FINANCIAL PLANNING FOR STATE SECONDARY SCHOOLS:
A STRATEGY FOR QUALITATIVE SECONDARY EDUCATION IN NIGERIA.
In Nigeria there are three major levels of education system. Starting from the base, these are:
- The primary level
- The secondary level and
- The tertiary level.
SCHOOL FACILITIES: MANAGEMENT PRACTICE IN NIGERIA
Facilities are those factors which enable production workers to achieve the goals of an organization. Facilities are plants (buildings), equipment, materials and so forth. In a simple direct form, facilities are things the worker needs to make his production efforts noticeable.
School facilities are the operational inputs of every instructional programme. The school is like a manufacturing organization where plants and equipment must be in a top operational shape to produce result. Efficiency in the production function depends on how well the plants have been maintained. Effectiveness in the use of materials is dictated largely by the operationality of facilities.
PROVISION AND MANAGEMENT OF EDUCATION FINANCE IN NIGERIA
Educational financing refer to the process of sourcing, allocating and managing public school revenues in the production of educational services for the attainment of educational objectives. It helps to determine the extent of the number of employees and other resources needed in the school system for effective and efficient production of educational service.
There are competing demands on government for funds by various sectors of the national economy of which education industry is one, and that calls for optimum performance by every sector of the economy to justify continued public financial support especially in the face of dwindling economy and world inflational spiral. Resources allocated to an educational activity can either be measured in terms of the expenditure (i.e. paid money values) or in real terms such as time put in by the teachers and students.
Measurement of real terms also include service rendered by the physical facilities such as buildings, equipment, furniture etc., with respect to an educational process and these are based on the opportunity cost concept. That is to say that for a particular choice of an activity such as production of any particular level or type of education, the opportunity cost of the activity is the alternative opportunities hat have given up in the production of human capital assets (Bowles, 1970). In technical terms, the cost of education may be defined as the real resources used up in the production of educational capital assets while expenditure on education as used budgeting sense is the money value of resources (human and material) assigned to educational institutions during a given year whatever be the date of which the product will be available.
Education system is said to be productive to the extent that it is cost effective or performing optimally. Some neo-classical economists such as Sheeham (1973), has proved that a national and individual levels, education is seen as sine-qua-non for economic development of both individuals and nations. The economists such as Blaug (1970), Ahamed and Blaug (1973) and Cohn (1979) have demonstrated high correlation between investment in education, educational standards or enrollment ratio in the countries surveyed and such indices of economic growth such as Gross National Product (GNP), per capital, energy use, health and socio-political development as observed in the highly industrialized societies. This explains why both the developing and developed nations earmark a huge proportion of their national income for the provision of educational services for production of manpower for social and economic development. This paper therefore identified the need for public to finance education, the sources of education finance and the recommendations for better funding of education Nigeria.
Sunday, July 11, 2010
BUDGET
A budget is generally a list of all planned expenses and revenues. It is a plan for saving and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms.
THE NEED FOR PUBLIC FINANCING OF EDUCATION
The educational system is necessary because of the numerous advantages derived from it. It is the industry that produces the manpower required for social, political and economic development of nations. The more educated the population of a country is, the higher the productive efforts (marginal productivity) of its citizens and hence higher national income or per capital income, cetaris paribus. Harbison (1973:3) posited that;
Human resources- not capital, nor income, nor material resources – constitute the ultimate bases of the wealth of nations. Capital and natural resources are passive factors of production, human beings are the active agents who accumulate capital, exploit natural resources, build social, economic and political organizations and carry forward national development.
The thesis of Harbison (1973) reinforced the earlier thesis by Johns an Morphet (1965) reported in Obasi (2000:67) to the effect that “modern civilization demands knowledge, understanding and technological skills. Development of these through education provides the opportunity for progress. Neglect invites misery exploitation and eventual disaster”.
Apparently, the cost of education is pretty too expensive for private individuals or households to pay its full cost. For example, Obadan (1978) observed that in Bendel State of Nigeria, per student unit cost of secondary education varied form one local government to another and ranged between N109 and N279 in 1977/78. For Nigeria as a whole Pandit (1979) has shown that average per student recurrent unit cost by levels of education, 1978/79 is approximately as follows: Primary education N53, Secondary Commercial N115, Secondary N425, Teacher training colleges N524. For higher education (University undergraduate and post graduate course) per student recurrent unit costs varies from N719 (arts courses) to N3,594 (medical courses). Whereas this was the case over two decades ago, the current per student or pupil unit cost of would be anybody’s guess. Besides, there are other problems inherent in providing education for which it becomes necessary for the public (government) to come to the rescue of individuals in the provision of education.
THE NEED FOR PUBLIC FINANCING OF EDUCATION
The educational system is necessary because of the numerous advantages derived from it. It is the industry that produces the manpower required for social, political and economic development of nations. The more educated the population of a country is, the higher the productive efforts (marginal productivity) of its citizens and hence higher national income or per capital income, cetaris paribus. Harbison (1973:3) posited that;
Human resources- not capital, nor income, nor material resources – constitute the ultimate bases of the wealth of nations. Capital and natural resources are passive factors of production, human beings are the active agents who accumulate capital, exploit natural resources, build social, economic and political organizations and carry forward national development.
