A blueprint for implementing internal financial processes in public schools

Abstract

In this article we explore the experiences of principals and school governing body (SGB) members about the implementation of internal  financial processes to manage school finances. To avoid the mismanagement of school funds, SGBs are compelled to design and  implement internal financial processes. However, many SGB members lack the necessary expertise and inevitably depend on principals to  make financial decisions or to find practical solutions to several financial problems. Using a qualitative research approach within an  interpretivist paradigm and case study design, we explored the application of internal financial processes of 18 financial managers in 6  Gauteng schools. Invariably, 2 core aspects, transparency and accountability, were raised as essential components of internal control  processes. The theoretical framework underpinning this study was primarily Gidden’s structuration theory which emphasises the  hierarchical levels in schools. The accountability theory, aligned with Gidden’s theory, explains the necessity for individuals to justify their  actions and foster a sense of accountability for decision-making. The findings reveal that, despite SGBs developing internal financial  processes, they experienced challenges to effectively implement these processes. They were compelled to review strategies to bolster  internal financial processes, integrating modern technology and fostering better stakeholder engagement.