Assessment on the Financial Resource Utilization of Selected Primary Schools

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Published on International Journal of Teaching & Education
Publication Date: August, 2019

Kindalem Bayew Wassie
Animal Health Department Head in Janamora Wereda Livestock Development Office
Janamora, North Gondar, Ethiopia

Journal Full Text PDF: Assessment on the Financial Resource Utilization of Selected Primary Schools.

Abstract
The study was conducted in Janamora Wereda selected primary school. Based on the respondents most of the respondents replied that the strategies to improve schools budget preparation, utilization, execution and control are: The school budget released from woreda education office should be on time. The amount school budget obtained from education office should be adequate. The allocated financial resource should utilized efficiently by primary schools. The collection of school fee should be controlled by all stalk holders. There should be effective internal and external auditing service. There must be transparency and accountability of budget allocation and utilization. There should be regular training for the school stalk holders on school finance rule and regulation. The school committee (PSTA and KETB) should make follow up to determine proper utilization of school finance. Plan and budget utilization should be match. Based on the response of the respondents 28 % of the respondents answered that the allocated financial resource was utilized efficiently by their primary schools and the other 54% 0f them responded that the allocated resource was not utilized efficiently. The rest of respondents, 18% replied that they did not know. So, from their response we can conclude that most primary schools do not utilize the resource efficiently. Regarding with annual budget of school, from 35 respondents only 12, 34% 0f respondents answered the school’s annual budget was known, the rest 23, 66% of the respondents responded as they did not known.

Keyword: budget preparation, utilization, execution, control, financial resource, education & schools.

1. INTRODUCTION
Financial resources are significant resources often assumed to be a part of physical capital. It is actually the basis for the procurement, utilization, and maintenance of all other types of resources. Without financial base it will be difficult to produce the right of goods and services in desirable quality and quantity [1]. Education reform efforts in less industrialized countries have aimed at making education an effective vehicle for national development. Governments, policy makers and civil society have emphasized that developing countries need to invest more in education and ensure the system of education are efficiently managed that limited funds allocated to sector have maximum impact , and that cost recovery measures are adopted [2].
School system should mobilize the human and nonhuman resources to achieve objectives and fulfill educational needs of students in particular and community in general. In developing countries like Ethiopia, the Government is the main source of finance for the expansion of education [3]. However, the financial labor and material contribution of the community as well as internal income and the support from non -Governmental organization could have their own contributions [4]. School system should utilize the financial resources to achieve objectives and fulfill educational need of students and community. All organizations including schools face the scarcity of finance. Through converting this scarce resources with the help of budgeting mechanism all activities are functioned appropriately. The educational administration at each level is politically accountable to its Government, and technically to the upper level of administration. Responsibilities in operational planning, budget allocation and budget control should be developed to woredas [5].
Building the implementation capacity of woredas based on training needs identification through short term domestic and\or a broad training program on educational management supervision, finance purchasing and major strategy and under taking. The success of school can center on the quality of its financial management. Financial management ensures that school resources are effectively used to achieve school mission, and its school improvement plan and school development plan [6].
According to Janamora woreda education office report of 2008 E.C, the total budget allocated for the quality of improvement purpose much of it had been misused due to inappropriate management. This indicates that improper utilization of education finance in school of Janamora woreda. For this reason, this study tries to examine how school finance resources are properly utilized in primary schools and to recommend more appropriate methods and ways of utilizing these scarce and important resources in Janamora woreda selected primary schools.
The general objective of this study was to test the implementation of financial resources, to assess the financial resource utilization, to identify challenges that affect primary schools, to utilize the financial resource properly of selected primary schools and assess the role of stalk holders in monitoring and evaluating financial resource utilization of Janamora woreda. This study was aimed to assess factors affecting financial resource utilization in primary schools of Janamora woreda.

2. DESIGN AND METHODOLOGY OF THE STUDY
2.1 Study Area
The study was conducted in Janamora Wereda Janamora Wereda is located in North Gondar Zone of Amhara region, at the latitude and longitude of 12o59’N 38o07’E at a distance of about 180km from Gondar town. Janamora Wereda is well-known with Semien mountain National Park, Ras Dashen i.e the highest point in Ethiopia and it is a home to a number of endangered species including the Ethiopian Wolf, waliya ibex, and a wild goat which no found in elsewhere in the world. The area has an altitude range of 2900 meters above sea level. The region is marked by numerous mountains, hilly, and sloppy areas, plateaus, rivers, and many streams. The total population of Janamora Wereda is 200,000. Most of the people extend their life through farming and livestock productions [7].
2.2 Study design
The study design was descriptive survey which is based on the nature of the data because the methods are assumed to enable the researcher to find out the solution for the existing problems.