The thesis of Harbison (1973) reinforced the earlier thesis by Johns an Morphet (1965) reported in Obasi (2000:67) to the effect that “modern civilization demands knowledge, understanding and technological skills. Development of these through education provides the opportunity for progress. Neglect invites misery exploitation and eventual disaster”.
Apparently, the cost of education is pretty too expensive for private individuals or households to pay its full cost. For example, Obadan (1978) observed that in Bendel State of Nigeria, per student unit cost of secondary education varied form one local government to another and ranged between N109 and N279 in 1977/78. For Nigeria as a whole Pandit (1979) has shown that average per student recurrent unit cost by levels of education, 1978/79 is approximately as follows: Primary education N53, Secondary Commercial N115, Secondary N425, Teacher training colleges N524. For higher education (University undergraduate and post graduate course) per student recurrent unit costs varies from N719 (arts courses) to N3,594 (medical courses). Whereas this was the case over two decades ago, the current per student or pupil unit cost of would be anybody’s guess. Besides, there are other problems inherent in providing education for which it becomes necessary for the public (government) to come to the rescue of individuals in the provision of education.
PROBLEMS
i) Externality Problem
One basic reason why the public or government should finance education is the externality problem. It is generally believed that the provision of education to a group of people in the society has a spillover effect on others that did not get such education (Akanghou, 1983) by improving the productivity or enlightenment of the latter. This type benefit is referred to as external benefit or neighbourhood effects.
ii) Compulsory Provision of Education to a certain Level or Provision of Universal Education
It is generally argued that because of two reasons – externality problem and compulsion, the government comes up with the policy decision to finance education. However, in compulsion, the government sees it as obligatory to provide information or education to the society to remove consumer ignorance. Chapter iv, 45(1) (2) of the 1995 Draft Constitution provides that “Every Nigerian child be entitled to free and compulsory primary Education…… and every Nigerian Citizen shall be entitled to participate in free adult literacy programmes to be provided by government”, (Professor Gidado Tahir, 1999:71).
iii) Lack of Capital Market
This is another problem that exist in funding education. Unlike financing any project, where the individual goes to the capita market for a loan to be repaid within a definite time period, investment on education is investing in particular human beings, and the reward is not paid immediately but over life time. Since the individual can migrate, it is difficult to get back the loan.
iv) Increased Educational Provision
Private entrepreneurs hardly provide education because of the profit which is limited and for that reason government ahs to aid them in order to produce the number of the educated people required of the economy. This consistent with the tents of the manpower requirement approach to educational plainning which, according to Nwadiani (1998:49), is “the continous systematic analysis of the skilled manpower that are required in the economy”. In some societies, private individuals provide education, but as a relatively high price which may not be afforded by most people.
v) Attainment of National Objective
Nations all over the world tend to look up ot education for the attainment of their economic, social and political objectives. The Nigerian Objectives as spelt out in the National Policy on Education (1981) such as national unity and political cohesion, bridging the social and economic gaps between regions and states, manpower requirements for socio-economic development e.t.c., will be more readily actualized if government funds education.
vi) Income Distribution and Effective Control of the Nation
The classical philosophy that whoever controls the education of the young controls the future of the nation holds way here. For government to easily execute its policies and programmes for the effective control of the nation, it has to fund education in as much as it would want to control it. Furthermore, equally in line with the policy on equalization of opportunity, education being he instrument for acquisition of knowledge and skills needed for effective participation in and reward for economic activities, it has to be provide and/or funded by government.
Listing of the Problems of Funding school programmes in Nigeria
You must have come to the realization that funding is a topical issue of interest among parents, a school administrators and policy maker. This is perhaps because fo the realization that no educational programmes can be effectively implemented without adequate funds. The second reason for the interest is that the education sector competes with other sectors of the economy in the allocation of funds. To put this discussion into perspective, let us categorize the problems of funding of educational programmes in Nigeria as follow;
1) Inaccurate statistical data
2) Political instability
3) Lack of stable polices in education
4) Sole dependence of the Federal Government on oil revenue
5) Population explosion
6) Limited sources of funds available to education
7) Indiscipline and corrupt leadership
8) Diversion of funds meant for education to other sectors
9) Inadequate allocation fo funds to the education sector
10) Methods of disbursing funds to various levels of education
Problem of Inaccurate Statistical Data and Political Instability
The issue of inaccurate statistical data is one that faces every sector fo the Nigerian economy. Wrong information and wrong figures make it difficult for the government to plan education effectively much less proved funds for education.
Problem of Lack of Stable Policies in Education Sole Dependence on Oil Revenue and Population Explosion
A stable policy is a firmly established course of action adopted by an individual, a group or an organization or a nation to accomplish set objectives.
