The Financial Management Practices of Private Educational Institutions in Bacoor, Cavite

Abstract

The study aimed to assess the effectiveness of financial management practices of private educational institutions in Bacoor, Cavite. The researcher made use of a descriptive method with a self-made survey questionnaire as its instrument distributed to private educational institutions in Bacoor. The questionnaire was divided into five (5) categories; Sourcing of Funds, Budgeting, Allocating Funds, Auditing, and Controlling.

The data revealed that private educational institutions in Bacoor Cavite were effective in the collection of tuition fees and miscellaneous fees, provisioning for unforeseen expenditures in the budget, allocation for personnel services, auditors maintaining independence and are not influenced by external groups, creating an annual financial statement of accounts by the finance department.

There was no significant difference in the respondent's assessment of the financial management practices when they were grouped according to number of years of existence, number of employees, number of enrolled students, school levels offered, years of service; in terms of sourcing of funds, budgeting, allocating of funds, auditing, and controlling. However, significant differences were shown when grouped according to the highest educational attainment in terms of budgeting, auditing, and controlling; as well as when grouped according to a number of training attended in terms of budgeting.

Among the recommendations of the researcher include conducting budgeting workshops and enablement for their employees whose majority are bachelor’s degrees only. This is so they can be more apprised with budgeting techniques. Another is investing in human capital in the form of training about financial audit and control to appreciate its importance, and Training around budgeting including techniques, concepts, policies, and processes should become more frequent in private schools.