2.3 Data source
Both primary and secondary source of data were used. For data source both qualitative and quantitative approaches will be employed. The data were collected using structured questionnaire from school directors, teachers, woreda education head and experts, and qualitative data were collected using key informants who are representative of stalk holders (PSTA and KETB), the study school, woreda finance office head and auditors.

2.4 Sampling technique
In the process of primary data collection a purposive sampling technique was employed. In Janamora woreda there were 102 primary schools. Among these schools five primary schools have been selected (Denkolako, Enchet Kab, Dorona, Rob Gebeya and Mekane Birhan). The sampled schools were selected because they were suspected in misusing the school’s financial resource. Woreda education office was involved in selecting the five schools. Furthermore school directors, teachers, education office head, woreda finance and economic development head and auditors, PTA, KETB members were in purposive sampling method.

2.5 Sample size
Totally 52 respondents were selected who are stalk holders to the schools. -5 school directors and 5 vice directors, 25 teachers, 5-kebele education and training board members, 5-parent teacher association members, 4 Woreda education office experts including the office head Woreda finance and economic development head and two auditors.

2.6 Data collection instrument
The major data collection instrument were questionnaire, interview, focus group discussion and relevant document in the selected schools and woreda education office like audit report school budget plan and budget utilization report and feedback of office on schools finance resource usage.

Questionnaire
The process of data collection was through questionnaire because of its suitability for survey study that has large size of respondents. In structured questionnaire both closed ended and open ended questions were prepared to be filled by different stalk holders.

In depth interview
The key informants, interview guide were prepared and employed with key persons in finance and economic development head and auditors. The interview had similar item on structured items with possible flexibility.

Focus group discussion
The focus group discussion guide was prepared and conducted with KETB and PSTA in five selected schools.

Secondary data source and document analysis
Published and unpublished reviews were made concerning revenue, expenditure, accounting books in school. Relevant document in the selected schools and woreda education office like audit report school budget plan and budget utilization report and feedback of office on schools finance resource usage.

2.7 Method of Data Analysis
The data gathered through primary and secondary data collection method were analyzed using descriptive statistics such as table, number and narrative description.

3. DATE ANALYSIS, PRESENTATION AND INTERPRETATION
This part of the thesis deals with presentation, analysis, and interpretation of the data gathered through quantitative and qualitative research tools: questionnaire, interview and relevant document. It focuses on presentation of characteristics of teachers, principals, vice principals from the five sample primary school respondents used for quantitative information and qualitative information the woreda education office head, woreda education experts, woreda finance and economic development office head and auditors, members of kebele education training board and members of parent student teacher association who were involved during key informants interview and focus group discussions. For quantitative data 39 copies of structured questionnaire were distributed to the respondents. Out of these questionnaire 10 copies were distributed among principals and vice principals. 25 were distributed among the five sample primary schools teachers. 4 copies of structured questionnaire were distributed to the woreda educational office and experts. All the distributed copies of the questionnaires (100%) were completed and returned to the researcher on time. As additional inputs for the questionnaire response, key informant interview, focus group discussion and document analysis were also obtained on time with a view of triangulating the finding from different sources.

4.1 Demographic characteristics of participants (principals, vice principals, teachers, woreda education head and experts).
In this study five primary schools having grade 1-8 level namely Enchet Kab, Rob Gebeya, Dorona, Mekane Birhan and Denkolako primary schools selected purposely out of 102 primary schools in Janamora woreda.

Table 4. 1: Distribution of number of principals, teachers by sex in 2009 E.C.in the study school

During the study all 35 (teachers, directors and vice directors) in the study schools were used as respondents to generate quantitative information using structured questionnaire prepared for the study. Out of all respondents used for the study more than 85% were males and the remaining 15 % were females.
However, when we look to position of principals no female was found in the leadership positions. With regard to educational back ground of the respondents about 68.5% were graduates with diploma, 31.5% of them were first degree and no one is certificate and 2nd degree. With regard to the work experience of the respondents, about 11% of the respondents have 1-2 years work experience and nearly and 40% of the respondents have 3-5 work experience. The rest 49% of the respondents have 6-9 years work experience. All educational office experts and the head are males and have 1st degree. All have above 10 years work experience.

4.2 Analysis of data gathered through questionnaire from selected school principals and teachers.
The questionnaires were given to 10 principals and vice principals and 25 selected school teachers. The questionnaire has 14 closed and 2 open questions. Each item was analyzed separately.

