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FINANCIAL ACCOUNTABILITY OF SECONDARY SCHOOL PRINCIPALS
TOWARDS PA RENTS
by
MALIGANA SONNYBOY MATAMELA
MINI-DISSERTATION
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR
THE DEGREE
MAGLS'TER EDUCATIONLS
in
EDUCATIONAL MANAGEMENT
in the
FACULTY OF EDUCATION AND NURSING
at the
RAND AFRIKAANS UNIVERSITY
SUPERVISOR: DR B R GROBLER
CO-SUPERVISOR: Prof T C BISSCHOFF
FEBRUARY 1998.
(i)
EDICATION
This work is dedicated to the memory of my mother Phophi and daughter Mukundi.
ACKNOWLEDGEMENTS
I WOULD LIKE TO EXPRESS MY SINCERE THANKS AND APPRECIATION TO:
The Almighty God, for granting me the strength, courage and perseverance to complete this mini-dissertation.
My supervisor, DR B R Grobler for his constant advice, encouragement, kindness and inspired leadership throughout the course of this study.
My co-supervisor, Prof. T C Bisschoff for his capable guidance and expertise in the technical aspect especially Chapter two of this study.
My wife Florence and daughter Gundo for their unwavering motivation and the sacrifices they made to enable a father to study full time away from home.
My colleagues and friends, particularly Jonas Litshani for his motivation and moral support.
(iii)
MOMS
Hoofstuk een maak die tema bekend en voorsien die agtergrond van die
navorsing. Dit beskryf die probleem wat gestndeer meet word en die metnde
wat gebrnitc gaan word in die navorsing Laastens verklaar dit konsepte wat
gebniik word en brei dit uit op die afbakenine van die ondersoek.
Hoofstuk twee het geffslo , s op die literatuurstudie sodat 'n goeie fondasie vir
`n empiriese studie neergele kan word. Dit het die onderwerp van die
skripsie ontbloot, naa.Z.IFENIANSLELE 2 --tiiNSPRFEKLIKHEID VAN
sucoNappiv. FIce-nfmgnnFpF. TFIC'Nnce_IP
Die besorekine in Hoofstuk twee het random finansiele aanspreeklikheid
gesentreer. Dit blyk dat vir iemand om finansieel aanspreeklik te wees, die
per soon ten mincto 4 n ba sioco le-Annie wan finansiele bestuur moet he en weet
wat aanspreeklikheid werklik beteken.
Knmnnnente van finansiele hesniur, naamlik die begroting, finansiele
rekenkunde, finansiele kontrole en finansiele verlaegewing was in detail bespreek Diese!fde is van vs.-passing op 'n aanspreeklikheidstrategie.
Laastens was 'n motiveringsstrategie, wat gebruik kan word om ouers te
mntiveer om finansieel betrokke te raa.k in die aktiwiteite van die skool,
bespreek.
(iv)
In hoofstuk drie was die doel van die navorsing verduidelik. cri Beskrywing
van die empiriese ondersoek word gegee. Alle items in die vraelys het
gemiddelde tellings gehad wat gestrek bet vanaf 2,61 tot 4,76 .
Tn llnefctOr vr "'arc die F.'n'ink;....FA data ge-analiseer en geinterpreteer. Die
konstrukgeldigheid van die navorsings instument was bepa? dea.m - middel
van twee oneenvolgende faktor analises wat die 66 items gereduseer het tot
slegs drie faktore, naamlik:
0 finansiele bestuur bestaande uit 8 items met 'n
betroubaarheidskoeffisient van 0,716 ;
® motiverings bestaande uit 22 items met 'n
betroubaarheidskoeffisient van 0,924; en
0 En.nc;p1..,sp,irlikheid bestaande uit 31 items met 'n
betroubaarheids koeffisient van 0,947.
Die statistiese analise was uitgevoer deur die vergelyking van een
voorbeeld van twee onafhanklike groene en n02 'n voorbeeld van drie
meer onafhanklike grnevet. Ripoteses was aestel en meer-veranderlike
statistieke was gebruik em die data te analiseer en te interpreteer.
(v)
LIST OF TABLES
PAGE
'17' HEMS ASSOCIATED WITI FINANCIAL
MANAGEMENT
42
1_1 F! r--4A INCI A I, ACC:OUNTABILITY OF SECONDARY
SCHOOL PRINciPA T . 4: TOW A TY; PARYNT=Z
46
T, A l'ff 41 COMPOSITE HYPOTHESES WITH AN AD-MINISTRATION
BLOCK AS THE INDEPENDENT VARIARI-re. 50
TALF Al" QT#17N1FFITCNT.C717 flTrniF1PT471/ 17NCES BETWEEN
BETWEEN PRINCIPALS WIFICISF S NAVE
AT"'"-kT"'n1-2' MTV -11'C-11-F AND THOSE THAT DO
NOT HAVE THEM FACTORS
52
TAnT,T.7 Ar1 9.-WIT-b (12 SITTIT, .1.-Tyin, (Virg VS, S wrr
EDUCATIONAL ta,
QUALIFICATION GROUPS AS TKTIFPF.r-TP:FiviT
VARIABLES 52
TABLE 4.4 SIGNIFICANCE Or nirrynrivr'F.F- 11.57r1`77FFT°T
P.M ICA TIONIk !, (WA LWIC_A MIN GROUPS IN
RESPECT OF THE FOLLOWING FACTORS 56
15' 744 11.1E' FnM7. 117'-TEIFFFNDENT GROUPS
IN RESPECT OF FINANCIAL ACCOUNTABILITY,
14,1ffYi-r7VATIfINT A ND FINANCIAL MANAGEMENT 58
(vi)
TABLE OF CONTENTS
CHAPTER ONE PAC E
1.1 INTRODUCTION 1
1.2 MOTIVATION AND BACKGROUND OF
THE PROBLEM 1
1.3 PROBLEM STATEMENT 2
1.4 AIM OF THE RESEARCH 3
1.5 METHOD OF RESEARCH 4
1.6 DEMARCATION OF THE INVESTIGATInN 4
1.7 CONCEPT CLARIFICATION 5
1.7.1 ACCOUNTABILITY 5
1.7.2 SCHOOL FUNDS 6
1.7.3 FINANCIAL MANAGEMENT 7
1.7.4 MOTIVATION 8
1.8 OUTLINE OF THE STUDY 8
CHAPTER TWO: LITERATURE REVIEW PAGE
2.1 INTRODUCTION
10
2.2 ACCOUNTABILITY
11
2.2.1 ACCOUNTING FRAMEWORK
12
222 THE lUll J OF THE GOVERNING BODY
13
2.3 COMPONENTS OF SCLK'O . Ft. N A NCI NAGEM FNT 14
2.3.1 THE UDGET
15
2.3.1.1 0:1.. IGIN AND PURPOSE OF A BUD-CET 15
,r'f"Lr=m7"T‘Ilue. FOR IMPLEMENTING A BUDGET
16
2.3.1.3 TYPES OF tUDGETS 17
THE BUDGET PROCESS
18
2.3.2 FINANCIAL ACCOUNTING
21
23:2„1 THE ACCOUNTING PROCESS
21
2.3.3 FINANCIAL CONTROL
29
23.3_1 BUDGET CONTROL
29
2.3.3.2 VERIFICATION
32
2.3.3.3 AUDITING
33
2.3.4 FINANCIAL REPORTING
34
2.4 MOTIVATION 36
2.4.1 COMMUNICATION 37
ESTABLISHING RELATIONSHIPS 39
2.5 CONCLUSION 40
PAGE
41
41
41
43
45
45
45
45
45
46
CHAPTER THREE: EMPIRICALvAl eciS
IA INTRODUCTION
3.2 TEE INSTRUMENT Or P-ESEAMCH
3. 1 . THE DESIGN OF THE QUESTIONNAIRE
3.2.2 DISCUSSION ON FINANCIAL MANAGEMENT
11Th ti r1121re A if INVESTIGATION
3.3.1 RESPONDENTS
3_3_2 BIOGRAPHICAL DETAILS
3.3.3 THE RESEARCH GROUP
3.3.4 RETURN OF QUESTIONNAIRES
3.4 SUMMARY
(ix)
CHAPTER FOUR: THE ANALYSIS AND INTFTVIITZ!"1" T 1 -1.1'N PAGE
OF A SELECTED SAMPLE OF THE
EMPIRICAL DATA
4.1 INTRODUCTION 47
4.2 RELIABILITY AND VALIDITY 47
4.3 HYPOTHESIS 49
4.3.1 COMPARISON OF TWO INDEPENDENT CROUPS 49
4 ;2. 1 . 1 r'r111-111P Pirggi BETWEEN SCHOOLS WITH
ADMINISTRATION BLOCie ANTI T114'' .121-'rrr1nITT 50
4. 1. 1 COMPARISON OF THREE OR MORE INDEPENDENT
GROUPS 53
4.11 riPP-4.17 DISCUSSION OF THE DIFFERENCE BETWEEN
THE FACTOR MEAN SCORES IN T 'UV F 4_5 58
4.4.1 F!NANCAL ACCOUNTABILITY 59
4.4.2 MOTIVATION 61
&4 3 FINANCIAL MANAGEMENT 63
4.5 SUMMARY 65
(x)
cm A PTFP CITA41%.1411;',V, FINDINGS AND PAGE
RECOMMENDATIONS
5.1 INTRODUCTION 67
5.2 SUMMARY 69
5.3 IMPORTANT FIN '11, INGS 70
5.3.1 FINDINGS FROM THE T ITFTZ:4 11- 174Y SURVEY IN RESPECT
OF FINANCIAL r nyTNTA TV OF SECONDARY
SCHOOL PRINCIPALS TOWARDS PARENT5 70
32 IMPORTANT EMPIRICAL FINDINGS 71
5.4 RECOMMENDATIONS 72
5.4_1 IN-SERVICE TRAINING 73
5.4.2 LEADERSHIP SFMTNARS 73
.7 = A .3 cupb- npy FROM DEPARTMENT OFFICIALS 73
5.4.4 TOPIC FOR FURTHER mscusstrykr 74
5.5 CONCLUSION 74
BIBLIOGRAPHY
r41- N J P.F! QUESTIONNAIRE
CHAPTER 1
1.1 INTRODUCTION
South Africa is undergoing a major and rapid change in almost every sphere. These
changes are brought about by legislative, political, economic and social pressures
(Henry, 1995:57). As educationalists, we cannot afford to fall behind and not stay
abreast with these changes.
We also have to facilitate change. To be able to succeed in our efforts of bringing
about change, Lawler (1983:197) suggests that we should change a number of
aspects pertaining to a system. One of the aspects that this research will attempt to
solve, with the intention of facilitating change in a positive direction, is the critical
issue of school funds in public schools.
In order to have a clear picture of the magnitude of this problem, it is necessary to
examine the background to the problem.
Mir-yrri 7 A TtirtflIT A TAWS P . A rizepnv TNT OF THE PROBLEM
The researcher has been a teacher for the past seventeen years and has taught in five
secondary schools. At none of these schools was a financial meeting ever arranged
in order to inform parents as to the financial standing of the school.
School committees, as they were previously known, consisted mostly of illiterate
parents whose duties were mostly to "rubberstamp" the principal's decisions.
2.
Since holding our first democratic non-racial elections in this country, people,
especially from rural black areas, are obsessed with the concepts of transparency
and accountability. Most parents are now aware that principals are accountable
towards them in respect of the utilisation of school funds.
The South African Schools Act specifies that all governing bodies of public schools
must open and maintain a banking account. In addition a yearly budget needs to be
prepared (RSA, 1996:13,14).
This presupposes that the principal has the necessary financial background in order
to act as the executive officer of the governing body. The principal will then be in a
position to make parents gain greater insight into the complexity of school finances
and a better understanding of the financial restraints under which the school
operates (Niemann, 1991:389).
The above discussion indicates that further research into this topic is necessary. The
significance of this study is that its findings may have an impact on the practice of
educational management relative to financial management. These findings could
also be used in situations where the management of the school fund still leaves
much to be desired. The formulation of a problem statement that follows below will
assist towards this pursuit.
1.3 PROBLEM STATEMENT
In the light of the above, it appears that the problem can be summarised by means
of the following questions:
3.
® What is the degree of accountability shown by principals of secondary schools
towards parents in respect of the utilisation and management of school funds;
and
o Is it possible to devise a strategy that could assist principals in encouraging
parents towards paying school funds?
Having formulated the problem the aim of the research will now be briefly
discussed.
1.4 AIM OF THE RESEARCH
In view of the questions formulated above the aims of this research project are to:
o investigate the perceptions of school principals regarding their accountability
towards parents on financial matters; and
o determine which components should be involved in the training of principals in
school financial management;
*devise a strategy to motivate parents to be financially supportive towards the
school.
in view of the preceding problem and aim statements, the method envisaged in
order to research the problem of accountability of secondary school principals
towards parents will now be discussed.
4.
g N'IlreTTIOD OF RESEARCH
The aim of the investigation is descriptive, in other words, its aim is to describe a
phenomenon, school financial management and the accountability of the school
principal. Furthermore, literature on school financial management and
accountability will be investigated in order to determine which components should
feature in a financial management programme that could possibly be used to train
school principals.
