Factors Affecting Financial Management Practices In Public Secondary Schools: A Case Of Schools In Embu West Sub-county, Kenya

Abstract

Financial Management deals with collection, concentration and disbursement of finances including measuring the level of liquidity, managing the cash balance and short term investments. Successful financial management involves not only avoiding insolvency but also reducing days in accounts receivables. Schools receive funds from many sources including free secondary education. It is therefore recommendable that public funds be managed effectively and used for the intended purpose. This study was conducted to evaluate the factors affecting financial management practices of public secondary schools in Embu West Sub -County, Kenya. The specific objective of this study was to find out the extent to which Board of Management practices, internal control system, budget participation and Principal’s management skills affect financial management practices in public secondary schools. The researcher used descriptive study design to accomplish the research objective. Embu West Sub-County has 31 Secondary Schools and 15 schools were chosen randomly to participate in the study. The respondents of the study were School Principals, Deputy Principal, Bursars and Accounts clerks. The study therefore used a sample size of 60 respondents. Questionnaires were used to acquire data from the respondents. Cronbach’s alpha technique was used to test reliability. A multiple regression model was used to test the relationship between the study variables. Simple random sampling was used to select the sample size. Primary data was collected to achieve the objective of the study. The data collected was analyzed using descriptive technique with the help of statistical package for social science (SPSS) program. Data was presented in tables and charts and interpretations made based on the research objectives. Conclusions and recommendations were drawn based on the analysis and interpretation of data collected from the respondents. The researcher suggested further research by the future researchers on factors affecting financial management practices in private schools and other counties.