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Journal of Education and Practice www.iiste.org 
ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) 
Vol.5, No.23, 2014 
An Exploration of Skills Needed by Principals of Teacher 
Training Colleges in Kenya to Succeed in Financial Management 
Veronica M. Musau Mutua, Andika Patrick Chiriswa, Dr. RuthThinguri 
School of Education, Mount Kenya University, PO box 342-01000 Thika, Kenya, 
*E-mail of the corresponding author: verombene@yahoo.com 
Abstract 
Financial management in teacher training colleges is a concern today because of the immense resources vested in 
these colleges by the stakeholders. Prudent financial management calls for colleges headed by principals who 
have acquired relevant knowledge skills and attitudes in financial management. Financial management skills 
may be acquired through training/ learning or experience. The skills acquired through training should be 
demonstrated in practice by carrying out the relevant tasks. This study was intended to explore the current state 
of financial management skills and to make recommendations on the type of financial management skills 
training required. This study used a mixed methodology approach to collect and present data. Mixed research 
method, combine elements of qualitative and quantitative research approaches for the purpose of breadth and 
depth of understanding and collaboration. A sample of eleven colleges was chosen out of the twenty one (21) 
public primary teacher training colleges in the country. Random sampling, purposive and stratified techniques 
were used in selecting the respondents for the study. The qualitative and quantitative data were collected 
concurrently by use of questionnaires, interview schedules and document analysis instruments on finance 
management. This helped to determine if there was a pattern evident in the data. Comparison of the two data 
provided valuable information thus enriching the descriptive reporting of the data. The study confirmed that 
most primary teacher training collegesā€™ principals had limited financial management skills 
Keywords: Finance management, principal, accounting and budgeting, auditing, expenditure management, 
Kenya Education Management Institute (KEMI), In-service trainings (INSETS) 
1. Introduction 
Effective teacher training college financial management calls for prudence in bookkeeping, accounting, 
budgeting, procurement, supervision and expenditure management. The financial manager should demonstrate 
relevant skills in these tasks. Worldwide competence in financial management is given prominence. In countries 
like Britain, Australia, and New Zealand, being posted to head a college means added responsibility for the 
principal and the BOG who must manage the budget of the particular institution regardless of whether or not the 
principal is ready or sufficiently prepared for this financial role that require frequent checks of the institutionā€™s 
financial records (Di Napoli, 2007). In Hong Kong it is required that potential principals must pass certain 
qualifying tests which include financial management before being promoted. In Pakistani the teacher training 
principals get assisted by the state to acquire educational leadership and management training and are required to 
continually upgrade these skills (Faheem, 2006). In other areas like Miami, London and Ghana the state conducts 
courses and conferences on management for Teacher Training Collegesā€™ (TTCs) principals. While in other states 
like California, a vast majority of school principals hold a minimum qualification of a bachelorā€™s degree with 
most of them having a second degree in a finance related course (Mary, Isabel &Trish, 2006) 
Kyambogo University in Uganda offers certificates in principles of management, financial 
management and resource management among others to teacher educators, and through Teacher Development 
Management System(TDMS) equips principals of teachersā€™ colleges with appropriate management skills (Henry, 
Ngobi, Otaala, Maani &Bakaira,2013). The financial management component is lacking in the Kenyan teacher 
education courses. The basic courses in Kenya like Bachelor of Education (B.Ed) do not prepare teachers 
adequately to become principals who can manage educational institutions professionally and especially the 
financial management aspect. Financial management is a key component of educational management that 
requires a lot of skills. It is one of the most technical components of educational management. Financial 
management is multi-disciplinary; it is a science applying rational, logical and systematic skills which use data 
both qualitatively and quantitatively linking to policy documents. It is an art needing creativity and making it 
practical by being guided by rules and discipline and therefore a manager should be trained. 
2. Statement of the problem 
The Education Act cap 211, (revised 2013) of the laws of Kenya require that the principal, as the secretary to the 
Board of Governors (BOG) now Board of Management (BOM), prepare annual estimates, budget control of the 
day to day expenditures connected with the running of the institution, and institute internal controls such as 
auditing and accounting procedures (Education Act cap 211, 2009, 2013).This is an uphill task and challenges 
the principalā€™s financial management ability. Over the years, quality assessment and audit reports have shown 
67
Journal of Education and Practice www.iiste.org 
ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) 
Vol.5, No.23, 2014 
that there are cases of improper practices in financial management or weak accounting mechanisms, which have 
undermined effectiveness of the institutions with regard to service delivery (MOE- Education draft Bill, Feb. 
2012). 
The Koech Commission (2000), as reported in the Education Draft bill (2012) noted lack of 
accountability, whilst misappropriation of funds was common. One reason identified was the lack of, or poor 
management training of officers assigned management responsibilities. In Kenya the university basic degree of 
education (B.Ed), does not offer financial management courses and even at masters level it is offered at the 
request of the student. This is evident from the university undergraduate degree curriculum. Teachers are trained 
to teach, not to manage institutions. Teachers are deployed to management positions on account of their 
classroom performance. This leaves a competence gap in financial management among the persons appointed to 
headship of Teacher Training Colleges. This prompted an exploration into the skills needed by principals of 
public teachers training colleges in financial management. 
3. Purpose of the study 
The main purpose of the study was to evaluate skills needed by principals of Teacher Training Colleges in 
Kenya for effective financial management. It intended to find out the relation between basic financial 
management training and the effectiveness in financial administration. Specifically this study investigated the 
principalsā€™ competences in (1) strategic management, (2) budgeting as a tool of management, and (3) application 
of procurement procedures. Secondly, the study looked at how the budgets were being made and implemented, 
and lastly, the study looked at accounting and auditing procedures as measures of internal control and their 
impact on principalā€™s performance. 
4.Research objectives 
1. To establish principalsā€™ financial management education background meant to enhance financial 
management in public teacher training colleges in Kenya. 
2. To determine the financial management training and skills need for financial management in public 
68 
teacher training colleges in Kenya. 
3. To analyze the impact of financial management training of principals on the success of financial 
management in public teacher training colleges in Kenya. 
5.Research questions 
1. What is the nature of principalsā€™ financial management education background, which is meant to 
enhance financial management in public teacher training colleges in Kenya? 
2. What is the extent of financial management training and skills need for financial management in public 
teacher training colleges in Kenya? 
3. To what extent does financial management training of principals impact the success of financial 
management in public teacher training colleges in Kenya? 
