Abstract: In the current years the government of Kenya has invested huge sums of money on education annually since it recognizes the importance of education for personal and economic development. This huge investment in secondary schools by the government, parents and sponsors calls for proper use and control since it’s essential for schools’ operations. The general objective of this study was to find out the factors affecting financial management effectiveness in public secondary schools in Kenya and to provide practical recommendations for improving the effectiveness of the public secondary schools financial management system. The specific objectives were; To determine how financial competence affects financial management effectiveness of public secondary school in Kenya, To determine the effect of budget control on financial management effectiveness of public secondary school in Kenya and lastly To establish the effect of auditing on financial management effectiveness in public secondary schools in Kenya. The study adopted descriptive research design. The target population for the study was all the 40 public secondary schools in Gatanga sub-county. A census of all the schools was considered and primary data was collected by use of questionnaires and structured interviews. Collected data was analyzed using descriptive statistics and OLS regression model. The findings were presented using tables and percentages. The study established that specifically financial competence, budget control and auditing had statistically significant effect on financial management effectiveness of secondary schools in Gatanga sub-county. The study therefore concluded that these factors had a statistically significant effect on financial management effectiveness of secondary schools in Gatanga sub-county. The recommendations given were; education regulators should ensure that accounting officers have adequate knowledge and skills necessary to manage school funds through organizing periodic relevant training on financial management for the principles. Budgeting should be done objectively with proper forecasts involving all the stakeholders. Every secondary school should have an operational budget in place with strong controls in place. Auditors should be independent and not have personal interests when doing their work. There should be more auditors to enhance frequent auditing of schools as the current number is seriously in adequate. Principals and accounts clerks/bursars should go for frequent training on auditing techniques. The study findings will help the government as policy makers and financiers of institutions in strengthening financial management policies and procedures to ensure that the objective of financial management is achieved and also enhance financial control measures. It will help schools management to improve their financial management practices.
Keywords: financial competence, budget control, audit and financial management effectiveness.
Title: FACTORS AFFECTING FINANCIAL MANAGEMENT EFFECTIVENESS IN PUBLIC SECONDARY SCHOOLS IN KENYA: A CASE OF GATANGA SUB-COUNTY
Author: Stephen Njoroge Wairima, Dr. Tabitha Nasieku
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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