One of the responsibilities of a School Principal is financial management. The Principal is expected to source for funds for running of the school. He is expected to expand the sources of the school income from school publication, school workshops, school canteens, student’s arts and crafts, school poultry and farms rather than over-dependence on government grants. Beyond sourcing for funds, the principal has the responsibility of managing the available cash in the school to avoid waste and displacement of priorities in attending to school needs.
Financial management is the major task of educational administration that involves the utilization of all available financial resources in an effort to achieve the objectives for which educational institutions are established. It involves managing the funds available to ensure the provision of a wide variety of school resources and facilities. Financial management is the application of conventional principles in unwasteful spending of organizational funds with the aim of achieving institutional plans and aspirations (Oche, 2009). For Nwaokolo and Akilaya (2010), financial management is concerned with the management of funds for educational expansion. Pandey and Aliyu (2018) defined financial management as an activity which is concerned with the planning and controlling of an organization’s financial resources.
On the other hand, mismanagement is the process of organizing or controlling something badly (Cambridge Dictionary, 2014). Thus, financial mismanagement is management that, deliberately or not, is handled in a way that can be characterized as “wrong, bad, careless, inefficient or incompetent” and that will reflect negatively upon the financial standing of a business or individual, or an organization. There are many ways of how financial mismanagement is carried out. For example, the wrong distribution of responsibility, to be inconsistent with payments, bills and taxes and neglecting responsibility, financial problems and economical standing can cause great financial mismanagement.
The challenges seem basic but have negatively affected not only the schools, but organizations, societies and economies. The challenges resulting from poor management of school funds are leading to increased fragmentation within the schools’ structure, culture, systems, strategies, and people. Effective financial management in schools is essential to improving the quality of education. This will have a rippling effect to families, organizations, society, and economies. Hence, mismanagement of school funds will have consequences not only in school but also in society as general. Here are some lists: (1) Lack of funding for the necessary projects, programs and plans. (2) School head will receive mistrust from teachers, staff and other stakeholders. (3) Students and faculty development is at risk of being stagnant. (4) The school head credibility and competence will be questioned. (5) Utility workers will not be well compensated. (6) Materials for facility improvement will not be sufficient. (7) School supplies for teachers and students will not be properly provided. (8) Academics and extra-curricular activities will not be sufficiently supported. (9) The society as a whole is at stake; hence any mismanagement of funds inside a school, the society will suffer. (10) Country’s future will always be immobile.
The funds of schools are from the taxes paid by the public converted into national budget, then allocated to education and streamed line to go back to public. Thus, all school heads and staff must be competent, honest and righteous enough to manage school funds, so the public will receive what it deserves. Corruption is a mortal sin; it should not have place in education system.
By: Marivic F. Ordonio|Teacher III| Olongapo City National High School | Olongapo City
