Influence Of Adoption Of Financial Reporting Practices By Board Of Management On Governance Of Early Years Education Centres In Kisumu Central Sub-County, Kenya

Abstract

The adoption of sound financial reporting practices in Early Years Education centres (EYE) is rarely done. In situations where EYE centre management boards do not adopt sound financial reporting practices, governance is ineffective since efficiency, commitment and learner competencies achievement are compromised. Through observation and personal experience, it‟s evident that EYE Boards of management don‟t embrace sound financial reporting practices to enhance good governance of EYE centres. This study sought to investigate the influence of adoption of financial reporting practices on governance in EYE centres in Kisumu Central Sub-county. Special reference was on budgetary practices, procurement practices, auditory practices and financial competency practices. The study used a survey research design. The target population comprised Early Years Education teachers and head teachers in Kisumu Central Sub-county. After identifying the early years education centres of interest to the study, they were stratified into three zones. The stratus included Manyatta zone, Southern zone and Central zone. Stratified sampling and random sampling were used to select 89 Early Years Education teachers and 89 Early Years Education head teachers. Questionnaires were used to obtain data from the EYE teachers while interview guides were used to collect data from the head teachers. Data were analyzed using both descriptive and inferential statistics. Frequency distribution tables were used to describe the demographic characteristics of the respondents while inferential statistics were used to determine the correlations between the variables. The key finding from the study revealed that, there should be effective auditing in all Early Years Education centres by ensuring all auditing practices are adhered to. The study established that most Early Years Education teachers were not equipped with financial reporting practices which translated to poor EYE governance. A number of employees felt left out in making financial decisions. The study recommends that the board of management of Early Years Education centres should embrace adoption of financial reporting practices to enhance accountability, transparency and good governance in the Early Years Education centres.