To supplement the preceding literature survey, an empirical study will be
undertaken. A structured questionnaire will be compiled, using the literature as a
basis in order to obtain school principals' opinion regarding their accountability
towards parents in respect of school funds.
Having briefly outlined the method of research that will be used, it is now
necessary to demarcate the investiaation in question.
1.6 DEMARCATION OF THE IlvvFQ9Fir"2-41 rrIniv
To be able to manage this topic well, it is necessary to demarcate it clearly.
The following demarcation will apply:
1.6.1 The research will focus on the skill of financial management as displayed
by principals.
1.6.2 The principals in question will be principals of black schools only.
1.6.3 The research will only be conducted in secondary schools falling under the
jurisdiction of the Northern Province, Region 3.
5.
CONCEPT CI ARIFICATION
In order that the same interpretations are given to concepts it is necessary that they
be defined.
1.7.1 Accountability
Accountability is reporting on the control and uses of resources by those
accountable for their control and use, to those to whom they are accountable
(Bromwich, 1992:310). He further states that accountability involves confirming
that the school's resources actually exist, that they have been used for legitimate
and legal purposes and that assets and resources have been accounted for in a
proper way.
Gray, Owen and Adams (1996:38) maintain that accountability involves two
responsibilities. The responsibility to undertake certain actions and the
responsibility to provide an account of those actions. For example, the principal of
a school has a responsibility to manage the resources (financial and non-financial)
entrusted to him or her by the community and a responsibility to provide an account
of this management. According to Gray, et al (1996:38-40), an annual report and
the financial statement are mechanisms for discharging accountability.
For purposes of this research, accountability is the state of being accountable,
answerable, liable or responsible. A person or group to whom responsibility has
been delegated is accountable to the employer. Accountability thus has an outward
orientation towards the source of authority. One is accountable to the source of
authority.
6.
The following are some of the sources of authority that the principal is accountable
to:
fa Principals are accountable towards the provincial head of the education
department.
@Principals are accountable towards the governing body of the school.
o Principals are accountable towards parents of learners in their school for making
sure that these learners receive the best education possible and that the school
fees are utilised for the purposes that it was meant for.
1.9.2 School funds
School funds are monies that the school collects in order to supplement funds that
the ,-,1,,,•9tion department provides. This money is used to finance services for the
school and to buy necessities supplementary to those that the education department
provides (Piek, 1992:149).
According to Meintjes (n.d.: 3), this fund consists of the following:
school fees;
net profit from sales;
interest on investments, savings and current accounts;
fund raising activities; and
donations
7.
1.7.3 Financial management
Financial management is the execution by a person in a position of authority of
those management actions (regulated tasks) connected with the financial aspects of
schools and having the sole purpose of achieving effective education (Niemann,
1991:372).
International Federation of Accountants (1996:647) define financial management as
the process of identification, measurement, accumulation, analysis, preparation,
interpretation and communication of information (both financial and operating)
used by management to plan, evaluate and control within an organisation and to
assure use of and accountability for its resources.
School financial management is mainly concerned with weighing up financial
needs against available educational funds. The management of educational funds
takes place within an administrative dimension.
For purposes of this research, financial management is defined as the use of
accounting knowledge and aspects of systems analysis for the specific purpose of
assisting management in its functions of financial planning and control.
Skillful operating of educational finances requires both a special administrative as
well as an individual management approach. The financial management task of
school principals cannot be separated from other school activities and management
actions.
1.7.4 Motivation
Motivation can be defined as the forces that cause people to behave in certain ways
(Morehead & Griffin, 1989:103),It is a mechanism through which complex forces,
incentives, needs, tensions and other mechanisms start and maintain voluntary
activity for the attainment of personal aims.
For the purposes of this research, motivation is the application of a range of
strategies that could lead to influencing the parents to actively participate in the
financial affairs of the school.
These strategies include the improvement of school-community relationships and
the development of a communications strategy that will help the principal to reach
out to the community.
This communications strategy should be driven by the desire on the part of the
principal to maintain honest, open dialogue and even debate about what best meets
learners' needs. By engaging oneself in this direction, the principal will begin to
build support and advocacy for his or her efforts.
In conclusion to this chapter a brief summary of each chapter that is to follow is
outlined below.
1.8 OUTLINE OF THE STUDY
Chapter one introduces the topic and provides the background of the research. It
describes the problem to be studied and the method that is to be used in the
research. Finally, it clarifies concepts used and elaborates on the demarcation of the
investigation.
9.
Chapter two reviews the literature so as to lay a good foundation and grounded
theory for the detailed study of financial management with an emphasis on
effective school financial management by the principal.
Chapter three deals with the qualitative analysis of the design of the questionnaire
and methods of collecting data from the groups sampled.
Chapter four analyses and interprets the empirical data.
Chapter five summarises the findings of chapter two, three and four in respect of
the literature survey and empirical findings. It also reflects on the reliability and
validity of the research findings. It finally deals with the recommendations and
conclusion.
CHAPTER 2
LITERATURE REVIEW
2.1 INTRODUCTION
In a particular democracy like the democratic South Africa, there must be flows of
information in which those controlling the resources provide accounts to society of
the manner in which those resources are used (Gray, Owen & Adams, 1996:37).
Acording to Fennimore (1996:54), political and social agendas play a major role in
affecting public schooling and thus the leadership of the principal, as Mackin
(1997:19) maintains, is the key force in affecting the school culture. On the other
hand, Macpherson (1996:91) maintains that the client perspective suggests that
schools will improve when educators account directly to their clients,that is, parents,
learners and the community. He further maintains that accountability is to be
accomplished through managerial mechanisms such as client governing school policy,
external audits and human resource management and development.
The requirement to report to parents (financial accounting) is one of the very few
instances of explicit accountability being established within the law (Gray, et al.
1996:40). According to Duncan (1971:30), before the financial accounting policy
could be implemented, the following pre-requisites should be taken into account,
namely, we need to:
drastically change the training programme for educational administrators to
include financial management and accounting;
have an adequate accounting system; and
have an adequate personnel system.
The discussion in this chapter is centred on accountability, components of school
financial management as a prerequisite to financial accountability and finally
motivation as a strategy to encourage parents to be financially supportive to the
school.
The concept of accountability will now be discussed.
2.2 ACCOUNTABILITY
Gray, et.al (1996:38) define accountability as the duty to provide an account or
reckoning of those actions for which one is held accountable. They further maintain
that accountability involves two responsibilities. The responsibility to undertake
certain actions and the responsibility to provide an account of those actions. For
example, the principal of a school has a responsibility to manage the resources
(financial and non-financial) entrusted to him or her by the community and a
responsibility to provide an account of this management.
The South African Schools Act also presupposes that the principal should be held
accountable for the professional management of the school (RSA, 1996:7). All parties
to the school may also wish for accountability information if this leads to better risk
sharing between the school participants (Bromwich, 1992:311).
Odden and Picus (1992:16) state that accountability must start at the top and must be
applied to everything that has an instructional function. They maintain that the
purpose of accountability is not punitive but it is "quality control".
One of the best ways of describing how accountability could be executed in practice is
through the design of an accounting framework. This framework will now be
discussed.
12.
2.2.1 Accounting framework
Accountability is to be accompanied by restructuring schools and collaborative
planning (Macpherson, 1996:91). The accounting framework coupled with
restructuring and collaborative planning that could be used in introducing
accountability in schools is best described by Odden and Picus (1992:18/19) in the
three steps or directives that are discussed below:
0 Step 1 (1 st directive): Setting basic standards or rules
Education requires some form of commitment to a set of criteria (Odden & Picus,
(1992:19). Macpherson(1996:93) argues that the appropriateness and effectiveness of
accountability processes may be determined by reference to the following four
criteria.
primary purposes to be served
patterns of reasonable obligations (to whom, how, how often, on what basis).
the nature of the data required.
how collected data is to be processed, stored and used.
Step 2 (2nd directive): Data collection
Odden and Picus (1992:19) argue that we should assemble a set of "learning
experiences" and management procedures that will allow and assist us to reach that
specified criterion or set of criteria. They further maintain that total accountability
means that each component has a specified -function. We have to determine how well
each component succeeds and revise and improve where necessary. They also state
that accountability means that we must identify the weaknesses and provide
corrective back up so that nothing is lost to us.
13.
• Step 3 (3rd directive): Rely on data
We are accountable for the data. If the data are not adequate in comparison with the
data we had hoped for, we have not met the requirements of the first two directives.
This means that we must act on the third step or directive as our only hope for
attaining the first two (Odden & Picus, 1992:19).
Having discussed the accounting framework, the role of the governing body within
the context of the framework described above will now be
discussed.
2.2.2 The role of the governing body
According to Odden and Picus (1992:308), the governing body provides two ways to
make schools more accountable for their performance, namely:
by making the community part of the management process; and
by making educators and non-educators more accountable to the community.
They also maintain that an important role for school governing body is to help
establish the educational goals of the school it represents. In addition to establishing
goals, it must decide upon measurement standards or criteria for judging how well
the school is performing in relation to its stated goals.
By participating in this process, Odden and Picus (1992:308) argue that the school
governing body becomes part of the accountability process. Instead of simply
criticising the school, community members will be challenged to help resolve the
problems that keep the local school from achieving its goals. If the school is
successful, the members of the governing body can share in that success.
140
The school becomes progressively more accountable to the community as the
governing body becomes involved in the school's operation. Moreover, by reporting
to the parents, educators and non-educators will be more aware of community
concerns and thus more responsive to issues of public concern (Odden & Picus,
(1992:308).
The South African Schools Act also empowers the governing body of a school in that
the governance of every public school is vested in it (governing body) and that it also
stands in a position of trust towards the school (RSA, 1996:7).
Eraut (1978:153) maintains that one is accountable to all those who have placed one
in a position of trust and that accountability should be expressed in terms intended to
secure the continued renewal of that trust. He further maintains that both reporting
and negotiation of consequent action needs to be conducted in such a way as to secure
the renewal of trust. This in turn implies that schools will need to take note of and
respond to external criticism in return for the political and financial support of those
who trust them.
As it was mentioned earlier in the introduction that financial management is a pre-
requisite to financial accountability, components of financial management will now
be discussed.
2.3 COMPONENTS OF SCHOOL FINANCIAL MANAGEMENT
The components of school financial management are clearly stipulated as financial
areas by Niemann (1991:373) as the budget, financial accounting, financial control
and financial reporting.
The budget will now be discussed.
15.
2.3.1 The budget
Chadwick (1993:93) states that budgeting is an important managerial area. Piek
(1992:142) defines a budget as a financial plan through which educational objectives
are implemented and translated into reality. According to Berkhout & Berkhout
(1992:50), each budget should be adapted to suit the unique character of a particular
institution. Organisations use budgets for planning, control and performance
evaluation (Iqbal; Melcher & Elmallah, 1997:280).
The clarification that I propose to follow in explaining the budget has four parts. The
first is the origin and purpose of a budget. Second, I explore the conditions necessary
when implementing a budget. Third, I explain the different types of budgets from
which a school can choose depending on its needs. Last, T organise these ideas more
comprehensively to arrive at a detailed explanation of a budget process.
2.3.1.1 Origin and purpose of a budget.
John, Morphet & Alexander (1983:350) maintain that the principal, the staff and the
board of education need to understand the origin and purposes of the budget and why
they should not take budgetary procedures lightly.
In Great Britain the authority to develop the budget was originally in the hands of
the King and ministers appointed by him. After the revolution of 1688, this authority
was transferred to a cabinet theoretically responsible to a parliament. In 1742, it
became the cabinet's responsibility to prepare the budget and present it to the House
of Commons. Thus, it became the constitutional right of the people to control their
finances through a popularly legislative body (John, et al, 1983:350).
The budget, therefore, is not merely a document that lists proposed receipts and
expenditures, but it is a process where the people in a democracy exercise their
constitutional right to govern themselves by making sure that tax money is spent for
the purposes for which the taxes had originally been levied.
16.
In a school situation, the parents, business sector and the community at large make
sure that the money that they contribute towards the efficient functioning of the
school, is indeed spent for the purposes for which it was intended. This is
ascertained by the school budget that is read to them every year, as is stipulated in
the South African Schools Act (RSA, 1996:14).
Having briefly outlined the origin and purpose of a budget, it is now necessary to
explore conditions necessary when implementing it.
2.3.1.2 Conditions for implementing a budget
According to Berkhout & Berkhout (1992:50), the conditions which are necessary
when implementing a budget are:
the duties and responsibilities of members of staff should be accurately and
clearly defined and demarcated;
all parties involved should accept the budget unconditionally;
a proper and well-specified accounting and bookkeeping system is necessary;
a budget should cover a fixed period, generally a year (Guthrie; Garms &
Pierce, 1988: 224);
the budget and the budget process should encompass all revenues received and
spent by an organisation, regardless of source or purpose; and
what is received by way of resources must not exceed what is spent. Resources
and obligations must match (Guthrie, et.al , 1988:224).
There are a number of types of budgets that a school can choose from. Each school
is unique and can utilise a particular type of a budget that best suits its needs. Thus
we now examine these types of budgets.
