Effects of Funds Disbursement on Financial Sustainability of Public Secondary Schools in Alego Usonga Sub-County, Kenya

Abstract

Financial sustainability in public secondary schools has been tested, with disbursement of funds and school fee payments cited as major issues. This study is therefore intended to examine the relationship between fund disbursement and the financial sustainability of public secondary schools. The study applied fund accounting theory. The study employed a descriptive research design employing a mixed approach and targeted 50 public secondary schools, hence a target of 100 respondents, two per school (school bursar, accounts clerk, and school principal) in Alego Usonga, of which a census was conducted involving all the schools. Primary data was collected using a closed-ended questionnaire, while secondary data was extracted from audited financial statements for public secondary schools. Kaiser-Meyer-Olkin was conducted for validity as well as Cronbach alpha for reliability. Piloting on 10 respondents (5 bursars and 5 principals) was conducted in Kakamega County. Data analysis involved descriptive statistics such as frequency tables, mean, and standard deviation, while inferential statistics included correlation analysis, multiple regression, and hierarchical regression. The findings of this research may be of great importance to public secondary school administrators, managers of various financial institutions, and school suppliers wishing to deliver items to the public secondary schools on credit terms. It may equally be of importance to researchers and future scholars who might need to refer to or build on this work for further research. The R square, or coefficient of determination, demonstrates that fund disbursement accounts for 46.7% of the variance in performances (R2 = 0.467). This suggests that fund disbursement has a major bearing on the results achieved. Fund disbursement was a significant predictor (p<.000). The study recommends that public secondary schools should have stronger fund disbursements. This should happen through the Ministry of Education providing timely capitation. Other agencies, such as NG-CDF and county bursaries, should be timely remitted to the public secondary schools.