6.Rationale/justification 
Given that primary teacher training college principals contribute enormously to the education sector but are not 
very effective due to lack of management skills, it becomes imperative to investigate which financial 
management skills they have and which ones they lack, and what the implications for training are on financial 
management of the public teacher training colleges in Kenya. Financial management and skills need, seems not 
to have received adequate scholarly attention. 
While the principals are appointed and given clear guidelines and instructions on financial 
management and procurement, malpractices such as failure to follow procurement procedures, embezzlement of 
funds, fraud, misappropriation of funds are still rampant in the teacher training colleges sub sector. Prudent 
financial management is only possible when the principals have relevant knowledge, skills and attitudes. The 
object of this study is to contribute towards identification of the relevant skills with an aim of identifying the 
gaps in skills to help improve in principalsā€™ development for enhanced transparency and accountability in the 
education sector. It will further contribute to the body of knowledge in educational finance. The study also will 
provide groundwork for further research to investigate other issues in financial management such as performance 
contracting. 
7.Significance of the study 
A principal is required by government regulations to initiate internal controls which include regular checks on 
the income and expenditure status of the institution. The instructions for secondary schools, colleges and 
polytechnics, ā€œprovides heads of educational institutions with a guide that will assist them in establishing 
systems of internal accounting and administrative controls that comply with the governments standards of 
financial managementā€ (MOEST, 2006). Principals in Primary Teacher Training Colleges are expected to use 
the same guidelines yet the management applications in the two levels of education are totally different. 
Financial management practices and skills needed for principals in teacher training colleges in Kenya, 
seem not to have received adequate scholarly attention. The Kenyan university curriculum for Bachelor of
Journal of Education and Practice www.iiste.org 
ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) 
Vol.5, No.23, 2014 
Education (B.Ed) studies does not include financial management as a major unit of study. This leaves the B.Ed 
graduates ill prepared for administrative functions when the opportunity arises. The teachers are also not trained 
on management skills before appointment or immediately after taking over the principalā€™s office. 
This study was meant to inform the universities on the need to develop a curriculum that can prepare 
students for management positions right from the start. Teachers in Kenya are appointed to management 
positions on the basis of their classroom performance or political inclinations. Although these teachers have the 
basic academic qualification and teaching experience, they lack the managerial skills required for this office. 
This appointment does not require financial management competence per se. It therefore poses a challenge of 
management competences to the new principal. 
Thus, the study intended to inform the Ministry of Education (MOE) in order to require universities 
make financial management mandatory for B.Ed students. Further, to put interventions to train the principalā€™s 
currently in office and newly appointed ones just before they take office. This may mean re-training the ones 
already in office and an overhaul of the higher education to include institutional and financial management 
training in the first degree. The in-service and refresher courses could be facilitated by expanding the mandate of 
Kenya Education Management Institute (KEMI) to include principals in Teacher Training Colleges as the in-services 
have been limited to primary and secondary schoolsā€™ head teachers. 
8.Literature review 
Paisley as cited in commonwealth (2000) argues that Management in education is a process of relating resources 
to objectives required in an organization which explicitly exist to provide education. This is to ensure that the 
desired goals or outcomes are achieved. Therefore financial management means seeing to it that the institution 
has the required funds to meet its goals and such funds are used for the purpose for which they are meant. 
Shapiro as cited in Ishara (2007) corroborates that financial management involves financial planning and 
budgeting, financial accounting, financial analysis, financial decision making and action. Effective financial 
management ensures that all financial regulations and procedures are complied with; all financial transactions 
are recorded accurately, adequate controls are in place to ensure that expenditures do not exceed income and 
only authorized expenditure are incurred. The ultimate responsibility of a collegeā€™s financial management resides 
in the principalā€™s office. 
The principals responsibility of managing of finances, ā€˜administering the accounting, record keeping 
and reporting functions which require many detailed and complex systems, reconciling credit and debit accounts 
of the institution and maintains records to ensure clear audit track (US department of education 34 CFR 668 
Subpart, K2011) is quite challenging. These operations must be consistent with Generally Accepted Accounting 
Procedures (GAAP) and colleges accounting standards of which the principal should be conversant with for him/ 
her to be effective. 
Financial management is an integral part of the responsibility of an educational manager because 
without good financial management practices schools would find it difficult to achieve their goal 
(commonwealth, 2000). Efficient and effective management of fiscal and physical resources can enhance 
instructional programs (Drake and Roe, 1992). In Kenya, training or even having a working knowledge of 
financial management is not considered a pre-requisite for appointment to a principalsā€™ position, and 
consequently principals often lack the essential management skills and specifically financial management skills. 
Okumbe (2007) argues that effective educational management, of which financial management is a 
subset, is not only the most fundamental and precious resource but it is also the scarcer resource in educational 
organizations. The work of a chief executive officer involves examining the future and drawing up plans which 
are action oriented, organizing, commanding, coordination and controlling, the activities of an organization to 
ensure attainment of the goals. Paisley as cited in commonwealth (2000), argues that Management in education 
is a process of relating resources to objectives required in an organization which explicitly exist to provide 
education. This is to ensure that the desired goals or outcomes are achieved. Therefore financial management 
means seeing to it that the institution has the required funds it needs to meet its goals and such funds are used for 
the purpose for which they are meant. 
If teacher education is going to measure with the expectations of vision 2030 of modernizing education, 
and the global market challenges, then there has to be a paradigm shift in the appointment of teachers to 
management positions. The objectives of financial management in Teacher Training colleges (TTCs) should be 
to establish the best management practices and professional service delivery. The institutions are supposed to be 
guided by legal documents such as the Basic Education Act no 14 of 2013, the Public Procurement and Disposal 
Act of 2005 and regulations of 2006, and Public procurement manual for schools and colleges among other 
statutory policies. 
Public teacher training colleges are expected to have a strategic plan to guide the prioritization of its 
operations. The government of Kenya, since 2009, requires that all ministries, local authorities, agencies and 
higher educational institutions, sign performance contracts and work towards ISO (international organizations 
standards) certification. This means principals currently have greater financial and managerial responsibilities in 
69
Journal of Education and Practice www.iiste.org 
ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) 
Vol.5, No.23, 2014 
respect of fiscal and physical facilities, staff, students and the community, than in the past. The aspect of 
performance contracting highlights the principalā€™s role in managing the finances of the college in effective and 
efficient manner. The principal together with the Board of Management (BOM) accepts the responsibility for 
ensuring that the college finances are administered correctly. 
Educational institutions in Kenya operate under the principles of public management which 
incorporates the devolution of financial autonomy away from the state towards the institutions and within the 
institutions. This requires technical and professional know how for effectiveness. An effective financial manager 
outlines and puts down methods of doing things, and also establishes structures of authority for proper expending 
of the finances. Financial management requires right training of the personnel and especially the chief executive 
officer who should be well equipped for the financial management function. This will facilitate proper decision 
making in directing and controlling the financial aspects of the institutions. 
