THE FINANCIAL MANAGEMENT ROLE OF PRINCIPALS IN …

1 THE FINANCIAL MANAGEMENT ROLE OF PRINCIPALS IN SECTION 21. SCHOOLS IN SOUTH DURBAN, kwazulu - natal . By ISHARA HANSRAJ. Submitted in part fulfillment of the requirements for the degree of MASTER OF EDUCATION. in the subject EDUCATION MANAGEMENT . at the UNIVERSITY OF SOUTH AFRICA. SUPERVISOR: Prof. PRETORIUS. FEBRUARY 2007. Acknowledgements I wish to express my deepest and sincerest thanks and gratitude to the following people for their assistance in this research project: My husband, Sanjith for his support, academic assistance and patience throughout this research. My children, Tiana and Taedi for their patience, tolerance and understanding.

2 My sister Saadhna for her support and academic guidance. My parents, family and friends for their continued support. The Almighty for granting me the strength and perseverance to complete this project. A special thanks and appreciation to my supervisor, Prof. Francois Pretorius, for his expert academic guidance, encouragement and continued support. i Summary This study focuses on the FINANCIAL MANAGEMENT role of PRINCIPALS of Section 21 schools. The research reports on PRINCIPALS working within such a regime. The South Africa Schools Act makes provisions for schools, through their school governing body, of which the principal is a member, to obtain funds from the community.

3 Therefore the acquisition and spending of such funds has to be managed effectively and efficiently. This mini dissertation endeavours to study the changing role of PRINCIPALS with regard to the effective MANAGEMENT of school finances and whether they have the necessary skills to perform these duties. Reference is made to similar situations of PRINCIPALS of schools in the United States, England, Australia and certain developing countries. The qualitative research method was used to elicit the perception of Section21 school PRINCIPALS . The research concludes with an attempt to make some recommendations for this new role of Section 21 PRINCIPALS .

4 Ii List of Tables Page Table Checklist for Section 21 status 7-9. Table Differences in FINANCIAL school MANAGEMENT 21. Table Constituent element of school - based MANAGEMENT 22. Table Changes in roles and responsibilities for PRINCIPALS - Overview 32. iii Table of Contents Page Acknowledgements i Summary ii List of tables iii Chapter One Orientation to the study Introduction 1. Categories of schools in South Africa 3. Non-section 21 schools 5. Section 21 schools 5. International perspective 9. Motivation and Reasons for studying the FINANCIAL MANAGEMENT role of PRINCIPALS of section 21 schools 11. Problem statement, objective and purpose of the study 12.

5 Research Design and Methodology 12. Significance of the study 14. Definition of important concepts 15. FINANCIAL MANAGEMENT 15. school MANAGEMENT 15. Accountable 15. Accountability 16. Chapter Division 16. Summary 18. iv Chapter Two Literature review on the FINANCIAL MANAGEMENT role of PRINCIPALS of Section 21. schools. Page Introduction 18. The FINANCIAL MANAGEMENT role of PRINCIPALS prior to a Democratic South Africa 18. Changes brought about by Democracy 19. International perspective on school -based MANAGEMENT and the FINANCIAL MANAGEMENT role of PRINCIPALS 21. Change in the role of PRINCIPALS 24. Budget MANAGEMENT 27.

6 Instructional Leadership 29. Changes in leadership skills and MANAGEMENT 30. Staff issues influencing the school budget 31. A brief overview of the FINANCIAL role of the principal in certain developing Countries 33. Role of the Governing Body, internationally 35. Role of the school Governing Body in South Africa 36. Training of school Governing Body in South Africa 36. Summary 37. v Chapter 3. Design of the research instrument and empirical investigation Page Introduction 38. Research Design 38. Rationale for the choice of study 39. Sampling 40. Ethical Consideration 41. Data Collection 41. Research Instrument 42. Data Analysis 43.

7 Research Results 44. Trustworthiness of research findings 44. Limitation of the study 44. Summary 45. vi Chapter 4. Analysis and interpretation of the Results and Findings Page Introduction 46. Analysis 46. Important findings 47. Summary 52. vii Chapter Five Summary, Recommendation and Conclusion Page Introduction 53. Review of the research 54. Summary 54. Recommendations 56. Suggested topics of further research 58. Concluding Remarks 58. Bibliography 60. annexure 1 64. annexure 2 65. annexure 3 67. viii CHAPTER ONE. ORIENTATION TO THE STUDY. Introduction The South African Schools Act, Section 34(1) states that the state must fund public schools from public revenue on an equitable basis in order to ensure the proper exercise of the rights of learners to education and the redress of past inequalities in education provision (Government Gazette No.)

8 17579,1996:24). Bisschoff and Sayed (1999:310), indicate that although the state has legislated its intentions of funding public schools from public revenue, it is however bound by FINANCIAL consideration. Some of the FINANCIAL consideration that the state have to take into account, is the equitable distribution of fund to all government sectors, such as Health, Welfare and Housing, et cetera. The South African school Acts embodies a shift from supply-driven service delivery in schooling, where government decides on how service delivery takes place, to a more demand-driven mode, where local communities gain a greater say in how they would like service delivery that they receive to be structured (SA.

9 Report to Minister 2003: 39). The funding of public schools in South Africa has given rise to community assistance in financing of schools. Section 36 of the South African Schools Act of 1996 (South Africa, 1996: 24) states that a school Governing Body (henceforth referred to as SGB), of a public school must take all reasonable measures within its means, such as fund raising, to supplement the resources supplied by the state in order to improve the quality of education. In addition to supplementing school income, the SGB of public schools must set up a school fund, which should be administered according to clear directives issued by the Department of Education.

10 The Department of Education and Culture has therefore determined regulations that govern the establishment and control of school Funds at public schools (Department of Education and Culture: Understanding school Governance 2002:8). An example of the Department of Education circular on the National Norms and Standards for school Funding issued to PRINCIPALS in kwazulu natal is cited below. 1. Schools, which have been granted Section 21 Status, will receive a subsidy cheque in January for the first allocation and a further cheque in April for the second allocation. All expenditure will need to be accounted for. Schools that do not yet qualify for Section 21 status will receive a paper allocation for these periods.