doi.org/10.1080/00273171.2016.1275498
Wushe, T., & Shenje, J. (2014). An Analysis of Basic Management and Financial Skills By School Development Committees ( Sdc ) in Selected Harare Schools, 1(10), 378–386.
Xaba, M., & Ngubane, D. (2010). Financial accountability at schools: challenges and implications. Retrieved from https://repository.nwu.ac.za/handle/10394/17960
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Published
2022-03-11
How to Cite
Munyalo, A., & Njoka, C. . (2022). FINANCIAL MANAGEMENT CAPABILITIES AND FINANCIAL HEALTH OF PUBLIC SECONDARY SCHOOLS IN NYERI COUNTY, KENYA. African Journal of Emerging Issues, 4(3), 11–41. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/267
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