Influence of Board of Managements’ Corporate Governance Practices on Financial Management in Public Secondary Schools in Moyale Sub-county, Kenya

Abstract

Education has always been one of the most vital sectors of a working government. It is the pillar of socio- economic development of the society and nation at large. Towards this end, the research sought to establish the influence of board of managements’ corporate governance practises on financial management in public Secondary schools in Moyale sub-county, Kenya. The objectives of the study are to establish the impact of the board composition and criteria of selection on financial management of secondary schools in Moyale sub-county, Kenya. To establish the board skills on the financial management of public secondary schools in Moyale sub-county, Kenya. To assess the influence of corporate leadership on financial management public secondary schools in Moyale sub-county, Kenya.To assess the influence of financial record keeping on financial management public secondary schools in Moyale sub-county, Kenya.This area of study will add to the pool of knowledge on the under researched area of financial management in public schools. Research methodology showed the data collection, analysis and presentation. The study adopted cross sectional research design. Multiple regressions were applied to assess the influence of board of managements’ corporate governance practises on financial management in public Secondary schools in Moyale sub-county, Kenya. The regression model treated corporate leadership, board composition, board skills and financial record keeping as the independent variable whiles the dependent variables was financial management. The findings of the study show that Majority of BOM who were 25 (40%) to a moderate extent indicated that budgeting was practiced to a moderate extent in schools, but they were not made not made available for public scrutiny. There was agreement to a great extent by 20 (33%) of the BOM that accounting knowledge is vital in order to improve financial management in schools since the school had employed accounting staff. Transformative leadership was to a little extent practiced in many public secondary schools in Moyale-sub county as indicated by 20 (32%) of the BOMs. To a no extent invoices stamped were recorded into the system correctly, and clearly marked for account code assignment as indicated by 22 (35%) of the respondents. The study concluded that there is a big problem with corporate leadership in many public secondary schools in Moyale-sub County as it is not greatly practiced. There was no transparency in budget making process in many public secondary schools in Moyale sub-county. Majority of board members had little accounting knowledge which affected financial management. Monitoring of how funds are allocated is an important aspect of financial management in public secondary schools. The study recommended that board of members should undergo training on corporate leadership. Budget making process in public primary schools should be a transparent process which should be open to public scrutiny. The board members appointed to the board should have good knowledge and experience in governance and financial management. There should be a monitoring committee in place to ensure that funds in public schools are well utilized. Further study was recommended for the study to establish the influence of board of managements’ corporate governance practises on financial management in public Secondary schools in in Kenya.