Exploring the functionality of financial management systems in public schools of Malangeni circuit, Eastern Cape province

Abstract

The South African Schools Act 84 of 1996 directs school governing bodies on the most proficient method to set up a functional financial management system. The study aimed to explore the functionality of financial management systems in public schools of Malangeni Circuit, Eastern Cape Province. The study used a qualitative approach to permit the researcher to study and explore the phenomenon in a natural setting. A multiple case study research design was adopted in this study. Moreover, the study was guided by the budget and agency theories, which assist in coordinating and controlling financial activities in schools and ensuring that financial resources are utilised according to the budget and managed adequately. The literature review explored the composition of school governing bodies, the roles of finance personnel in school financial management, the international perspective, and African and South African perspectives on school financial management. The data-gathering techniques used in the study included semi-structured interviews, observation, and document analysis. Five public schools were purposively sampled, with four participants in each school, namely the school governing body chairperson, school governing body treasurer, finance officer, and school principal. Therefore, the study had 20 participants. It was evident that very few principals and school governing bodies have sound knowledge of financial school management systems. However, the management of school finances in these schools was sound, and school principals provided leadership in governance. The study also found that some school governing body members cannot read, write, or understand the South African Schools Act and financial legislation. The study also revealed non-cooperation among school governing bodies and ineffective stakeholder communication. Based on the research findings, the researcher recommended that the school’s governing body capacity-building activities be a significant focus of the Department of Basic Education. School governing bodies should be capacitated through workshops or training to acquire the necessary knowledge, expertise, and skills to improve their performance in managing school finances. Secondly, the researcher recommended that schools be visited regularly to offer the required support. Lastly, the Department of Basic Education should promote campaigns and road shows, educating school governing bodies about finance management.