The impact of financial management on the academic performance in secondary schools in the Limpopo Province

Abstract

This study focused on the following main research question: How does the financial management of schools in different quintiles in Limpopo relate to their academic performance? Arising from the main research problem, the first aim of the study was, to determine how the Limpopo Department of Education and public schools in Limpopo are funded. The second aim was to determine how financial management influences the academic performance of secondary schools. The third aim was how funds are used in secondary schools in the different quintiles to ensure academic performance and the last aim was to investigate which frameworks can be used to develop accountability in the school management set-up for role players to better understand their responsibilities when it comes to the financial management of schools. To achieve these research aims, a literature review and an empirical investigation were undertaken. The empirical investigation entailed using a quantitative methodology in the form of a questionnaire that was underpinned by the pragmatist paradigm. The data collection instrument is a questionnaire that was developed based on literature and distributed among principals and finance officers of secondary schools in Limpopo. The validity and reliability of the instrument were determined by using applicable statistical techniques. The collected data were analysed by means of statistical techniques such as frequency analysis, Cohen’s effect sizes, Cronbach alpha values and Spearman correlation coefficients. The researcher used descriptive statistics in the discussion of the results. For Research Objective 1, it was determined that a correlation exists between the literature and the data analysis that all public schools are funded to a degree by the Provincial Education Department depending on the quintile of the school. Furthermore, schools are funded through a functional school finance committee and school governing board that hold fundraising events to supplement the school funds. With regard to Research Objective 2, it was determined that the financial management of a school can have a positive or negative effect on the academic performance of the school. In terms of Research Objective 3, it was determined that funds are not effectively used in schools of all quintiles to ensure academic performance. If this was the case, there would have been a universal theme in spending and performance, but even though some quintiles seem to apply funds effectively to school needs, this is not the case for all quintiles. With regard to Research Objective 4, it was determined that frameworks must be developed, workshopped and implemented in a uniform manner across all quintiles. School management, finance officers, school governing bodies and school finance committees must know their roles and responsibilities in the financial management framework of schools. Recommendations are provided at the school and district level based on findings from the research to improve the management of funds in schools to ensure academic improvement. One of these is that the Section 21 status of schools that are misspending money should be revoked. Most importantly the contribution of this study is in a diagram for Principals and SGBs to implement in their schools to follow the correct chain of Financial Management.