Abstract:
he purpose of this study was to investigate practices and challenges of financial resource
management in government primary schools of Bale zone in Oromia Regional State. The study
was conducted in fifteen primary schools found in five woredas of the zone. The schools were
selected by using simple random sampling techniques. Teachers and PTSA members were
selected by simple random technique of lottery method, whereas all principals, supervisors,
school financial personnel and woreda finance auditors were selected by using availability
sampling techniques because their number was small and manageable. The target population
of the study were 725. From these 414 respondents were participated in the study. 10 woreda
financial auditors were interviewed to gather in depth information and 404 self-developed
questionnaires were distributed and only 399 (98.76%) questionnaires were filled and returned
timely. It was pilot tested and its reliability was checked and found 0.78. Descriptive statistics
such as frequencies and percentage were used to present demographic data of respondents.
Independent sample t-test was employed to evaluate mean differences in the opinion between
the two independent groups. Both quantitative and qualitative methods of data analysis were
used to analyze the data obtained through questionnaire, interview and document analysis.
Findings of the study revealed that the schools financial planning was not participatory and it
lacks transparency, and the degree of implementation of financial guidelines was found
minimum. Stakeholders’ participation was achieved only through PTSA. Incompetency of
principals, school leaders and financial personnel to manage and utilize school financial
resources leads to misuse and unnecessary wastage. Moreover, lack of external auditing
practices, absence of eligibly employed financial clerks, accountants, purchasers and storekeepers’ and lack of reliable and genuine financial reports hinder the success of financial
resource management. Thus, the overall recommendation of the study was providing training
in capacity building, assigning qualified principals and financial personnel at the right place
based on merit plus experience approach and creating local initiatives to increase
stakeholders’ participation in preparing adequate budget plan, continuous internal and
external auditing, encouraging harmonious relationship between stakeholders’ and eliminating
restrictions attached to grant allocation. Providing genuine and reliable financial report to
create transparency and amending adequate and explicit financial guidelines to bridge the gap
in the practice of financial resource management in primary schools of the study area.