Problem of Limited Sources of Funds and Inadequate Allocation of Funds to the Education Sectors
The education sector competes with the industrial, health, agricultural communication and steal sectors of the Nigerian economy. Education demands effective funding from the government.
Problem of Indiscipline and Corrupt Leadership as well as Diversion of Funds Meant for Education to Other Sectors
Indiscipline and corruption have eaten deep into the fabrics of Nigerian society. In fact, indiscipline and corruption are today found in the industrial sector, in health institutions, in government agencies and parastatals and even in educational institutions that ware once known for order and decorum.
One basic reason why the public or government should finance education is the externality problem. It is generally believed that the provision of education to a group of people in the society has a spillover effect on others that did not get such education (Akanghou, 1983) by improving the productivity or enlightenment of the latter. This type benefit is referred to as external benefit or neighbourhood effects.
ii) Compulsory Provision of Education to a certain Level or Provision of Universal Education
It is generally argued that because of two reasons – externality problem and compulsion, the government comes up with the policy decision to finance education. However, in compulsion, the government sees it as obligatory to provide information or education to the society to remove consumer ignorance. Chapter iv, 45(1) (2) of the 1995 Draft Constitution provides that “Every Nigerian child be entitled to free and compulsory primary Education…… and every Nigerian Citizen shall be entitled to participate in free adult literacy programmes to be provided by government”, (Professor Gidado Tahir, 1999:71).
iii) Lack of Capital Market
This is another problem that exist in funding education. Unlike financing any project, where the individual goes to the capita market for a loan to be repaid within a definite time period, investment on education is investing in particular human beings, and the reward is not paid immediately but over life time. Since the individual can migrate, it is difficult to get back the loan.
iv) Increased Educational Provision
Private entrepreneurs hardly provide education because of the profit which is limited and for that reason government ahs to aid them in order to produce the number of the educated people required of the economy. This consistent with the tents of the manpower requirement approach to educational plainning which, according to Nwadiani (1998:49), is “the continous systematic analysis of the skilled manpower that are required in the economy”. In some societies, private individuals provide education, but as a relatively high price which may not be afforded by most people.
v) Attainment of National Objective
Nations all over the world tend to look up ot education for the attainment of their economic, social and political objectives. The Nigerian Objectives as spelt out in the National Policy on Education (1981) such as national unity and political cohesion, bridging the social and economic gaps between regions and states, manpower requirements for socio-economic development e.t.c., will be more readily actualized if government funds education.
vi) Income Distribution and Effective Control of the Nation
The classical philosophy that whoever controls the education of the young controls the future of the nation holds way here. For government to easily execute its policies and programmes for the effective control of the nation, it has to fund education in as much as it would want to control it. Furthermore, equally in line with the policy on equalization of opportunity, education being he instrument for acquisition of knowledge and skills needed for effective participation in and reward for economic activities, it has to be provide and/or funded by government.
Listing of the Problems of Funding school programmes in Nigeria
You must have come to the realization that funding is a topical issue of interest among parents, a school administrators and policy maker. This is perhaps because fo the realization that no educational programmes can be effectively implemented without adequate funds. The second reason for the interest is that the education sector competes with other sectors of the economy in the allocation of funds. To put this discussion into perspective, let us categorize the problems of funding of educational programmes in Nigeria as follow;
1) Inaccurate statistical data
2) Political instability
3) Lack of stable polices in education
4) Sole dependence of the Federal Government on oil revenue
5) Population explosion
6) Limited sources of funds available to education
7) Indiscipline and corrupt leadership
8) Diversion of funds meant for education to other sectors
9) Inadequate allocation fo funds to the education sector
10) Methods of disbursing funds to various levels of education
Problem of Inaccurate Statistical Data and Political Instability
The issue of inaccurate statistical data is one that faces every sector fo the Nigerian economy. Wrong information and wrong figures make it difficult for the government to plan education effectively much less proved funds for education.
Problem of Lack of Stable Policies in Education Sole Dependence on Oil Revenue and Population Explosion
A stable policy is a firmly established course of action adopted by an individual, a group or an organization or a nation to accomplish set objectives.
Problem of Limited Sources of Funds and Inadequate Allocation of Funds to the Education Sectors
The education sector competes with the industrial, health, agricultural communication and steal sectors of the Nigerian economy. Education demands effective funding from the government.
Problem of Indiscipline and Corrupt Leadership as well as Diversion of Funds Meant for Education to Other Sectors
Indiscipline and corruption have eaten deep into the fabrics of Nigerian society. In fact, indiscipline and corruption are today found in the industrial sector, in health institutions, in government agencies and parastatals and even in educational institutions that ware once known for order and decorum.
SOURCES AND MANAGEMENT OF EDUCATION FINANCE IN NIGERIA ACCORDING TO LEVELS
Three policy makers in education in Nigerian are invariably the providers of education funds. These are:
(a) The Public – represented by the federal, state and local governments;
(b) The private individuals and
(c) The rest of the world.
