Factors Influencing Financial Control Practices In Public Secondary School In Kibra Sub County In Nairobi County, Kenya

Abstract

Financial controls is important for effectively and efficiently in order to attain organizational objectives. Fruitful financial control includes the process, policies, operating metrics, and segregation of duties, audit, duties and responsibilities and approval of all the transaction by the concern authorities. Public Schools receive funds from two sources that is the government and parents; this calls for good management of the financial resource by placing good financial control in place to avoid mismanagement of funds hence attaining its intended objective. This study was conducted to evaluate factors that influence financial control practices in public secondary schools in Kibra Sub County in Nairobi County in Kenya. Specifically, examine how governance structure, budget and financial literacy influences financial controls. The researcher used descriptive survey design to accomplish the research objective. To collect the sample size simple random sampling was used. Primary data was collected to achieve the objective of the study. Nairobi County has ninety-eight public schools sample size of 10% of the target population was used. Respondents of the study was constituted of School Principals, Bursars/Accounts clerks, store keepers and internal auditors. The study therefore will use a total of 321 respondents. Statistical information was generated via administration of questionnaires. The test and re test method was used to test for reliability. The relationship between the study variables were evaluated using regression analysis. The data collected was analyzed using stata. The output of this study tabulated, presented in charts and interpreted centered on the objective of the study which was also the ground of conclusions and recommendations that was presented from this study. The findings indicated that governance structure enhances the managements ability to implement management and the boards ability to exercise oversight. Governance structure in public schools ensures that financial controls are put in place to ensure prudent funds management. From the findings it can be concluded that budgets for all departments prepared for all significant activities were somehow in sufficient detail to allow meaningful monitoring of subsequent performance. The duty bearers were in compliance with this important indicator of governance. The employees are conversant at least to some small extent with the financial policies and procedures in his/her school. Strategic plan and budgets are important tools in financial controls to what extend do you refer to them. From the findings, It is recommended that the school management to enhance the governance Structure since it was found to influence the financial control. This can be done by laying down proper structures to guide the performance of the school governance through the Ministry of Education. This study only covered three factors; governance, budget and financial literacy and therefore it is recommended that another study be conducted other factors influencing financial control practices in public secondary schools in a more detailed context.