An evaluation of financial management practices on free primary education (FPE) funds.The case of Thika district

Abstract

This study sought to establish the extent to which sound financial management practices are observed in Public primary schools. Specifically, the concern was on the management of the free Primary education (FPE) funds that were introduced in all public schools in January 2003. It has been noted in the background to the study that the Government availed a capitation grant of Ksh 1020 per child per annum. e.g. a school with 600 children receives Shs 612,000 p.a. The schools therefore receive different amounts, depending on the number of Child-en enrolled. The fun+, are channeled c:lirectly into the bank accounts of the over 1 public primary schools in the republic. The Ministry of Education i"2:;L1ires schools to form a School Instructional Materials selection Committees (SIMSC) that works closely with the school Management Committee (SMC) to oversee the utilization of FPE funds and designate the procurement plans. It is expected that the various schools have different financial priorities depending on their specific needs. Aspects of financial management such as financial planning and budgetary control should reflect the different priorities. In addition, the Ministry of education should have in place a financial management information system that will enable it to monitor, control and effectively direct the utilization of the FPE funds. The system should order information from all the schools and communicate it on a timely basis to the ministry headquarters to aid in developing of education policies.