17.
2.3.1.3 Types of budgets
Line-item budget
This approach explains exactly what items are needed for the programme to
become a reality. Provision must also be made for the expected income for the
coming year (Piek, 1992: 143). A budget becomes an economic plan, a reflection
of resource allocation and decision strategies, with programme objectives in
accordance with the amount of money available (Piek, 1992:142).
A programme budget
According to Lawton(1987:87), an example of this type of a budget is the
programme, planning and budgeting system (PPBS). PPBS requires an
organisation to set its objectives, plan programmes to achieve these objectives,
allocate funds in support of the programmes, evaluate the results of the
programmes to determine if objectives have been met and to use this information
in planning the succeeding year's budget.
Usually this type of budgeting is implemented hand in hand with the practice of
incremental budgeting wherein all accounts are automatically adjusted upwards
each year to take account of inflation (Piek, 1992:144).
Zero-Base budgeting (ZBB)
Lawton (1987:88) describes this type of budgeting as a new budgeting approach
that focuses on a complete justification of all expenditures each time it is
used.Each unit head, for example, head of department, has to defend his or her
entire budget each year. When developing this budget, it is better not to use the
previous year's budget as a base, but rather to start from a zero base and require a
justification of all expenditures.
18.
(d) Cash budget
This budget shows the anticipated sources and uses of cash. It is drawn up using
predetermined figures and it also records these figures during the month in which
they are expected to come in or go out. In short, a monthly cash budget is useful
for planning short-term cash needs (Chadwick, 1991:89).
Having identified and discussed different types of budgets, it now becomes
logical to discuss briefly the budget process.
2.3.1.4 The budget process
According to Lawton(1 987:81), the budgeting process refers to the process by
which the final expenditure and revenue budgets adopted by a school board are
developed. He also classifies this process into several stages that are discussed
below.
* Stage 1: Scanning
This is concerned with collecting up-to-date information on issues such as
enrolment trends, possible new programmes and other activities at school.
* Stage 2:Evaluation
This is the evaluation of the appropriateness of allocations for the current year. Unit
heads such as heads of departments (H.O.D.) may be asked for information about
needs within their areas of responsibility. For example, tuition of commercial subjects
and maintenance of sports activities. Sometimes requests must be ranked in order of
unit priorities. John, Morphet & Alexander (1983:358) state that when there is not
enough money available to support every programme desired, some priorities must be
established. Priority of need must be balanced against availability of resources.
All those involved in this process are forced to determine their financial needs in
accordance to certain goals and activities (Niemann, 1991:399). An action plan is then
drawn up.
19.
* Stage 3: Estimation
Preliminary budget estimates based on trend and evaluation data are made for both
income and expenditures. The allocation of funds involves a specific procedure. In the
case of the budget for the tuition programme, the subject teachers determine their
financial needs which are co-ordinated by subject leaders. The results are co-ordinated
by the relevant head of department who then hands it to the principal (Nieman, 1991:
399). A preliminary budget document as described by Nieman (1991: 400) follows.
(see Table 2.1):
TABLE 2A
BUDGET EXPENDITURE FOR THE SCHOOL: 19
GOA L ACTION PLANS BUDGET
EXPENDITURE
The 1.Tuition R2 372
creation of an 1.1 Commercial subjects R220
effective Economics R70
tuition
programme
Business Economics
1.2 .
R150
The 2. Sport R2 580
creation of an 2.1 Rugby R860
effective sport 2.2 Athletics R1 200
programme 2.3 Netball R520
. .
. .
. .
TOTAL
20.
Naturally, an income or revenue budget should also be drawn up. This income is
usually referred to as school fund. According to Lawton (1987:86) school funds are
acquired from school fees, fund raising activities, sporting events, athletics or student
cards, fees for field trips and donations.
Piek(1992:140) maintains that the purpose of a school fund is to finance services for
the school and to buy necessities supplementary to those, which the education
department provides. The school fund may only be used for the purposes, which will
directly benefit the school and the pupils (Piek, 1992:141).
Stage 4: Accommodation
Normally, revenue or income and expenditure estimates will not match, and the
difference will have to be reconciled. If revenue is expected to exceed expenditure,
lower priority items or previously deferred items will be brought into the preliminary
expenditure budget. If expenditure estimates exceed revenue estimates, maintenance
and supplies accounts are reduced.
Stage 5: Adoption
If projections have been accurate, then adoption will be a formal action with little
debate. If not, a renewed round of accommodations, much more visible than the
preceding round, will take place.
Stage 6: Administration
Some contingency funds are reserved to meet unexpected needs and requests. Such
funds are generally allocated administratively.
The process of budgeting as described above can best be performed and facilitated by
a person with some knowledge of accounting. It now becomes imperative at this stage
to discuss financial accounting as the other component of financial management.
21
2.3.2 Financial accounting
According to Nieman (1991:379), the organisational structure of school finances is
heavily dependent on and closely linked to the accounting process. He goes on to
describe financial accounting as the administrative medium by which full and
systematic reports on financial matters are given expression. Marshall (1990:3) adds
this by saying that financial accounting results in the financial statements of an entity.
The best way of executing this function is through the accounting process and this
process will now be briefly discussed.
2.3.2.1The accounting process
According to Droms (1990:46), the accounting process is a financial information
system designed to record, classify, report and interpret financial data of interest to
the organisations of all kinds. Sweeny(1972:79-82) identifies the following steps in
the accounting process:
analysis of transactions;
journalisation;
posting;
adjusting;
closing; and
preparation of financial statements.
The analysis of transactions will now be briefly discussed as the documents involved
are those which a principal frequently comes into contact with.
Step 1: Analysis of transactions
This is the first step in the accounting process. In this step, we need to understand the
original transaction documents, the five different accounts, the double entry system
and the chart of accounts.
22.
The original transaction documents will now be briefly discussed.
• Understanding the original transaction documents
According to Haye & Baker (1980:6), the original transaction documents are sales
documents, bank documents, petty cash and invoice documents.
(i)Sales documents
These are receipts that act as evidence that money has been received by a person or an
institution and must be issued or obtained for all money which is received or spent
(Haye & Baker, 1980: 6).
Bank documents
Haye & Baker (1980:9) group these documents as cheques and deposit slips.
Whenever a school writes a cheque, it must be recorded on a cheque stub. The deposit
slip lists all the notes, coins and cheques to be deposited by the school in the bank and
the bank will certify that it has indeed received the money.
Petty cash
According to Haye & Baker(1980: 15-16), petty cash is the sum of money set aside
for the purpose of paying for items for which a formal cheque would be too expensive
and time-consuming. It is normally kept in a safe deposit box under lock and key.
When money is paid out of petty cash, the receipt is placed in an envelope in a safe
deposit box and a notation is made indicating the date, the expense category it falls
under, the account number and the amount. When this money is spent, another cheque
is written for that amount and put in a new envelope. The envelope that was just
completed is entered in the journal and the amount of each expense is posted to the
proper account. For example, in the ledger.
Invoice documents
This is a document that is given to a school when it buys something from any shop.
This invoice transfers rights to property to the buyer (school) (Haye & Baker,
1980:16).
23.
Having discussed the original transaction documents, we now explain the different
types of accounts that also have to be understood by the principal.
Understanding the five different types of accounts
Dunn (1992:7) identifies these accounts as assets, liabilities, income, expenditure and
capital.
(i)Assets
According to Gill (1992:13), assets are equipment that a company owns and that have
monetary value. Assets are also divided into two categories, current assets and fixed
assets. According to Briston (1981:7), current assets are items of value, with a
relatively short life span (not more than a year), held as cash or for early conversion
into cash.Fixed assets, as Uliana & Marcus (1985:21) put it, are items that are
permanent in nature and not for resale. For example, the school buildings and its
permanent features.
Liabilities
These are what the school owes to others. For example, accounts payable like money
owed for inventory or money owed to the bank (Haye & Baker, 1980:29). According
to Gill (1992:13) current liabilities is the total of all monies owed by the organisation
that will fall due within one year while long term liabilities will fall due after a year.
Income
This is the amount that a school receives for its goods and services. For example,
school fees, rental income, donations, selling, commissions and film shows (Haye &
Baker, 1980:30).
Expenditure
According to Haye and Baker (1980:30), these are the costs of operating a school and
are consumable. For example, transport, interest expense, equipment, maintenance
and stationary.
24.
(v) Capital (Accumulated funds)
Briston (1981: 7) explains this as the amount owed to the proprietor or owner by the
business and is usually not due for settlement in full untill the termination of the
business. In a school situation, it is equivalent to the net-income of the Income
Statement.
After having understood the above-mentioned different types of accounts, it now
becomes imperative to understand the double entry system. This entry system will
now be discussed.
© Understanding the double entry system
This is a record-keeping system which maintains accounts in two columns (Hatherly,
1993:85). Haye and Baker (1980:39) indicate that in this system, each account has
two possible entries, an entry on the left side (debit) and one on the right side (credit).
Debit and credit have additional meanings when applied to the different accounts.
Some accounts get a debit entry when they are increased, whereas other accounts are
credited to increase them. Assets and expenditures generally have a debit balance and
are increased by a debit and are decreased by a credit to the account. Liabilities and
income are decreased by a debit and increased by a credit. The following table can
also best be used to remember this:
ASSETS = +Dr -Cr
LIABILITIES = +Cr -Dr
INCOME = +Cr -Dr
EXPENDITURE = +Dr -Cr
In accounting, if you debit one account you must credit another account. Conversely,
if you credit one account you must debit another account (Haye & Baker, 1980:39).
The final transaction that needs to be known is the chart of accounts. It will now be
explained.
25.
© Chart of accounts
The final step in the analysis of transactions is to assign a number in addition to a
name to various accounts. For example, the cash account could have a number '101'.
This also helps for computerisation. This list of account names and numbers is called
a chart of accounts (Haye & Baker, 1980:51).
Having explained the first step of the accounting process, we now discuss the
remaining steps which are journalisation, posting, adjusting, closing and preparation
of financial statements
Step2: Journalisation
This step is the daily recordings of transactions in terms of debits and credits in a
journal. This journal serves as a diary in which each transaction is recorded from a
source document (Dempsey & Pieters, 1993:43). It also helps the person in charge of
finances to keep track of every daily transaction in one place. Transactions are
recorded sequentially, as they happen (Haye & Baker, 1980:51).
Step 3: Posting
In this step, the information that has been recorded in the journal is transferred or
posted to all accounts in the ledger (Sweeny, 1972:80).This information could be
transferred weekly or monthly. Briston (1981:11) further states that a ledger is the
central memory bank of a business entity.
Step 4: Adjusting
During this step, the accountant takes mental steps to accurately adjust the accounts of
the business (Sweeny, 1972:82). For instance, the cash account can be adjusted by
entering the item 'bank charges' on the credit side of the account so as to reconcile it
with the bank statement (Dempsey & Pieters, 1993:223).
26.
Step 5: Closing
Before closing the books, it's wise to first draw up a trial balance. This trial balance is
used as a measure of double checking (Haye & Baker, 1980:208). According to
Haye and Baker (1980:213), this trial balance is made to test if the accounts are
properly balanced. The total debits should equal the total credits.
The balance of each account in the general ledger is computed by first adding the
figures on each side and then subtracting the smaller total from the larger total to
obtain the difference.(i.e. a credit balance or a debit balance). The total in each
column is usually entered in pencil at the bottom of the column. These totals are
called footings. If we have a credit balance, we write it on the credit side. If we have a
debit balance, we write it on the debit side. No footings are required if the account has
only one entry on either or both sides of the ledger.
After the balance in each account has been established, they are listed in numerical
order in the trial balance. Debit balances are shown in the left column and credit
balances are shown in the right column. If the journal entries were made correctly, the
total of the debit column would be equal to the total of the credit column.
The closing process involves the steps that are used to take every account that appears
on the income statement and close it (bring it to zero). The final net income account
will then be closed to the accumulated funds account on the balance sheet (Sweeny,
1972:82). It should also be noted that the balance sheet accounts are never closed.
They always have a credit or debit balance.The process of closing is clearly explained
by Haye & Baker(1980:218) as follows:
The income and expenditure account reports on progress and is sometimes called the
income statement. Each income and expenditure account in the trial balance is carried
over to the Income Statements. Accounts that had debit amounts in the trial balance
will continue to be recorded as debits when transferred to the income statement.
Accounts that are listed as credits in the trial balance will continue to be listed as
credits in the income statement column.
27.
Both columns (debit and credit) are totalled. The income statement may not balance.
If the total of the debit column exceeds the total of the credit column, then the school
has a net loss. But if the total of the credit column exceeds the total of the debit
column, then the school has a surplus.
This final net-income account will then be closed to the accumulated funds account
on the balance sheet (Sweeny, 1972:82). Using the format used by Briston(1981:31),
a typical school financial statement could be as follows:
INCOME STATEMENT
For the year ended December 31 19.„.
Income
School fees R19 604
Donations R 3 000
Interest R 120
Less expenditure
Stationery R 8 496
Transport R 4 240
Refreshments R 700
Maintenance R 2 100
Bank charges R 510
Auditors fee R 100
R23 304
R16 146
Net-Income R 7 158
28.
