Financial Management

ABSTRACT

 

 

MERANO, ERNEL S., FINANCIAL MANAGEMENT COMPETENCE OF ELEMENTARY SCHOOL HEADS AND SCHOOL PERFORMANCE IN LEYTE DIVISION, Eastern Visayas State University, Tacloban City, February 2017.

 

 

Adviser:          DENNIS C. DE PAZ, PhD

            Professor

            Eastern Visayas State University

            Tacloban City

 

 

                  This study determined the financial management competence of elementary school heads and performance of schools in Leyte Division, specifically, this study sought answers to the following questions: What is the profile of the school heads in terms of age, sex, civil status, educational attainment, administrative experience, family income, position/designation, and training attended related to financial management. What is the profile of the schools in terms of enrolment, number of teachers, and amount of funds allocated namely; Maintenance and Other Operating Expenses (MOOE), School-Based Management (SBM), School-Based Repair and Maintenance Scheme (SBRMS), Special Education Fund (SEF) and Parents Teachers Association (PTA). What is the financial management competence of school heads as rated by the teachers and school heads themselves along: budgeting, accounting, procurement, and asset management. Is the financial management competence of school heads related to profile of the school heads and profile of the school? What is the performance of the school in the National Achievement Test? Is the performance of the school related to the financial management competence of the school head? What intervention scheme may be proposed based on the findings of the study?

 

                    The study used a descriptive-correlational method to investigate the financial management competence of elementary school heads and the performance of the schools in the Leyte Division. This study used the validated researcher-made survey questionnaire adapted from the Department of Education Financial Management Manual and DepEd Order no. 12, s. 2014 entitled Implemented Guidelines on the Direct Release of Maintenance and Other Operating Expenses (MOOE) Allocation of Schools to the Respective Implementing Units.

The respondents of the study were 70 School Heads and 369 teachers involved in the School Financial Task Force from Area I to Area V in Leyte Division, for School Year 2016-2017. A questionnaire was used to determine the profile of the School Heads. Frequency tally, percentages, Mean, Pearson’s Product Moment Correlation Coefficient, Point-Biserial Correlation Coefficient, and Eta Correlations were used. IBM-SPSS version 22 was used in the analysis of the data. 

 

The findings showed that the majority of the school heads are in the middle age in terms of administrative experience. Most of them have low family income and not trained in school financial management. They managed a varied amount from different financial resources. Most schools have small enrolment, small teacher population, and managed different amount of school funds. In terms of budgeting, accounting, procurement, and asset management, the majority of the school heads are competent as rated by the teachers and themselves; however, few of them are less competent. The family income is related to budgeting and accounting. Likewise, the number of training attended is related also to the asset management competence of the school heads. However, procurement is not related to the school head’s financial management profile. The school performance of the school in terms of the National Achievement Test result is only average. The school performance is not related to the financial management competence of school heads.

 

Based on the findings and conclusions of the study, it is recommended that school heads should attend training/seminar-workshop related to school financial management. To sustain financial management competence, school heads must-own and refer to the Financial Management Manual from DepEd. Intensify the financial management competence training-workshop among school heads and school financial task force. Involve the school planning team in the school and from the community for an orientation on school financial management. Manage all school financial resources by practicing effective budgeting, accounting, procurement, and asset management to be able to finance all school activities and adapt the prepared seminar-workshop proposed in the study.

 

 

Chapter I

 

INTRODUCTION

 

 

Every school financial manager has the responsibility to prepare the school budget, a record of projected revenue and expenditure. Each school has a unique way of making and administering its budget. The budget is crucial because it helps to ensure that the school achieves its goals, establishes a control system, and motivates employees to work harder. The budget should also define time periods within objectives and targets must be met (www.work.chron.com). Good financial practice means managing money and money processes so it allows for some delegation of financial tasks and responsibility in smaller or larger schools (www.educationalleaders.govt.nz).

 

That is why, in the Philippines educational system, every school financial manager need the right education, experience, skills and qualities to be successful in order to perform one of the roles stressed in the National Competency-Based Standards for School Heads (NCBSSH) domain six(6), specifically; prepares a financial management plan, develops a-school budget which is consistent with SIP/AIP, generates and mobilizes financial resources, manages school resources in accordance with Department of Education (DepEd) policies,  accounting, and auditing rules as stipulated in RA 9155 (DepEd Order No. 32, s. 2010).

 

Financial management according to Shapiro (1995) involves financial planning and budgeting, financial accounting, financial analysis, financial decision making, and action.”  Moreover, Hart (1993) stressed that financial management includes reviewing, forecasting, budgeting control, and monitoring.”

 

According to Dr. Horvart (2012), if the school has no financial plan, there is a risk that the funds for the operation of the school are not properly planned and harmonized with the school’s work program. This means that the bases for preparing a financial plan and the intended use of funds according to individual programs in the financial plan or their explanations are not correspondingly shown.

 

However, the principal is now working in a highly decentralized setting.  Being a school head is a challenging and complex assignment. In essence school heads who previously worked in a highly Department controlled environment have the opportunity to take charge of their school environment and this new opportunity requires adequate training (Dimmock, 1993). In like manner, the capacity building helps the head of schools to implement financial management policies, procedures, and reforms in the education sector and utilize modern management tools in education institutions (David, 2007).

