Thesis:

Influence of Internal Control Strategies on Financial Management Outcomes in Public Primary Schools in Homa-Bay Sub Count, Kenya.

Claims of mismanagement of Free Primary Education (FPE) school funds in Public Primary Schools (PPS) is on the rise and the outcry of the loss of FPE funds through poor accountability by heads of various PPS and education officials. Purpose of this research was to assess the influence of internal control strategies on financial management outcomes (FMO) in PPS in Homa -Bay Sub County. Assess the influence of budget formulation, to establish the financial accounting, to a certain the monitory and evaluation, and finally to find out the influence of reporting on financial management outcomes in PPS in Homa-Bay Sub County, Kenya. System theory and Total quality management theory guided the study, mixed methodology and concurrent triangulation design was used. The target population was drawn from 70 PPS in Homa-Bay Sub County. They were drawn from the 70 Head teachers, 70 school BOM chairpersons and 70 BOM Parents representatives, and 4 Homa- Bay Sub County Auditors from the MoEST. A total of 214 participants were targeted in the study. The school head teachers, Board of Management (BOM) Chair persons & BOM Parents representatives were sampled through random sampling & purposive sampling. A total of 43 head teachers, 43 BOM Chair persons, and 43 BOM Parents representatives, 4 Auditors for Schools were also engaged. Sample size was 133 respondents. The data collection instruments used were questionnaire and interview schedules. The reliability of the instruments was determined using, spearman rank correlation, and piloting. Validity of the instruments was determined through consultative interaction from the supervisors and other lectures. Credibility was addressed by adoption qualitative and quantitative research methods. Quantitative data was presented as count, frequency and percentages inform of tables figures and narratives. Thematic analysis was used to enable credibility by supporting both qualitative and quantitative method used. Dependability was achieved through external audit by capturing the truth which was confirmed by the supervisors. Qualitative data collected from the conversations was deliberated on thematically and presented in narrative form. The study found out that the internal control strategies used in PPS adversely influence the FMO in most PPS since schools as a system is not adequately prepared on financial managements strategies. Findings shows that most PPS do not have regular Auditors at the school levels hence their books of accounts are not regularly audited. Most School administrators and BOM Members lack adequate skills on auditing, account reconciliation and book keeping records due to lack of enough training. Most PPS were depicted as disorganized in keeping inventory records. Majority of them did not maintain inventory records and policies according to inventory management and procedures. There was lack of proper training on inventory book keeping among the administrators. Executives lacked adequate kills on budgeting process and presentations. This study recommended the need for the GoK through MoEST to intensify the process of training of school heads and BOM members on accounting, reporting, monitoring and evaluation of the use of school funds in PPS, introduce FM courses in teachers training colleges and higher learning institutions.