BALANCE SHEET
31 December 19
R
R R
Accumulated funds Fixed assets
Net-Income 7 158 Office equipment
500
Motor van
6 400
6 900
Current Assets
Bank 258
258
R7 158 R7 158
Step 6: Preparation of financial statements
This involves extracting information from assets and liabilities accounts in the trial
balance including the net-income from the Income Statement and presenting it in
accordance with a standard Balance Sheet and Income Statement format (Sweeny,
1972:82-83). A balance sheet is an accounting statement that tells us what resources
the business possesses and how the acquisition of those resources has been financed.
In short, it is the financial summary at a point in time expressed as the "accounting
equation":
Assets = liabilities + equity.
After concluding the accounting process as already done, we now design a
mechanism that will maintain and sustain this process. The financial control as the
best mechanism for executing this function will now be discussed.
29,
2.3.3 Financial control
A system of control is necessary to ensure that the actual financial performance is in
keeping with the expected educational objectives. The school principal should draw
up control instructions according to which activities relating to school financial
management must be regulated. These control instructions involve laying down
standards and criteria, the way in which financial performance should be observed
and judged and guidelines for corrective action (Niemann, 1991:392).
The following control measures could be used:
budget control and monitoring through variance;
verification; and
auditing.
The budget control will first be discussed.
2.3.3.1 udget control
Budgetary control is the establishment of budgets relating the responsibilities of
executives to the requirements of a policy and by continuous comparison of actual
with budgeted results either to secure by individual action the objective of that policy
or to provide a basis for its revision (Chadwick,1993:93).
On the other hand, Sneyd (1994:158) maintains that effective budgetary control
requires the co-ordination of departmental objectives and their subordination to the
corporate objectives. In order for this to be totally effective, it is necessary that the
budget represent a goal that is achievable.
The budget process can be used to concentrate power in the hands of a relatively
small number of individuals or to distribute it to an expanded number of actors
30.
(Guthrie; Garms & Pierce, 1988:231). Mott (1994:128) argues that by using a system
of budgetary control, top management can:
delegate day-to-day responsibility to lower levels of management;
co-ordinate the various activities to achieve common goals;
retain overall control; and
have ready-made yardsticks to monitor a manager's financial performance.
Quantitative control should be exercised to ensure that the programme of expenditure
remains within the budgeted amounts. Administrative norms are determined and they
may take the form of monthly status reports (Niemann, 1991:393).
One of the best ways of budget control is to monitor the progress of expenditure and
income during the year to ensure that it stays on course. Analysing the monthly
budgetary status reports that reflect the school's financial position at a certain time
could do this. Mott(1994:92) hints that vigilance must be exercised that managers
ensure that variances will be favourable. An example of an expenditure budget with
the variance is drawn (Success College of Education, n.d.:182). Refer to Table 2.2.
31. TABLE 2.2
EXPENDITURE BUDGETS FOR 19
BUDGET POST ANNUAL AMOUNT
MONTHL Y BUDGET
ANNUAL EXPENDIT URE
ACC.I.E.ES 3 600 300
BANK.CHARG ES
1 800 150
DUPLICATING 12 000 1 000
MUNICIPAL. CHARGES
12 000 1 000
MAINTENANC E
6 000 500
SCH.DEPTS 12 000 1 000
SCH.FUNCTIO N
1 800 150
SPORT 6 000 500
STATIONERY 12 000 1 000
TELEPHONE 3 600 300
TOTAL 70 800 5 900 VARIANC E
The income statement with variance as a control measure as indicated inTable 2.3 is
as follows (Success College of Education, n.d.:161):
32.
TABLE 2.3
ANNUAL
INCOME
MONTHLY
INCOME
PROJECTED
Y.T.D
JANUARY
INCOME VARIANCE
School fund 75 000 6 250 6 250 15 300 +9 050.00
Donations 6 000 500 500 450.50 -49.50
Sundry
Income
6 000 500 500 550 +50.00
TOTAL 87 000 7 250 7 250 16 300.50 +9050.50
The variance will indicate if we are overspending or are on track. If we are
overspending, that is, a positive variance, corrective measure will be applied while
there is still time. It is important to monitor the progress of expenditure and income
during the year to ensure it stays on course. This whole process can be done by the
financial committee at its regular meetings.
The second control measure to be discussed is verification.
2.3.3.2 Verification
The accounting process can also be controlled through the verification of the cash
account and the bank statement every month. The process involved is called making
the reconciliation. The following steps should be followed when preparing a bank
reconciliation (Dempsey & Pieters, 1993:222/225).
(i)Check each entry made during that month in the cash account with the
corresponding entry in the bank statement, placing a tick against each entry with a
bright coloured pen.
33.
Adjust the balance on the cash account by entering the item 'bank charges' on the
credit side of the account.
Make the reconciliation by following one of the two procedures:
1.(a) Start with a balance on the cash book or overdraft on the bank statement.
(b) Add cheques drawn but not yet presented for payment at the bank.
(c)Deduct cheques paid in but not yet credited by the bank.
(d) Balance as per bank statement. (This should equal the cash book balance.
OR
2.(a) Start with a balance on the bank statement or overdraft on the cash book.
(b) Deduct cheques drawn but not yet presented for payment at the bank.
(c)Add cheques paid in but not yet credited by the bank.
(d) Balance as per cash book ( same as balance on the bank statement).
This process will lead to a redrafting of the balance sheet to give a more detailed
view. This is what Jaeger (1976:6) calls a consolidated balance sheet.
The third control measure to be discussed is auditing.
2.3.3.3 Auditing
Internal auditing should be carried out on a continuous basis throughout the year. This
exercise is more effective for the purpose of tracing any disparities and setting them
right at an early stage (Niemann, 1991:394). According to Newmann; King and
Rigdon (1997:48), these internally generated accountability systems constitute a
major source of cohesion with the school.
These authors go on to mention that these accountability systems should be
accompanied by compatible external accountability.Bromwich (1992:310) states that
external qualified auditors are the relevant people to verify and validate the school's
stewardship reports.
34„
After having discussed the budgetary process, the accounting process and financial
control, we now conclude the components of financial management by discussing the
financial reporting as this aspect is directly linked to financial accountability.
2.3.4 Financial reporting
Financial reporting is the process of giving feedback on what was done and achieved
by the institution in as far as monetary value is concerned (Haye & Baker, 1980:236).
These two authors also maintain that the best way of reporting is through financial
statements.
These are summaries of all the activities that have happened in an institution during a
particular period. Niemann (1991:372) states that simple but reliable financial reports
not only allow educational authorities and planners to plan in a meaningful way, but
also engender a positive attitude towards education on the part of the community. In
this way, he concludes that financial support from the non-public sector may be
ensured.
Financial statements are the culmination of the accounting process and the most used
financial statements are the income statement and the balance sheet (Haye &
Baker,1980:236). Income reporting also fulfils an accountability role because
financial reports show the distribution of the school's resources to the various parties
involved with the school and net income indicates the accounting accumulated funds
for distribution (Bromwi ch,1992: 310).
An annual report and financial statement are a mechanism for discharging
accountability (Gray et.al(1996:38). Sneyd (1994:158) maintains that when this
information is being reported, it needs to be accurate, regular, prompt, easy to use and
flexible. This information also needs to be comparative so that one would be able to
assess the current year's performance with the previous year's performance.
35.
Farmer (1983:125) is also of the view that when reporting, the chairman of the
governing body or the principal should also prepare what he calls 'the chairman's
statement'. He continues to say that this statement should summarise financial results
highlighting particular items and finally give a general review of the year's operations
with details of divisional performance within the school.
According to Pendlebury & Groves (1994:87), the chairman should conclude his or
her statement by thanking the finance committee and all other stakeholders for their
commitment to the school and its goals and for their efforts and achievements.
Cilliers, Rossouw, Botha and Grobbelaar (1980:21) maintain that adequate disclosure
of accounting policies is essential to the fair presentation of financial statements. The
term 'fair' according to Parker and Nobes (1994:14) means that the accounting
information has been measured and disclosed in a manner which is objective and
without prejudice to any particular sectional interest in the organisation.
Finally, as Astrill & Mclaney (1994:10) indicate, for an accounting information to be
of value, it should be capable of influencing people to alter their behaviour as a result
of considering the information provided.
Having discussed financial management in detail, a strategy to encourage parents to
engage themselves in the financial activities of the school will now be briefly
discussed.
Motivation as the relevant strategy will now be discussed.
36.
204 MOTIVATION
Since motivation could be defined as those forces that cause people to behave in
certain ways (Moorhead & Griffin, 1990: 103), the principal of a school should use
certain forces that will be explained in the next paragraphs, to influence the
community, their attitudes and efforts to financially support the activities of the
school (Margerisson & kakabadse,1979:55).
Niemann (1991:388) maintains that the community should be actively drawn into
school activities and be encouraged to support the school and its activities. The school
principal should provide the mechanism for feeding back information from the school
to the community. He further states that parents should be involved from the planning
stage so that they could gain greater insight into the complexity of school finances and
a better understanding of the financial restraints under which the school operates.
Potter (1996:27-30) also maintains that parents should be encouraged to visit the
school frequently and meet with all staff members involved with their children. He
further suggests that an effective way of encouraging parents to visit the school and
attend parents' meetings is to develop a "parent-friendly" handbook which should
include basic information and suggestions for some important questions that the
parent should ask.
According to Niemann(1991:388), the forces that the principal could use to motivate
the community to participate in school activities so that they could be encouraged to
be financially supportive include establishing relationships and communication.
Communication will now be discussed as the first force of motivation.
37.
2.4.1 Communication
Communication is the process by which two or more parties exchange information
and share meaning. It is a two-way process and takes place over time rather than
instantly (Moorhead & Griffin, 1990:569).
According to Hirsch, Anderson and Gabriel (1994:4), communicating can involve all
aspects of accounting addressed to people who are either internal or external to the
organisation. These authors also maintain that it is the principal's responsibility to
communicate effectively and efficiently through both writing and speaking with his or
her audience, given the task at hand. Communication is the basis for establishing
relationships and for providing motivation. It aims at generating an understanding of
the school and its activities by the community (Niemann, 1991:391).
According to Niemann (1991:391), the school principal's communication task
involves reporting to the community on the expenditure and application of school
funds. This reporting method should always be businesslike, interesting, simple and
clear. Feedback could be verbal and in written form. Verbal feedback has the
advantage that the community can clear up any aspects that are not clear by asking
questions. Written feedback can reach a larger section of the community.
Ledell and Arnsparger (1993:1) state that more and more people expect to have a
voice in matters that affect their lives. True two-way communication gives others a
voice. They further maintain that one's communication strategy should be driven by
the desire to maintain honest, open dialogue and even debate about what best meets
parents needs.
Parents are motivated when they realise that they can be consulted and reported to on
school activities. Ledell and Arnsparger (1993:3) suggest the following
communication strategy that could be used:
38,
Put up a communications team
Put together a communications team composed of three to five people who will take
the lead in the communications effort and map out your strategy. The team will design
a strategy and plan for carrying out that strategy. It should be noted that everyone, not
only the team, should be an effective communicator. According to Furtwengler
(1996:25), this team should always meet to relate progress, review future plans and
celebrate successes.
Build support
Without support from diverse groups of people inside and outside the school,
restructuring efforts will slow and perhaps even stop. The goal is not to get people to
endorse the changes anticipated, but to reach agreement within the school community
about what will best meet the needs of all children and then move forward together to
create the agreed-upon learning environment.
People who are not informed about what is happening in their local schools, or who
perceive that they are being excluded from serious discussions about school matters,
are potential targets of misinformation from opponents of school reform. Offering
everyone in the school an opportunity to publicly discuss the school's future is
important.
The leader should make a list of everyone (internal and external people) he or she
believes will want to be involved in school reform or who might have questions and
concerns about the reform efforts. The communication team must determine the order
in which groups will be contacted. The initial contact should be in person.
The importance of listening
Listening to the concerns and questions of members of the community may be the
most important part of a communications strategy. Effective ways of gathering such
information may include surveys, community forums, one-to-one meetings and focus
groups.
39.
4. Identifying opinion leaders
These are influential people. To identify them, one should make note of those people
who frequently attend civic meetings, ask insight questions, and are leaders or
members of community or education groups and volunteer to help with school
activities. It is important to develop a list of opinion leaders and make a special effort
to keep them informed and listen to their concerns and ideas through all phases of
school reform efforts.
After having designed a communication strategy, it becomes imperative to build or
establish relationships. Hence the discussion on establishing relationships.
2.4.2 Establishing relationships
According to Macpherson (1996:82), accountability means answerability to others
concerning one's performance and duties. Such answering requires both relationships
and a process through which a person or group can publicly discharge their obligation.
Providers of services may account to themselves, peers, clients or subordinates. It is
necessary to have formal communication channels in the organisation as well as
between the school and the parents and the school and the community at large
(Niemann, 1991:385).
A communication channel in the school (internal relationship) will now be discussed.
(a) Internal relationships
Everyone inside the school, such as teachers, caretakers and secretaries, should act as
ambassadors for the school (Davies 8 Ellison, 1991:6). That is why the principal has
to bring about relationships between administrative and academic personnel.
