Investigating principals’ practice of budget and financial control in schools in Amathole East education district, Eastern Cape province

Abstract

The purpose of this study was to investigate principals’ practice of budget and financial control systems in the schools of Amathole East Education District in the Eastern Cape Province. The schools that were investigated are under the Department of Basic Education. Participants in the research were school principals and their respective finance committees in their respective schools. For the purpose of collecting data, literature review as well as semi-structured interviews with individual participants were used. In this regard, the researcher adopted the role of an investigator. This means that he occasionally engaged in a dialogue with specific individuals in order to source information. This kind of interaction entailed a one-to-one, qualitative and in-depth discussion between the researcher and the individual concerned. The approach to data collection was exploratory. It sought to establish how the participants make sense of the principals’ practice of budget and financial controls in financial management in their respective schools. Principals’ practice refers to the manner in which school principals exercise budget and financial controls. In this research, the perceptions of the individuals constituted the basis for decision-making on the part of the researcher. Niskanen’s theory, grounded theory, the zero-based theory and the finance management theory were applied in making decisions and crafting recommendations. The paradigm that was used is the interpretive paradigm. The interpretive paradigm is concerned with understanding the world as it is from the point of view of the subjective experiences of individuals. Data was analysed by using descriptive explanations based on the extent to which similar views were given by participants on the issue of management of school finances. A combination of purposive and quota sampling was used in this research. The research sought to establish if allegations of mismanagement of funds could be substantiated or not, in the case of Amathole East Education District. The research further uncovered all revelations relating to school funds not reaching their intended beneficiaries. The finding of this research is one of an injustice of a serious nature in that principals and SGBs were found to be using that money for their selfish personal gains through fraud, corruption, or financial mismanagement. Findings revealed that some principals and SGBs showed a lack of the necessary expertise required for proper exercise of budget and financial control systems in schools on the one hand. In instances where the appropriate exercise was found to be up to scratch on the other hand, it was overshadowed by deliberate efforts by principals and SGBs to re-channel the school funds for personal and selfish gains. They did this fully cognisant of the fact that they were acting in contravention of the law. The findings of this research uncovered what the real picture is regarding the levels of the principals’ practice of budget and financial control systems in schools. Findings reflected on the extent to which principals are able to apply these systems in schools. The findings go a long way in determining how financial mismanagement can be curbed. Findings will further assist the Department of Basic Education with ways and means by which budgeting and financial management systems can be made optimally effective in schools.