PRACTICES AND CHALLENGES OF FINANCIAL RESOURCE MANAGEMENT IN GOVERNMENT PRIMARY SCHOOLS OF BALE ZONE IN OROMIA REGIONAL STATE

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.