financial accountability of secondary school principals

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.

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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

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

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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.


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.


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.

BIBLIOGRAPHY

ASTRILL, P & McLANEY, E 1994: Management accounting: An active learning approach. Oxford: Blackwell.

AUGENBLICK, J 1995: Public schools: Issues in the budgeting and financial management. Oxford: Transaction.

BERKHOUT, F & BERKHOUT, SJ 1992: The school financial management. Cape Town: Van Schaik.

BRISTON, RJ 1981: Introduction to accountancy and finance. London: Macmillan. BROMWICH, M 1992: Financial reporting, information and capital markets. London:

Pitman. CHADWICH, L 1991: The essence of management accounting. New York: Prentice

Hall. CHADWICH, L 1993: Management and accounting. New York: Routledge. CILLIERS, HS; ROSSOUW, S; BOTHA, BP & GROBBELAAR, AF 1980: Company

financial statements. Natal: Butterworths. DAVIES, B & ELLISON, L 1991: Marketing the secondary school: Issues in school

management. Britain: Bell and Bain. DEMPSEY, A & PIETERS, IAN 1993: Introduction to financial accounting.

Johannesburg: Lexicon. DIXON, WJ; BROWN, MB; ENGELMAN, L; FRANE, JW; HILL, MA;JENRICH, RI

& TOPOREK, JD 1985: BMDP Statistical software. Los Angeles: University of California Press.

DROMS, WG 1990: Finance and accounting for non-financial managers. Canada: Addison-Wesley.

DUNCAN, MG 1971: An assessment of accountability: The state of art. Educational technology, 11(4), Jan 1971: 27-30.

DUNN, J 1992: Accounting: An introduction for professional students. Britain: Pitman. ERAUT, M 1978: Accountability in education (In Becher & Maclure): New Jersey,

NFER, pp 151-173. FARMER, ER 1983: Understanding and interpreting company reports and accounts.

England: Reinhold. FENNIMORE, BS 1996: Equity is not an option in public education. Educational

leadership, 54(2) Oct 1996: 53-55. FURTWENGLER, WJ 1996: Involving kids in discipline. The Education digest, 62(4)

Dec 1996: 24-28. GILL, JO 1992: Practical financial analysis. London: Crisp. GRAY, R; OWEN, D & ADAMS, C 1996: Accounting and accountability: Changes and

challenges in corporate, social and environmental reporting. London: Prentice Hall. GUTHRIE, JW; GARMS, WI & PIERCE, LC 1988: School finance and educational

policy: Enhancing educational efficiency, equality and choice. New Jersey: Prentice Hall.

HATHERLY, D 1993: Accounting for business activity. Case scenarios in accounting. Great Britain: Longman.

HAYES, RS & BAKER, CR 1980: Simplified accounting for non-accountants. New York: John Wiley.

HENRY, C 1995: Ethics and organisational change in education and health. London: Irwin.

HIRSCH, ML; ANDERSON, R & GABRIEL, S 1994: Accounting and communication. Ohio: ITP.

INTERNATIONAL FEDERATION of ACCOUNTANTS 1996: New York: John Wiley IQBAL, MZ; MELCHER, TU & ELMALLAR, AA 1997: International accounting: A

global perspective. USA: ITP. JAEGER, I-1K 1976: The structure of consolidated accounting. London: Macmillan. JOHNS,RL; MORPHET, EL & ALEXANDER, K 1983: The economics and financing of

education. New Jersey: Joanne Hoeting. LAWLER, EE 1983: Pay and organisation development. London: Addison-Wesley. LAWTON, SB 1987: The price of quality: The public finance of elementary and

secondary education in Canada. Toronto: Bloor st. West. LEDELL, M & ANSPARGER, A 1993: How to deal with community criticism of school

change. Alexandria: ASCD. MACKIN, RA 1997: A model high school targets all students. The education digest,

62(6) Feb 1997: 15-19. MACPHERSON, RJS 1996: Educative accountability policy research: Methodology and

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Irwin. MEINTJES, D n.d.: Rand Afrikaans University (MED Financial management).

