Financial efficiency among schools
Financial efficiency among schools is an indication that schools are tackling the newest challenge of the autonomy required by t he Department of Education. Schools are now managing funds to carry out various school functions. School financial management comprises the planning and implementation of a financial plan, accounting, reporting and the protection of assets from loss, damage and fraud.
All items of financial management are exposed to the risk of incorrect, improper and ineffective school management, which is particularly reflected in the accounting, budgeting and fund disbursement control and on time financial reporting of a school. If the school does not have the internal rules in consonance with required requisites by government laws and Department of Education policies, there is a risk that internal controls are not set and may negatively affect school fund management.
This means a great risk for incorrect and ineffective financial management that would be detrimental for school’s to carry out the goals and objectives set by the Philippine public education system in general and to the schools’ clients in particular.
Financial efficiency is dictated by close observance and compliance to the Financial Management Operations Manual of t he Department of Education. Then continuing enhancement of school personnel and support by the schools division and regional field offices.
Level of financial efficiency is an indication that schools are operated with the most prudent, expedient and conscientious management principles and pro- active leadership under a democratic concept. Financial efficiency is best attained with stakeholders both internal and external observing fairness, transparency and honesty at all times. The level of trust of the internal and external stakeholders dictates the level of school’s effectiveness in all areas of management including financial efficiency. ( Paid article)