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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

CONSTRAINTS TO FINANCIAL MANAGEMENT OF SECONDARY SCHOOLS IN OWEERI EDUCATION ZONE OF IMO STATE AS PERCEIVED BY PRINCIPALS AND BURSARS ORUWARI JOY .N

AUGUST 2011
VOL 3, NO 4

DEPARTMENT OF CURRICULUM STUDIES ALVAN IKOKU FEDERAL COLLEGE OF EDUCATION, OWERRI. IMO STATE Abstract This study investigated the constraints to financial management of secondary schools in Owerri educational zone of Imo state as perceived by principals and bursars. Two research questions and two hypotheses were formulated to guide the study. A purposeful sampling technique was used to sample 40schools from the area of study, the principals and bursars in these schools formed the sample of the study. The researcher made use of structured questionnaire consisting of 25 items as instrument for data collection. The data were analyzed using, mean, Standard deviations and t-test statistics. The result of the analysis showed that poor knowledge of financial management skill by the bursar and accounting officers which always results in inadequate keeping of financial records, inadequate funding of schools which has created much difficulty to principals running of their schools, dishonest practices have many times resulted to interpolation of account books and embezzlement of school funds, Based on these findings, it was recommended among others that every effort should be made to appoint honest principals and bursar to avoid mismanagement and embezzlement of school funds, there should be increase in the allocation of funds to schools. Keywords: Constraints ; Financial Management ; Secondary Schools ; Oweeri Education Zone; Imo State ; Perceived ; Principals ; Bursars Introduction It has always been the desire and plan of every nation to give her citizens the best education she can afford within the limits of her resources. This is because education is considered a potent instrument for social, moral economic, technological and scientific progress. Nigeria is not exempted from this universal course of aspiration. The federal Republic of Nigeria (1981) in her National policy on education adopted education as an instrument par excellence for effecting national development. This position probably underscores the current huge financial investment in education occasioned by increases in both the Federal and State Government annual budget allocation to education. Education being an expensive social service requires adequate financial provision for successfully implementation of educational programmes. The cost of financing education has been rising steadily to the extent that government finds it increasingly difficult to finance it alone. As a result, it encourages the participation of local communities, individuals, companies, churches, organizations and others to assist. All these efforts to provide funds for educational programmes imply that the Secondary School principal should ensure prudent management of the available resources. The Secondary Scholl Principal is therefore the key person on whom the success of the secondary school system depends. Where financial management is weak, success is hardly ever achieved; no institution or organization has ever succeeded in history without utilizing properly its resources.

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Fledlers contingency theory of financial management (2001) suggests that the key factor in determining financial managerial effectiveness is the extent to which the leader can or cannot control and utilize the available resources. The central issue of financial policy then, is The wish utilization of fund and the central process involve the rational matching of advantages of potential use against cost of alternatives. Cunninghan (1998) stipulates that financial management refers to the managering ability of a manager to source for fund and effectively utilize the fund under his disposal for the achievement of the desired goal. The implication is that in financial management, there must be adequate fund raising activities before administering the available funds. Educational development in Imo State of Nigeria had always had financial problems. These problems are getting more and more severe partly because of the current economic predicament in the country and partly because of the ways the funds are managed in schools. Financial management has indeed been a nagging problem in the administration of secondary schools in Imo State. Principals have to be well versed in their knowledge and understanding of education finance. Burrough (2001) said that the downfall or progress of any business depends on the manner the functions are performed and the capability of the manager to control its finances. The researcher therefore wishes to investigate empirically the constraints to financial management of secondary schools in Owerri Education Zone STATEMENT OF THE PROBLEM The importance of funds and indeed of schools finance In the implementation of educational programme cannot be over emphasized. First of all, funds are utilized to set up infrastructures (classroom blocks, laboratory building, library blocks, etc) as well as procure teaching materials and equipments. Secondly, fund determines the number and quality of teaching and non-teaching staff to be recruited in the school system. Thirdly, without fund it will be impossible to provide and maintain most of the ancillary services in the school system. Indeed the importance of funds to educational institution has been well recognized and stressed by a number of authorities in education administration including Cunninghan (1998), Taiwo (2003), and Ezeocha (1995). Ezeocha in particular stated that finance is a factor that contributes significantly to the success of any educational institution. Despite the importance of finance to educational institutions, concern has been expressed by many principals, teachers and parents in Imo State, that secondary schools are no longer being adequately funded by the state Government. The chief Supervising Principal, Owerri Education Zone for instance, had in 1994 school year accused the State Government for poor funding of schools, also the principals of secondary schools in the State had in A.N.C.O.P.P.S. annual held in Kastina in April 1995 complained that some officials divert fund meant for education to other sectors. Again, inspite of the financial contributions by the State Government, laboratories and societies as encouraged by the State Governments, laboratories are not well equipped, libraries lack essential texts, maintenance on schools, damaged blocks are not done; even instructural materials and lesson notes are not adequately provided. This State of affairs suggests that there may be some constraints in the financial management of secondary schools in most of the education zone of the State. It is therefore the problem of this study to determine through the perception of principals