9. Research methodology 
The study employed a mixed methodology approach to collect and present data. Mixed research method was 
found appropriate because the nature of information required to answer the research questions was both 
qualitative and quantitative. Both data was concurrently collected through the use of questionnaires, and 
interview schedules. 
10. Research design 
A descriptive survey design was selected for the study as the study was meant to ask a good number of people 
questions (in form of questionnaires) and interviews about their management practices. This design allowed for 
the collection of information necessary for gauging opinions, attitudes and practices that could be used to make 
inference on financial management competences. The study used descriptive survey design since the variables 
could not be manipulated, and there existed an opportunity to explore and probe the respondents for more 
information, to fact find, which resulted in the formulation of important principles of knowledge and suggested 
solutions to significant problems in financial management .The study targeted the principals and deputy 
principals of public primary teacher training colleges. Purposive sampling was used to get the principals and 
their deputies. 
The data was analyzed inductively and deductively using Statistical Package for Social Sciences 
version 21. Creswell, (2009) corroborates that data analysis within mixed research occurs both with the 
quantitative (descriptive and inferential numeric analysis) and qualitative (description and thematic text or image 
analysis) approach and often between the two approaches). The process of data analysis involved several stages 
namely; data clean up, data reduction, data differentiation and explanation. 
11. Results findings 
The study sort to determine the skills needed for effective financial management in primary teacher training 
colleges. To achieve this, salient areas were examined. These areas included: financial management skills 
acquired at the basic academic training, certified financial management qualifications of the principals and their 
deputies, any on the job training in financial management, challenges faced by principals in managing 
institutional finances and skills needed in order to succeed in financial management. The objectives were 
also analyzed using inferential statistics involving chi-square test. Relationship between training and financial 
management skills needed was done. The results indicated a very high significant relationship between training 
and financial management skills needed. 
11.1 Principalsā€™ financial management education background 
The study assessed the nature of financial management education background of principals who managed 
teacher training colleges in Kenya. The principals were asked to state the type of financial management training 
they may have received at their basic academic and professional training and financial management courses 
attended. Data collected was analyzed and the results were presented in frequencies and percentages in Tables a, 
b and c. 
The results in table (a) indicate that majority of the principals were not trained on financial 
management. 63.6% of the principals indicated that they did not get any form of financial management training 
at their basic academic training but 36.4% said they got some knowledge in their academic course although very 
little was incorporated in the unit on financial management and it was not practical. 
Table (a) principals formal financial training at basic course 
F r e quency P ercentage 
Yes 4 36.4 
No 7 63.6 
Total 11 100.0 
70
Journal of Education and Practice www.iiste.org 
ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) 
Vol.5, No.23, 2014 
11.2 Principals financial management training 
Results in table (b) show the principals who have attended management courses. 54.5% have attended financial 
management course organized by the government, 18.2% had not while 27.3% were non committal. The courses 
attended by the principals were very short lasting between one and two weeks. This indicates that very little 
content was covered. The respondents argued that the time allocated for the course was not enough. 
Table b-principals financial management training 
Frequency Percent 
Yes 6 54.5 
No 2 18.2 
Total 8 72.7 
Missing 3 27.3 
Total 11 100.0 
From the results in table (c), 54.5% attended the course after appointment, 18.2% of them attended the course 
before appointment and 27.3% did not commit themselves. In the responses the principals said the little training 
they received was very useful in helping them be able to prepare budgets, interpret financial statements and 
advise on stores keeping. However others said the course did not help much as it was short and there was a lot to 
learn. Also the content was said to be technical and needed a lot of practice for one to master the skills. 
Table (c) was the course before or after appointment 
Frequency Percent 
Before appointment 2 18.2 
After appointment 6 54.5 
Total 8 72.7 
Missing 3 27.3 
Total 11 100.0 
11.3 Financial management training and skills need 
The study examined how the financial management training of principals of teacher training colleges matched 
with the financial training needs. To achieve this, the respondents were asked to describe their financial 
management needs verses training received. Data collected was analyzed under the question ā€˜What is the extent 
of financial management training and skills need for financial management in public teacher training colleges in 
Kenya?ā€™ Results were presented both in descriptive form and using inferential statistics. The descriptive results 
on financial management training are presented in tables (d) and (e), while the inferential statistics results are 
presented at the end of this section. 
The results in table (d) indicated that financial management was not received at the basic academic/professional 
training of the principals, and that the principals were not prepared on financial management before assuming of 
office. 54.5% of the principal had not been introduced to financial management at their basic professional 
training course, and none was ever in-serviced before assumption of the principalā€™s office.72.7% had not also 
undergone any training organized and financed by the government immediately they took over office. 63.6% of 
the principals said they lacked adequate knowledge and skills to undertake financial management in teacher 
training colleges. They only follow their predecessorsā€™ financial culture which they find in place; therefore they 
require urgent additional training in order to manage college resources effectively. 
In summary an average of 35.42% said they have what it take in financial management while the rest, 64.58% 
indicate they are ill-prepared for the job and therefore require additional training for efficiency and effectiveness. 
Table (d) principalsā€™ responses on financial management training 
71 
YES NO 
Freq % Freq % 
I did a course on financial management at my initial training as a teacher. 5 45.5 6 54.5 
I underwent some training just before assuming the principalā€™s office, organized by the government. 
11 100 
I have undergone some training immediately I took over the principalā€™s office, organized by the government. 3 27.3 8 72.7 
The government organized and financed the training 7 63.6 4 36.4 
Time allocated for training was adequate 10 90.9 
I have adequate knowledge and skills to undertake financial management in a teacher training college. 4 36.4 7 63.6 
I require additional training in order to successfully manage the college resources 8 72.7 3 27.3 
Average appropriate choices 35.42 64.58 
The results indicated lack of formal financial management training for the principals either at their 
basic academic training or as managers of educational institutions, the government seems not to have made any 
deliberate effort to train teacher training collegesā€™ principals on management and specifically financial 
management. Principals cried foul over their lack of skills and feeling incompetent yet the government and the 
society expects them to perform exemplary in managing the educational institutions. They argued that they learn 
through trial and error and in most cases do not try to change the procedures they found in these institutions even
Journal of Education and Practice www.iiste.org 
ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) 
Vol.5, No.23, 2014 
if they are not effective for lack of a better option. They rely on the accounts office staff for advice and in many 
cases they are misadvised, mislead and taken advantage of. Some of them said they would employ the private 
services of the district (Sub County) auditors to balance their books at very exorbitant fees. The principals said 
that financial management and management of educational institutions training is long overdue. 