Harmonious collaboration between the two groups is a prerequisite for successfully
achieving school financial objectives (Niemann, 1991:384). He further maintains that
this type of harmony can be brought about by group dynamics, empathy and mutual
respect.
40.
Having discussed the internal relationships, external relationships will now be
discussed.
(b) External relationships
The essential elements of accountability arise from a relationship between the
principal and parents, a relationship defined by society and which provides parents
with a right to information (Gray,et al. 1996:38).
The financial support of parents provides them with more say in education than would
otherwise be the case. The business community is an entity in society that provides
the community's need for goods and services. According to Niemann (1991: 385 —
386), the contribution of various sectors of the community to the financing of
education makes the school dependent on the community.
The school principal may make use of techniques such as group decision making,
clarity, sincerity, respect and empathy to improve the relationships between the school
and the community (Niemann, 1991:386).
2.5 CONCLUSION
Augenblick (1995:vii) provides a succinct summary about the financial accountability
of a school principal using the following words: "School administrators should
become more knowledgeable about their school finance systems so that they can
better project future funding, improve accountability, lobby for appropriate changes
and make their schools more effective".
41. CHAPTER 3
EMPIRICAL DESIGN 3.1 INTRODUCTION
The literature survey in chapter 2 formed the foundation for the empirical study.
The aim of this study was also highlighted in chapter 1 as financial accountability
of secondary school principals towards parents. A brief discussion of the design
of the research instrument will now follow.
3.2 THE INSTRUMENT OF RESEARCH
3.2.1 The design of the questionnaire
The design of the empirical investigation was a structured questionnaire
consisting of 66 open ended items (see Appendix A). The items were based on the
literature reviewed by the researcher concerning financial management and
accountability. As depicted by figure 3.1, the literature survey indicated that
financial accountability is composed by two components, namely, financial
management and accountability. Financial management is further divided into
four components, namely, budget, financial accounting, financial control and
financial reporting (Niemann,1991:373).
FIGURE 3.1
FINANCIAL ACCOUNTABILITY
1.1
FINANCIAL MANAGEMENT ACCOUNTABILITY
BUDGET ACCOUNTING CONTROL REPORTING
42.
The literature review resulted in 66 questions being designed to obtain the opinion
of secondary school principals as to how important they regarded such financial
issues irrespective of what the South African Schools Act or any educational Act
prescribes.
Table 3.1 indicates items associated with financial management.
TABLE 3.1
ITEMS ASSOCIATED WITH FINANCIAL MANAGEMENT
ITEM
NO.
DESCRIPTION MEAN
SCORE
S.D.
*C13 Open and maintain a bank account for the school. 4,76 0,43
C16 Know how to interpret financial statements 4,55 0,65
C25 Use a single receipt book if it is for different
income purposes for the school.
4,06 1,26
C26 See to it that all receipts are retained and kept. 4,73 0,56
C38 Ensure that the tuckshop in your school is run like
any other business in the country
3,67 1,24
*C39 Use school funds to cover the transport costs of
educators attending educational seminars
3,77 1,05
*C62 Give financial statements to a registered
accountant and auditor to check whether they are
in order.
4,50 0,76
Due to the limit imposed on the length of a mini-dissertation, a detailed discussion
on all these questions is impossible. The discussion will hence be limited to the
questions indicated by means of an asterisk.
43.
3.2.2 Discussion on financial management
Each question was formulated in such a way that the respondents could indicate
their honest opinion regarding the importance of a particular finance issue, for
example:
In your opinion, how important is it to you to:
• OPEN AND MAINTAIN A BANK ACCOUNT FOR THE SCHOOL?
School principals as members of their school governing bodies, and more importantly as accountable for the professional aspects of the school, have to make sure that the finance in their schools is managed in a proper way.
The South African Schools Act specifies that all governing bodies of public schools must open and maintain a banking account (RSA, 1996:13). This presupposes that the principal has the necessary financial background in order to act as the executive officer of the governing body (see 1.2 p.2).
Having discussed the first question, the second question will now be discussed.
In your opinion, how important is it to you to:
o GIVE FINANCIAL STATEMENTS TO A REGISTERED ACCOUNTANT AND AUDITOR TO CHECK WHETHER THEY ARE IN ORDER?
Schools have to fulfill stewardship objectives. According to Bromwich
(1992:310), the traditional use of accounting for accountability purposes involves
confirming that the organisation's resources already exist, that they have been
used for legitimate and legal purposes and that assets and resources have been
accounted for in a proper way. He further mentions that auditors play an
important role by verifying and validating the organisation's stewardship reports
(see 2.3 p.22).
44,
The South African Schools Act also demands that the governing body of a school
must appoint a registered accountant and auditor to audit the records of finds
received and spent including assets and liabilities (RSA, 1996:15).
The mean score of this item is 0,56 and the standard deviation is 0,76. The
question is of significance to the respondent and it instills a culture of
transparency in financial management.
The third and final question will now be discussed.
In your opinion, how important is it to you to:
o KNOW HOW TO INTERPRET FINANCIAL STATEMENTS?
The South African Schools Act presupposes that the principal should be held
accountable for the professional management of the school (RSA, 1996:7). This
being the case, it is the duty of the principal to see to it that he or she is able to
prepare and interpret financial statements.
This process involves extracting information from assets and liabilities accounts
in the trial balance together with the net -income from the Income Statement and
presenting it in accordance with a standard Balance Sheet and Income Statement
format (Sweeny, 1972: 82/83).
Having discussed each of the questions on financial management, the empirical
investigation will thus be described.
45
3.3 THE EMPIRICAL INVESTIGATION
3.3.1 Respondents
Respondents where chosen from various secondary school principals. It was felt
that the opinions of principals regarding financial accountability towards parents
may vary due to their varying ages, experiences as principals and the physical
conditions of their schools (see Annexure A questions 2, 3 and 9).
3.3.2 Biographical details
The following biographical details were requested:
Gender, age, experience as principal, number of educators, enrolment of learners,
educational qualification, electrified building, number of learner toilets,
availability of an administrative block, availability of running water, sufficient
classrooms, availability of a telephone, availability of a library, availability of a
laboratory, the type of school where greater part of experience was gained, image
of school in the community and finally the community support of the school.
It was suspected that these aspects could be related to the degree in which
principals feel financially accountable towards parents.
3.3.3 The research group
Questionnaires were distributed to secondary school principals in Region 3 of the
Northern Province. A single-stage sampling procedure was done since the
researcher himself had access to school principals in the population and could
sample the people directly.
46.
A random sample of secondary schools was used. The researcher visited a number
of schools from a particular circuit everyday. He handed out questionnaires and
collected them back the same day. Cooperation in most instances was excellent
and this enabled a good return of questionnaires to be obtained. All circuits in
Region 3 were covered so that the sample could be representative of the
population.
3.3.4 Return of questionnaires
The information reported below is about the number of returns and non returns of
the survey. This information is presented in tabular form with special attention to
number of respondents and non respondents.
TABLE 3.2
FINANCIAL ACCOUNTABILITY OF SECONDARY SCHOOL PRINCIPALS
TOWARDS PARENTS
HANDED OUT RETURNED-USEABLE PERCENTAGE RETURN
172 140 81,4%
The questionnaires were then sent to the Statistical Consulting Service of the
Rand Afrikaans University where the data was transcribed and processed.
3.4 SUMMARY
In this chapter, a questionnaire as the instrument of research was discussed. A
thorough description of the empirical investigation was also provided. In Chapter
4 a close attention will be given to the following aspects:
® reliability and validity of the instrument; and
® some aspects of data arising from the statistical analysis will be examined,
discussed, tabulated and interpreted.
47.
CHAPTER 4
HE ANALYSIS AND INTERPRETATION OF A SELECTED SAMPLE
OF THE EMPIRICAL DATA
4.1 INTRODUCTION
A descriptive analysis of independent and dependent variables in the study will be
conducted. This report will indicate the means, standard deviations and range of
scores for these variables. Due to the limit imposed on the length of a mini-
dissertation, this discussion will be limited to the following aspects:
a discussion on the validity and reliability of the research instrument;
a comparison of one of the independent pairs by stating appropriate
hypotheses and interpreting the statistical tests involved;
a comparison of one of the independent groups containing three or more
groups by stating the hypotheses and analysing the appropriate statistical data;
and
a discussion of the statistical differences between the various independent
variables used in the research in respect of financial accountability, motivation
and financial management.
4.2 RELIABILITY AND VALIDITY
To ensure content validity the questions were designed within the framework of
critical theory substantiated by a thorough literature review relevant to the
research topic.
48.
The Statistical Consulting Services of the Rand Afrikaans University and some
experts in the research field from the Department of Educational Sciences also
analysed the questionnaire to assess the relevancy of each item.
The construct validity of the instrument was investigated by means of successive
first and second order factor analyses performed on the 66 items.
The first order procedure involves a principal component analysis (PCA1)
followed by a principal factor analysis (PFA1). These procedures were performed
using the BMDP4M program (Dixon, Brown, Engelman, Frane, Jenrich, &
Toporek, 1985:448-454) in order to identify a number of factors which may
facilitate the processing of the statistics.
The thirteen factors obtained from the first order factor analysis were then used as
inputs for the second order procedure. This consisted of a PCAC2 with varimax
rotation and orthogonal axes followed by a PFA2 with doblomin rotation.
These procedures resulted in the 66 items being reduced to three factors, namely:
financial accountability consisting of 31 items with a Cronbach-alpha-
reliability coefficient of 0,947 with no items rejected. The items can thus be
regarded as one scale with a maximum value of 31 X 5 = 155 and a minimum
value of 31 X 1 = 31;
Motivation consisting of 22 items with a Cronbach-alpha-reliability
coefficient of 0,924 with no items rejected. The 22 items can thus be regarded
as one scale value of maximum scale value of 22 X 5 = 110 and a minimum
scale value of 22 X 1 = 22; and
49.
financial management consisting of 8 items with a Cronbach-alpha-reliability
coefficient of 0,716. The 8 items can thus be regarded as one scale with a
maximum scale value of 8 X 5 = 40 and a minimum scale value of 8 X 1 = 8.
Both scales are therefore valid and reliable and could thus serve as a basis for
evaluating financial accountability of secondary school principals towards
parents.
The next paragraph will discuss appropriate statistical analysis.
4.3 HYPOTHESIS
4.3.1 Comparison of two independent variables
At the multivariate level, two variables can be compared for possible statistical
differences by means of Hotelling's T test. This implies that the vectors of the
mean scale scores of the two different variables are compared in respect of the
two factors taken together. Should a significant difference be found at this
multivariate level then the Student t-test is used in respect of each of the variables
taken separately.
Possible differences between the opinions of principals whose schools have an
administration block and those whose schools do not have such facilities in as far
as financial accountability towards parents is concerned will now be discussed.
4.3.1. Comparison between schools with administrative blocks and those without.
50.
FIGURE 4.1
COMPOSITE HYPOTHESIS WITH AN ADMINISTRATION BLOCK AS THE
INDEPENDENT VARIABLE
Dimension Variable Symbol Description Test
Differences at the Principal HoT There is no statistical significant Hotelling
multivariate level difference between the vector mean scale
scores of principals whose schools have
an administration block and those whose
schools do not have an administration
block in respect of the three factors taken together.
T2
HaT
There is a statistical significant difference
between the vector mean scale scores of
the principals whose schools have an
administration block and those who do
not have it in respect of the three factors
taken together.
Hot
There is no statistical significant
difference between the mean scale scores
of principals whose schools have an
administration block and those who do
not have an administration block in
respect of each of the factors taken
separately namely: The student t-test
Financial accountability
Motivation
Financial management
Hotl
Hot2 Hot3
51.
Dimension Variable Symbol Description Test
Differences at Principal Hat There is a statistical significant The
the single difference between the mean scale student
variable level scores of principals whose schools
have an administration block and
those whose schools do not have
an administration block in respect
of each of the factors taken
separately namely:
T-test
Hat 1 Financial accountability
Hat2 Motivation
Hat3 Financial management
52.
TABLE 4.2
SIGNIFICANCE OF DIFFERENCES BETWEEN PRINCIPALS WHOSE
SCHOOLS HAVE AN ADMINISTRATION BLOCK AND THOSE THAT
DO NOT HAVE IT REGARDING 'I'H E FOLLOWING FACTORS
Factors Group Factor average p-value
(Hotelling)
p-value
(Student)
Financial N1 116,57 0,001 **
accountability N2 104,15
Motivation N1 100,26 0,008 ** 0,039 *
N2 96,61
Financial N1 34,94 0,008 *
Management N2 33,02
N1 (Administration block) = 74
** :Significant at the 1% level
N2 ( No administration block) = 66
* : Significant at the 5% level
Tables 4.1 and 4.2 indicate that there is a significant statistical difference (p =
0,008 ) between the vector mean scale scores of principals whose schools have an
administration block and those whose schools do not have an administration block
in respect of the three factors considered together. The null hypothesis Hot is thus
rejected and the alternative hypothesis Hat is supported.
