FINANCIAL MANAGEMENT PRACTICES IN NON-FINANCIAL INSTITUTIONS: A CASE STUDY OF PENFIELD SCHOOL LIMITED.

ABSTRACT

This research examines the financial management practices in non-financial institution using Penfield School as a case study. The study was conducted using qualitative case study research design. The study adopted purposive sampling technique for the selection of interview respondents from Penfield School. 10 respondents were interviewed. These people were selected based on their level of knowledge and involvement in the financial management practices of Penfield School. Semi-structured interviews were used to collect data from the respondents. Data collected was then analyzed using thematic analysis. The study revealed that, respondents could not really identify the various financial management practices undertaken by management of Penfield School. Respondents had no idea of how effective financial decisions were taken with regards to the revenue generated by the school via school fees. Next, the study revealed that Penfield School has inadequate financial management structures in place. This has therefore been the major cause of the lack of financial management practices. Issues about the structure revolved mostly around the Chief Executive Officer (CEO), especially in terms of his role as the only person responsible for authorizing disbursements of the school which presupposes dominance and conflict of interest. Finally, the study found out that some of the challenges confronting the financial management practices of Penfield School include poor financial management practices, inadequate financial management structure, the lack of involvement of key personnel in the finance decision process and the dominance of the CEO. The study contributes to practice, since it identifies challenges confronting the school’s financial management practices and suggest recommendations that can help resolve the challenges.