The results on the relationship between training and developing mission statement, as indicated in 
Table (f), depict a chi-squared test statistic of 1.925 with associated Chi-Square, likelihood ratio and linear-by-linear 
association p, which is < 0.05. Thus, there is a significant relationship between training and developing a 
mission statement. The findings of the relationship between training and developing strategic plan depict a chi-square 
test statistic of 1.925 with associated Chi-Square, likelihood ratio and linear-by-linear association p, 
which is < 0.05. Thus, there is a significant relationship between training and developing a strategic plan. 
From the findings, a chi-square test statistic of .016 with associated Chi-Square, likelihood ratio and 
linear-by-linear association p, which is < 0.05. Thus, there is a significant relationship between training and 
developing appropriate work plans. A chi-square test statistic of 2.357 with associated Chi-Square, likelihood 
ratio and linear-by-linear association p, of < 0.05 depict a significant relationship between training and proper 
recording of all financial transactions. 
From the findings on relationship between training and instituting strong internal controls, a chi-square 
test statistic of 2.357 with associated Chi-Square, likelihood ratio and linear-by-linear association p, this is < 
0.05. Thus, there is a significant relationship between training and instituting strong internal controls. A chi-square 
test statistic of 11.000 with associated Chi-Square, likelihood ratio and linear-by-linear association p, of < 
0.05 depict a significant relationship between training and Internal and external auditing. From the results, a chi-squared 
test statistic of .351 with associated Chi-Square, likelihood ratio and linear-by-linear association p, is < 
0.05 indicating a significant relationship between training and record keeping. From these findings there is 
significant relationship between principalsā€™ financial management training and dependent financial management 
skills required. 
Table (f) chi-square results: relationship between training and various financial management skills 
72 
Developing 
a mission 
statement 
Developing 
strategic plan 
Developing 
Appropriate 
work plans 
Recording 
Financial 
Transactions 
Instituting 
internal 
controls 
Internal 
and external 
auditing 
Record 
keeping 
Va 
lue 
d 
f 
Asy 
mp 
.sig 
.(2- 
side 
d 
Va 
lue 
d 
f 
Asy 
mp. 
sig.( 
2- 
side 
d 
val 
ue 
d 
f 
Asy 
mp. 
sig.( 
2- 
side 
d 
val 
ue 
d 
f 
Asy 
mp 
.sig 
.(2- 
side 
d 
Va 
lue 
d 
f 
Asy 
mp 
.sig 
.(2- 
side 
d 
Val 
ue 
d 
f 
Asymp 
.sig(2- 
sided) 
val 
ue 
d 
f 
Asy 
mp 
.sig 
.(2- 
side 
d) 
Pears 
on 
chi-squar 
e 
1.9 
25 
1 .00 
5 
1.9 
25 
1 .005 .0 
16 
1 .008 2.3 
57 
2 .00 
7 
2.3 
57 
1 .00 
5 
11 1 .001 .3 
51 
1 .00 
4 
. 
Likeli 
hood 
ratio 
2.2 
03 
1 .03 
8 
2.2 
03 
1 .007 .0 
17 
1 .008 3.3 
30 
2 .03 
9 
3.3 
30 
1 .02 
8 
14. 
421 
1 .000 .3 
61 
1 .02 
1 
Linea 
r-by-linear 
ass 
1.7 
50 
1 .03 
6 
1.7 
50 
1 .019 .0 
15 
1 .003 1.9 
31 
1 .00 
5 
2.1 
43 
1 .04 
3 
10. 
000 
1 .002 .3 
19 
1 .00 
2 
No of 
valid 
cases 
11 11 11 11 11 11 11 
12. Discussion and recommendations 
Finance management skills such as planning, budgeting, bookkeeping and accounting are critical for success or 
failure of an educational institution. Financial managers are responsible for the financial health of their 
institutions. The principals and their deputies identified the following skills as urgently needed by the managers. 
They included; Human resource management, management of technology, financial management, Project 
management, planning skills, budgeting, negotiation skills, time management, managing change, financial 
decision making, strategic management, procurement procedures. 
In order to create an enabling environment for principals in teacher training colleges it requires that the 
issues that stifle their effectiveness be addressed. Initiatives such as tailor made financial management courses 
facilitated by officers from the office of planning, treasury, Kenya school of government and Kenya national 
audit services are necessary to enable the principals effectively and efficiently manage finances in the colleges.
Journal of Education and Practice www.iiste.org 
ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) 
Vol.5, No.23, 2014 
A more permanent solution could be put in place by having modules that the principals must cover within a 
certain period of training which is mandatory Sometimes this is done for secondary school principals facilitated 
by KEMI. 
It is recommended that the deputy principals, deans and heads of departments in teacher training 
colleges be trained on management. This team works very close to the principal in managing the colleges. The 
training should lead to a recognizable certificate. Regular INSETS would go a long way in updating and 
upgrading the principal and the management team. 
