The principal’s role in the budgeting process of fee-paying public schools

Abstract

Research has shown that budgeting is one of the most important aspects to ensure effective school financial management. Very little research has been conducted on the specific role principals need to play in the budgeting process of public fee-paying schools. Although Chapter 4 of the South African Schools Act clearly stipulates the role of school governing bodies in terms of the financial management of their schools, Section 16 A of the South African Schools Act stipulates that the principals of a public school must advise their schools’ governing bodies on the implications of financial decisions made by them. This includes the budgeting process of schools. The purpose of this study was therefore to investigate the principal’s role at fee-paying public schools during the budgeting process of their schools. This study will made use of a qualitative research approach with a multiple case study design. Principals, governing body chairpersons and chairpersons of the finance committees of six fee-paying schools (three primary and three secondary schools) were invited to participate in the study. Data was collected through semi-structured interviews. The findings indicate that the principal is the primary source of information and must advise school governing bodies in their decision-making during the budgeting process. This is because of the principal’s daily involvement in the management of the school. In addition, sound communication channels between the principal and his or her governing body need to be established and the relationship between principals and their governing bodies must be based on mutual trust.