CURRENT PRACTICES AND CHALLENGES OF FINANCIAL MANAGEMENT IN SECONDARY SCHOOLS OF MIRAB BADEWACHO WOREDA HADIYA ZONE

Abstract

The main objective of this study was to investigate the practices and challenges of financial management in secondary schools of Mirab Badewacho woreda Hadiya Zone. The study was conducted in six governmental secondary schools found in Mirab Badewacho woreda. A mixed method research design was employed; both quantitative and qualitative data collection on the sequential explanatory design for the basic research questions were raised. Simple random, availability, and purposive sampling techniques were used to select participants. The total target population of the study was 201. Of those, 140 sample respondents have participated in the study. The participants of the study consisted of 122 teachers, 10 school leaders, 6 school accountants, and 2 woreda finance office experts. Questionnaires, interview guides, and document analysis were used as data collection instruments for the study. The quantitative data obtained from questionnaires was analyzed using frequency, percentage, standard deviations, and mean value as data analysis tools. The qualitative data obtained from interviews and documents was analyzed by using word narration. The main findings of the study revealed low school financial allocation, low school financial utilization, improper financial management, a lack of external and internal auditing practices, a minimum of structured financial management guidelines, and weak internal income generation. Therefore, the researcher concluded that the above-mentioned problems affected the effectiveness and efficiency of financial management in secondary schools. Thus, it is recommended that the woreda education office and schools take measures to improve school financial utilization; to allocate more school finance for the teaching and learning process; to continuous external and internal auditing; to training; to assign qualified school accountants at the appropriate location based on experience; the allocated budget should also be released on time, and regular auditing should be carried out.