Financial performance of selected Public Schools in the North-West Province

Abstract

Poor financial management in our public schools is a grave concern- which needs urgent attention. On an annual basis, the Department of Basic Education provides all the schools in the Province with some funding depending on the quintile rankings and number of learners. Funds received by the schools must be for purchasing support material for learners and teachers as well as for paying for maintenance and improvement and services. The South African Schools Act (SASA) S21 informs the School Governing Bodies (SGB)' responsibilities. Roles and responsibilities of various stakeholders (including the government, school governing body and principals), have been described prior to the introduction of SASA. In addition, a comparative analysis has been done of the state within the continent and other countries. The Department of Basic Education transfers funds to schools bi-annually. Also, on an annual basis, schools are required by SASA S42(b) and 43(5) to prepare and submit annual financial statements to the Head of Department (HoD). Schools receive various audit opinions which include unqualified, qualification, disclaimer and adverse. The study was undertaken to determine what could be the cause of poor financial management in public school between the ranks one to three. A qualitative research approach was used to determine the poor financial management in public ordinary schools in the North West. The participants in this study were 120 i.e 60 principals and 60 SGB chairpersons. The research revealed that poor financial management is due to lack of financial training for both the principals and SGB chairperson. In order to analyse the above the population of this study consists of schools which are ranked from Quintile one to three. These include schools which are regarded as no-fee paying schools. The researcher has used various forms of obtaining data in order to analyse the above. In this regard, the questionnaire, as one of the tools being used, is divided into three categories, i.e., the chairperson, principal and the school's financial matters administrator. There were interviews that were conducted in order to obtain an in-depth knowledge about causes of poor financial management at public ordinary schools. Schools receiving an audit opinion such as a disclaimer or an adverse opinion have to be monitored regularly since there could be an indication of maladministration of funds. There are various reasons which might lead to those opinions which could include a lack of supporting documents, personnel who are in charge of school finances and lack of financial training. The Department has an Educational Management and Governance Management (EMGD) unit which is being tasked to capacitate both the principals and members of the SGB on financial and governance matters. Upon receipt of completed questionnaires an analysis was done. Based on the outcome of the analysis, it was determined that the main contributing factor towards poor financial management is a lack of financial training for both the SGB chairpersons and principals. Finally, recommendations were made in order to address or improve this status. One of the recommendations is to have a partnership between the Provincial Education Department (PED) North-West and the North-West University or institutions of Higher Education to ensure that financial management becomes one of the compulsory courses for educators. In addition, people who are offering training courses or modules should be trained by the Higher Education learning institutions.