This paper investigates financial control practices in public second cycle institutions in order to check whether there are possible financial irregularities in the use of school funds in the Cape Coast Metropolis. The study adopted cross-sectional survey with mixed methods design.
The findings from both the questionnaire and interview schedule showed that the school administration purchased food and used fuel very often and therefore could not maximize the resources available due to price hike. The internal controls of information technology, information and communication, control activities, and monitoring contributed positively but had weak relationships. These distortions and weaknesses may lead to misapplication, misappropriation and embezzlement of school funds. Due to limited knowledge of the heads they delegated budget preparation to the accountants. It is recommended that auditing and monitoring is routinely conducted to ensure that financial regulations are followed to avoid embezzlement, corruption and misapplication of school funds.
Table of Contents
Introduction
Statement of the Problem
Research Questions
Theoretical Framework
Models of financial Decision-Making
Rational Model
Strengths and Weaknesses of Rational Model
Political Model
Strengths and weaknesses of Political Model
Collegial Model
Strengths and Weaknesses of Collegial Model
Ambiguity Model
Reference Model for Financial Tracking in Schools
Tracking Function
Financial Control and its Environment
Effective Control of School Resources
The Role of Heads as Financial Managers in SHS
The Role of School Bursar /Accountant in SHS
The Role of Other Financial Officers in SHS
Methodology
Results and Discussions
Interviews with the Heads on Research Question One
Internal Controls Analysis
Interviews with the Heads on Research Question Four
A Post-Hoc Comparison Test of Tukey HSD
Findings from the Discussions
Conclusions
Recommendations
Suggestions for Further Study
Research Objective and Core Topics
The research investigates financial control practices within public senior high schools in the Cape Coast Metropolis to identify systemic weaknesses, potential irregularities, and the efficacy of current administrative management regarding school funds.
- Analysis of financial decision-making models in educational institutions.
- Evaluation of internal control systems and their impact on compliance.
- Assessment of administrative capacity regarding budget preparation and accounting.
- The influence of external financial control mechanisms on internal school operations.
Excerpt from the Book
The Role of Heads as Financial Managers in SHS
Heads of institutions are expected to oversee the activities of the bursar/accountants, matron and other accounting officers to ensure that school funds are put into efficient use. The heads of schools are directly responsible for the conduct of all schools financial activities in accordance with roles, policies and procedures. School finance committee must have authority to approve all receipts and expenditures of schools for all internal accounts. Authorizing staff to act in the heads place do not negate the headmaster’s over riding authority and responsibility. School finance committee must have the right to review and approve on a monthly basis, receipt and expenditures for all school internal accounts. School finance committee approves all fund raising activities by non-school organizations using school facilities (Financial Administration Regulation, 2004).
According to Financial Administration Regulation (2004), the control of the financial decisions and transactions that are subject to financial committee unit shall be performed by the internal control division of the unit. According to the Financial and Accounting Instructions for Secondary Schools, it is the duty of the head of an institution to ensure that proper provision is made for the safe custody and banking and investment of cash. The heads must ensure that safe custody of value books property and stores, proper accounts, books of account and records are kept.
Summary of Chapters
Introduction: Defines the scope of financial management and control in schools, highlighting the importance of accountability, transparency, and compliance with national regulations.
Theoretical Framework: Explores various models of financial decision-making, including rational, political, collegial, and ambiguity models, to provide a basis for understanding school administration.
Methodology: Describes the mixed-methods, cross-sectional survey research design used to gather data from school heads, accountants, and other relevant staff within the Cape Coast Metropolis.
Results and Discussions: Presents empirical findings on how funds are managed, the attitudes of administrators toward fiscal responsibility, and the results of regression analysis on internal controls.
Findings from the Discussions: Synthesizes the data related to the five research questions, emphasizing the impact of limited financial knowledge on budget preparation and fund mismanagement.
Conclusions: Summarizes that many school heads lack adequate training in financial administration, leading to heavy reliance on bursars and potential risks for misapplication of funds.
Recommendations: Proposes systematic improvements such as regular in-service training for administrators and the formation of school-based budget committees to enhance oversight.
Keywords
Financial control practices, public second cycle institutions, Cape Coast Metropolis, school fund management, internal controls, financial regulations, budget preparation, accountability, financial administration, administrative capacity, audit procedures, school bursar, financial tracking.
Frequently Asked Questions
What is the primary focus of this study?
The study focuses on the financial control practices utilized by heads of public second cycle institutions in the Cape Coast Metropolis of Ghana to detect and prevent financial irregularities.
Which theoretical models are examined in the research?
The research evaluates five main models: the rational, political, collegial, ambiguity, and reference models, which provide a framework for how schools make financial decisions.
What is the main research objective?
The primary goal is to examine how school administrators manage funds and whether their practices align with established financial laws and regulations.
What research methodology was employed?
The study adopted a concurrent transformative mixed-methods design, combining quantitative surveys analyzed via SPSS with qualitative interview data analyzed through content reduction guidelines.
What are the core findings of the analysis?
The findings indicate that while internal controls exist, they have weak relationships with actual financial outcomes, often exacerbated by the limited financial knowledge of school heads who delegate too much responsibility to accountants.
Which keywords characterize this work?
Key terms include financial control practices, school fund management, financial regulation compliance, administrative capacity, and internal control systems.
How do internal controls influence school compliance?
The research shows that mechanisms like information technology, monitoring, and control activities are present but need stronger integration to effectively deter the misappropriation of funds.
What role do external control mechanisms play?
External mechanisms, such as audits and Public Account Committee reviews, are vital for checking school activities, though their influence on internal procurement processes varies.
Why is there a recommendation for in-service training?
Because many school heads admitted to lacking deep knowledge in financial administration, regular training is proposed to help them perform their supervisory duties more confidently and accurately.
- Arbeit zitieren
- Anthony Abaasa-ababio (Autor:in), 2015, Financial control practices of heads of public second cycle institutions in cape coast metropolis of Ghana, München, GRIN Verlag, https://www.grin.com/document/1007413