In respect of differences at the single variable level between two groups the average scale score of principals whose schools have an administrative block is significantly higher than those whose schools do not have an administrative block in respect of financial accountability (p = 0,001), motivation (p = 0,008) and financial management (p = 0,039). Thus Hotl, Hot2 and Hot3 are rejected in favour of Hat 1, Hat2 and Hat3.
53. Principals whose schools have an administration block are thus significantly more financially accountable towards parents than their counterparts whose schools do not have an administration block. They also display better financial management skills and can also motivate parents to be actively involved in the financial activities of the school to a greater extent than those principals who do not have administrative blocks.
4.3.2 Comparison of three or more independent groups
In considering three or more independent groups, multivariate differences are investigated by means of MANOVA (multivariate analysis of variance) in respect of financial accountability, motivation and financial management considered together. The vector mean scale scores are compared and should any differences be revealed at this level then ANOVA (analysis of variance) and the Scheff'e test are used to investigate this difference at the single variable level.
The educational qualification of principals will now be considered as an example of three or more groups.
Differences at
the
multivariate
level
Educational
qualification
HoM There is no statistical significant difference
between the vector mean scores for the three
educational qualification groups taken together.
Manova
HaM There is a statistical significant difference
between the vector mean scores for the three
educational qualification groups taken together.
Differences at
the single
variable level
HoA The average scale scores of the three educational
qualification groups do not differ in a statistical
significant way from one another in respect of the
following factors taken separately namely:
Anova
HoAl Financial accountability
HoA2 Motivation
HoA3 Financial management
Ha A The average scale scores of the three educational
qualification groups do differ in a statistical
significant way from one another in respect of the
following factors taken separately namely:
HaAl Financial accountability
HaA2 Motivation
HaA3 Financial management
HoS There is no statistical significant differences
between the average scale scores of the three
educational qualification groups compared pair-
wise in respect of the following factors namely:
55
FACTORS
PAIRS OF GROUPS
A vs B A vs C B vs C
Financial accountability HoS. AB I HoS. AC 1 HoS.BC1
Motivation HoS.AB2 HoS.AC2 HoS.BC2
Financial management HoS.AB3 HoS.AC3 HoS.BC3
Differences at the
single variable
level
Educational
qualification
HaS There are statistical significant differences between the
average scale scores of the three educational qualification
groups when compared pair-wise in respect of the following
factors namely:
FACTORS PAIRS OF GROUPS
A vs B A vs C B vs C
Financial accountability HaS. AB I HaS.AC1 HaS.BCI
Motivation HaS.AB2 HaS.AC2 HaS.BC2
Financial management HaS.AB3 HaS.AC3 HaS.BC3
56.
TABLE 4.4
SIGNIFICANCE OF DIFFERENCES BETWEEN EDUCATIONAL
QUALIFICATION GROUPS IN RESPECT OF THE FOLLOWING
FACTORS:
FACTORS GROUP FACTOR
AVERAGE
P-VALUE
MANOVA
P-VALUE
ANOVA
Sheffe's
AB AC BC
Financial A 120,50
accountabilit B 10,82 0,281
y C 108,75
A 104,55
Motivation B 99,89 0,014 * 0,011 * *
C 96,11
Financial A 35,58 0,040 *
management B 34,70
C 33,05
A = 12 Diploma or degree ** = Significant at the 1% level
B = 65 Diploma and degree * = Significant at the 5% level
C = 63 Post graduate
57.
Using Tables 4.3 and 4.4 it follows that HoM is rejected at the 5% level of
significance. A statistical significance thus exists between the vector mean scores
of the three educational qualification groups taken together.
On a single variable level the deduction can be made that there is a statistical
significant difference at the 5% level between the average scale score of the
educational qualification groups A, B and C in respect of motivation and financial
management only.
The null hypotheses HoA2 and HoA3 are thus rejected in favour of the alternative
hypotheses HaA2 and HaA3. There is, however, no significant statistical
difference between the groups in respect of financial accountability.
Turning to the pair-wise comparison of the groups, there is a statistical difference
at the 5% level between the average scale scores of principals with either a
diploma or degree and principals with a post graduate qualification in respect of
motivation. HoS.AC2 is thus rejected in favour of HaS.AC2.
The remaining groups can however not be rejected. Principals with either a
diploma or degree are inclined to motivating parents to be more actively involved
in the financial activities of the school than principals with a post graduate
qualification.
This is surprising since we expect more educated people to use their aquired
knowledge to motivate parents to be financially involved in school activities. An
explanation for this could be that to some people, the more educated they become,
the less they become concerned about others.
Significant statistical differences were also found between most of the other
independent groups investigated. Due to limits in length imposed by a mini-
dissertation these differences are summarised in Table 4.5
58.
TABLE 4.5
MEAN SCORES OF SOME INDEPENDENT GROUPS TN RESPECT OF FINANCIAL ACCOUNTABILITY, MOTIVATION AND FINANCIAL
MANAGEMENT NAME CATEGORY NAME MEAN SCORE
Fl F2 F3 Gender Male 108,31 98,62 33,93
Female 114,98 98,14 34,93 Library Yes 123,21** 99,51 35,46**
No 104,40 98,08 33,31 Toilets Yes 129,68** 98,21 35,03
No 104,63 98,68 33,71
Years of experience 1 -6 114,03 100,43 34,97 7 - 9 118,31* 99,81 35,24* 10 - 14 104,97 97,92 33,38 15 - 20 101,27* 94,10 32,27*
Age 27 -39 116,63 99,83 35,00 40 - 45 111,24 98,59 34,09 46 - 56 104,69 97,33 33,05
Community support of the school
Good 118,95* 98,59 35,24 Average 108,96 97,93 33,57 Poor 104,97* 100,03
99,61 33,60 34,89* Electrified buildings Yes 116,62**
No 104,28 97,42 33,11 School where experience gained
Secondary 106,75** 98,54 33,86 Primary 131,95 98,68 34,95
Fl = financial accountability
F2 = motivation
F3 = financial management
** = significant difference at the 1% level
* = significant difference at the 5% level
4.4 BRIEF DISCUSSION OF THE DIFFERENCE
MEAN SCORES IN TABLE 4.5
ETWEEN THE FACTOR
It is imperative at this stage to briefly discuss the differences between the factor
mean scores as displayed in Table 4.5. These factors will be considered separately
starting with financial accountability.
59.
4.4.1 Financial accountability
Gender- according to the factor mean scores, females principals perceive
themselves to be slightly more financially accountable towards parents than
do male principals.
Age — Younger principals regard themselves as being slightly financially
accountable than older principals because they belong to the present
generation that requires principals to be accountable and transparent. Younger
principals have a higher factor mean score than do older principals.
Experience — Principals with an experience of between 7 and 9 years have a
higher factor average and differ statistically significantly at the 5% level in
their factor mean scores from principals with an experience of between 15 and
20 years in respect of financial accountability. This is reasonable perception
since younger principals are probably more used to concepts such as
transparency and accountability.
Electrified buildings — Principals whose school buildings are electrified have
the highest factor average and differ from those principals whose school
buildings are not electrified at the 1% level of statistical significance. More
money has to be spent on electricity bills and as such, such principals have to
be financially accountable towards parents so as to motivate them to be
financially supportive.
Toilets — Principals whose schools have enough toilets have a high factor
mean score and differ statistically significant at the 1% level with principals
whose schools do not have enough toilets. To be able to maintain toilets, a lot
of funds is needed. This being the case, principals have to seek ways of
generating such funds. One of the strategies that could be utilised in
generating such funds is to be financially accountable towards all
stakeholders.
60
Library — Principals whose schools have a library have a higher factor mean
score and differ statistically significantly at the 1% level from principals
whose schools do not have such a facility. Principals' perception of their
financial accountability towards parents is influenced by an increase in
responsibilities on their shoulders. The more responsibilities are, the more
financially accountable they seem to become.
School where experience was gained — Principals whose greater part of their
experience was gained at a primary school have a higher factor average and
differ statistically significantly at the 1% level in their factor mean scores
from principals who gained their experience at a secondary school.
Primary school learners usually pay less school fees than secondary school
learners. Since school fees is the major source of school fund in public
schools, secondary schools usually end up generating more funds than
primary schools. Principals that are used to handling and controlling less fund
than the ones they are currently controlling (from primary to secondary
school), usually feel uneasy and thus try by all means to manage such funds
effectively and in a cost-effective way and more importantly, they tend to be
financially accountable.
Community support — Principals that perceive the support of the community
towards their schools as being good have the highest mean score and they
differ statistically significantly at the 5% level from those that perceive the
community support as being poor.
Principals that regard themselves as being financially accountable towards
parents perceive the community support as being a good one. Parents tend to
support schools that report back on how they collected money and more
importantly, how it was spent.
61
From the discussion above, it is clear that many independent groups differ
statistically significantly from one another in respect of financial
accountability. The fact that these groups differ from one another reinforces
the constructive and prescriptive validity of financial accountability.
A discussion of the differences between the various independent groups in
respect of motivation will now be discussed .
4.4.2 Motivation
Gender — Male principals perceive themselves to be slightly more
inclined to motivating parents to be actively involved in financial activities
of the school than their female counterparts.
Age — Principals who perceive themselves as being able to motivate
parents to be financially involved in school activities are the younger ones.
They have highest factor mean score compared to older principals.
Experience — The factor mean scores seem to indicate a direct link
between principals' perception of motivating parents to be actively
involved in the financial activities of the school and their experience as
principals. Experience is inversely proportional to motivation. Principals
with the least experience are the ones that regard the motivation of parents
most important.
Electrified buildings — Principals whose schools are electrified have a
slightly higher factor mean score than principals whose school buildings
are not electrified. Those whose schools are electrified perceive
themselves as being slightly more able to motivate parents than those
whose school buildings are not electrified.
62
Toilets — Principals whose schools have enough toilets for learners have a
slightly lower factor mean score than principals whose schools do not
have enough toilets. Those with a shortage of toilets regard themselves as
doing everything in their power to motivate parents to involve themselves
in financially supporting the school activities. It could be that through the
funds raised, more toilets could be built.
Library — Principals whose schools have libraries have a slightly higher
factor mean score than those who do not have libraries. Principals with
libraries perceive themselves as more motivating than the ones that do not
have such facilities.
School where experience was gained — Principals whose greater part of
their experience was gained in primary schools have a slightly higher
factor mean score than those whose greater part of their experience was
gained in secondary schools. Those from primary schools regard
themselves as more inclined to motivating parents than those whose
greater part of their experience was gained from secondary schools.
Community support — The factor mean score of principals who regard
the support of their schools by the community as being poor is slightly the
highest when compared with the factor mean scores of parents who
perceive the support of their schools by the community as being average
and good. Principals whose motivation on parents is very high, perceive
on the other hand a poor community support of their schools relative to
other groups.
From the above discussion it can be seen that the mentioned independent
groups do not differ statistically significantly from one another in respect
of motivation of parents. Almost all of the groups discussed are aware of
the importance of motivation and only slight differences in the factor
mean scores are identified.
63.
A discussion of the differences between the various groups in respect of
financial management will now be discussed.
4.4.3 Financial management
Gender — Female principals have a slightly higher factor mean score
compared to their male counterparts. Female principals regard themselves as
having slightly better financial management skills than male principals.
Age — The factor mean scores seem to indicate a direct link between the age
of principals and their financial management skills. The older the principals
the lesser financial management skills they seem to display. Younger
principals usually try to practice on the cutting edge of the teaching practice.
They seem to stay abreast of the current research projects on the teaching
practice and as such, tend to increase their financial management skills.
a Experience — Principals with an experience of between seven and nine years
have a higher factor average and differ statistically significantly at the 5%
level in their factor mean scores from principals with an experience of
between fifteen to twenty years in respect of financial management.
It can be concluded that more experienced principals tend to resort to their
own old ways of managing funds and they seem to find it very difficult to
change and apply the new styles of managing funds. They still have to be
convinced that modern methods of managing funds can be more effective and
efficient than old methods of managing finances
a Electrified buildings — Principals whose school buildings have electricity have a
higher factor mean score and this scale score differs from principals whose school
buildings do not have electricity at the 5% level of statistical significance.
64.
Principals whose school buildings are electrified usually work with modern tools
or equipments that need electricity to operate. Such equipments are usually user-
friendly and cost-effective.
This being the case, principals exposed to such technological facilities avail
themselves to training in management skills that will empower them to be able to
use such facilities. This then leads to such principals having an enriched
knowledge of management, particularly financial management.
Toilets — Principals that have enough toilets at their schools have a slightly higher
factor mean score compared to principals whose schools do not have enough
toilets. Those with enough toilets regard this advantage as a bonus because of
their good financial management skills.
Library — Principals who have libraries at their schools have a higher factor
average and differ from principals whose schools do not have libraries at the 1%
level of statistical significance. Principals with libraries at their schools have a
much more responsibility since apart from their normal managerial tasks, they
also have to manage books in the library.
This process requires principals to develop their management skills and as such
avail themselves to educative material particularly the ones on management. This
action could have led to such principals perceiving themselves as having more
financial management skills than their counterparts.
School where experience as gained — Principals whose greater part of their
experience was gained at primary schools have a slightly higher factor mean score
than principals whose experience was gained at secondary schools. Principals
whose greater part of their experience was gained at primary schools thus have
the perception that they display a better knowledge of financial management than
their counterparts.