These three groups deny themselves of other services or opportunities to fund the education of their citizens, children and beneficiaries respectively.
a) The Public
By way of practical approach, it is convenient to review the position of each public financing source by reference to the level of east government in the county in line with the policy of democratization and devolution of responsibilities for provision of education.
i) Federal Government:
The Federal Government’s contribution to educational financing in Nigeria is shown not only in the budget of the Ministry of Education but also in the budget of other Ministries responsible for certain types of training. For example, the Ministry of Labour and Productivity is often responsible for technical and vocational training, the Ministry of Agriculture for agriculture, education and rural training, the Ministry of Health for nursing education and school of Health Technologies, the office of the presidency for Schools of Administration such as Administrative Staff College, Topo, Badagary in Lagos and so for the, such educational expenditures are shown in the annual budgets of the ministries. The federal government is mainly charge with the provision of higher education and it runs the federal Universities through the National Universities Commission (NUC).
Ogunu (2000:77-79) has noted that during the Third National Development Plan (1975 – 1980) education got N3.2 billion or 12% of the total sector effective programme of N25.5 billion. This was based on the social demand approach to educational planning with the introduction of UPE in September, 1876 and the University expansion from 6 to 13 during the period. Amount assigned to education during the period 1990 – 2000 have increased from year to year. The Table below shows Federal Governments allocation to education sector from 1988 to 1996. The total allocation to education rose from 1,066,146,000 in 1988 to 15,351719 in 1996. Thus the percentage of the National budgetary allocation to education rose from 3.3% to 12.4% in 1988 and 1996 respectively.
Budgetary Allocation to Education 1988 – 1996
1988
000
1989
000
1990
000
1991
000
1992
000
1993
000
1994
000
1995
000
1996
000
Recurrent
824,346
1,719,823
1,971,999
1,762,252
2,008,340
1,436,981
7,878,085
9,798,523
12,135,958
Capital
24,180
221,888
347,746
328,858
659,530
563,020
2,405,700
3,017,910
3,215,761
Total percentage of the National Budgetary
1,06,146
1,941,721
7,319,736
154,090
2,667,870
7,999,101
10,283,185
12,816,4333
15,351,719
Allocation to Education
3.3%
6.4%
5.8%
4.01%
5.12%
6.97%
14.8%
11.5%
12.4%
Source: Federal Ministry of Education, Statistics Branch, December, 1996
The Educational Research Network in West and Central Africa (ERNWACA) has observed that until the mid – 1980s state expenditures in formal education in West and Central Africa consistently commanded fairly high percentages of national public spending even during the early years of major austerity measures and that the salaries of educational personnel have commanded much the highest proportion of educational expenses (Belem in Maclure, Richard [ed]) overlooked and undervalued, ERNWACE (1997). That is to say that the Federal Government provides the highest percentage of the cost education.
ii) State Governments:
The State Governments through the States Ministries of Education play an important part in educational financial especially in a country like Nigeria with a decentralized financing system as in the United States of America and the United Kingdom. Under the concurrent legislative arrangement in education, the State Governments are charged wit the responsibility of providing secondary education. It should be noted that there are generally subventions from the federal government to the states and local governments through federation accounts for the provision of education amongst other services in the states and local government areas.
iii) Local Governments:
The Local Governments constitute the third tier of the Public authorities in Nigeria and they are charge with the management of primary education in the country. Within the provisions of concurrent legislative list, the local governments are charged with the provision of primary education. However, due to the vagaries of withholding the salaries of primary school teachers by the local governments, the federal government took over the payment of primary school teachers salaries through its agency – the National Primary Education Commission (NPEC) and the state primary Education Board (SPEB) while the Local Education Authorities see to the day-to-day supervision or instruction and posting o the head teachers and the classroom teachers.
b) Private Sources
The private source of education finance cover four items namely, tuition fees, other private receipts from parents, private grants, endowments and other sources, but few countries are in a position to supply information of sufficient precision, even at overall level. It is, for example extremely difficult to estimate the contribution of families without an appropriate case study or special statistical survey. The size of the private contribution which is imperfectly known varies widely in different countries according to social, economic and institutional factors.
c) External Aid
In the developing countries, external aid often plays a paramount part in educational financing and must therefore be taken into account in assessing total costs of education. Carnou and Agonsanou in Maclure (1997:16) writing on external aid for education in West and Central Africa attest that “figures on external assistance for formal education are also reasonably transparent.
The foreign aid to education in Nigeria could take the form of pedagogical resource inputs such as library books, teaching personnel, vehicles for school inspection visits etc or assistance in the payment of salary and non-salary recurrent bills or assistance in the provision of infrastructures (classroom and office blocks, desks and chairs, teaching aids, toilet facilities etc). Tilak (1988) has ably argued a case for foreign aid for education in the poor developing countries. He justified foreign aid on the grounds of efficiency, equity and the advisability for the rich countries to assist the poor countries in the interest of global peace stability and progress.