Item 1 .Is the school’s annual budget known? Yes—- No—
Regarding with annual budget of school, from 35 respondents only 12, 34% 0f respondents answered the school’s annual budget was known, the rest 23, 66% of the respondents responded as they did not known. From this we can understand that there is no participation of stalk holders in budget allocation and utilization in primary schools.

Item 2. What are the main sources of financial resource in your school? A. From government B. NGO Aids C. community D. school internal income E. others
Based on the above the question all respondents responded the main sources of financial resource in their schools are government, NGO Aids, community and school internal income. So the primary schools have sufficient budget to manipulate their school activities.

Item 3. In what period of a year school budget is released from woreda education office? 1st quarter B. 2nd quarter C. 3rd quarter D. 4th quarter
Table 4. 2. Shows distribution of respondents answer on budget releasing period by woreda education office
Periods No. of respondents Percentage

Based on the above table 88.5 % of the respondents replied the school budget was released in the second quarter a year. The other 11.5% of the respondents were answered the budget was released in the third quarter of the year. None of the respondents replied the school budget was released during the 1st and 2nd quarters of the year. From their response Janamora woreda education office do not release the school budget on time.

Item 3. Is the amount school budget you obtained from education office adequate? A. yes B. no C. I don’t know
Table 4. 3. Shows distribution of respondents answer on budget released by woreda education office to their school
Is the amount school budget you obtained from education office adequate?

Yes No I don’t know
13 respondents -38% 18 respondents-51% 4 respondents-11%

Based on the above table 38% of the respondents replied that the amount of budget obtained from education office was enough. 18 respondents, 51% of them answered the budget released by woreda education office is not sufficient to the schools. The remaining 11% of the respondents replied as they don’t know about the issue. Based on their response the budget released by the woreda education office is not enough to the schools.

Item 4.Do you think that the allocated financial resource is utilized efficiently by all primary schools? A. yes B. no C. partially.
Based on the response of the respondents 28 % of the respondents answered that the allocated financial resource was utilized efficiently by their primary schools and the other 54% 0f them responded that the allocated resource was not utilized efficiently. The rest of respondents, 18% replied that they did not know. So, from their response we can conclude that most primary schools do not utilize the resource efficiently.

Item 5. Do you report the financial utilization of your school to education office on time?
71.4% of the respondents answered that they did not report the financial utilization of their school to education office on time and none of them replied as they reported. 28.6% of them responded as they reported partially .From the above data we can conclude that most secondary schools do not report financial utilization of their school to education office on time.

Item 6. Who control the collection of school fee? A. The school principal B. The school committee C. Teachers D. Internal audit E. Any other
Based on the response of the respondents 77.1% of the respondents answered that the school budget is controlled by school principals and school committee. The other 22.9% of the respondents said that the school budget is controlled by only the school principals.

Item 7. How is the existence of internal auditing service and their effectiveness?
Table 4.4. Shows distribution of respondents answer on the existence of internal auditing service and their effectiveness.
How is the existence of internal auditing service their effectiveness? very high . high . poor very poor

Based on the above data 86% of the respondents replied that the existence of internal auditing service and their effectiveness is poor. The other 14% of them answered as their effectiveness is very por. None of the respondents replied the existence of internal auditing service and their effectiveness is very high and high.

8. How do you see the transparency and accountability of budget allocation and utilization? A. very good B. good C. poor D. very poor
Based on the collected data 4.9% of the respondents answered the transparency and accountability of budget allocation and utilization is good. And 95.1% of them replied that the transparency and accountability of budget allocation and utilization is poor.
None of them responded that the transparency and accountability of budget allocation and utilization is very poor and very good.

9. Have the school stalk holders got any training on school finance rule and regulation?
A. yes B. no
94.75% 0f the respondents replied that school stalk holders did not get any training on school finance rule and regulation. In contrast 5.25% of them answered as they have got training on school finance rule and regulation. From the above data we can conclude that there was no training on school finance rule and regulation for school stalk holders.

10. How often does the school committee (PSTA and KETB) make follow up to determine proper utilization of school finance in your school?
A. Always B. sometimes C. never
Most of the respondents, 82.8% of the respondents said the school committee (PSTA and KETB) sometimes make follow up to determine proper utilization of school finance in their school. The rest respondents.17.12% replied that the school committee (PSTA and KETB) never follow up to determine proper utilization of school finance in their school. From their response one can understand most school committee (PSTA and KETB) do not follow up to determine proper utilization of school finance in their school.

11. Do you agree there is a wide mismatch practice between plan and budget utilization in your school?
A. yes B. no C. no idea
100% of the respondents replied that yes there is a wide mismatch practice between plan and budget utilization in their school. From their answer we can conclude that most primary schools did not have budget plan.