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

AUGUST 2011
VOL 3, NO 4

and bursars the constraints to financial management of secondary schools in Owerri Eduaction Zone of Imo State. PURPOSE OF THE STUDY This study aimed at: 1. Establishing the specific constraints to effective financial management in secondary schools and the area of study. 2. Determining the problem associated with budget preparation. RESEARCH QUESTIONS 1. What problems are associated with budget preparation in the secondary schools? 2. What are the specific constraints to effective financial management of secondary schools as perceived by the principals and bursars? HYPOTHESIS H01: There is no significant different between the opinion of principals and bursars on the problems associated with budget preparation in secondary schools in Owerri Education Zone. H02: There is no significant different between the opinion of principals and bursars on the constraints of financial management of secondary schools in Owerri Education Zone. Methodology Design This is basically a survey research. It is designed to ascertain the constraints to financial management of secondary schools in Owerri education Zone of Imo State as perceived by principals and bursars. Area of Study The study was conducted in Owerri education zone in Imo-State and this zone is made up of 9 local government areas. Population of study The population for the study comprises secondary school principals and bursars in the 50 secondary schools in the three Local Government Areas of Owerri Education Zone spread out as follows: Sample and Sampling techniques Simple random sampling technique was used. It was based on Local Government Areas in Owerri Education Zone. The number of schools, bursars and principals were selected by proportional representation. The principals and bursars of the selected schools formed the sample of the study. Instrument for Data Collection The questionnaire was the key instrument used for the study because the study is concerned with the management of funds. The researcher considered the principals and bursars of schools as the best reliable source of data; besides, they are the accounting officers of their schools. The questionnaire was developed by the researchers relating to the topic under study. It Contains 25 items meant to answer the two research questions and the two hypotheses formulated for the study using the four likert points scale format, Strongly Agree (SA), Agree (A), Disagree (D), and Strongly Disagree (SD).

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Method of Data Analysis The two research questions were answered using mean and standard deviation. An acceptance criterion mean of 2.50 was used for the research questions. The Ttest statistics was used to test the two hypotheses at an alpha level of 0.05 Method of Data Analysis The two research questions were answered using mean and standard deviation. An acceptance criterion mean of 2.50 was used for the research questions. The Ttest statistics was used to test the two hypotheses at an alpha level of 0.05. Reliability of the Instrument To ascertain, the reliability of the instrument the instrument was administered twice on these respondents at an interval of two weeks. Two public schools in the area were used for the test - retest reliability method. The results of the separate exercise were correlated by applying the Pearson's Product Moment correlation statistics. The co-efficient of r = 0.76 was obtained and this was considered adequate enough in checking the consistency of the items in the instrument. Research Question one What problems are associated with budget preparation? Table 1 Mean Scores of Principals and Bursars on the Problem of Budget Preparation S/N ITEMS PRINCIPALS BURSARS 8 9 10 Schools prepare annual estimates of needs. The budget are prepared periodically The budget adequately covers major items of needs The budget is based on the funds available to the school Government regulations for the preparation of school budgets are always made available to the principals. Principals and their Bursar prepare the school budget Teachers take part in discussing the content of the budget. X 3.39 3.87 1.38 SD 0.24 0.33 0.77 DECISION Accept Accept Reject X 3.66 3.45 1.80 SD 0.56 0.85 1.01 DECISION Accept Accept Reject

11 12

3.23 1.95

0.93 0.50

Accept

3.33 3.73

0.84 0.53

Accept Accept

13 14

3.40 1.30

0.73 0.46

Accept Reject

3.75 1.55

0.52 0.84

Accept Reject

Table 1 above represents the views of principals and bursars of secondary schools on the problems association with budget preparation.