13. Conclution 
From the study, it was clear that effective financial management was a government requirement that is expected 
to give the public value for their money, with the aim of improving service delivery. However, very little effort 
was being expended to equip the financial managers with the relevant skills. A lot of benefits would be realized 
in the colleges if the right training was given to the financial managers. Continuous training was deemed 
necessary from the study, to keep the officers abreast with current requirement like strategic planning and 
performance contracting. The principals surveyed had not attended seminars or workshops on financial 
management in the last three years. This showed that there were a lot of discrepancies as far as financial 
management was concerned. Therefore there is a need to streamline this aspect due to its usefulness as a 
management tool. According to the respondents, the colleges had tried their level best in financial management 
despite the many challenges they were facing. Despite lack of training the principals were making a notable 
effort to improve their performance. Since their appointment to management position, it was evident that the 
principals had become more committed to their work, there was increased job satisfaction and morale and that 
they were motivated to work. Service delivery had improved tremendously and there was deliberate effort to 
increase efficiency in processes aimed at resulting to financial gain 
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Creswell, J. (2009). Educational research: Planning, conducting, and evaluating quantitative and qualitative 
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Di Napoli T. P (2007) our world neighbour charter school Office of New York controller, division of state 
government accountability financial management practices report (2007) 
Faheem, M.(2006)the role of a principal of a teacher training college Aga Khan University, institute of 
Educational development Karachi. Retrieved frhttp://economics.aku.ed/theses_desertation/279 
Henry, Ngobi, Otaala, maani and Bakaira(2013)The Role of Universities in Teacher Education and Professional 
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Ishara H. (2007), the financial management role of principals in section 21 schools in South Africa, Durban, 
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Kombo D.K. and Tromp D.L.A. (2006) proposal and thesis writing, an introduction Nairobi, Pauline 
publications Africa 
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MoE(k) (2012)taskforce report on the alignment of the education sector to the constitution of Kenya 2010.New 
education draft bill. Towards a globally competitive quality education for sustainable development 
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polytechnics. Nairobi, Government printers 
Okumbe 2007(1999) Education management: theory and practice Nairobi, University press, University of 
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Willis Yuko.O. & David Onen (2009) A general guide to writing research proposal and report, A handbook for 
beginning researchers Nairobi, Jomo Kenyatta foundation
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An exploration of skills needed by principals of teacher training colleges in kenya to succeed in financial management

  • 1. Journal of Education and Practice www.iiste.org ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) Vol.5, No.23, 2014 An Exploration of Skills Needed by Principals of Teacher Training Colleges in Kenya to Succeed in Financial Management Veronica M. Musau Mutua, Andika Patrick Chiriswa, Dr. RuthThinguri School of Education, Mount Kenya University, PO box 342-01000 Thika, Kenya, *E-mail of the corresponding author: verombene@yahoo.com Abstract Financial management in teacher training colleges is a concern today because of the immense resources vested in these colleges by the stakeholders. Prudent financial management calls for colleges headed by principals who have acquired relevant knowledge skills and attitudes in financial management. Financial management skills may be acquired through training/ learning or experience. The skills acquired through training should be demonstrated in practice by carrying out the relevant tasks. This study was intended to explore the current state of financial management skills and to make recommendations on the type of financial management skills training required. This study used a mixed methodology approach to collect and present data. Mixed research method, combine elements of qualitative and quantitative research approaches for the purpose of breadth and depth of understanding and collaboration. A sample of eleven colleges was chosen out of the twenty one (21) public primary teacher training colleges in the country. Random sampling, purposive and stratified techniques were used in selecting the respondents for the study. The qualitative and quantitative data were collected concurrently by use of questionnaires, interview schedules and document analysis instruments on finance management. This helped to determine if there was a pattern evident in the data. Comparison of the two data provided valuable information thus enriching the descriptive reporting of the data. The study confirmed that most primary teacher training collegesā€™ principals had limited financial management skills Keywords: Finance management, principal, accounting and budgeting, auditing, expenditure management, Kenya Education Management Institute (KEMI), In-service trainings (INSETS) 1. Introduction Effective teacher training college financial management calls for prudence in bookkeeping, accounting, budgeting, procurement, supervision and expenditure management. The financial manager should demonstrate relevant skills in these tasks. Worldwide competence in financial management is given prominence. In countries like Britain, Australia, and New Zealand, being posted to head a college means added responsibility for the principal and the BOG who must manage the budget of the particular institution regardless of whether or not the principal is ready or sufficiently prepared for this financial role that require frequent checks of the institutionā€™s financial records (Di Napoli, 2007). In Hong Kong it is required that potential principals must pass certain qualifying tests which include financial management before being promoted. In Pakistani the teacher training principals get assisted by the state to acquire educational leadership and management training and are required to continually upgrade these skills (Faheem, 2006). In other areas like Miami, London and Ghana the state conducts courses and conferences on management for Teacher Training Collegesā€™ (TTCs) principals. While in other states like California, a vast majority of school principals hold a minimum qualification of a bachelorā€™s degree with most of them having a second degree in a finance related course (Mary, Isabel &Trish, 2006) Kyambogo University in Uganda offers certificates in principles of management, financial management and resource management among others to teacher educators, and through Teacher Development Management System(TDMS) equips principals of teachersā€™ colleges with appropriate management skills (Henry, Ngobi, Otaala, Maani &Bakaira,2013). The financial management component is lacking in the Kenyan teacher education courses. The basic courses in Kenya like Bachelor of Education (B.Ed) do not prepare teachers adequately to become principals who can manage educational institutions professionally and especially the financial management aspect. Financial management is a key component of educational management that requires a lot of skills. It is one of the most technical components of educational management. Financial management is multi-disciplinary; it is a science applying rational, logical and systematic skills which use data both qualitatively and quantitatively linking to policy documents. It is an art needing creativity and making it practical by being guided by rules and discipline and therefore a manager should be trained. 2. Statement of the problem The Education Act cap 211, (revised 2013) of the laws of Kenya require that the principal, as the secretary to the Board of Governors (BOG) now Board of Management (BOM), prepare annual estimates, budget control of the day to day expenditures connected with the running of the institution, and institute internal controls such as auditing and accounting procedures (Education Act cap 211, 2009, 2013).This is an uphill task and challenges the principalā€™s financial management ability. Over the years, quality assessment and audit reports have shown 67
