Abstract:
The purpose of this study was to investigate the factors that influence utilization of
funds in Kenyan secondary school and its effects on the role of value based
leadership in Wareng sub county -Uasin Gishu County. Among its specific
objectives were: assess the role of value based leadership on effective utilization of
school funds, find out the effect of school characteristics on effective utilization of
school funds, investigate the effect of school policy on effective utilization of school
funds and to establish the effects of Board of Governors chairperson (B.OG),parents
teachers association chairperson (P.T.A) and head of department chairperson
(H.O.D)characteristics on effective utilization of school funds. The study was based
on value based leadership theory that was propounded by Chen, J. (2009). The
conceptual framework assumes that head teachers effectiveness in financial
management was determined by personal, institutional, and moral factors that guide
schools. A descriptive survey design was adopted. A sample size of 49 respondents
comprising 12 head teachers, 12 PTA chairpersons, 12 H.O.D, 12 BOG chairpersons
and 1 Auditor were drawn from 12 public secondary schools to participate in the
study through, purposive and stratified simple random sampling techniques. Data
was collected using questionnaires and interview schedules for different categories.
The study analyzed data using statistical package for social sciences (SPSS).Tables
were used to present data. Based on the results or the data analysis, the study
established that most of the head teachers were experienced in administrative
position, had knowledge and basic skills in financial accounting management. This
shows indispensable need to prudently manage school financial resources. It was
further revealed that majority head teachers supported that KESI workshops were
very good in financial management. The study also revealed that most head teachers
follow the rules of school budgets and record transactions often as they occur. It was
further revealed by the study that PTA does a good job of evaluating the
performances of head teachers /board of governors measuring results against
effectiveness. Moreover, the study also indicated that, there is a productive working
relationship between the BOG,PTA and the head teacher on funds utilization
(characterized by good communication and mutual respect).That school organization
resource are used efficiently (good value for money spent).This study is significant
in that, understanding the determinants of effective utilization will therefore be of
value to educational management at institutional and policy making levels as well as
other stakeholders interested in effective financial management for institutional and
education sector development. The study therefore recommends that a
comprehensive in service training be establish in order to empower the management
with more relevant knowledge through information technology application on
financial management. In addition close monitoring and evaluation be done in order
to minimize chances of misappropriation of funds.