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AUGUST 2011
VOL 3, NO 4

The table shows that the mean scores of principals range from 1.30 to 3.87.While that of the bursars range from 1.55 to 3.73. These indicate that in the opinions of principals and bursars of secondary schools the problems associated with budget preparation include the fact that the budget does not adequately cover major items of needs. Government regulations for the preparation of budgets are not always made available to the principal and the teachers do not take part in discussing the contents of the budget. Research Question Two What are the constraints to effective financial management of secondary schools? Table 2 Mean Scores of Principals and Bursars on the Constraints to Effective Financial Management ITEMS PRINCIPALS BURSARS X 15 16 17 Inadequate funding of schools. Mismanagement of funds. Poor knowledge of financial management skills of bursars and accounting officers. Political interest Inadequate knowledge Poor attitude to work by accounting officers. Lack of storage facilities in the school for funds collected after banking hours. Environmental influences e.g. (SAP) Principals using monies collected and replacing them at a later date. Delay in the payment of salaries to parents. Dishonest practices of bursars 2.52 1.05 2.51 SD 0.42 0.73 0.54 DECISIONS Accept Reject Accept X 3.98 3.97 3.99 SD 0.63 0.84 0.45 DECISION Accept Accept Accept

S/N

18 19 20 21

2.50 2.53 2.52 2.51

0.63 0.48 0.42 0.54

Reject Accept Accept Accept

3.95 3.98 3.95 3.98

0.77 0.78 0.65 78

Accept Accept Accept Accept

22 23

2.52 1.02

0.42 0.74

Accept Reject

3.96 3.99

0.66 0.45

Accept Accept

24 25

2.50 2.51

0.63 0.54

Accept Accept

3.98 3.97

0.78 84

Accept Accept

It could be deduced from table 2 above that the mean score of principals and bursars on the constraints to financial management in secondary schools range from 1.05 to 2.52. These show that in the opinions of principals and bursars of secondary schools on the constraints to effective financial management in secondary schools in Ikeduru Education Zone include; inadequate funding of schools and inadequate financial management, poor knowledge of financial management by bursars and accounting officers, political interest, inadequate knowledge of accounting procedures by

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accounting officers in schools, poor attitude to work of accounting officers. Lack of strong facilities for funds collected after banking hours, environmental influence to parent and, delay in the payment of salaries dishonest practices of bursars. Hypothesis one Table 3 - the t-test analysis of the differences between the mean score of bursar and principals on the problems associated with budget preparation. Variables mean rejected n Prob Df t-cal t-table Result level Problems of budget preparation Bursar 2.92 0.68 40 0.05 1.58 0.20 1.96 Accepted Principals 2.72 0.56 40 From this table, we can see that the calculated t-value is 0.20 at 1.8 degrees of freedom and 0, 05 level of significance. Since the calculated value of 0.02 is less than the critical value of 1.96, the first null hypothesis is accepted. Therefore there is no significant difference between the opinion of secondary school bursars and principals with regards to the problems associated with budget preparation in secondary schools in owerri educational zone of Imo state. Hypothesis two Table 4- T-test analysis of the difference between the mean scores of bursars and principals on constrains to effective financial management in secondary schools. Variables Mean Sd N Prob Df t-cal t-table Result level Constraint to financial management Bursers 3.97 0.45 40 0.05 1.58 1.97 1.96 Rejected Principals 2.0 0.73 40 From this table, it can be observed that the calculate t-value is 1.97 at 1.58 degrees of freedom and 0.05 level of significance. Since the calculated t-value is greater than the critical (table) value of 1.96, the second null hypothesis of the study is rejected. There is therefore significant difference between the opinion of secondary school bursars and principals with regards to the constraints to effective financial management in secondary schools in Owerri Education Zone of Imo state. Discussion of Findings Research question one sought to establish the problems that are associated with budget preparation? The responses were analysed by computing and analyzing the mean means of all the items for the positive and negative responses with the mean rating of 2.5. thus the findings revealed that the budget does not adequately cover major items of need, government regulation for the preparation of budget are not always made available to the principles and that teachers do not take part in discussion the contents of the budget. The findings that teachers does not take part in discussion the content of the budget is