Table 4. 5 shows frequency of external auditing carried out in selected primary schools.

From the above table all respondents replied that no external auditing carried out in their school. From the above data one can conclude there is no external auditing practice in their school. This implies that there is poor financial resource utilization in Janamora woreda’s primary schools.

12. Are their cashier, purchasing officer and store officer in your school? A. yes B. no C. partially
All respondents, 100% replied that there are no cashier, purchasing officer and store officer in their schools. From their response schools do not have cashier, purchasing officer and store officer in their schools.

13. What are the reasons that might hinder budget utilization in your school?
The school budget released from woreda education office is after 2nd quarter. The amount school budget obtained from education office is not adequate. The allocated financial resource is not utilized efficiently by primary schools. The collection of school fee is controlled by only by the director. No internal and external auditing service. There is no transparency and accountability of budget allocation and utilization. Lack of training for the school stalk holders on school finance rule and regulation. The school committee (PSTA and KETB) do not make follow up to determine proper utilization of school finance. Wide mismatch practice between plan and budget utilization. There are no cashier, purchasing officer and store officer in schools.

14. What should be done to improve school budget preparation, utilization, execution and control?
Based on the respondents most of the respondents replied that the strategies to improve schools budget preparation, utilization, execution and control are: The school budget released from woreda education office should be on time. The amount school budget obtained from education office should be adequate. The allocated financial resource should utilized efficiently by primary schools. The collection of school fee should be controlled by all stalk holders. There should be effective internal and external auditing service. There must be transparency and accountability of budget allocation and utilization. There should be regular training for the school stalk holders on school finance rule and regulation. The school committee (PSTA and KETB) should make follow up to determine proper utilization of school finance. Plan and budget utilization should be match. There should be cashier, purchasing officer and store officer in schools.

4.3 Analysis of data gathered through questionnaire from Janamora woreda education office head and experts.
1. Auditing service and its effectiveness.
Based on the gathered data all responses 100% replied the auditing service and its effectiveness is poor. From their response we can conclude that there is poor and ineffective auditing service.

2. Do you give any training on financial control and utilization to school stalk holders.
91.4% of the respondents replied that they did not give training on financial control and utilization to school stalk holders. And the rest respondents 8.6% answered that they give training to on financial control and utilization school stalk holders. From their response one can conclude that most schools stalk holders did not gain training on financial control and utilization school stalk holders.
3. Do the schools external auditors audit all primary every year? A. yes B .no C. partially
Most of them respondents 5.7%, answered that there was partial external auditing of primary schools every year. The remaining respondents 94.3% said that all primary schools do not audited by external auditors. This implies that primary schools do not audited by external auditors yearly.

4. How is the frequency of auditing school’s financial utilization?
82.8% of the respondents replied that schools finance utilization is not audited regularly but only when the school’s finance utilization is suspected. The rest 17.2% of respondents answered that primary schools are audited yearly.

5. Have you receive all school budget plans from all primary schools?
All, 100% of the respondents replied that Janamora woreda education office receive school budget plan partially from all primary schools. So, from the above response we can understand that all primary schools were not report school’s budget utilization at the end the year.

6. Do you think that the allocated financial resource is utilized efficiently by all primary schools?
All the respondents responded that the allocated financial resource is utilized in optimum way but not effectively by all primary schools. So we can conclude that all primary schools do not utilize the schools budget efficiently.

7. Is there any primary school which utilize out of the rule and the regulation of finance?
All the respondents replied that there are primary school which utilize out of the rule and the regulation of finance. From their response one conclude that due to lack of training on rule and regulation of school finance utilization primary schools do not implement the rule and regulation.

8. Can the office experts audit the schools’ budget utilization regarding with finance rule and regulation? A .Yes B .No
Regarding with the questionnaire ‘Can the office experts audit the schools’ budget utilization regarding with finance rule and regulation?’ all respondents said no. None of them said yes.

9. What are the office’s controlling and evaluating strategy in primary school’s budget utilization?
Based on their response the office’s controlling and evaluating strategy in primary school’s budget utilization are:
 Creating awareness on school finance utilization to the school principals.
 Receiving school’s budget plan and utilization.
 Auditing the suspected school budget utilization.
Training the parent student teacher association and kebele training board on how school budget controlling and utilization.

10. What are the major challenges of primary schools budget utilization?
Inadequate school budget, inefficient utilization of the allocated financial resource by primary schools, small number of auditors, lack of transparency and accountability of budget allocation and utilization, absence of regular training for the school stalk holders on school finance rule and regulation, lack of cashier, purchasing officer and store officer in primary schools and turnover of trained directors.