(a) The Public – represented by the federal, state and local governments;
(b) The private individuals and
(c) The rest of the world.
These three groups deny themselves of other services or opportunities to fund the education of their citizens, children and beneficiaries respectively.
a) The Public
By way of practical approach, it is convenient to review the position of each public financing source by reference to the level of east government in the county in line with the policy of democratization and devolution of responsibilities for provision of education.
i) Federal Government:
The Federal Government’s contribution to educational financing in Nigeria is shown not only in the budget of the Ministry of Education but also in the budget of other Ministries responsible for certain types of training. For example, the Ministry of Labour and Productivity is often responsible for technical and vocational training, the Ministry of Agriculture for agriculture, education and rural training, the Ministry of Health for nursing education and school of Health Technologies, the office of the presidency for Schools of Administration such as Administrative Staff College, Topo, Badagary in Lagos and so for the, such educational expenditures are shown in the annual budgets of the ministries. The federal government is mainly charge with the provision of higher education and it runs the federal Universities through the National Universities Commission (NUC).
Ogunu (2000:77-79) has noted that during the Third National Development Plan (1975 – 1980) education got N3.2 billion or 12% of the total sector effective programme of N25.5 billion. This was based on the social demand approach to educational planning with the introduction of UPE in September, 1876 and the University expansion from 6 to 13 during the period. Amount assigned to education during the period 1990 – 2000 have increased from year to year. The Table below shows Federal Governments allocation to education sector from 1988 to 1996. The total allocation to education rose from 1,066,146,000 in 1988 to 15,351719 in 1996. Thus the percentage of the National budgetary allocation to education rose from 3.3% to 12.4% in 1988 and 1996 respectively.
Budgetary Allocation to Education 1988 – 1996
1988
000
1989
000
1990
000
1991
000
1992
000
1993
000
1994
000
1995
000
1996
000
Recurrent
824,346
1,719,823
1,971,999
1,762,252
2,008,340
1,436,981
7,878,085
9,798,523
12,135,958
Capital
24,180
221,888
347,746
328,858
659,530
563,020
2,405,700
3,017,910
3,215,761
Total percentage of the National Budgetary
1,06,146
1,941,721
7,319,736
154,090
2,667,870
7,999,101
10,283,185
12,816,4333
15,351,719
Allocation to Education
3.3%
6.4%
5.8%
4.01%
5.12%
6.97%
14.8%
11.5%
12.4%
Source: Federal Ministry of Education, Statistics Branch, December, 1996
The Educational Research Network in West and Central Africa (ERNWACA) has observed that until the mid – 1980s state expenditures in formal education in West and Central Africa consistently commanded fairly high percentages of national public spending even during the early years of major austerity measures and that the salaries of educational personnel have commanded much the highest proportion of educational expenses (Belem in Maclure, Richard [ed]) overlooked and undervalued, ERNWACE (1997). That is to say that the Federal Government provides the highest percentage of the cost education.
ii) State Governments:
The State Governments through the States Ministries of Education play an important part in educational financial especially in a country like Nigeria with a decentralized financing system as in the United States of America and the United Kingdom. Under the concurrent legislative arrangement in education, the State Governments are charged wit the responsibility of providing secondary education. It should be noted that there are generally subventions from the federal government to the states and local governments through federation accounts for the provision of education amongst other services in the states and local government areas.
iii) Local Governments:
The Local Governments constitute the third tier of the Public authorities in Nigeria and they are charge with the management of primary education in the country. Within the provisions of concurrent legislative list, the local governments are charged with the provision of primary education. However, due to the vagaries of withholding the salaries of primary school teachers by the local governments, the federal government took over the payment of primary school teachers salaries through its agency – the National Primary Education Commission (NPEC) and the state primary Education Board (SPEB) while the Local Education Authorities see to the day-to-day supervision or instruction and posting o the head teachers and the classroom teachers.
b) Private Sources
The private source of education finance cover four items namely, tuition fees, other private receipts from parents, private grants, endowments and other sources, but few countries are in a position to supply information of sufficient precision, even at overall level. It is, for example extremely difficult to estimate the contribution of families without an appropriate case study or special statistical survey. The size of the private contribution which is imperfectly known varies widely in different countries according to social, economic and institutional factors.
c) External Aid
In the developing countries, external aid often plays a paramount part in educational financing and must therefore be taken into account in assessing total costs of education. Carnou and Agonsanou in Maclure (1997:16) writing on external aid for education in West and Central Africa attest that “figures on external assistance for formal education are also reasonably transparent.
The foreign aid to education in Nigeria could take the form of pedagogical resource inputs such as library books, teaching personnel, vehicles for school inspection visits etc or assistance in the payment of salary and non-salary recurrent bills or assistance in the provision of infrastructures (classroom and office blocks, desks and chairs, teaching aids, toilet facilities etc). Tilak (1988) has ably argued a case for foreign aid for education in the poor developing countries. He justified foreign aid on the grounds of efficiency, equity and the advisability for the rich countries to assist the poor countries in the interest of global peace stability and progress.
