1) Educational finance involves planning and managing funds for educational programs and institutions. It includes deriving revenues like taxes for establishing and running schools, as well as allocating funds across geographical areas. 2) Key aspects of educational finance include sufficiency of funds, fairness in opportunities, flexibility to adapt to changes, frugality through efficient administration, and cooperation across government and community stakeholders. 3) The scope of education finance encompasses financial concepts, taxation, budgets, analyzing costs, and sources of public and private funding for education programs.

1. @ Vinci Viveka. M.Ed 2012-13, SXCE

2. @ Vinci Viveka. M.Ed 2012-13, SXCE
MEANING
It is concerned with the income and expenditure of
authorities of educational institutions and with the
adjustment of one (income) to the other (expenditure).
DEFINITION
Hornby (1974) defined FINANCE as the issue of the
management of money or funds It involves planning for
the procurement and effective utilization of funds made
available for the implementation of programmes or
projects.

3. Ogbonnaya (2000) described EDUCATION FINANCE as the
process by which tax revenues and other resources are derived for
the establishment and operation of educational institutions as well
as the process by which these resources are allocated to institutions
in different geographical areas.
@ Vinci Viveka. M.Ed 2012-13, SXCE

4. NATURE OF EDUCATIONAL FINANCE
1. 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,

5. Scope of Education Finance
The scope of education finance refers to the specific areas or of
education finance. They include all of the following:
(a) Financial concepts like interest, payment vouchers, finance
investment, authority to incur expenditure, Bank statements, cash
management imprest and financial control.
(b) Taxation
(c) Budget
(d) Classification of government expenditure.
(e) Types of cost analysis - current versus capital cost, recurrent
and capital expenditure.
(f) Role of government and non-government agencies in the
funding of education.
(g) Sources of funds and problems of funding educational
programmes in the country.Viveka. M.Ed 2012-13, SXCE
@ Vinci

6. 1. Fund refers to a sum of money saved or made available
for a particular purpose. It could be called money or
financial resources. Fund can take any of the following
forms: Physical cash, credit facilities that is trade credits,
bank credits, etc, allowances or discounts received, etc.
2. Financial control involves the task of keeping
expenditures in check and controlling the inflow of revenue,
safe guarding the assets and ensuring that resources are
sufficient to implement the plans and policies and generally
ensuring values for money in terms of the organisation's
resource management and application.
@ Vinci Viveka. M.Ed 2012-13, SXCE

7. 3. Payment vouchers are pieces of paper showing that money has
been paid out or that the holder has the right to goods or services.
4. Authority to incur expenditure is the power given to an
administrator or chief executive of an organization to spend money
within the approved estimate.
5. An Imprest can simply be described as "earnest-money". It is
money advanced to an organization for meeting its financial needs
within a specified period. Usually, such fund helps in meeting
incidental expenses or taking care of petty business of the
organization. An imprest is normally retired at the end of the spending
period
@ Vinci Viveka. M.Ed
2012-13, SXCE

8. 6. Expenditure-
a. Recurrent expenditure can simply be described as
expenditure incurred on personnel in the organization,
consumable supplies, repairs, and maintenance and
refurbishing during the financial year.
@ Vinci Viveka. M.Ed 2012-13, SXCE
b. Capital expenditure includes expenditure on
buildings, school sites, equipment and machinery minus the
cost of their repair and maintenance.
7. Bank statements are written facts on a paper or book
about an individual, an organization or establishment’s
account with a bank, The purpose is to enable finance
officers in the organization to verify and reconcile the bank
statements with the actual balance in their cash book.

9. 8. Auditing means the verification of records kept in the
accounting system of an educational institution. The primary
objective of auditing in private organizations is to verify the records
kept in their account departments in order to determine their profit or
losses but here in educational management auditing is done to detect
fraud and error in financial management.
9. Educational budget has been presented by authorities on the
subject.
Roe (1961: 81) has defined educational budget as:
The translation of educational needs into a financial plan which is
interpreted to the public in such a way that when formally adopted, it
expresses the kind of educational programme, the community is
willing to support financially and morally, for a on-year period.
@ Vinci Viveka. M.Ed 2012-13, SXCE

10. Morphel, Johns and Reller (1974) have on the other hand
defined school budget as an educational plan with an estimate of
the receipts and expenditures necessary to finance i t for a definite
period of time.
Adesina (1981) had defined a school budget broadly as an outline
of the plan for financing the school programme for a given period.
From all the above definitions, we can deduce that the budget is
the financial statement of the proposed expenditure and expected
revenue of the government, public corporation, or educational
institution for a particular period of time. The budget usually
covers a period of one year. It shows clearly the expected income
and proposed revenue of government or in our case, an educational
institution for the coming year. In educational institutions, the
budget is prepared by the bursary department or finance office as
the case may be.
@ Vinci Viveka. M.Ed 2012-13, SXCE

11. 10. TYPES OF GOVERNMENT GRANTS
Government grants constitute a principal source of funding education.
Adesina (1981) stated that grants fall under two categories of capital
and recurrent grants.
A . Capital grants refers to the bulk of payment to the school
@ Vinci Viveka. M.Ed 2012-13, SXCE
authorities for erection of new buildings, major repairs of old ones and
the purchase of hard ware school equipment, eg, the equipment of
science laboratories or the erection of fine art laboratory.
B. Recurrent grants refers to the expenditure which occurs every
year in the budget, such as staff salaries and allowances, purchase of
equipment, maintenance of plant, traveling and transport expenses and
expenditure on pupils meals and uniforms. Recurrent expenditure
varies from time to time due to some factors such as the amount voted
in for education, and the need for effective utilization.

12. c. Government special grants enable the government to improve the
quality of education in the self-help schools. Through government special
grants,
classroom blocks are set up, laboratory equipment are procured. These
help in improving teaching and learning processes in schools. Government
special grants help in encouraging other communities to embark on
similar projects.
11. FUNDS BY NON –GOVT. AGENGIES-
1. School fees
2. Proceeds from school.
3. Community Efforts.
4. Donations from Charitable Institutions or Individuals.
5. Organizational endowment funds.
6. Educational tax
7. External Aids.
@ Vinci Viveka. M.Ed 2012-13, SXCE

13. REFERENCES-
•R.P. Bhatnagar and Vidya Aggarwal
(2010),Educational Administration , Supervision
and Finance,R.Lall Book Depot, Meerut. Prepared by:
•Bugeting And Financial Management in Vinci Viveka
Education. M.ED. 2012-13, SXCE
http://www.nou.edu.ng/noun/NOUN_OCL/p Contact-
df/pdf2/EDU%20718%20BUDGETING%20A vivekavinci@gmail.com.
ND%20FINANCIAL%20MANAGEMENT%20
IN%20EDUCATION.pdf
@ Vinci Viveka. M.Ed
2012-13, SXCE