Investigating gaps in the application of financial management systems by schools receiving section 21 funding : case study for Mthatha education district schools - Eastern Cape province

[摘要] ENGLISH ABSTRACT: Following significant changes in legislation since the enactment of The Constitution of South Africa, 1996, and also accelerated by the ratification of the South African School Act of 1996, the array of services delegated to schools has placed an ever greater responsibility on school governing bodies and principals. Key to those responsibilities is the capacity to manage school finances. Although the South African Schools Act gives schools freedom to exercise their authority in managing school finances, along with this goes the responsibility to maintain with due regard proper accountability and control over the expenditure of public funds.This investigative research study looked at the extent to which the financial management systems employed in schools in utilizing Section 21 funding comply with relevant legislative and policy framework. In terms of financial management, schools are divided into two categories. There are Section 20 schools whose budget is centralized and managed by the Department of Education. Then there are Section 21 schools whose budget is decentralized to schools and these schools have sovereignty in managing their financial resources in compliance with relevant legislation, policies and procedures.A non-empirical study was undertaken which reviewed and analyzed literature on a financial management legislative framework as well as systems and procedures of financial management applicable to public institutions in general and those that relate specifically to schools.Subsequent to that, an empirical investigation was conducted. A questionnaire was issued to 72 principals who formed the sample of the study. The sample represented 21.3% of the total number of Section 21 Schools in the district of Mthatha. The questionnaire was administered to solicit the extent to which principals understand and apply the legislation, policies and procedures that underpin financial management systems in schools.Focus group interviews were held with school finance committees. These discussions were used to collect a wider range of information and insight on how schools manage financial resources. A qualitative financial documentary analysis was conducted in four schools. To achieve a holistic understanding of the research problem in-depth interviews were also conducted with district officials.The study revealed that, there is indeed a noteworthy divergence between the directives of the applicable financial policies and financial management practices in the majority of schools. The most critical deviations identified include, absence of clear policy directives on procurement procedures and financial controls, poor financial recording and lack of clarity on the roles and responsibilities of different financial structures.The key recommendation of the study is the establishment of an internal audit unit within the district which will serve as a basis of the fiscal oversight processes for schools. Since this unit will work closely with schools, this will advance significant improvements in financial accountability, systems of internal control in school and general financial administration processes. This unit will advance ongoing support in the form of training, monitoring and mentoring of the governing bodies and principals to inculcate strong financial leadership in schools.

[发布机构] Stellenbosch University