Factors contributing to financial mismanagement and misappropriation in Public Secondary Schools in Gucha District, Kenya

Abstract

Schools receive revenue from many sources including free secondary Education. It is essential that public funds be directed effectively and used for the purpose for which they are allocated. However, there have been a number of cases mainly reported through the local print and electronic media of mismanagement and misappropriation of finances in public secondary schools. Gucha is one such district that is experiencing many cases of financial mismanagement and misappropriation coupled with poor quality education as evidenced in poor KCSE results. From 2008-2009 Gucha District experienced 47 cases of mismanagement and misappropriation of funds. This study was therefore set to establish factors which contribute to financial mismanagement and misappropriation in secondary schools in Gucha District. The study employed descriptive survey design. The study population consisted of 126 head teachers, 126 heads of departments, 126 BOG chairpersons, 126 bursars, 1011 teachers, and 10 quality assurance officers. Stratified random sampling technique was used to select 5 boarding schools, 37 day schools, 42 head teachers, 42 Bursars, 42 heads of departments, 42 BOG chairpersons, 337 teachers while purposive sampling was used to select 10 quality assurance officers. Data was collected by the use of questionnaire, in-depth interviews, Focus group discussions and observation forms. Quantitative data collected through questionnaire and observation checklist were analyzed using descriptive and inferential statistics in form of means, frequency counts, percentages and correlation. Qualitative data collected through interviews, openended questions and Focused group discussions were transcribed, organized into themes and sub-themes as they emerged in an on-going process. The findings of the study showed that the level of financial mismanagement in secondary school was high and the major stakeholders involved were head teachers,BOGs, sponsors, auditors and school bursars /accountants. In schools there were major forms of financial mismanagement which included exaggerated travelling allowances, unauthorized purchases of personal gains, Board of governors visiting schools frequently and given allowances, exaggerated prices of repairs, contracts awarded to a related party, exaggerated prices of school items especially for stationeries and boarding, and exaggerated expenditure on co-curricular activities. Major factors which contributed to financial mismanagement included corrupt mode of promotion, lack financial training, weak board of governors, weak internal control mechanisms, irregular auditing, lack of qualified bursars and interferences from sponsors and the community. From the study it was concluded that all forms of mismanagement and misappropriation were as a result of stakeholders who did not understand their roles or ignored their roles. From the study it therefore emerged the need for financial training for all stakeholders involved in financial management directly and indirectly. School headteachers should set up financial advisory committee in schools to assist in budgeting, controlling and supervision; establish and implement sound internal financial control mechanisms in schools. The Government in consultation with stakeholders should review and reformulate guidelines on duties and responsibilities of secondary school board members. The school governing body should ensure that various tasks are delegated to different people who have the necessary knowledge and skills to perform these tasks efficiently. Financial management and reporting system for all public schools should be enhanced to minimize opportunities for embezzlement of funds and to improve transparency in the management of secondary schools. The Ministry of education needs to review the policy on sponsorship of public secondary schools and restructure the roles of the sponsor if possible reduce their powers so as to minimize their interferences to schools. The government should empowering quality assurance officer at the grass root to check on financial records in their areas of jurisdiction. This will reduce the workload of the few auditors at the district level and thus make financial auditing effective KEY WORDS: Financial Mismanagement; Financial Misappropriation; Quality Education; Internal control mechanisms; budgeting; financial training