  • 2. Journal of Education and Practice www.iiste.org ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) Vol.5, No.23, 2014 that there are cases of improper practices in financial management or weak accounting mechanisms, which have undermined effectiveness of the institutions with regard to service delivery (MOE- Education draft Bill, Feb. 2012). The Koech Commission (2000), as reported in the Education Draft bill (2012) noted lack of accountability, whilst misappropriation of funds was common. One reason identified was the lack of, or poor management training of officers assigned management responsibilities. In Kenya the university basic degree of education (B.Ed), does not offer financial management courses and even at masters level it is offered at the request of the student. This is evident from the university undergraduate degree curriculum. Teachers are trained to teach, not to manage institutions. Teachers are deployed to management positions on account of their classroom performance. This leaves a competence gap in financial management among the persons appointed to headship of Teacher Training Colleges. This prompted an exploration into the skills needed by principals of public teachers training colleges in financial management. 3. Purpose of the study The main purpose of the study was to evaluate skills needed by principals of Teacher Training Colleges in Kenya for effective financial management. It intended to find out the relation between basic financial management training and the effectiveness in financial administration. Specifically this study investigated the principalsā€™ competences in (1) strategic management, (2) budgeting as a tool of management, and (3) application of procurement procedures. Secondly, the study looked at how the budgets were being made and implemented, and lastly, the study looked at accounting and auditing procedures as measures of internal control and their impact on principalā€™s performance. 4.Research objectives 1. To establish principalsā€™ financial management education background meant to enhance financial management in public teacher training colleges in Kenya. 2. To determine the financial management training and skills need for financial management in public 68 teacher training colleges in Kenya. 3. To analyze the impact of financial management training of principals on the success of financial management in public teacher training colleges in Kenya. 5.Research questions 1. What is the nature of principalsā€™ financial management education background, which is meant to enhance financial management in public teacher training colleges in Kenya? 2. What is the extent of financial management training and skills need for financial management in public teacher training colleges in Kenya? 3. To what extent does financial management training of principals impact the success of financial management in public teacher training colleges in Kenya? 6.Rationale/justification Given that primary teacher training college principals contribute enormously to the education sector but are not very effective due to lack of management skills, it becomes imperative to investigate which financial management skills they have and which ones they lack, and what the implications for training are on financial management of the public teacher training colleges in Kenya. Financial management and skills need, seems not to have received adequate scholarly attention. While the principals are appointed and given clear guidelines and instructions on financial management and procurement, malpractices such as failure to follow procurement procedures, embezzlement of funds, fraud, misappropriation of funds are still rampant in the teacher training colleges sub sector. Prudent financial management is only possible when the principals have relevant knowledge, skills and attitudes. The object of this study is to contribute towards identification of the relevant skills with an aim of identifying the gaps in skills to help improve in principalsā€™ development for enhanced transparency and accountability in the education sector. It will further contribute to the body of knowledge in educational finance. The study also will provide groundwork for further research to investigate other issues in financial management such as performance contracting. 7.Significance of the study A principal is required by government regulations to initiate internal controls which include regular checks on the income and expenditure status of the institution. The instructions for secondary schools, colleges and polytechnics, ā€œprovides heads of educational institutions with a guide that will assist them in establishing systems of internal accounting and administrative controls that comply with the governments standards of financial managementā€ (MOEST, 2006). Principals in Primary Teacher Training Colleges are expected to use the same guidelines yet the management applications in the two levels of education are totally different. Financial management practices and skills needed for principals in teacher training colleges in Kenya, seem not to have received adequate scholarly attention. The Kenyan university curriculum for Bachelor of
  • 3. Journal of Education and Practice www.iiste.org ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) Vol.5, No.23, 2014 Education (B.Ed) studies does not include financial management as a major unit of study. This leaves the B.Ed graduates ill prepared for administrative functions when the opportunity arises. The teachers are also not trained on management skills before appointment or immediately after taking over the principalā€™s office. This study was meant to inform the universities on the need to develop a curriculum that can prepare students for management positions right from the start. Teachers in Kenya are appointed to management positions on the basis of their classroom performance or political inclinations. Although these teachers have the basic academic qualification and teaching experience, they lack the managerial skills required for this office. This appointment does not require financial management competence per se. It therefore poses a challenge of management competences to the new principal. Thus, the study intended to inform the Ministry of Education (MOE) in order to require universities make financial management mandatory for B.Ed students. Further, to put interventions to train the principalā€™s currently in office and newly appointed ones just before they take office. This may mean re-training the ones already in office and an overhaul of the higher education to include institutional and financial management training in the first degree. The in-service and refresher courses could be facilitated by expanding the mandate of Kenya Education Management Institute (KEMI) to include principals in Teacher Training Colleges as the in-services have been limited to primary and secondary schoolsā€™ head teachers. 8.Literature review Paisley as cited in commonwealth (2000) argues that Management in education is a process of relating resources to objectives required in an organization which explicitly exist to provide education. This is to ensure that the desired goals or outcomes are achieved. Therefore financial management means seeing to it that the institution has the required funds to meet its goals and such funds are used for the purpose for which they are meant. Shapiro as cited in Ishara (2007) corroborates that financial management involves financial planning and budgeting, financial accounting, financial analysis, financial decision making and action. Effective financial management ensures that all financial regulations and procedures are complied with; all financial transactions are recorded accurately, adequate controls are in place to ensure that expenditures do not exceed income and only authorized expenditure are incurred. The ultimate responsibility of a collegeā€™s financial management resides in the principalā€™s office. The principals responsibility of managing of finances, ā€˜administering the accounting, record keeping and reporting functions which require many detailed and complex systems, reconciling credit and debit accounts of the institution and maintains records to ensure clear audit track (US department of education 34 CFR 668 Subpart, K2011) is quite challenging. These operations must be consistent with Generally Accepted Accounting Procedures (GAAP) and colleges accounting standards of which the principal should be conversant with for him/ her to be effective. Financial management is an integral part of the responsibility of an educational manager because without good financial management practices schools would find it difficult to achieve their goal (commonwealth, 2000). Efficient and effective management of fiscal and physical resources can enhance instructional programs (Drake and Roe, 1992). In Kenya, training or even having a working knowledge of financial management is not considered a pre-requisite for appointment to a principalsā€™ position, and consequently principals often lack the essential management skills and specifically financial management skills. Okumbe (2007) argues that effective educational management, of which financial management is a subset, is not only the most fundamental and precious resource but it is also the scarcer resource in educational organizations. The work of a chief executive officer involves examining the future and drawing up plans which are action oriented, organizing, commanding, coordination and controlling, the activities of an organization to ensure attainment of the goals. Paisley as cited in commonwealth (2000), argues that Management in education is a process of relating resources to objectives required in an organization which explicitly exist to provide education. This is to ensure that the desired goals or outcomes are achieved. Therefore financial management means seeing to it that the institution has the required funds it needs to meet its goals and such funds are used for the purpose for which they are meant. If teacher education is going to measure with the expectations of vision 2030 of modernizing education, and the global market challenges, then there has to be a paradigm shift in the appointment of teachers to management positions. The objectives of financial management in Teacher Training colleges (TTCs) should be to establish the best management practices and professional service delivery. The institutions are supposed to be guided by legal documents such as the Basic Education Act no 14 of 2013, the Public Procurement and Disposal Act of 2005 and regulations of 2006, and Public procurement manual for schools and colleges among other statutory policies. Public teacher training colleges are expected to have a strategic plan to guide the prioritization of its operations. The government of Kenya, since 2009, requires that all ministries, local authorities, agencies and higher educational institutions, sign performance contracts and work towards ISO (international organizations standards) certification. This means principals currently have greater financial and managerial responsibilities in 69