SOURCES OF SCHOOL REVENUE IN NIGERIA
Section 13 of the National Policy on Education entitled “Financing of Education” states that “the traditional sources or revenue for educational establishments include taxes, school fees, education levies, or rates and sometimes donation”. The bulk of the education revenue in Nigeria comes from the sale of liquid and solid natural mineral resources. The principal of which is the petroleum product. Other sources of funds for education in Nigerian include:
i) Pay-As-You Earn (PAYE) tax.
ii) Property tax.
iii) Rates General or specific.
iv) Registration fees and court fines.
v) Value Added Tax (VAT)
vi) School fess.
vii) Education rates such as Education Trust Fund.
viii) Tax on interest to savings account
ix) Education levies.
x) Donations during sports festivals, send forth ceremonies, foundation day celebrations, silver and golden jubilee celebrations and public spirited individuals make cash donations for the provision of certain services and goods to schools.
xi) Rentals – some staff quarters either built by the community effort or the state attract revenue through the rents paid by teachers but the amount derived from this source is usually insignificant. At the level of tertiary institutions such as the Universities, Polytechnics and Colleges of Education, such rentals also constitute internal revenue base.
xii) Alumni or old boys/girls associations – from time to time, association of graduates from a particular institution assist in the funding of their institution such as erection of school blocks, and provision of good and services, and
xiii) Duties – import and export duties as well as other sources accruable to the federal, state and local government as the case may be.
It is important to note that the supply of funds is mainly though taxation at the federal and state levels and by the federal grants to state and local governments.
i) Payment of Taxes for Community Schools
ii) Contribution by Local Governments
iii) Agricultural and other ventures ot be organized by Schools
iv) Endowments and Foundations
v) Communities and Individuals
vi) Foreign Aids
BASIC PROCEDURES OF MANAGING FUNDS IN SCHOOLS
You need to ask yourself how you mange your salary or the money you get. Do you keep any record or just spend your money the way you like? Do you spend you money the way you likes? Do you have a personal cash book? In managing funds in educational institutions, there are number of management functions which heads of the institution normally carry out to ensure that they manage funds effectively. The first is that they keep a record of all funds received, to be spent or spent in vote books. In vote books, finance officers record all items and amounts of money approved to be expended for every term, semester or year. The book is normally consulted before spending is undertaken. Before salaries are paid or before any payment of any jobs are done, relevant vouchers have to be prepared. A voucher explains the reasons and authority of the expenditure.
In managing funds also, heads of instructions use what is called Local Purchase Order (LPO). The local purchase order is used for identifying and authorizing local purchases voted for in the school. It si an agreement made between a school and a supplier certifying that the school is ready to purchase the item at an agreed price. Some examples of items for which an agreement could be made between a school and a supplier could be duplicating parers, foolscap sheets, stationeries, biro pens, ribbons, staplers, files and file tags, office pins paper clips, etc. there is also the cash books where all transaction are recorded each day.
Heads of institutions should also make use of cheque books. A cheque can be described as a written order directing a bank to pay money to one whose name appears.
Journals are very important for heads of educational institutions to record all financial transactions. The journal has to be written daily. It is the first step of the accounting circle in the school. Below is the sample of a journal entry.
Date
Purpose of Expenditure
Amount
N
4/2/2001
50 bags of cement
25,000.00
3/3/2001
Aluminum roofing sheets
200,000.00
15/5/2001
Stationeries
35,000.00
20/6/2001
Ceiling boards and nails
200,000.00
27/6/2001
Dusters and chalk
159,000.00
In every educational institution, heads use the cash book to record money which is disbursed for official purposes, while in the financial legers, they post information proved in the journals. Actually, the purpose of ledgers is to record the financial transaction of all education institution as they occur.
i) Pay-As-You Earn (PAYE) tax.
ii) Property tax.
iii) Rates General or specific.
iv) Registration fees and court fines.
v) Value Added Tax (VAT)
vi) School fess.
vii) Education rates such as Education Trust Fund.
viii) Tax on interest to savings account
ix) Education levies.
x) Donations during sports festivals, send forth ceremonies, foundation day celebrations, silver and golden jubilee celebrations and public spirited individuals make cash donations for the provision of certain services and goods to schools.
xi) Rentals – some staff quarters either built by the community effort or the state attract revenue through the rents paid by teachers but the amount derived from this source is usually insignificant. At the level of tertiary institutions such as the Universities, Polytechnics and Colleges of Education, such rentals also constitute internal revenue base.
xii) Alumni or old boys/girls associations – from time to time, association of graduates from a particular institution assist in the funding of their institution such as erection of school blocks, and provision of good and services, and
xiii) Duties – import and export duties as well as other sources accruable to the federal, state and local government as the case may be.
