CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Growth and development of any organization can be achieved through the proper management of its finances. Finance is the life-blood of any institution. When finance is accountably used, success is achieved but when it is misappropriated, the reverse becomes the case. The top priority of an organization is the actualization of its goals and objectives and that is why it is pertinent for organizations to harness their human, material and financial resources to achieve these set goals (Heuneman 1983).
Management of school finance involves how to source for fund, increase the fund, invest it and account for the fund used in fixing up programmes and projects of a school. The main purpose of finance management in an organization is sourcing for fund and ensuring that the sourced fund is put into efficient and effective use. This is quite important due to the availability of scarce resources in other for optimal usage of those resources (Ogbonnaya, 2000). A study that was carried out in Uganda showed that just a small percentage of the fund allocated to the education sector was properly utilized, in fact, it was about 13% that was allocated to the education sector (Hallak and Poisson, 2001). The implication of mismanagement of fund is that it will increase the cost of some fees in the school; efficiency will not be achieved coupled with conflicts in decision making. Of which secondary schools in Lagos state suffer from these. Mismanagement of education funds affects the quality and availability of education (Poisson, 2001).
However, a school’s finance that has been misappropriated leaves the school with an unequipped library, science lab, dilapidated structures, and poorly remunerated teachers; which adversely leaves the students with nothing but a poor performance in their academics now and after. A research carried out by UNESCO proves that there is a very strong relationship between the quality of education and the proper utilization of the funds on the performance of a student (UNESCO, 2005).
Managing of funds in Lagos state secondary schools will help provide facilities that will aid teaching and learning in schools, consequently the academic performance of students. This is because with learning facilities on ground the skills of the students will be discovered and polished to achieve success and even scientific ideas. When these facilities are provided, it will be beyond what the teacher said in class (theory) to what they can see and practice with (Ajayi and Akinwumiju, 1990). The quality and availability of teaching/learning materials depend on the amount of money spent on acquiring them. It has been discovered from different authors that the quality of education largely depends on the management of school finance. The added that the proper management of these resources lead to proper harnessing of physical, material and human resources required to achieve quality education (Adeogun ,2001; Oni,1995; Aghenta, 1999; Sodimu,1998).
The possible factors that could lead to the mismanagement of funds are delay in the release of funds, uneven distribution of limited resources, poor orientation of the school administrators on the management of funds, unmerited appointment of school administrators by politicians, poor record of funds by the school bursary department and non-payment of teachers’ salaries. school finance is meant for the day to day running of the school, therefore, it is pertinent for the school heads to map out the budget of the school early enough in order to know the amount left in the school treasury and how much is needed to carry out programmes/projects of the school.
Consequently, it has been observed that some head teachers or principals in Lagos state secondary schools mismanage funds not because of poor planning and budgeting, but through embezzlement. The necessary supervisory bodies in Lagos state have not paid attention to this problem and it is affecting the growth of education in the state.
All the different stages of education in Nigeria has its objectives it is meant to achieve, like the secondary schools objectives are to equip Nigerian youths to contribute meaningfully to the development of the country and preparedness for higher education (FRN, 2004). The truth still remains that funds are needed to actualize these objectives.
It is therefore clear that the outcomes from students in Lagos state secondary schools is quite discouraging due to mismanagement of school finance; and that is why this study is conducted to support the proper managing of school finance for better learning outcomes in Lagos state secondary schools.
1.2 STATEMENT OF THE PROBLEM
Mismanagement of funds has always been a threat to different organizations in Nigeria, including the educational system.
The learning environment of most secondary schools in Lagos state is an obvious proof of mismanagement of funds. Grasses grown too tall as trees with no one to trim them, no drainages, dirty and wrong method of refuse disposal.
Still in line with this is poor remuneration of teachers. Due to poor managing of funds in secondary schools in Lagos state, teachers are seen discharging their duties with levity. Most of them come late to school, some do not go for their classes, and some have turned the learning ground to a fun fair arena where they chat, gossip and even do their private businesses; thus, affecting the academic performance of the students of Lagos state secondary schools.
In addition, due to mismanagement of funds, educational learning and teaching facilities are not provided to aid teaching. Infrastructure like conducive classroom, desks/chairs, computers, equipped libraries, equipped laboratories are in demeaning states; which affects the performance of students in internal and external examinations.