  • 4. Journal of Education and Practice www.iiste.org ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) Vol.5, No.23, 2014 respect of fiscal and physical facilities, staff, students and the community, than in the past. The aspect of performance contracting highlights the principalā€™s role in managing the finances of the college in effective and efficient manner. The principal together with the Board of Management (BOM) accepts the responsibility for ensuring that the college finances are administered correctly. Educational institutions in Kenya operate under the principles of public management which incorporates the devolution of financial autonomy away from the state towards the institutions and within the institutions. This requires technical and professional know how for effectiveness. An effective financial manager outlines and puts down methods of doing things, and also establishes structures of authority for proper expending of the finances. Financial management requires right training of the personnel and especially the chief executive officer who should be well equipped for the financial management function. This will facilitate proper decision making in directing and controlling the financial aspects of the institutions. 9. Research methodology The study employed a mixed methodology approach to collect and present data. Mixed research method was found appropriate because the nature of information required to answer the research questions was both qualitative and quantitative. Both data was concurrently collected through the use of questionnaires, and interview schedules. 10. Research design A descriptive survey design was selected for the study as the study was meant to ask a good number of people questions (in form of questionnaires) and interviews about their management practices. This design allowed for the collection of information necessary for gauging opinions, attitudes and practices that could be used to make inference on financial management competences. The study used descriptive survey design since the variables could not be manipulated, and there existed an opportunity to explore and probe the respondents for more information, to fact find, which resulted in the formulation of important principles of knowledge and suggested solutions to significant problems in financial management .The study targeted the principals and deputy principals of public primary teacher training colleges. Purposive sampling was used to get the principals and their deputies. The data was analyzed inductively and deductively using Statistical Package for Social Sciences version 21. Creswell, (2009) corroborates that data analysis within mixed research occurs both with the quantitative (descriptive and inferential numeric analysis) and qualitative (description and thematic text or image analysis) approach and often between the two approaches). The process of data analysis involved several stages namely; data clean up, data reduction, data differentiation and explanation. 11. Results findings The study sort to determine the skills needed for effective financial management in primary teacher training colleges. To achieve this, salient areas were examined. These areas included: financial management skills acquired at the basic academic training, certified financial management qualifications of the principals and their deputies, any on the job training in financial management, challenges faced by principals in managing institutional finances and skills needed in order to succeed in financial management. The objectives were also analyzed using inferential statistics involving chi-square test. Relationship between training and financial management skills needed was done. The results indicated a very high significant relationship between training and financial management skills needed. 11.1 Principalsā€™ financial management education background The study assessed the nature of financial management education background of principals who managed teacher training colleges in Kenya. The principals were asked to state the type of financial management training they may have received at their basic academic and professional training and financial management courses attended. Data collected was analyzed and the results were presented in frequencies and percentages in Tables a, b and c. The results in table (a) indicate that majority of the principals were not trained on financial management. 63.6% of the principals indicated that they did not get any form of financial management training at their basic academic training but 36.4% said they got some knowledge in their academic course although very little was incorporated in the unit on financial management and it was not practical. Table (a) principals formal financial training at basic course F r e quency P ercentage Yes 4 36.4 No 7 63.6 Total 11 100.0 70
  • 5. Journal of Education and Practice www.iiste.org ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) Vol.5, No.23, 2014 11.2 Principals financial management training Results in table (b) show the principals who have attended management courses. 54.5% have attended financial management course organized by the government, 18.2% had not while 27.3% were non committal. The courses attended by the principals were very short lasting between one and two weeks. This indicates that very little content was covered. The respondents argued that the time allocated for the course was not enough. Table b-principals financial management training Frequency Percent Yes 6 54.5 No 2 18.2 Total 8 72.7 Missing 3 27.3 Total 11 100.0 From the results in table (c), 54.5% attended the course after appointment, 18.2% of them attended the course before appointment and 27.3% did not commit themselves. In the responses the principals said the little training they received was very useful in helping them be able to prepare budgets, interpret financial statements and advise on stores keeping. However others said the course did not help much as it was short and there was a lot to learn. Also the content was said to be technical and needed a lot of practice for one to master the skills. Table (c) was the course before or after appointment Frequency Percent Before appointment 2 18.2 After appointment 6 54.5 Total 8 72.7 Missing 3 27.3 Total 11 100.0 11.3 Financial management training and skills need The study examined how the financial management training of principals of teacher training colleges matched with the financial training needs. To achieve this, the respondents were asked to describe their financial management needs verses training received. Data collected was analyzed under the question ā€˜What is the extent of financial management training and skills need for financial management in public teacher training colleges in Kenya?ā€™ Results were presented both in descriptive form and using inferential statistics. The descriptive results on financial management training are presented in tables (d) and (e), while the inferential statistics results are presented at the end of this section. The results in table (d) indicated that financial management was not received at the basic academic/professional training of the principals, and that the principals were not prepared on financial management before assuming of office. 54.5% of the principal had not been introduced to financial management at their basic professional training course, and none was ever in-serviced before assumption of the principalā€™s office.72.7% had not also undergone any training organized and financed by the government immediately they took over office. 63.6% of the principals said they lacked adequate knowledge and skills to undertake financial management in teacher training colleges. They only follow their predecessorsā€™ financial culture which they find in place; therefore they require urgent additional training in order to manage college resources effectively. In summary an average of 35.42% said they have what it take in financial management while the rest, 64.58% indicate they are ill-prepared for the job and therefore require additional training for efficiency and effectiveness. Table (d) principalsā€™ responses on financial management training 71 YES NO Freq % Freq % I did a course on financial management at my initial training as a teacher. 5 45.5 6 54.5 I underwent some training just before assuming the principalā€™s office, organized by the government. 11 100 I have undergone some training immediately I took over the principalā€™s office, organized by the government. 3 27.3 8 72.7 The government organized and financed the training 7 63.6 4 36.4 Time allocated for training was adequate 10 90.9 I have adequate knowledge and skills to undertake financial management in a teacher training college. 4 36.4 7 63.6 I require additional training in order to successfully manage the college resources 8 72.7 3 27.3 Average appropriate choices 35.42 64.58 The results indicated lack of formal financial management training for the principals either at their basic academic training or as managers of educational institutions, the government seems not to have made any deliberate effort to train teacher training collegesā€™ principals on management and specifically financial management. Principals cried foul over their lack of skills and feeling incompetent yet the government and the society expects them to perform exemplary in managing the educational institutions. They argued that they learn through trial and error and in most cases do not try to change the procedures they found in these institutions even
