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(v) Programme budgeting – is a method of budgeting whereby the resources available to a school are matched to the school’s priorities and “finalized” via a reconciliation process

(vi) Coombs and Hallak (1972; 257) recommend that a cost benefit analysis be incorporated into the budgeting process. Conventional budgets and accounts, though useful for certain purposes, for example, assisting auditors, guarding against misappropriation of funds, and so on but are of limited value to compare the efficiency of the educational system.

Schools need to adopt a system that fits their own needs. Simpkins and Lancaster in Knight (1993; 140), adapted, suggest a wide range of possible criteria:

  • equitable allocation to the needs of different subjects
  • taking cognizance of the schools priorities
  • facilitation of long term planning
  • ability to react to environmental change
  • take into account abilities to spend (wisely)
  • be easily understood and widely accepted

In relation to the budgeting process, the FINCOM has four main tasks:

Planning the budget

Planning the budget involves joint decision making by all stakeholders represented on the school governing body in respect of financial resource allocation, distribution and spending. This planning is goal orientated and thus focuses on the question: How best can we use the available resources to improve the performance of our learners? [Marishane and Botha (2004; 108)]. The cost allocations must consider efficiency, effectiveness and economy and the distribution of the budget should consider redress and equity.

(ii)implementing the budget

Implementing the budget involves the actual spending of the funds allocated to each programme and / or committee. It will also involve generating the funds required to fund the programmes and / or committees.

(iii)monitoring the budget

Monitoring the budget involves the development of a control system or monitoring instrument – monitoring has also been referred to as budget variance reporting, that is, on a month by month basis the actual expenditure (and income) is compared with budgeted expenditure (income) and any variance must be identified, investigated and explained in order to avoid over expenditure.

(iv)evaluating the budget

Evaluating the budget involves, according to Marishane and Botha (2004; 109), a critical examination of the extent to which the money allocated to the various programmes and committees managed to achieve (the schools) objectives.

Roles and responsibilities of stakeholders

The South African Schools Act provides that the governance of a public school is vested in its governing body, which stands in a position of trust towards the school. SASA also stipulates that the school principal, under the authority of the Head of Department, must undertake the professional management of a public school. Figure 3 shows where a school governing body fits into the provincial school governance structure.

Figure 3: SGBs Position in School Governance

Source: Understanding the S A Schools Act (1997; 15)

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Source:  OpenStax, Financial management of schools. OpenStax CNX. Nov 16, 2009 Download for free at http://cnx.org/content/col11137/1.1
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