Financial Reporting and Financial Management in Public Secondary Schools in Kericho County, Kenya

Abstract

Implementing sound financial management practices enhances the quality of education and facilitates efficiency in delivery of services in schools. To achieve prudent financial management, several measures, such as establishment of committees to oversee financial management, have been put up. Despite these measures, secondary schools continue to report imprudence in financial management. The objective of this study was to examine the impact of financial reporting on the management of finances in public secondary schools in Kericho County. The study was based on systems theory of management. The study adopted concurrent nested research design and utilized mixed research methods. Target population was 239 public secondary schools. A combination of stratified proportionate and purposive sampling techniques was utilized to select participants. A total of 145 respondents consisting of 72 principals, 72 chairpersons of the Board of Management (BOM), and 1 County School Auditor were included in the sample. Questionnaires and interview schedules were used to collect data. The validity of research instruments was done through Cronbach alpha test. Data was analysed descriptively and thematically. The findings revealed that stakeholders demonstrated a satisfactory level of financial information disclosure. The study suggested that when disseminating financial information, principals should make concerted efforts to implement financial reporting systems which entail adoption of automated systems.