65.
Community support — Principals that regard the community support of their
schools as good have a slightly higher factor mean score than those who regard
the community support of their schools as average and poor.
Community members seem to prefer to support schools whose principals display
a good financial management knowledge. This is because such principals possibly
plan their activities, have good communication skills, and can lead and organise.
All these are management functions displayed by a good manager and encourage
the parent community to support the school in all its activities.
International Federation of Accountants (1996:647) regard school financial
management as mainly concerned with weighing up financial needs against
available educational funds. The management of such educational funds takes
place within an administrative dimension.
From the discussion above, it is clear that the knowledge of financial management
is the key to motivating parents to be actively involved in financial activities of
the school and it is the base from which financial accountability towards parents
can be practiced.
The discussion of the differences between the factor mean scores of the various
independent groups will now be followed by a brief summary of this chapter.
4.5 SUMMARY
This Chapter analysed and interpreted some of the empirical data that was
collected. The construct validity of the research instrument was investigated by
means of two successive factor analyses which reduced 66 items to the following
three factors:
66.
financial accountability consisting of 3l items with a reliability coefficient of
0,947;
motivation consisting of 22 items with a reliability coefficient of 0,924; and
financial management consisting of 8 items with a reliability coefficient of
0,716.
The statistical analysis was logically carried out by comparing one example of
two independent groups and another example of three or more independent
groups. Hypotheses were defined and multivariate statistics were used to analyse
and interpret the data.
A questionnaire that was used was able to distinguish between groups which are
known to differ from one another. These differences were briefly discussed and
possible reasons for the differences in factor mean score were postulated.
From the research conducted it can be concluded that financial accountability of
secondary school principals towards parents revolves around the constructs of
financial accountability, motivation and financial management.
Both of these constructs were shown to have construct validity and high reliability
and could therefore serve as a basis for measuring and developing financially
accountable principals.
After having analysed and interpreted the empirical data, Chapter 5 will give a
summary of the research. Important findings will be discussed and finally,
recommendations will also be made.
67
CHAPTER 5
SUMMARY, FINDINGS AND RECOMMENDATIONS
5.1 INTRODUCTION
The aim of this research is to find out if secondary school principals regard
themselves as financially accountable towards parents. This aspect is one of the
most critical and important educational phenomena especially when considering
rural black schools where the word "accountable" is rarely known.
The South African Schools Act makes it imperative for principals as members of
the governing bodies to administrate the school funds in a professional,
transparent and accountable manner (RSA,1996:14).
Communities outside the school are from now and again being informed through
the mass media to get themselves involved in all activities of the school so as to
restore the culture of learning and teaching at schools. Teachers, through their
unions, no longer want to be in the dark when it comes to financial matters of the
school. They also want to be involved in the budgetary processes and this is
justifiable ( see 2.3.1.4 p.18 - 19).
Learners at schools, particularly in secondary schools also have to know what is
happening with the school funds. They have access to such information mostly
through their representatives in the governing body (RSA,1996:5 ).
No school can achieve its educative goal and objectives without sufficient money.
Government funds are far inadequate and each school has to supplement its funds
through donations, school fees and other fund raising activities (RSA, 1996:13).
To be able to collect these extra funds, principals have no choice but to advice
their governing bodies to involve themselves in financial accountability.
68.
People in the community can only be actively involved in the financial activities
of the school if they are:
reported to on how the income of the school was raised;
how the school fund was spent;
informed of the financial constraints under which the school is operating;
involved in the budgetary processes;
allowed access into financial statements anytime;
informed of mechanisms engaged in when controlling finances;
regularly kept up to date with the financial position of the school; and
informed of the cost-effective use of school finds.
This process might be regarded as unnecessary interference of the community into
school affairs. But nevertheless, it is the right route to take if we want to restore
the culture of teaching and learning in our schools. In the beginning, this
process(financial accountability), might be likened to steering seven wild horses.
But this is better than not engaging oneself in this process failure to be engaged,
Senge (1990:304) says that it will look like beating a dead horse to run.
This being the final Chapter, it is necessary to recapitulate the salient points of
this mini-dissertation under the following headings:
SUMMARY
IMPORTANT FINDINGS
RECOMMENDATIONS
CONCLUSION
69.
5.2 SUMMARY
Chapter one introduces the topic and provides the background of the research. It
describes the problem to be studied and the method that is to be used in the
research. Finally, it clarifies concepts used and elaborates on the demarcation of
the investigation.
Chapter two focused on the literature survey so as to lay a good foundation for an
empirical study. It exposed the topic of the mini-dissertation, that is FINANCIAL
ACCOUNTABILITY OF SECONDARY SCROLL PRINCIPALS
TOWARDS PARENTS.
The discussion in Chapter two cetred around financial accountability. It was
disclosed that for one to be financially accountable, one should at least have a
basic knowledge of financial management and what accountability really means.
Components of financial management which are the budget, financial accounting,
financial control and financial reporting were discussed in detail. The same
applies to an accounting strategy. Finally, a motivation strategy that could be used
to motivate parents to be financially involved in the activities of the school was
also discussed.
In Chapter three the design of the research was explained. A description of the
empirical investigation was provided. All items in a questionnaire had mean
scores that ranged from 2,61 to 4,76.
In Chapter four the empirical data was analysed and interpreted. The construct
validity of the research instrument was investigated by means of two successive
factor analyses which reduced the 66 items to just three factors namely:
70.
financial management consisting of 31 items with a reliability co-efficient of
0,947;
motivation consisting of 22 items with a reliability co-efficient of 0,924; and
financial management consisting of 8 items with a reliability co-efficient of
0,716.
The statistical analysis was logically carried out by comparing one example of
two independent groups and another example of three or more independent
groups. Hypotheses were set and multivariate statistics were used to analyse and
interpret the data.
Emanating from this research are some important findings which result in
illuminating recommendations. These findings will now be discussed.
5.3 IMPORTANT FINDINGS
5.3.1 Findings from the literature survey in respect of financial accountability of
secondary school principals towards parents.
To be able to practice the concept of financial accountability, principals
should have to acquaint themselves with the knowledge of financial
management. That is, they should display the knowledge of budgeting,
financial accounting, financial control and financial report systems. In short,
they should have at least the basic knowledge of accounting.
Principals should engage themselves in participatory management styles. They
should involve all stakeholders in the school and outside the school during the
early stages of budgetary planning. The process of budgeting should be as
inclusive as possible. Consultation should include learners, non-teaching staff,
educators, parents, business people and the community at large. An inclusive
finance committee should also be established (see 2.3.1.4 p.18-20).
71.
Principals should be able to write financial reports in a simple, understandable
but professional way. These reports should be read and explained to parents
and any person with an interest in the financial affairs of the school.
Principals should design financial control mechanisms that will help the
school to detect any financial mismanagement. The use of a varience can be
used for budgetary control. Internal and external audits should also be used to
enhance the culture of accountability. Parents should also be informed of the
financial restraints under which the school is operating.
A framework of financial accountability should be put in place. This will have
to include a communications strategy that will have to be used to improve a
two-way communication within the school and between the school and the
community outside the school. The result of this strategy will improve mutual
relationship between members of the school community and the relationship
between the school and the outside community members. This relationship
will be based upon love, mutual respect, trust and honesty (see 2.2.1 p.12-13).
All of what has been discussed in this paragraph will motivate parents to actively
participate in the financial activities of the school.
5.3.2 Important empirical findings
Financial accountability consists of the following three factors:
financial accountability which is composed of 31 items with a Cronbach-
alpha-reliability co-efficient of 0,947, motivation which is composed of 22
items with a Cronbach-alpha-reliability co-efficient of 0,924 and financial
management which is composed of 8 items with Cronbach-alpha-
reliability co-efficient of 0,716.
72.
In respect of financial management, significant statistical differences were
found between the perception of principals as reflected in the mean factor
scores of experience, number of classrooms, availability of a laboratory,
running water, library, electricity and an administration block.
In respect of financial accountability, significant statistical differences were
found between the opinion of principals as reflected in the mean factor score
of the following groups:
Experience as principal, availability of laboratories, availability of an
administrative block, availability of classrooms and the support of the
school in the community. Availability of running water, library,
electricity, toilets and the school where greater part of experience was
gained.
In respect of motivation, significant statistical differences were found
between the opinion of principals as reflected in the mean factor scores of
the qualification of principals, the availability of running water and the
availability of an administration block.
5.4 RECOMMENDATIONS
The main aim of this mini-dissertation was to find out if secondary school
principals are financially accountable towards parents. To achieve this aim, a
thorough literature review was undertaken. Using this literature survey as a basis,
a questionnaire was designed and submitted to principals to elicit their opinion
concerning accountability towards parents. The findings of this empirical
investigation will be combined with the following recommendations.
73
RECOMMENDATION 1
5.4.1 In-service training
Principals should have to undergo a one-week long training in financial
management at least every semester. The education department should not take it
for granted that principals know how to professionally manage finances at their
schools. These regular training sessions will give principals an opportunity to ask
questions about financial management without the fear of being embarrassed by
their lack of simple financial concepts.
RECOMMENDATION 2
5.4.2 Leadership seminars
Special leadership seminars for principals should be conducted by officials from
the education department with the sole aim of introducing them to the present day
realities when it comes to managing schools. Topics such as change management,
collaborative decision making with emphasis on shared vision, mission, goals and
values should be discussed.
These topics will help principals to realise that today's schools are different from
yesterday's schools in many aspects. One such aspect is financial accountability
which will require them to resort to a participative type of management. Strategies
like the ones discussed in paragraph 2.4.1 page 37-39 could be helpful in
acquiring the needed financial support from parents.
RECOMMENDATION 3
5.4.3 Support from department officials
The officials from the department of education should visit schools quarterly to
help principals and their governing bodies on financial record keeping. Thwy
should monitor the implementation of the process so as to maximise efficiency.
74.
Monthly completed cash books should be sent to circuit offices and thorough
follow-up should be maintained. This process could be maintained for at least five
years.
RECOMMENDATION 4
5.4.4 Topic for further research
Parental involvement in schools is no doubt one of the best mechanisms to restore
the culture of teaching and learning in our schools, particularly black schools. A
strategy to get these parents to be involved in the activities of the school is a
possible future research topic. This topic was slightly touched in this research (see
2. P ). A full detailed empirical research could be conducted to retrieve a
number of possible such strategies, strategies relevant to particular cultural
communities.
5.5 CONCLUSION
Financial accountability is a reality we cannot run away from. Today's parents are
almost everyday being informed of their rights by a vast number of media reports.
Since money is what people reluctantly want to part with, information concerning
its use is closely monitored.
The South African Schools Act is also clear on this issue. Governing bodies with
principals as members, have a legal and moral obligation to inform the parents of
how each cent is to be raised, controlled and spent. In short, principals have to be
financially accountable towards parents.
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AUGENBLICK, J 1995: Public schools: Issues in the budgeting and financial management. Oxford: Transaction.
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BRISTON, RJ 1981: Introduction to accountancy and finance. London: Macmillan. BROMWICH, M 1992: Financial reporting, information and capital markets. London:
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& TOPOREK, JD 1985: BMDP Statistical software. Los Angeles: University of California Press.
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RAND AFRIKAANS UNIVERSITY
1'.0. Box 524
Auckland Park
Johannesburg esburg
Republic of South Africa
2006
RAND AFRIKAANS UNIVERSITY 'telegraphic address Rauniv
Telex 424526 SA
Telephont. M111489-291 I + 27-1 1-489-291 1
Fax (0 I I) 489-2191 + 27-11-489-2191
R - A • U .0.12.1361:5
Dear Madam/Sir Date: 1977-09-15
The financial accountability of secondary school principals towards parents is an aspect which directly. concerns you. It is thus vital that we obtain your opinion regarding this aspect as it is a REAL CONCERN TO EDUCATIONAL MANAGERS in the new Educational dispensation.
A questionnaire is one of the most effective ways of ELICITING PRINCIPAL OPINION and we are committed to the fact that without your opinion the information is not credible. Please bear the following in mind when you complete the questionnaire:
Do not write your name or that of your school on the questionnaire - it remains anonymous.
There are no correct or incorrect answers in Sections B and C. This is not a test of your knowledge or competence . Please do not answer the question to be in line with the Schools Act of 1996 but give your honest opinion (even if it differs from
the stipulations of the Act) to the question.
Your first spontaneous reaction is the most valid. So work quickly and accurately. Do not ponder too long over any particular item/question.
Please answer all the items(items are printed on both sides of the page).
If you would likt to change your response to an item do so by clearly crossing out the incorrect respon: • and then circling your intended response.
Please return this questionnaire to the PERSON FROM WHOM rr WAS . RECEIVED, AVTER HAVING COMPLETED IT.
Thank you once again for your kind assistance.
Yours faithfully
aVV-124a--- Mr. MS Matamela•
DYNAMIC FOCUS ON THE FUTURE
1. Office use only
(1-4)
Card number 1
(e.g. thirty five 3
5 (7-8)
5 (9-10)
SECTION A — PERSONAL INFORMATION
Circle the applicable code or fill in the number where necessary.
