INFLUENCE OF PRINCIPALS’ AUDITING PRACTICES ON FINANCIAL MANAGEMENT IN PUBLIC SECONDARY SCHOOLS IN MANDERA WEST SUB-COUNTY, MANDERA COUNTY, KENYA
Abstract
Purpose of the study: The purpose of this study was to examine the influence of principals' auditing practices on financial management in public secondary schools in Mandera West Sub-county, Mandera County, Kenya. The specific objectives of the study were to examine the influence of principals' audit planning practices, setting up school audit committees, stakeholders' involvement in auditing practices, and audit reporting practices on financial management in public secondary schools.
Research Methodology: The study used a mixed-methods approach, combining qualitative and quantitative techniques. The target population of the study was 251 respondents, including 8 principals, 239 teachers, and 4 school auditors. A sample of 152 respondents was drawn using Yamane's formula. Stratified sampling was used to create four strata based on zones in Mandera West Sub-county. Quantitative data was collected from teachers through questionnaires, while qualitative data was collected from principals and support staff through interview guides.
Findings of the study: The findings of the study showed that most respondents agreed that their principal establishes guidelines for auditing and allots time for the practice. Respondents generally agreed that their principal informs members of the expected remuneration before they are included in the audit committee. Respondents generally agreed that stakeholders' participation in the auditing activities in their secondary school is crucial for effective financial management. Based on the results, it appears that the most common audit reporting practice adopted by the principal in the secondary school is annual reporting.
Conclusion: The study concluded that regular planning for auditing activities is important for all schools, and principals should take the time to ensure that these processes are in place and being properly executed. Principals are aware of the importance of setting up effective audit committees and consider various factors when doing so. While the principal has some success in involving stakeholders in the auditing process to improve financial management in the school, there is still room for improvement. Respondents believe that the Board of Management (BOM) usually approves budgets and financial statements such as trial balances, receipt books, audit reports, stores, and cash books are available in their school.
Recommendation: The study recommends that principals should prioritize qualifications when setting up audit committees. The principal should consider ways to improve the effectiveness of the audit committees by ensuring that they have the required skills, knowledge, and resources to perform their roles effectively. Given the agreement level with the different statements, it is recommended that school management considers the experience and training of stakeholders.
Keywords: Principals,’ Auditing Practices, Financial Management, Public Secondary Schools, Mandera West Sub-County
References
Adow, I. M. (2020). Influence of procurement practices on the management of public secondary school resources in Mandera County, Kenya. Published PhD Thesis, Mount Kenya University.
Al-Amiri, Al-Mutaz, & Mohammed, I. (2014). Impact of Electronic Commerce on Audit Planning: An Empirical Study on Audit Firms in Saudi Arabia. Journal of King Abdul Aziz University Economics and Management, 21(2).
Al-Ghazzawi, M. (2013). Total Quality Management. Amman: Dar Yazouri Al-Elmeyah.
Burk, W. (2013). What Human Resource Practitioners Need to know for The Twenty-First Century. Human Resources Management, 36(8), 71–79.
Dennis, I. (2014). The Nature of Auditing Theory. New York: Routledge
Ghalib, L. S. (2013). A Field Study in the Republic of Yemen. The Auditors’ Commitment to the Requirements of Planning of Audit under the International Auditing Standard No. (300).
Johnson, A. (2022). Role of Principals' Internal Audits in Promoting Financial Accountability in Public Secondary Schools. Journal of Educational Leadership, 30(2), 67-8
Mestry, R. & Bisschoff, T. (2011). Financial School management explained (2nd ed.). Pearson South Africa.
Mulgan, R. (2010). Accountability: an ever-expanding concept, Public Administration, 78 (3): 555-573.
Saye, J. (2012). Primary and Elementary Education. New Delhi: Deep and Deep Publications Pvt. Ltd.
Smith, J. (2022). The Impact of Principals' Involvement in Financial Auditing on the Financial Management of Public Secondary Schools. Journal of Educational Administration, 45(3), 123-145.
Swiss, J. (2012). Adapting TQM to Government. Public Administration Review, 52, 356-362.
Watson, J. C. (2011). Financial management in schools. Mahwah Printing Press.
Wright, A. & Wright, S. (2012). The Effect of Industry Experience on Hypothesis Generation and Audit Planning Decisions. Oxford university press.
Zickien, S. (2013). Implementation of Total Financial management Systems. Human Resource Management Journal, 17(3), 23–39.