 

Typically, financial management has become and continues to become, of much-increased importance. This is partly because of the onerous financial constraints under which education systems now have to operate, moreover, this is because of trends in many countries towards delegating at least some degree of financial control to individual schools and relatively because of moves towards increased accountability in all service system (Hough, 2009).

 

Republic of Kenya (2011) mandates that the children deserve quality service delivery and thus, education resources should be managed in an efficient and effective manner. Furthermore, education managers must lead in promoting sound leadership and good governance of public schools.

 

Consequently, the effective financial management of school funds is of the greatest importance for the effective management and long term existence of schools (Cavanaugh et al. (2013).

 

 

Background of the Study

 

 

As the largest agency in the Philippines with the biggest share of the government’s budget, the Department of Education (DepEd) is faced with the daunting task of managing billions of pesos worth of resources. To ensure that the funds are invested in quality programs and services that the Filipino learners deserve, having a comprehensive and efficient financial management system is very critical. 

 

 The Australian Government has always been one of the Department of Education’s key partners in implementing education reforms in the Philippines. Through the Philippines-Australia Public Financial Management Program (PFMP), this partnership has extended to improving the management of financial resources for education as well (DepEd Financial Management Manual, 2011).

 

Furthermore, supporting education has always been a cornerstone of Australia’s development cooperation program with the Philippines. The Australian Government would like to see every Filipino child have access to quality education and it has committed substantial financial resources and technical assistance to support the country’s education system. 

 

 The Department of Education (DepEd) is a critical agency for delivering public financial management reform initiatives. DepEd represents more than twenty-five percent (25%) of spending agencies’ budget allocations, and this figure is growing year on year.  In addition, DepEd is strategically important to the development of the nation – we think it is important that every peso committed to the education system is invested in the education of Filipino children, ensuring they get an early start on the path to a better future

 

According to Lapuz (2009), the use of government funds requires strict compliance and rules. Thus, there is a need to prepare the required financial reports to show how funds are disbursed. A school should have accurate recording and reporting of its income and expenditure. The report accounts for donations from parents and the community, whether in cash or in kind. It shows how much the school has earned and how it spent or used its resources.

 

Furthermore, the disbursement of funds should be in accordance with existing accounting rules and regulations. Funds under cash advance must always be accounted for at any time. That is, cash on hand plus all receipts or other forms of evidence equal the amount of the outstanding cash advance.

 

Hence, there must be a summary of disbursements to support liquidation. A summary of physical outputs corresponding to the financial resources used shall be reported. Explanations on variances between approved and actual reports should be made on the summary of financial and physical operations. The summary with explanations should be submitted to the Division Office and should be open to the School Governing Council (SGC).

 

Because of this, the Department of Education (DepEd) in Division of Leyte calls for school managers who are competent to manage the various financial resources in the school where they are assigned. Undeniably, every school accomplishment depends on the way a school head manages school funds given by the government, namely; Maintenance and Other Operating expenses (MOOE) which is released every month to the personal ATM of the school head, the School-Based Management Grants (SBM) and School-Based Repair and Maintenance Scheme funds (SBRMS), which could be released it depends on the availability of funds in the central office and the priority needs of the school is identified and reported to the central office, initiated Parents Teachers Association Fund (PTA) and Special Education Fund (SEF) from the LGU to be released annually among selected school. Thus, in order to utilize properly all these funds, the DepEd central office implementing School-Based Management (SBM), which clearly states that an effective school head is one who can implement continuous school improvement, produce better learning outcomes among its learners, and help change the institutional culture among others (www.deped.gov.ph).

 

Hough (2003) stressed that one of the major steps toward leading a progressive school is financial management competence among school leaders in terms of budgeting, accounting, procurement, and asset management. Every school leader needs to know how to manage all financial resources and make it work for the good of the learners and uplift the performance of the school as a whole.

 

 

Moreover, the responsibilities of a school head

Impressum

Verlag: BookRix GmbH & Co. KG

Tag der Veröffentlichung: 05.05.2020
ISBN: 978-3-7487-3967-8

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Widmung:
This humble work and scholarly endeavor is lovingly and wholeheartedly dedicated to my Family Juning, Ej Marc Nel, and Erich Dianne Parents Tatay Nestor and Nanay Tasing Brothers and Sisters and in-Laws Edelito and Susan, Eva and Alex, Evelio and Meraflor, Eke and Marieflor, Edgar and Roxan, Ernesto Jr. and Jeancy, Elezar and Steph, Emelio and Jeselle Neices and Nephews Charie, Sally, Edelito Jr., Irish, Sheila Ariel, Allan, Analiza, Arnold, Aivee Julius, Jerome, Evelio Jr., Floravel, Joseph, James, Joshua, Villaflor, Sean Michael, Christian John Erron, Ayesha Jamella, Jumark Elize Amber Jesmher Above all to JESUS CHRIST… “Author and Captain” of my Life.