Accountability plays a major role in school financial management. The South African Schools Act (SASA), 1996 specifies procedures that must be followed by public schools to certify that the issue of accountability is adhered to. Section 43(5) of the SASA stipulates that a governing body must submit to the Head of Department, within six months after the end of the financial year, a copy of records and financial statements of a public school. Therefore, the SGB is accountable to the HOD. Section 38(1) of the SASA further states that a governing body of a public school must prepare a budget each year and it must be presented to a general meeting of parents convened with at least 30 days’ notice, for consideration and approval by the majority of parents present and voting. This signifies that the SGB is also accountable to the parents.
Findings reflect that all selected schools have an Annual General Meeting (AGM) where the budget is presented to parents for approval. It has been revealed that the effort schools put in to conduct an effective AGM with good attendance in order to disseminate the message to the majority of parents, differs. Some schools go all the way to obtain good attendance and get enough signatures from parents which would aid to form a quorum. According to the Governing Body Regulations for Public Schools (2012), a quorum of the Annual General Meeting shall be 15% of the voters’roll; if the quorum is not reached at the AGM, the chairperson shall determine the date for the second meeting. At the second AGM, there shall be no quorum requirement and the meeting shall proceed according to the regulation. It is
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apparent that some schools take advantage of the preceding regulation and make no effort to invite enough parents so that the first meeting will be postponed. In the second meeting where the quorum is not required, it is evident that the number of attendees is reduced. This might be due to the fact that parents get discouraged by the postponement of the first meeting.
Findings also revealed that most parents are illiterate or have no accounting skills. The budget of schools reflects high figures and parents fail to comprehend what is presented, due to fear of being embarrassed, or they avoid lengthy discussions as the meetings in all selected schools in Johannesburg South are conducted in the evening and the budget part is usually the last item. They accept it without question. It is apparent that the AGM is held by most schools for the adoption of minutes and budget approval as this is the only way to receive the resource allocation from the provincial department.
Financial transparency is the key to effective financial management. Bisschoff (2002: 92) stresses the importance of transparency, stating that it involves the effective communication of financial information to all stakeholders. Schools should display openness on funds collected, be it through school fees, fund-raising or state allocation. Mestry (2009: 84) also points out the fundamental issue of effective financial management, stating that for the sake of transparency and application of democratic principles, it is advisable to include the various stakeholders in the different committees.
Findings revealed that most schools in the study lack transparency as during the interviews, participants from various schools raised concern about school finance committees that are dysfunctional. The SGBs did not recognise the finance committee as an organ that plays a pivotal role in managing the school’s finances. It was reflected that in some schools, the finance committee is window dressing. In one of the schools, signs of conflict between the SGB and the finance committee were reflected. SGBs show unwillingness to delegate financial tasks. This lack of openness is a sign of a lack of transparency.
Monies raised in various fund-raising activities are hardly disclosed in some schools. In some schools, SGB members are in the dark about school finances. Income received by the school is not disclosed; they have no idea how much the school has in its bank account. Yet Section 37 of the Schools Act stipulates that the SGB must establish a school fund and administer it in accordance with the directions issued by the HOD.
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Mestry (2004) highlights that good communication structures should be put in place with feedback from the School Governing Body to the finance committee and various stakeholders. However, it is evident that most schools face difficulties in that area. Some SGBs have the wrong perception that since the state has delegated a financial function to them, nobody has the right to know what is happening and they regard the involvement of other stakeholders as interference. It boils down to poor training received by SGBs and a lack of clarity on roles and responsibilities as well as non-compliance with policy, which has been discussed previously.
The findings of this study have been used to give some recommendations regarding accountability and transparency in managing school finances in public primary schools.