Financial management practices and performance of secondary schools in Arua district, Uganda

Abstract

The performance of secondary schools plays an important role in the quality of education provided in the secondary schools in Uganda. Although the ministry of education and sports had implemented initiatives, to enable secondary schools manage their resources to achieve educational objectives, schools in Arua district still had challenges with effectively utilizing their financial resources to achieve national and institutional educational objectives. The study examined the relationship between financial management practices and the performance of secondary schools of Arua District, to provide a basis for relevant interventions. Using a cross-sectional survey, data was collected from 62 respondents who included 8 school bursars, 7 head teachers, 40 heads of departments and 5 members of school boards of governors by the help of a structured questionnaire and interview guides. Data was analyzed by use of Statistical Package for Social Scientists (SPSS), multi-regression and content analysis. The findings of the study revealed that: financial planning was not significantly related (r = .22, p > 0.01) to the performance of secondary schools, meaning that the level at which it is done is not enough to affect the performance of these institutions. Financial control was significantly related (r = .16, p < 0.05) to performance of secondary schools, though its effect was not significant (β = .03, p> 0.05). Financial reporting was significantly related to performance of secondary schools (r = 32, p < 0.01) and had a positive effect (β = .236, p < 0.05) on the performance of secondary schools. Overall financial management practices had a 9.8% (r2 = .098) positive effect on the performance of secondary schools. Therefore, Ministry of Education and Sports should strive to implement the Uganda public finance management guidelines in Secondary schools. The Board of Governors in secondary schools should be empowered to monitor and influence the financial management practices of secondary schools towards better school performance. Further research is recommended to examine mechanisms and structures that can help Stakeholders in secondary schools take an active role in monitoring and influencing the financial management of secondary schools, implement better work environments in Secondary schools in Uganda.