THE FINANCIAL MANAGEMENT OF SECTION 21 FUNDS IN
Date
2011-06-02
Authors
NGWENYA, MAPULE MAGDELINE
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Abstract
The South African Schools Act, Act 84 of 1996, states that the school principals are
responsible for managing personnel and finance and should therefore plan, control and
budget properly (Section 3). S/He is responsible for money and property and should
therefore plan, control and budget properly in line with the South African Schools Act.
The Act further puts emphasis on the overall control of the school finances as the
responsibility of the school governing body (SGB). The SGB of the public school must
establish a school fund and administer it in accordance with the direction issued by the
principal. All the money received by a public school including fees and donations must be
paid into the school account. The SGB would plan, according to their education needs,
taking provincial policy into account, and all such expenditure must be accounted for.
The purpose of this exploratory study was to investigate how previously disadvantaged
schools are managing their section 21 funds. This was done by first looking at the
formation of the school governing bodies, their roles in managing the school funds, and
lastly challenges of functioning in an environment that is not unique to them. Section 21
status requires schools to be self-reliant. This status needs governors who are well versed
in financial management skills. The study used a sample of four schools from the MEGA
District 11 Soweto in the Gauteng Province. It used the exploratory case method as an
instrument in data collection.
The study has established that SGBs from previously disadvantaged schools lack skills
and competencies to thrive in the self-reliant environment. In some instances no training
was given. Where training was given, it was insufficient, as governors do not understand
their roles. There was no clarity on who is accountable for the funds of the school. Central
to this is the fact that some of the parents are functionally illiterate, while others lack
interest in the running of their school. To them, the smooth running of the school is the
sole responsibility of the principal and the teachers. This affects the financial contribution
needed in their schools when compared to the former Model C schools.
In order to avoid mismanagement of the funds, the study recommends that continuous
training and support be provided on how funds should be used and managed.
Description
MM - P&DM
Keywords
Schools and finance, Schools and schooling, School governing bodies