Effect of Budgetary Control on Private Secondary Schools’ Financial Performance in Arusha City, Tanzania

Abstract

This study investigated about the effect of budgetary control on private secondary schools’ financial performance in Arusha city, Tanzania. The study used the quantitative approach under the descriptive correlational design. Seventy participants from nine schools participated through a questionnaire. Data was treated through descriptive statistics and regression analysis. Based the findings, the study concluded that the budgetary process is effective since there is a clear budgeting policy and every stakeholder is included in the budget planning. The budget control measures are effective since departments work within approved budget, the schools review budget regularly and they operate within the approved budget. However, the schools’ financial performance is poor since the schools cannot afford to cover operating costs and salaries are not paid on time. Budgetary control significantly affects financial performance in a positive way. Based on the conclusions, the study recommends that the schools should maintain the current budgetary practices. Budget control measures need to be maintained for schools to perform financially. Finally, school administrators need to avoid unnecessary spending and stick to the approved budget to afford handling operating costs.