Influence of Principals’ Financial Management Practices on Achievement of Financial Targets in Public Secondary Schools in Dagoreti Sub-county, Kenya

Abstract

Achievement of targets is very important for any organization or educational institution. Financial management is a key responsibility of every principal. Without effective financial management, organizations such as schools may find it difficult, if not impossible to achieve their goals. The Government of Kenya enacted the Public and Disposal Act no. 3 of 2003 which governs all aspects of procurement and disposal of unserviceable goods in the public sector which includes public secondary schools. This was to enhance accountability and transparency in expenditure management. The study sought to investigate influence of principals’ financial management practices (budget preparation, allocation of funds, financial control and Stakeholders’ involvement) on achievement of financial targets in public secondary schools in Dagoreti Sub-County, Nairobi County, Kenya. The study was guided by Financial Agency Theory. The study adopted a descriptive survey design and targeted the principals, BOM and PTA members as well as the County Education Board Officer. The sample size involved 53 principals, members of 138 Board of Management, 53 PTA and 1 County Education Board Officer in Dagoretti Sub-County, Nairobi totalling to 245 respondents. Stratified random sampling was used to select the respondents to be interviewed. The study relied on data collected through questionnaires and interview guide to meet the objectives of the study. Responses were tabulated, coded and processed and analyzed by use of SPSS software programme and presented using figures, tables and charts. The instrument return rate was 88.3%. The study found that there is a significant relationship between principals’ financial management practices (Stakeholders involvement, financial control, Budget preparation and Allocation of funds) influence the achievement of set targets in public secondary schools in Dagoretti sub-county at p<0.05. There is need for the principals, BOM and PTA members to interact with other secondary schools to gain experience in financial management in schools. The Government should release the funds meant for the schools in good time. It is recommended that public secondary schools should offer effective financial management training programmes should be developed based on identification and analysis of their needs. Future researchers should consider conducting a similar study in all public secondary schools in Kenya as this will allow the researchers to establish the robustness of the findings and the subsequent policy recommendations and formulation.