PRACTICES AND PROBLEMS OF FINANCIAL MANAGEMENT IN PREPARATORY SCHOOLS OF ARSI ZONE, OROMIA REGIONAL STATE

Abstract

Purpose of this study was to investigate practices and problems of financial management in preparatory schools of Arsi Zone. Descriptive survey design; both quantitative and qualitative data analysis methods were employed to answer the research questions. To achieve the purpose of the study the researcher has used both primary and secondary data sources. In colleting primary data school principals, vice principals, accountants, department heads, PTA members, woreda education and finance office heads, woreda education office and finance office plan and budget experts and finance office auditors have participated in responding questioners and interviews. The targate population was 24 preparatory schools out of which 10 preparatory schools had been chosen using lottery system of sampling technique. Available sampling techniques were used to choose the sample. A total of 50 woreda personnel (10 woreda education office head, 10 woreda plan and budget experts, 10 woreda finance office head, 10 woreda finance office plan and budget experts, 10 woreda finance auditors) and 80 school personnel (10 school principals, 10 school vice principals, 10 school accountants,40 department heads and 10 PTA members) from selected preparatory schools in the academic year 2014/15 were participated in the study. . Questionnaires, interviews and document analysis have been data collection tools for the study. The data were described and interpreted in an organized manner using descriptive methods of data analysis. Percentage, frequency and mean were used to make analysis participants’ perception. The findings of the study revealed that respondents are aware of the existence of the practices and problems of financial management in preparatory schools of Arsi Zone. The result of the study identified that absence of clear school financial guidelines, lack of commitment to use legal and adequate financial documents by principals, shortage of budget, delay of budget, incompetence of the schools internal and external auditing services and misuse of the schools’ fund are found to be critical problems. Thus, it is recommended that, the school management bodies and REB being together should prepare training for stake-holders in the field of the management of budget to minimize budget problems and strengthen the auditing experiences to reduce the mishandling of finance in schools. Principals should be committed to use legal preparation and adequate financial documents, work towards the real participation and satisfaction of stake-holders for the effectiveness, transparency and accountability of source of budget allocation of budget, approval, utilization and evaluation processes in Preparatory schools.