The Practices and Challenges of Financial Resource Management in Secondary Schools: the Case of Bako Tibe Woreda of West Showa Zone

Abstract

The objective of this study was to assess the practices and challenges of financial resource management in secondary schools of Bako Tibe Woreda, of west Showa Zone. The specific objective of the study were to find out the implementation of financial resource management in accordance with the rules and regulations in the sampled secondary schools of BakoTibe Woreda, to find out the major challenges that affect principals financial resource management practices in the sampled secondary schools, and to suggest the mechanisms that helps to resolve the financial resource management problems in sampled secondary schools. Descriptive survey research method was employed with both qualitative and quantitative data analysis. Stratified, simple random and purposive sampling techniques were employed. The sample size was 83 teachers, 11 school leaders(four principals, 7 vice principals), eight PTA members (four Chairman and four vice chairman), one woreda Education office head and one woreda finance office head with the total of 105 participants out of 218 study populations. The data gathering tools employed in this study were questionnaire, interview guide as well as document analysis. The findings indicated that in the sampled secondary schools, the principals implement financial resource management not in accordance with financial rules and regulations. The major challenges facing financial resource management in secondary schools included, lack of training regards to financial management, shortage of budget, lack of clear school financial guidelines which resulted in violation of financial rules and regulation while implementation, lack of skill and knowledge on financial management, lack of school financial guideline, poor school financial planning; and lack of transparency on school financial implementation, absence of system of accountability or inadequate controlling on school finance (lack of internal auditing and inadequate external auditing), incompetency of school administrative personnel in financial management, low participation of stakeholders in generating school finance, and lack of experience in implementing school finance. To overcome the challenges encountered, recommendation have been forwarded. These include: all concerned bodies, such as Oromia Education Bureau, Zone Education Office, Woreda Education Office and Woreda Finance and Economic Development being together should provide short and long term trainings for the school governing bodies on the issues of financial resource management, closely supervising, controlling school finance and should provide clear financial guidelines. Moreover, school leaders should be responsible and accountable to ensure transparency and good governance in the school, and develop the culture of team spirit and participatory approach among different stakeholders