@ Vinci Viveka. M.Ed 2012-13, SXCEMEANINGIt is concerned with the income and expenditure ofauthorities of educational institutions and with theadjustment of one (income) to the other (expenditure).DEFINITIONHornby (1974) defined FINANCE as the issue of themanagement of money or funds It involves planning forthe procurement and effective utilization of funds madeavailable for the implementation of programmes orprojects.
Ogbonnaya (2000) described EDUCATION FINANCE as theprocess by which tax revenues and other resources are derived forthe establishment and operation of educational institutions as wellas the process by which these resources are allocated to institutionsin different geographical areas. @ Vinci Viveka. M.Ed 2012-13, SXCE
NATURE OF EDUCATIONAL FINANCE1. SUFFICIENCY- education cannot discharge its responsibility unless there is a provision for appropriate and adequate financial support for its need. The important criteria for sufficiency is that which is best for the future of the unique social – institution of education.2. FAIRENESS- if democracy is to flourish in the true sense social justice must be there. The wide disparity of educational opportunities in the country must be wiped out.3. FLEXIBILITY- Edu finance should be kept flexible and adaptable to changing conditions of progressive and pragmatic society.4. FRUGALITY- edu finance requires efficient administration. Funds whether liberal or meagre , need wise and careful spending so that the outputs and inputs are reasonably balanced.5. CO-OPERATION- Besides securing necessary funds the education administrator has to co-ordinate efforts of central govt, state govt and local people for quality education. Participation of teachers , parents and local people should be there in framing goals policies, budgets etc. SXCE @ Vinci Viveka. M.Ed 2012-13,
Scope of Education FinanceThe scope of education finance refers to the specific areas or ofeducation finance. They include all of the following:(a) Financial concepts like interest, payment vouchers, financeinvestment, authority to incur expenditure, Bank statements, cashmanagement imprest and financial control.(b) Taxation(c) Budget(d) Classification of government expenditure.(e) Types of cost analysis - current versus capital cost, recurrentand capital expenditure.(f) Role of government and non-government agencies in thefunding of education.(g) Sources of funds and problems of funding educationalprogrammes in the country.Viveka. M.Ed 2012-13, SXCE @ Vinci
1. Fund refers to a sum of money saved or made availablefor a particular purpose. It could be called money orfinancial resources. Fund can take any of the followingforms: Physical cash, credit facilities that is trade credits,bank credits, etc, allowances or discounts received, etc.2. Financial control involves the task of keepingexpenditures in check and controlling the inflow of revenue,safe guarding the assets and ensuring that resources aresufficient to implement the plans and policies and generallyensuring values for money in terms of the organisationsresource management and application. @ Vinci Viveka. M.Ed 2012-13, SXCE
3. Payment vouchers are pieces of paper showing that money hasbeen paid out or that the holder has the right to goods or services.4. Authority to incur expenditure is the power given to anadministrator or chief executive of an organization to spend moneywithin the approved estimate.5. An Imprest can simply be described as "earnest-money". It ismoney advanced to an organization for meeting its financial needswithin a specified period. Usually, such fund helps in meetingincidental expenses or taking care of petty business of theorganization. An imprest is normally retired at the end of the spendingperiod @ Vinci Viveka. M.Ed 2012-13, SXCE
6. Expenditure- a. Recurrent expenditure can simply be described asexpenditure incurred on personnel in the organization,consumable supplies, repairs, and maintenance andrefurbishing during the financial year. @ Vinci Viveka. M.Ed 2012-13, SXCE b. Capital expenditure includes expenditure onbuildings, school sites, equipment and machinery minus thecost of their repair and maintenance.7. Bank statements are written facts on a paper or bookabout an individual, an organization or establishment’saccount with a bank, The purpose is to enable financeofficers in the organization to verify and reconcile the bankstatements with the actual balance in their cash book.
8. Auditing means the verification of records kept in theaccounting system of an educational institution. The primaryobjective of auditing in private organizations is to verify the recordskept in their account departments in order to determine their profit orlosses but here in educational management auditing is done to detectfraud and error in financial management.9. Educational budget has been presented by authorities on thesubject.Roe (1961: 81) has defined educational budget as:The translation of educational needs into a financial plan which isinterpreted to the public in such a way that when formally adopted, itexpresses the kind of educational programme, the community iswilling to support financially and morally, for a on-year period.@ Vinci Viveka. M.Ed 2012-13, SXCE
Morphel, Johns and Reller (1974) have on the other handdefined school budget as an educational plan with an estimate ofthe receipts and expenditures necessary to finance i t for a definiteperiod of time. Adesina (1981) had defined a school budget broadly as an outlineof the plan for financing the school programme for a given period.From all the above definitions, we can deduce that the budget isthe financial statement of the proposed expenditure and expectedrevenue of the government, public corporation, or educationalinstitution for a particular period of time. The budget usuallycovers a period of one year. It shows clearly the expected incomeand proposed revenue of government or in our case, an educationalinstitution for the coming year. In educational institutions, thebudget is prepared by the bursary department or finance office asthe case may be. @ Vinci Viveka. M.Ed 2012-13, SXCE
10. TYPES OF GOVERNMENT GRANTSGovernment grants constitute a principal source of funding education.Adesina (1981) stated that grants fall under two categories of capitaland recurrent grants.A . Capital grants refers to the bulk of payment to the school @ Vinci Viveka. M.Ed 2012-13, SXCEauthorities for erection of new buildings, major repairs of old ones andthe purchase of hard ware school equipment, eg, the equipment ofscience laboratories or the erection of fine art laboratory.B. Recurrent grants refers to the expenditure which occurs everyyear in the budget, such as staff salaries and allowances, purchase ofequipment, maintenance of plant, traveling and transport expenses andexpenditure on pupils meals and uniforms. Recurrent expenditurevaries from time to time due to some factors such as the amount votedin for education, and the need for effective utilization.
c. Government special grants enable the government to improve thequality of education in the self-help schools. Through government specialgrants,classroom blocks are set up, laboratory equipment are procured. Thesehelp in improving teaching and learning processes in schools. Governmentspecial grants help in encouraging other communities to embark onsimilar projects.11. FUNDS BY NON –GOVT. AGENGIES-1. School fees2. Proceeds from school.3. Community Efforts.4. Donations from Charitable Institutions or Individuals.5. Organizational endowment funds.6. Educational tax7. External Aids. @ Vinci Viveka. M.Ed 2012-13, SXCE
REFERENCES-•R.P. Bhatnagar and Vidya Aggarwal(2010),Educational Administration , Supervisionand Finance,R.Lall Book Depot, Meerut. Prepared by:•Bugeting And Financial Management in Vinci VivekaEducation. M.ED. 2012-13, SXCEhttp://www.nou.edu.ng/noun/NOUN_OCL/p Contact-df/pdf2/EDU%20718%20BUDGETING%20A firstname.lastname@example.org.ND%20FINANCIAL%20MANAGEMENT%20IN%20EDUCATION.pdf @ Vinci Viveka. M.Ed 2012-13, SXCE