It is important to note that the supply of funds is mainly though taxation at the federal and state levels and by the federal grants to state and local governments.
i) Payment of Taxes for Community Schools
ii) Contribution by Local Governments
iii) Agricultural and other ventures ot be organized by Schools
iv) Endowments and Foundations
v) Communities and Individuals
vi) Foreign Aids
BASIC PROCEDURES OF MANAGING FUNDS IN SCHOOLS
You need to ask yourself how you mange your salary or the money you get. Do you keep any record or just spend your money the way you like? Do you spend you money the way you likes? Do you have a personal cash book? In managing funds in educational institutions, there are number of management functions which heads of the institution normally carry out to ensure that they manage funds effectively. The first is that they keep a record of all funds received, to be spent or spent in vote books. In vote books, finance officers record all items and amounts of money approved to be expended for every term, semester or year. The book is normally consulted before spending is undertaken. Before salaries are paid or before any payment of any jobs are done, relevant vouchers have to be prepared. A voucher explains the reasons and authority of the expenditure.
In managing funds also, heads of instructions use what is called Local Purchase Order (LPO). The local purchase order is used for identifying and authorizing local purchases voted for in the school. It si an agreement made between a school and a supplier certifying that the school is ready to purchase the item at an agreed price. Some examples of items for which an agreement could be made between a school and a supplier could be duplicating parers, foolscap sheets, stationeries, biro pens, ribbons, staplers, files and file tags, office pins paper clips, etc. there is also the cash books where all transaction are recorded each day.
Heads of institutions should also make use of cheque books. A cheque can be described as a written order directing a bank to pay money to one whose name appears.
Journals are very important for heads of educational institutions to record all financial transactions. The journal has to be written daily. It is the first step of the accounting circle in the school. Below is the sample of a journal entry.
Date
Purpose of Expenditure
Amount
N
4/2/2001
50 bags of cement
25,000.00
3/3/2001
Aluminum roofing sheets
200,000.00
15/5/2001
Stationeries
35,000.00
20/6/2001
Ceiling boards and nails
200,000.00
27/6/2001
Dusters and chalk
159,000.00
In every educational institution, heads use the cash book to record money which is disbursed for official purposes, while in the financial legers, they post information proved in the journals. Actually, the purpose of ledgers is to record the financial transaction of all education institution as they occur.
SOLUTIONS AND RECOMMENDATIONS ON BETTER MANAGEMENT OF SCHOOL FUNDS IN NIGERIA
According to the ADEA Newsletter (January – March, 1998) “the poor management of education systems in Africa was considered by many to be the number one constraint towards making progress in attaining educational goals in Africa. Furthermore, budgetary constraints and the increasing demand for education area urging educational planners and economist to develop new strategies and techniques for financing education”.
The present arrangement whereby educational services are duplicated by the three levels of government in the country does not augur well for the principles of democratization of education. Consequently, the following recommendations are hereby made for better management and funding or education industry in Nigeria.
i) Federal Government and Education:
Under the principle of devolution of responsibilities for education, provision for all forms of primary and secondary education presently run directly or indirectly by the federal government in the name of unity schools, command schools etc., should be handed over to the appropriate level of government, state and local for funding and management while the Federal government should confine it self to the funding and management of higher education. This will obliterate duplication educational service and setting up of different standards.
ii) State Government and Education:
The state government should fund and manage all forms of secondary education in the country while the Federal Ministry of Education provides Inspectorate Services for maintenance of standards and uniformity of curriculum. The state governments should hands-off in the provision of higher education or primary education of any form.
iii) Local Government and Education:
The entire funding and management of primary education should be the responsibility of Local Government. The inspectorate division of the state Ministry of Education should supervise teaching and learning and facilities in the local schools to ensure that standard is maintained.
iv) Revision of the Present Revenue Allocation Formular:
In the light of the financial implications entailed in each level of government funding its appropriate level of education, the present revenue allocation formula should be revised to enable both state and local governments to have enough funds for their education service while a monitoring mechanism should be put in place to ensure accountability in performance by each level of government
v) Adoption of Modern Management Techniques in the Management:
Education industry has joined the “cult of efficiency” (Horton et al, 1970) which modern organization are know for. For that reason, modern management techniques such as Management by Objectives, Programme – Planning – Budgeting system, Programme, Evaluation and Review Technique, Critical Path Method, Dephi Technique etc. should be employed in the allocation of human and material resources in education for implementation of various education programmes. This agrees wit the view of Nwadiani (1998:63) that “professionally trained educational planners and administrators equipped with modern techniques of educational management and accountability should be in charge”.