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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?


(26) 2. Make sure that the school has a financial policy?


(27) 3. Write financial reports in an easy to understand but professional way?


(28) 4. Have a clear understanding of accountancy procedures?


(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?


(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?


(33) 9. Liase with local businesses in order to obtain donations towards the school

fund?


(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?


(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?


(39) 15. Make parents aware of the financial restraints under which the school

operates?


(40) 16. Know how to interpret financial statements?


(41) 17. Ask educators who have knowledge on commercial subjects like accounting to

internally audit the financial affairs of the school?


(42) 18. Seek assistance from members of the business community when formulating a

financial policy for the school?


(43) 19. Ensure that all learners take part in activities associated with raising funds for

the school?


(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?


(45) 21. Set up one governing body that must govern two or more schools?


(46) 22. Be accountable to parents for the cost-effective use of school funds?


(47) 23. Combine two or more schools with the aim of making the task of financial

management easier?


(48) 24. Encourage parents to take care of school buildings?


(49) 25. Use a single receipt book even if it is for different income purposes for the

school?


(50) 26. See to it that all receipts are retained and kept?


(51) 27. Be able to analyse a bank statement?


(52)

5


28. Ask parents to assist with organising functions for the purpose of raising school funds?


(53) 29. Use school funds to send the members of the Representative Council of

Learners (RCL) to learners' leadership seminars?


(54) 30. Amalgamate two or more secondary schools with the aim of improving grade 12

(matriculation) results?


(55) 31. Report to parents on how the income of the school was raised?


(56) 32. Involve the Representative Council of Learners in drafting the financial policy of the school?


(57) 33. Undergo a training course on school financial management?


(58) 34. Regard financial management and control as your first priority?


(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?


(60) 36. Follow the Generally Accepted Accounting Practice (GAAP) when dealing with

school finances?


(61) 37. Ensure that a finance committee is established in the school?


(62) 38. Ensure that the tuckshop in your school is run like any other business in the

country?


(63) 39. Use school funds to cover the transport costs of educators attending educational

seminars?


(64) 40. Make audited financial statements available to the civic organisations in the

community?


(65) 41. Allow any political party in the community access to the school's financial

statements if requested by them?


(66)

7


42. Encourage religious leaders in the community to also take part in the school's budgetary process?


(67) 43. Motivate the staff to readily give information of the financial activities of the school to members of the community?


(68) 44. Invest some school funds in financial institutions such as banks and building

societies?


(69) 45. Encourage learners to ask for clarification on any financial expenditure

incurred by the school?


(70) 46. Know how to prepare a balance sheet?


(71) 47. First seek a mandate from the parents before deciding to buy a kombi for the

school?


(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?


(74) 50. Identify leaders amongst the learners and train them on aspects of financial management?


(75) 51. Ensure that you reveal a culture of financial accountability towards parents?


(76) 52. Make parents realise that they have the right that school financial matters should be reported to them?


(77) 53. Make available all financial statements to anybody with an interest in the

financial affairs of the school?


(78) 54. Involve parents in preparing a school budget?


(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


56. Allow any business person access to the financial records of the school?


(81) 57. Be able to analyse the financial position of the school?


(82) 58. Where possible, to involve all members of the community in raising funds for

the school?


(83) 59. Adhere to the budget when utilising school funds?


(84) 60. Involve the Representative Council of Learners in preparing a school budget?


(85) 61. Allow that the parents should decide that school fees will be charged at the

school?


(86) 62. Give the financial statements to a registered accountant and auditor to check

whether they are in order?


(87)

l0


63. Ensure that all staff members (teaching and non-teaching) are involved in selecting the school's financial committee?


(88) 64. Report to learners on how the school funds were utilised?


(89) 65. Involve educators in raising funds for the school?


(90) 66. Ensure that there is mutual trust and respect between parents and the

principal?


(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.

11

financial accountability of secondary school principals

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