PUBLIC FINANCIAL MANAGEMENT PRACTICES AND FINANCIAL REPORTING COMPLIANCE AMONG SECONDARY SCHOOLS IN KENYA
PUBLIC FINANCIAL MANAGEMENT PRACTICES AND FINANCIAL REPORTING COMPLIANCE AMONG SECONDARY SCHOOLS IN KENYA
Enock Mutua - Student, Department of Accounting & Finance, School of Business, Economics and Tourism, Kenyatta University, Kenya
Dr. Salome Musau (PhD) - Senior Lecturer, Department of Accounting & Finance, School of Business, Economics and Tourism, Kenyatta University, Kenya
ABSTRACT
The government of Kenya has prioritized inclusive and equitable education to promote lifelong opportunities which adheres to achieving the fourth Sustainable Developmental Goal which states quality education for all. Despite the commitment of Kenya Government to invest heavily in education sector, many public secondary schools are facing financial crisis leading to serious challenges in delivery of quality education. This study sought to examine the effect of Public financial management practices on financial reporting compliance. The study was anchored on Agency, Stewardship and budgeting theories. Descriptive survey research design was employed to obtain both qualitative and quantitative data. Stratified random sampling was employed to select 385 principals, accounts clerks, and Boards of Management (BOM) chairpersons Data collected was analyzed using descriptive statistics such as frequencies, percentages, means and standard deviations, and inferential statistics including correlation and multiple regression analysis. The study concludes that public financial management practices cash management, budgeting, internal controls, and risk management collectively had positive significant effect on financial reporting compliance in public secondary schools in Kenya. The study recommends that the Ministry of Education should develop a comprehensive Public School Financial Management Policy Framework that integrates budgeting, cash management, internal controls, and risk management into a unified accountability system. This framework should be supported by continuous training, strict audit enforcement, and digital financial management systems to enhance transparency, efficiency, and financial reporting compliance.
