INFLUENCE OF PRINCIPALS’ BUDGETING COMPETENCIES ON FINANCIAL PERFORMANCE IN PUBLIC SECONDARY SCHOOLS IN THARAKA SOUTH SUB-COUNTY, THARAKA NITHI COUNTY, KENYA
Abstract
Statement of the Problem: Budgeting competencies demonstrated by principals play a significant role in enhancing financial performance in secondary schools. However, in Tharaka South Sub-county, this has not been the case, as many public secondary schools have reported instances of low and delayed financial performance.
Purpose of the Study: The purpose of this study was to examine the influence of principals’ budgeting competencies on financial performance in public secondary schools in Tharaka Nithi County, Kenya.
Methodology: The study used a mixed-method approach with a concurrent triangulation design. It targeted 28 principals, 140 department heads, 28 bursars, 28 BoM Chairs, and two County/Sub-county Auditors, selecting a sample of 144 respondents through Yamane’s formula. Data were collected via questionnaires for department heads and interviews for principals, BoM Chairs, bursars, and auditors. Qualitative data were analyzed thematically and presented narratively, while quantitative data were analyzed descriptively with frequencies and percentages and inferentially through regression analysis using SPSS version 25, with findings presented in tables.
Findings: The study found that financial performance in many public secondary schools in Tharaka South Sub-county remains suboptimal. Numerous cases of financial misappropriation, wastage, pilferage, and overall financial inefficiency were reported. This financial mismanagement was linked to insufficient budgeting competencies among principals. Specifically, when principals lack essential financial skills, budgets often fail to align with school objectives, resulting in fund misallocation and financial shortfalls.
Recommendations: The Ministry of Education should implement targeted professional development programs to strengthen principals' financial management and budgeting skills. These programs should cover budget forecasting, resource allocation, financial reporting, and the use of budgeting tools.
Keywords: Financial performance, principals’ budgeting competencies, public secondary schools.
References
Amuseghan, S.A. (2010). Effective secondary school education: A penance for the attainment vision 2010. Journal of ANCOPSS Ondo State, 10.
Anthony, R. N. (2004). Budgeting theory: Management control systems. McGraw-Hill Education.
Archeier, H. & Seibel, H. (2019). Small Scale Industries and Economic Development in Ghana. Verlag Breitenbech, Saarbrucken, Germany.
Bartlett, H. (2019). The single biggest cause of business failure (www.benmbartlett.com)
Becker, R., & Simons, L. (2021). Collaborative budgeting practices and their impact on school financial performance. Journal of Educational Administration, 59(4), 234-249.
Chasten, I. & Mangles, T. (2018). Small Business Marketing Management. Palgrave Publishers, Basingstoke, UK
Creswell, J. (2014). Research design: qualitative, quantitative and mixed methodology. Thousand Oaks, California: Sage Publications.
Harrison, L., & Karanja, M. (2021). Prudent financial management in secondary schools: Lessons from success stories. Educational Administration Quarterly, 49(4), 501-520.
Jones, T., & Carter, M. (2020). Budgeting and salary delays in secondary education: An analysis of causes and effects. Financial Management in Education, 14(2), 187-202.
Kaplan, R., & Owings, W. (2019). School leadership: Pedagogical versus financial priorities. International Journal of School Administration, 7(3), 289-310.
Kelly, S., & Brown, A. (2021). Effective cash flow management in school budgeting: A comprehensive review. Journal of Educational Finance, 46(3), 422-439.
Leibenstein, H. (1993). Efficiency theory and organizational behavior. Journal of Organizational Efficiency, 5(2), 134-146.
Mitchell, C. (2019). The instructional role of elementary school principals. Canadian Journal of Education, 28(3). 409 – 433.
Moses, O. (2010). Financial Management, the school budget, primary. Nairobi: Margitons limited.
Ndegwa, E. (2021). Financial management in Kenyan rural schools: Challenges and opportunities. Journal of Education and Practice, 12(14), 45-58.
Nwagwu, U. (2021). Misallocation of funds in secondary schools: A growing problem. Journal of School Administration, 11(3), 144-158
Omondi, A.U. (2011). Budgeting in education for a better tomorrow. Journal of Education, (6) 23.
Smith, J., & McPherson, T. (2020). Budget planning challenges in schools: Accountability and monitoring gaps. Educational Finance Review, 12(1), 97-115.
Thurlow, J., & Weber, L. (2020). Understanding financial management in educational leadership: A comparative study. Journal of School Business Management, 15(1), 59-74.
