Assessing the financial control practices among private schools in Kumasi.
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Date
2016-08
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KNUST
Abstract
In recent times, there have been recurrent reports on financial irregularities persisted in a lot of Senior High Schools in Ghana simply because of laxity in controls and disregard of financial rules and regulations. Financial control activities are aimed at achieving desired return on investment. Heads of institutions use financial statements such as budget and other financial tools to exercise financial controls in the form of using policies and procedures established by institutions for managing, documenting and reporting of financial transactions. Current hearings from Public Account Committee indicate that there are challenges in our public institutions. The study was undertaken
to ascertain the financial control practices in among private schools in Kumasi. Specifically, it explored the sources and uses of funds in the Senior High School and assessed the effectiveness of financial controls in the institution. Interviews were conducted with the Headmaster and the Bursar. In addition, three sets of questionnaires were designed. One set went to Headmaster and Assistant Headmasters. The second set of the questionnaires went to the Bursar and Accounts Officers; another set went to the teachers. The survey revealed that the sources of funds available to the private schools were the money provided by Director(s) sources and the schools internally generated
funds. The study revealed that the schools have put in place effective financial control practices to check embezzlement and misappropriation, expenditure and accounting staffs were performing duties as enshrined in the manuals for headmasters provided by Ghana Education Service. The study also revealed that mode of payment of fees in the private schools is mainly through cash although few people pay their fees through bankers‟ draft/money order and cheque, this however is contrary to what Ghana Education Service requires. Based on the findings, it was concluded that the schools have put in place effective financial control measure. It was recommended that, there should be periodic inservice training for the account personnel since training improves knowledge, skills and abilities. Sub-division of duties of account officers should be strengthened. This will ensure that accounting staff follow proper accounting control practices. Future researchers were recommended to increase the number of school to include public schools and other private schools outside the Ashanti Region to make generation of results very easy.
Description
A Thesis Submitted In Partial Fulfillment Of The Requirement For The Degree Of Master Of Business Administration (Finance -Option).