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AUGUST 2011
VOL 3, NO 4

expected, since class teachers role in the school do not include financial management. The responsibility of financial management in the school belong to the principal who are the seat of accountability of the school is supported by Ezeocha (1990). Ukeje, Akabogu and Ndu (1992). Ezeocha in particular noted that principal is the chief Executive of their schools responsible for, among other things, financial management of the school entrusted into their care. Research question two sought to find the constraints to effective financial management of secondary schools? The result of the above research question showed in table 2 that secondary school principals and bursar in owerri education zone agree overwhelming that the constraints to effective financial management of their school include poor knowledge of financial management by bursar and accounting officers, inadequate knowledge of accounting procedures, inadequate funding and mismanagement of funds, poor attitude to work by accounting officers, lack of storage facilities in the school for funds collected after bank hours, environmental influences, political interest, dishonest practices of bursars and delay of payment of salaries to parents. The mismanagement of fund and poor attitude to work by accounting officers may be attributed to the delay in the payment of teachers salaries and allowance in most part of the state. Adebayo (1994) stated that delay in payment of workers salaries and allowances lead to low morale, poor attitude to work and low productivity. Hypothesis one sought to find out if there was a significant difference between the opinions of secondary schools principal and bursars with regard to the problem associated with budget preparation in secondary school. Analysis of the above hypothesis showed that there was no significant difference between the opinion of principals and bursars of secondary schools in owerri education zone of Imo state on the problems associated with budget preparation. This finding is supported by the cluster mean scores of 2.29 and 2.72 indicating no significant difference. This no different opinion is very apparent because the two means are not statistically different and the calculated t-value indicated no significant difference. Hypothesis two sought to determine if there was a significant difference between the opinion of the secondary school principals and bursars with regards to constrains of effective financial management in secondary school in owerri education zone. Analysis of the this hypothesis as show in table 4 that there was significant difference between the opinion of principals and bursars of secondary school in owerri education zone of Imo state with regards to constraints to the effective financial management of their schools. The finding is supported by clusters mean scores of 3.97 and 2.0 indicating significant difference. This difference in perception of the two categories of the respondents is very obvious because the item and cluster mean scores are statistically different and the calculated t-value indicated significant difference. RECOMMENDATIONS The following recommendations have been made in the light of the finding of this 1. The state government should provide fund for the management of secondary schools in Imo State. Cunningha (1998) stated that finance is a factor that contributes significantly to the success of any education institution. 2. The state government should organize in services training programmes for bursars and accounting officers in her schools. This is necessary since such training will update their knowledge, skills and competencies on financial management.

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3. The government should also from time to time organize seminars and workshops for secondary school principals and bursars on the strategies for effective management of funds made available to their schools. 4. Staff salaries must be paid as at when due, in order to improve morale on the job and subsequently improve productivity. 5. The government should assist secondary school principals to provide storage facilities for all funds collected after official banking hours. This is to avert cases of theft and mismanagement of such monies.

References Adebayo A. (1994) principals and practices of public administration in Nigeria Ibadan. Spectors books limited. A.N.C.O.P.P.S. (1989): Conference paper, convention at Katsina. Burrough, A. (1997): Educational Planning, New York: the Macmillan Co. Compbell, R.F. & Co. (Editors) (2000): Introduction to Educational Administration (4th Edition)Boston: Allyn and Bacon, Inc. Cuningham W.A. (1998) Managerial Aproach, South Western Publishing Co. Ezeocha P.A. (1985): School Management and supervision, Owerri: New Africa Publishing Co., Ltd Nigeria. Fledler F. (2001): Theory and Research in Administration, York: The Macmillan Company. National Policy on Education (1981): Lagos NERC Press Hand. Taiwo, C.O. (2003): The Nigeria Educational System Past, Present and Furture, ThomasNelson (Nigeria). The Encylopaedia Britannica 1964.

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