PRACTICES AND CHALLENGES OF FINANCIAL RESOURCE MANAGEMENT IN GOVERNMENT SECONDARY SCHOOLS OF WEST HARARGHE ZONE, OROMIYA, ETHIOPIA

Abstract

The purpose of this research was to assess the practices and challenges of financial resource management in Government Secondary schools of West Hararghe Zone, Oromia.. To conduct the study, mixed methods design was employed. Data were collected from a total of 83 respondents, including 40 PTA, 18 Head of Education Office, finance plan and budget experts and 6 supervisors by census sampling technique and whereas 19 principals were selected by simple random sampling technique. The data were collected by using questionnaire, interview guide and document review. The instruments validity was tasted using cronbach alpha and the reliability coefficient for the instrument was 0.93. The data obtained through questionnaires were analyzed using statistical tools such as frequency, percentage, mean and standard deviation and in addition to that the qualitative data that were obtained from document review and interviews were explained in narrative words. The findings indicate that stakeholders were one of the key factors affecting the practices and challenges of financial resource management in all level. The major findings indicated lack of qualified persons in the area. Lack of financial management Knowledge, skill and experience gaps were major problems in financial resource management practices in the study area. On top of that, absence of internal auditing mechanisms, and lack of transparency on the budget planning were other constraints in financial resource management of the secondary schools identified by the study. Based on the findings, the following conclusions were drawn. Incompetency of school managers and absence of participation of stakeholder also affected the management of financial resources and the contribution of stakeholders to increase the educational finance. Absence of internal auditing hinders schools’ not to be effective in financial resource management in transparent and accountable manner. To improve these problems Zonal Education Office, Woredas’ and Towns’ Education Office should arrange training for school principals and finance personnel. School supervisors should make appropriate monitoring and supervision by giving technical support for school managements in consistent base to transparency, and assure accountability