EVALUATION OF THE ROLE OF CONTROL SYSTEMS ON FINANCIAL MANAGEMENT IN PUBLIC SECONDARY SCHOOLS: A CASE OF KAKAMEGA CENTRAL DISTRICT.

Abstract

Governments around the world recognize the importance of education for personal and
economic development and they invest huge sums of money on education annually. The
huge investment on education by the government, parents and other stakeholders therefore
calls for proper use and control of these resources. The GOK has put measures to ensure
effective management of funds in schools like sending auditors to schools every year, insisting on public secondary schools keeping proper books of accounts, authorization of
any payments by the BOG and non cash payment of tenders among other measures.
Despite the control measures put in place some funds still get to wrong hands due to
misuse and misappropriation. It is on the basis of the misappropriations that the study
seeks to evaluate the role of control systems on financial management of public secondary
schools in Kenya. The study will be based on Agency Theory and Reliability Model. The
study will be guided by the Independent Variable - Control Systems, the Dependent
Variable - Financial Management and the Moderating Variable- School Factors.
Descriptive survey research design will be used. Census technique will be used to get
information from principals’ bursars and other 8 members of the tendering committee in
each school because they all hold key information and to avoid bias. The target population
will be 190.This will consist of 19 principals, 19 bursars and 152 members of the tender
committee from 19 public secondary schools in Kakamega central. Primary data will be
collected by use of questionnaires and structured interviews, while secondary data will be
collected through document analysis of financial records. Reliability of the research
instruments will be tested through split half method. Validity will be tested through expert
analysis of the research instruments and a pretest of the questionnaires in Kakamega south
district. Both quantitative and quantitative data will be collected. The collected data will
be coded and classified then entered into the computer to obtain descriptive statistics such
as; frequencies, percentages, mean median, mode and variance by use of a tool such as
SPSS. The data will then be presented inform of in form of tables, charts and graphs. The
study may add to the existing literature on control systems, it may be used by policy
makers to improve financial management in public secondary schools and may also help
managers like principals and bursars to improve on their financial management practices.