The present arrangement whereby educational services are duplicated by the three levels of government in the country does not augur well for the principles of democratization of education. Consequently, the following recommendations are hereby made for better management and funding or education industry in Nigeria.
i) Federal Government and Education:
Under the principle of devolution of responsibilities for education, provision for all forms of primary and secondary education presently run directly or indirectly by the federal government in the name of unity schools, command schools etc., should be handed over to the appropriate level of government, state and local for funding and management while the Federal government should confine it self to the funding and management of higher education. This will obliterate duplication educational service and setting up of different standards.
ii) State Government and Education:
The state government should fund and manage all forms of secondary education in the country while the Federal Ministry of Education provides Inspectorate Services for maintenance of standards and uniformity of curriculum. The state governments should hands-off in the provision of higher education or primary education of any form.
iii) Local Government and Education:
The entire funding and management of primary education should be the responsibility of Local Government. The inspectorate division of the state Ministry of Education should supervise teaching and learning and facilities in the local schools to ensure that standard is maintained.
iv) Revision of the Present Revenue Allocation Formular:
In the light of the financial implications entailed in each level of government funding its appropriate level of education, the present revenue allocation formula should be revised to enable both state and local governments to have enough funds for their education service while a monitoring mechanism should be put in place to ensure accountability in performance by each level of government
v) Adoption of Modern Management Techniques in the Management:
Education industry has joined the “cult of efficiency” (Horton et al, 1970) which modern organization are know for. For that reason, modern management techniques such as Management by Objectives, Programme – Planning – Budgeting system, Programme, Evaluation and Review Technique, Critical Path Method, Dephi Technique etc. should be employed in the allocation of human and material resources in education for implementation of various education programmes. This agrees wit the view of Nwadiani (1998:63) that “professionally trained educational planners and administrators equipped with modern techniques of educational management and accountability should be in charge”.
CONCLUSION
While concluding this passage on the sources of funds for education, amongst other sectors of the economy, it is important to note that the supply of funds is mainly on taxation at the federal and state levels and by the federal grants to state and Local governments.
In practice, an analysis of this sort is difficult to undertake. While we can consider personal income taxes as contributions by households to government revenue and to assign mining rents and royalties to enterprises, it is difficult to know how much of the indirect taxes, for example, exercise duties or tax on produce are paid by primary and secondary schools in their areas. Prior to state take over of schools in the seventies, communities were known to have built schools as well as helped to make up teachers salaries where the pupils/students’ enrolment fell below the number required to qualify for government subventions. Presently, these communities have shirked off such responsibilities while depending on the federal and state governments for payment of teachers’ salaries. This paper has surveyed the justification for public or government financing of education, sources and management of education finance in Nigeria.
Recommendations were also made on how education funds could be raised without depending so much on the federal government in the light of dwindling recourse and competing demands by the other sectors of the economy. Recommendations were also proffered on how the three levels of education could best be managed by their appropriate levels of government while, modern management techniques are recommended for the management of education in Nigeria.
In practice, an analysis of this sort is difficult to undertake. While we can consider personal income taxes as contributions by households to government revenue and to assign mining rents and royalties to enterprises, it is difficult to know how much of the indirect taxes, for example, exercise duties or tax on produce are paid by primary and secondary schools in their areas. Prior to state take over of schools in the seventies, communities were known to have built schools as well as helped to make up teachers salaries where the pupils/students’ enrolment fell below the number required to qualify for government subventions. Presently, these communities have shirked off such responsibilities while depending on the federal and state governments for payment of teachers’ salaries. This paper has surveyed the justification for public or government financing of education, sources and management of education finance in Nigeria.
Recommendations were also made on how education funds could be raised without depending so much on the federal government in the light of dwindling recourse and competing demands by the other sectors of the economy. Recommendations were also proffered on how the three levels of education could best be managed by their appropriate levels of government while, modern management techniques are recommended for the management of education in Nigeria.
REFERENCES
REFERENCES
Adesina, S. (1981) some aspects of school management, Abeokuta and Ibadan; Educational Industries Limited.
Ehiametalor, E. T. and Aderounmu, W. O (1985) Introduction to Administration of Schools in Nigeria, Ibadan; Evans Limited.
Federal Ministry of Education and Youth Development (1993) Better Schools Management, London; Human Resource Development Malboroug House.
Hallak, J. (1969) the analysis of educational cost and expenditure. Paris; UNESCO International Institute for Educational Planning.
N. A. Nwagwu, E. T. Ehiametalor, M. A. Ogunu, Mon Mwadiani; Current Issues in Educational Management in Nigeria.
Budgeting and Financial management in Education by National Open University of Nigerian; printed by midland press Ltd, Jos, 2006
From Wikipedia, the free encyelopedia
Adesina, S. (1981) some aspects of school management, Abeokuta and Ibadan; Educational Industries Limited.
Ehiametalor, E. T. and Aderounmu, W. O (1985) Introduction to Administration of Schools in Nigeria, Ibadan; Evans Limited.
Federal Ministry of Education and Youth Development (1993) Better Schools Management, London; Human Resource Development Malboroug House.
Hallak, J. (1969) the analysis of educational cost and expenditure. Paris; UNESCO International Institute for Educational Planning.
N. A. Nwagwu, E. T. Ehiametalor, M. A. Ogunu, Mon Mwadiani; Current Issues in Educational Management in Nigeria.
Budgeting and Financial management in Education by National Open University of Nigerian; printed by midland press Ltd, Jos, 2006
From Wikipedia, the free encyelopedia
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