EXAMPLE FOR COMPLETING SECTION A QUESTION 1: YOUR GENDER?
If you are a male then circle as follows: Male
1
Female
1. GENDER Male
Female
2. HOW OLD ARE YOU (IN COMPLETE YEARS)?
1
2
(6)
3. NUMBER OF YEARS OF EXPERIENCE AS A PRINCIPAL
( IN COMPLETE YEARS)
(e.g. five years
2. 4. NUMBER OF EDUCATORS INCLUDING THE PRINCIPAL
(IN COMPLETE YEARS)
(e.g. sixteen: 1
6
5. WHAT IS THE LEARNER ENROLMENT OF YOUR SCHOOL?
1 — 200 1
201 — 400 2
401 — 600 3
601 — 800 4
801 — 1000 5
1001 AND ABOVE (13) 6
6. YOUR HIGHEST EDUCATIONAL QUALIFICATION
Post school Diploma 1
Teachers Diploma + Further Education Diploma 2
Bachelor's Degree 3
Bachelor's Degree + Teachers Diploma 4
Higher Post Graduate Qualification (14) 5
7. DOES YOUR SCHOOL BUILDING HAVE ELECTRICITY?
YES 1
NO (15) 2
3. USE THE LEARNER ENROLMENT IN YOUR SCHOOL IN THE
FOLLOWING TABLE TO DETERMINE WHETHER YOUR SCHOOL
HAS SUFFICIENT TOILETS (THEN ANSWER QUESTION 8).
Learner enrolment Number of toilets
For Girls For Boys
1 — 200 1 to 7 1 to 4
201 — 400 8 to 13 5 to 7
401 — 600 14 to 20 8 to 10
601 — 800 21 to 27 11 to 13
801 — 1000 28 to 34 14 to 16
1000 and above 41 +
19 +
8. DOES YOUR SCHOOL HAVE SUFFICIENT TOILETS?
YES
NO
DOES YOUR SCHOOL HAVE AN ADMINISTRATION BLOCK?
YES
NO
DOES YOUR SCHOOL HAVE RUNNING WATER?
YES
NO
1
2
(16)
1
2
1
(17)
(18)
4. USE THE LEARNER ENROLMENT IN YOUR SCHOOL IN THE FOLLOWING TABLE TO DETERMINE WHETHER YOUR SCHOOL HAS SUFFICIENT CLASSROOMS (THEN ANSWER QUESTION 11).
Learner enrolment Number of classrooms
1 — 200 1 to 6
201 — 400 7 to 11
401 —600 12 to 16
601 —800 17 to 21
801 — 1000 22 to 26
1000 and above 27 +
11. DOES YOUR SCHOOL HAVE SUFFICIENT CLASSROOMS FOR THE LEARNERS?
YES 1
NO (19)
12. DOES YOUR SCHOOL HAVE A TELEPHONE?
YES 1
NO 2 (20)
13 DOES YOUR SCHOOL HAVE A LIBRARY?
YES 1
(21) NO 2
5. 14. IS YOUR SCHOOL EQUIPPED WITH THE NECESSARY LABORATORIES?
YES
NO 2 (22)
15. SCHOOL WHERE GREATER PART OF YOUR EXPERIENCE AS A PRINCIPAL WAS GAINED (MARK ONLY ONE).
Primary school
1
Secondary school 2 (23)
HOW WOULD YOU DESCRIBE THE IMAGE OF YOUR SCHOOL IN THE COMMUNITY?
Good
Average
Poor
HOW SUPPORTIVE ARE THE PARENTS OF THE COMMUNITY OF YOUR SCHOOL?
Good
Average
Poor
(TURN OVER FOR SECTION B PLEASE)
1
2
3
(24)
1
2
3
(25)
6. SECTION B
Remember this is not a test of your competence. This section deals with the importance to you of each of the following issues relating to financial management? If you feel the issue is important, pick a number from the far right side of the scale. If you feel that it is unimportant, pick a number from the far left, and if you feel the importance is between the two scales, pick a number from some place in the middle of the scale to show YOUR OPINION EVEN IF IT DIFFERS FROM THE STIPULATIONS OF THE S.A. SCHOOLS ACT OF 1996.
EXAMPLE IN YOUR OPINION, HOW IMPORTANT IS IT TO: Allow the community to be able to hire the school hall?
Unimportant 1 2 3 4 5 Important
Mark your opinion by circling the appropriate number/code on the scale provided for each question.
IN YOUR OPINION, HOW IMPORTANT IS IT TO: 1. Prepare an annual financial budget for your school?
Unimportant 1 2 3 4 5 Important
(26) 2. Make sure that the school has a financial policy?
Unimportant 1 2 3 4 5 Important
(27) 3. Write financial reports in an easy to understand but professional way?
Unimportant 1 2 3 4 5 Important
(28) 4. Have a clear understanding of accountancy procedures?
Unimportant 1 2 3 4 5 Important
(29)
2
1 2 3 4 5 Important
7.
IN YOUR OPINION, HOW IMPORTANT IS IT TO:
5. Control the income and expenditure of the school?
Unimportant
(30) 6. Inform parents that they are also responsible for any educational failure or
success of their children?
Unimportant 1 2 3 4 5 Important
(31) 7. Be accountable to parents on how the school funds were spent?
Unimportant 1 2 3 4 Important
(32) 8. Involve teaching and non-teaching staff in the preparation of the school's
financial budget?
Unimportant 1 2 3 4 5 Important
(33) 9. Liase with local businesses in order to obtain donations towards the school
fund?
Unimportant 1 2 3 4 5 Important
(34) 10. Display good communication skills when dealing with parents?
Unimportant 1 2 3 4 Important
(35) 11. Ensure that parents in the community accept the school's financial policy?
Unimportant 1 2 3 4 5 Important
(36)
3
8. IN YOUR OPINION, HOW IMPORTANT IS IT TO: Motivate parents to be active!y involved in the financial activities of the school?
Unimportant Important 1 2 3 4 5
(37) Open and maintain a bank account for the school?
Unimportant L 1 2 3 4 5 Important
(38) 14. Be accountable for any mismanagement of school funds?
Unimportant 1 2 3 4 5 Important
(39) 15. Make parents aware of the financial restraints under which the school
operates?
Unimportant 1 2 3 4 5 Important
(40) 16. Know how to interpret financial statements?
Unimportant 1 2 3 4 5 Important
(41) 17. Ask educators who have knowledge on commercial subjects like accounting to
internally audit the financial affairs of the school?
Unimportant 1 2 3 4 5 Important
(42) 18. Seek assistance from members of the business community when formulating a
financial policy for the school?
Unimportant 1 2 3 4 5 Important
(43) 19. Ensure that all learners take part in activities associated with raising funds for
the school?
Unimportant 1 2 3 4 5 Important
(44)
4
9. IN YOUR OPINION, HOW IMPORTANT IS IT TO:
20. Ensure that the gardener and caretaker at the school also have a say in the process of preparing a budget for the school?
Unimportant 1 2 3 4 5 Important
(45) 21. Set up one governing body that must govern two or more schools?
Unimportant 1 2 3 4 5 Important
(46) 22. Be accountable to parents for the cost-effective use of school funds?
Unimportant 1 2 3 4 5 Important
(47) 23. Combine two or more schools with the aim of making the task of financial
management easier?
Unimportant 1 2 3 4 5 Important
(48) 24. Encourage parents to take care of school buildings?
Unimportant 1 2 3 4 5 Important
(49) 25. Use a single receipt book even if it is for different income purposes for the
school?
Unimportant 1 2 3 4 5 Important
(50) 26. See to it that all receipts are retained and kept?
Unimportant 1 2 3 4 5 Important
(51) 27. Be able to analyse a bank statement?
Unimportant 1 2 3 4 5 Important
(52)
5
10. IN YOUR OPINION, HOW IMPORTANT IS IT TO:
28. Ask parents to assist with organising functions for the purpose of raising school funds?
Unimportant 1 2 3 4 5 Important
(53) 29. Use school funds to send the members of the Representative Council of
Learners (RCL) to learners' leadership seminars?
Unimportant 1 2 3 4 5 Important
(54) 30. Amalgamate two or more secondary schools with the aim of improving grade 12
(matriculation) results?
Unimportant 1 2 3 4 5 Important
(55) 31. Report to parents on how the income of the school was raised?
Unimportant 1 2 3 4 5 Important
(56) 32. Involve the Representative Council of Learners in drafting the financial policy of the school?
Unimportant 1 2 3 4 5 Important
(57) 33. Undergo a training course on school financial management?
Unimportant 1 2 3 4 5 Important
(58) 34. Regard financial management and control as your first priority?
Unimportant 1 2 3 4 5 Important
(59)
6
. IN YOUR OPINION, HOW IMPORTANT IS IT TO:
35. Ensure that parents are regularly kept up to date with the financial position of the school?
Unimportant 1 2 3 4 5 Important
(60) 36. Follow the Generally Accepted Accounting Practice (GAAP) when dealing with
school finances?
Unimportant 1 2 3 4 5 Important
(61) 37. Ensure that a finance committee is established in the school?
Unimportant 1 2 3 4 5 Important
(62) 38. Ensure that the tuckshop in your school is run like any other business in the
country?
Unimportant 1 2 3 4 5 Important
(63) 39. Use school funds to cover the transport costs of educators attending educational
seminars?
Unimportant 1 2 3 4 5 Important
(64) 40. Make audited financial statements available to the civic organisations in the
community?
Unimportant 1 2 3 4 5 Important
(65) 41. Allow any political party in the community access to the school's financial
statements if requested by them?
Unimportant 1 2 3 4 5 Important
(66)
7
12. IN YOUR OPINION, HOW IMPORTANT IS IT TO:
42. Encourage religious leaders in the community to also take part in the school's budgetary process?
Unimportant 1 2 3 4 5 Important
(67) 43. Motivate the staff to readily give information of the financial activities of the school to members of the community?
Unimportant 1 2 3 4 5 Important
(68) 44. Invest some school funds in financial institutions such as banks and building
societies?
Unimportant 1 2 3 4 5 Important
(69) 45. Encourage learners to ask for clarification on any financial expenditure
incurred by the school?
Unimportant 1 2 3 4 5 Important
(70) 46. Know how to prepare a balance sheet?
Unimportant 1 2 3 4 5 Important
(71) 47. First seek a mandate from the parents before deciding to buy a kombi for the
school?
Unimportant 1 2 3 4 5 Important
(72) 48. Report to parents, in financial terms, the value of all the school assets and
liabilities?
Unimportant Important
(73)
8
13.
IN YOUR OPINION, HOW IMPORTANT IS IT TO:
49. Ensure that most members of the community are aware of how the school fund is raised and spent?
Unimportant 1 2 3 4 5 Important
(74) 50. Identify leaders amongst the learners and train them on aspects of financial management?
Unimportant 1 2 3 4 5 Important
(75) 51. Ensure that you reveal a culture of financial accountability towards parents?
Unimportant 1 2 3 4 5 Important
(76) 52. Make parents realise that they have the right that school financial matters should be reported to them?
Unimportant 1 2 3 4 5 Important
(77) 53. Make available all financial statements to anybody with an interest in the
financial affairs of the school?
Unimportant 1 2 3 4 5 Important
(78) 54. Involve parents in preparing a school budget?
Unimportant 1 2 3 4 5 Important
(79) 55. Motivate parents that school fees should be increased when necessary to
compensate for inflation?
Uniniportant 1 2 3 4 5 Important
(80)
9
14. IN YOUR OPINION, HOW IMPORTANT IS IT TO:
56. Allow any business person access to the financial records of the school?
Unimportant 1 2 3 4 5 Important
(81) 57. Be able to analyse the financial position of the school?
Unimportant 1 2 3 4 5 Important
(82) 58. Where possible, to involve all members of the community in raising funds for
the school?
Unimportant 1 2 3 4 5 Important
(83) 59. Adhere to the budget when utilising school funds?
Unimportant 1 2 3 4 5 Important
(84) 60. Involve the Representative Council of Learners in preparing a school budget?
Unimportant 1 2 3 4 5 Important
(85) 61. Allow that the parents should decide that school fees will be charged at the
school?
Unimportant 1 2 3 4 5 Important
(86) 62. Give the financial statements to a registered accountant and auditor to check
whether they are in order?
Unimportant 1 2 3 4 5 Important
(87)
l0
15. IN YOUR OPINION, HOW IMPORTANT IS IT TO:
63. Ensure that all staff members (teaching and non-teaching) are involved in selecting the school's financial committee?
Unimportant 1 2 3 4 5 Important
(88) 64. Report to learners on how the school funds were utilised?
Unimportant 1 2 3 4 5 Important
(89) 65. Involve educators in raising funds for the school?
Unimportant 1 2 3 4 5 Important
(90) 66. Ensure that there is mutual trust and respect between parents and the
principal?
Unimportant 1 2 3 4 5 Important
(91) SECTION C
67. In your opinion, what could be the solution(s) towards the provision of educational facilities in your school?
(92)
THANK YOU FOR YOUR PATIENCE AND COOPERATION IN COMPLETING
THIS QUESTIONNAIRE.
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