Influence of financial management practices on the financial performance of public secondary schools in Kathiani sub-county

Abstract

The study sought to establish the influence of financial management practices on the financial performance of public secondary schools in Kathiani sub-county. The study was carried out to primarily examine the influence of financial management practices (budgeting, procurement, and financial recording) on the financial performance of Kathiani sub-county public secondary schools. The study was carried out in Kathiani Sub-county, Machakos County, where a total of 30 public secondary schools were targeted. The study utilized empirical literature review from other researchers to identify research gaps. The theoretical analysis used theories that assisted in the study of the financial management practices in public secondary schools in Kathiani Sub-county. The theories used are; Stakeholder Theory by Freeman, Iceberg Theory of Money Management by Varma, and the Agency Theory by Ross and Mitnick. The study applied a descriptive survey design due to the small population in the area of the study. A pilot study was carried out on three secondary schools in Machakos Sub county for the sake of ascertaining the reliability and validity of the research instrument. The data collection tool used was a questionnaire filled by the principals, deputy principals, and account clerks of the respective public secondary schools. The data were analyzed by the use of descriptive and inferential statistics, by utilizing Microsoft Office Suite and Statistical Package of Social Sciences (SPSS) version 21. The qualitative data was systematically organized and analyzed to achieve logical conclusions and recommendations. The study has established that, overall, there is a statistically significant influence of financial management practices on the financial performance of public secondary schools in Kathiani sub-county. Also, when the independent variables were considered independently, the study established that budgeting practices had a significant influence on the financial performance of public secondary schools in Kathiani sub-county. Procurement practices and financial recording practices were also found to have a statistically significant influence on the financial performance of public secondary schools in Kathiani sub-county. The study indicated that on average, budgeting practices were adhered to in most of the secondary schools in Kathiani Sub-county, which was consistent with the empirical literature reviewed. The results of procurement practices and financial recording practices were also consistent with the empirical literature reviewed in the literature review section. This study, therefore, recommends that the ministry of education and the Teachers Service Commission should carry out continuous training and sensitization of the school principals, deputy principals, and account clerks on the financial management practices. The training should primarily focus on budgeting, procurement, and financial recording practices to improve the schools’ financial performance. The study also recommends further study to be done to consider other variables not considered. A comparative study can also be conducted between public secondary schools and private secondary schools to establish what factors influence their financial performance.