  • 6. Journal of Education and Practice www.iiste.org ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) Vol.5, No.23, 2014 if they are not effective for lack of a better option. They rely on the accounts office staff for advice and in many cases they are misadvised, mislead and taken advantage of. Some of them said they would employ the private services of the district (Sub County) auditors to balance their books at very exorbitant fees. The principals said that financial management and management of educational institutions training is long overdue. The results on the relationship between training and developing mission statement, as indicated in Table (f), depict a chi-squared test statistic of 1.925 with associated Chi-Square, likelihood ratio and linear-by-linear association p, which is < 0.05. Thus, there is a significant relationship between training and developing a mission statement. The findings of the relationship between training and developing strategic plan depict a chi-square test statistic of 1.925 with associated Chi-Square, likelihood ratio and linear-by-linear association p, which is < 0.05. Thus, there is a significant relationship between training and developing a strategic plan. From the findings, a chi-square test statistic of .016 with associated Chi-Square, likelihood ratio and linear-by-linear association p, which is < 0.05. Thus, there is a significant relationship between training and developing appropriate work plans. A chi-square test statistic of 2.357 with associated Chi-Square, likelihood ratio and linear-by-linear association p, of < 0.05 depict a significant relationship between training and proper recording of all financial transactions. From the findings on relationship between training and instituting strong internal controls, a chi-square test statistic of 2.357 with associated Chi-Square, likelihood ratio and linear-by-linear association p, this is < 0.05. Thus, there is a significant relationship between training and instituting strong internal controls. A chi-square test statistic of 11.000 with associated Chi-Square, likelihood ratio and linear-by-linear association p, of < 0.05 depict a significant relationship between training and Internal and external auditing. From the results, a chi-squared test statistic of .351 with associated Chi-Square, likelihood ratio and linear-by-linear association p, is < 0.05 indicating a significant relationship between training and record keeping. From these findings there is significant relationship between principalsā€™ financial management training and dependent financial management skills required. Table (f) chi-square results: relationship between training and various financial management skills 72 Developing a mission statement Developing strategic plan Developing Appropriate work plans Recording Financial Transactions Instituting internal controls Internal and external auditing Record keeping Va lue d f Asy mp .sig .(2- side d Va lue d f Asy mp. sig.( 2- side d val ue d f Asy mp. sig.( 2- side d val ue d f Asy mp .sig .(2- side d Va lue d f Asy mp .sig .(2- side d Val ue d f Asymp .sig(2- sided) val ue d f Asy mp .sig .(2- side d) Pears on chi-squar e 1.9 25 1 .00 5 1.9 25 1 .005 .0 16 1 .008 2.3 57 2 .00 7 2.3 57 1 .00 5 11 1 .001 .3 51 1 .00 4 . Likeli hood ratio 2.2 03 1 .03 8 2.2 03 1 .007 .0 17 1 .008 3.3 30 2 .03 9 3.3 30 1 .02 8 14. 421 1 .000 .3 61 1 .02 1 Linea r-by-linear ass 1.7 50 1 .03 6 1.7 50 1 .019 .0 15 1 .003 1.9 31 1 .00 5 2.1 43 1 .04 3 10. 000 1 .002 .3 19 1 .00 2 No of valid cases 11 11 11 11 11 11 11 12. Discussion and recommendations Finance management skills such as planning, budgeting, bookkeeping and accounting are critical for success or failure of an educational institution. Financial managers are responsible for the financial health of their institutions. The principals and their deputies identified the following skills as urgently needed by the managers. They included; Human resource management, management of technology, financial management, Project management, planning skills, budgeting, negotiation skills, time management, managing change, financial decision making, strategic management, procurement procedures. In order to create an enabling environment for principals in teacher training colleges it requires that the issues that stifle their effectiveness be addressed. Initiatives such as tailor made financial management courses facilitated by officers from the office of planning, treasury, Kenya school of government and Kenya national audit services are necessary to enable the principals effectively and efficiently manage finances in the colleges.
  • 7. Journal of Education and Practice www.iiste.org ISSN 2222-1735 (Paper) ISSN 2222-288X (Online) Vol.5, No.23, 2014 A more permanent solution could be put in place by having modules that the principals must cover within a certain period of training which is mandatory Sometimes this is done for secondary school principals facilitated by KEMI. It is recommended that the deputy principals, deans and heads of departments in teacher training colleges be trained on management. This team works very close to the principal in managing the colleges. The training should lead to a recognizable certificate. Regular INSETS would go a long way in updating and upgrading the principal and the management team. 13. Conclution From the study, it was clear that effective financial management was a government requirement that is expected to give the public value for their money, with the aim of improving service delivery. However, very little effort was being expended to equip the financial managers with the relevant skills. A lot of benefits would be realized in the colleges if the right training was given to the financial managers. Continuous training was deemed necessary from the study, to keep the officers abreast with current requirement like strategic planning and performance contracting. The principals surveyed had not attended seminars or workshops on financial management in the last three years. This showed that there were a lot of discrepancies as far as financial management was concerned. Therefore there is a need to streamline this aspect due to its usefulness as a management tool. According to the respondents, the colleges had tried their level best in financial management despite the many challenges they were facing. Despite lack of training the principals were making a notable effort to improve their performance. Since their appointment to management position, it was evident that the principals had become more committed to their work, there was increased job satisfaction and morale and that they were motivated to work. Service delivery had improved tremendously and there was deliberate effort to increase efficiency in processes aimed at resulting to financial gain REFERENCES Basic Education Act (2013) laws of Kenya Nairobi .government printers Code of Regulations for Teachers (2014) Government printers, Nairobi Commonwealth secretariat, (2000) financial management in schools Commonwealth of learning and the South African development community ministries of education Curriculum Creswell, J. (2009). Educational research: Planning, conducting, and evaluating quantitative and qualitative research (2nd Ed.). Upper Saddle River, NJ: Pearson Merrill Prentice Hall. Di Napoli T. P (2007) our world neighbour charter school Office of New York controller, division of state government accountability financial management practices report (2007) Faheem, M.(2006)the role of a principal of a teacher training college Aga Khan University, institute of Educational development Karachi. Retrieved frhttp://economics.aku.ed/theses_desertation/279 Henry, Ngobi, Otaala, maani and Bakaira(2013)The Role of Universities in Teacher Education and Professional Development: Kyambogo University a Case Study(Kyambogo University, Uganda) Ishara H. (2007), the financial management role of principals in section 21 schools in South Africa, Durban, 73 Kwanzulu-Natal. Kombo D.K. and Tromp D.L.A. (2006) proposal and thesis writing, an introduction Nairobi, Pauline publications Africa Mary P. Isabel O. Trish W. (2006), school district financial management, personnel, policies and practices. School service of California, Stanford University MoE(k) (2012)taskforce report on the alignment of the education sector to the constitution of Kenya 2010.New education draft bill. Towards a globally competitive quality education for sustainable development MoEST(2006). A handbook of financial management: instructions for secondary schools, colleges and polytechnics. Nairobi, Government printers Okumbe 2007(1999) Education management: theory and practice Nairobi, University press, University of Nairobi US department of education 34 CFR 668 Subpart K, (2011) financial management systems Willis Yuko.O. & David Onen (2009) A general guide to writing research proposal and report, A handbook for beginning researchers Nairobi, Jomo Kenyatta foundation
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