Factors that affect educational finance utlization in Oromia regional state
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Date
2007-06
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Addis Ababa Universty
Abstract
The major purpose of this study was to assess factors that affect Educational finance
utilization in Oromia Regional State Education Bureau, with some selected woredas .In
order to attain the objectives of the study; a descriptive survey method was employed.
This study was carried using purposive and random sampling technique. Data were
gathered through questionnaire, interview and document analysis and analyzed using
percentage, weighted mean and ranking the frequency of responses. The findings of the
study revealed that the degree of participation professionals in budget preparation was
found to be low. In addition, the absence of accounting department within the education
offices at woreda level highly affected the timely utilization of Educational finance.
Capital budget allocations at woreda level were insignificant and the recurrent budget
allocated to woredas was underutilized due to lack of implementation capacity.
Inflexible financial rules and regulations, lack of managerial capacity of WEO, poor
system of record keeping and reporting and lack of qualified personnel at WEO were
major factors that affected the educational finance at woreda level.
At Regional Education Bureau level, capital budget allocations were made based on
political commitment that affects planned activities of the Bureau. Budget execution has
practically been constrained due to lack of timely release of budget, high turnover and
transfer of personnel handling finance operations. Furthermore, inadequacy of
qualification, experience, training, poor organizational structure, inadequate financial
decentralization, delay of purchasing, pre- conditions of budget release, poor record
keeping and financial reporting were among the factors that affected the utilization of
educational finance.
To alleviate these prevailing factors that affect educational budget preparation and its
utilization, it is recommended that the WFEDO, with regional BOFED has to encourage
the participation of educational professional in order to prepare reasonable budget,
reviewing the existing accounting practices to make organizational structure adjustment
particularly for large sectors like Education offices in woredas. Woredas have to improve
capital budget allocation and building the capacity of WFEDO experts through training
for better handling the operation of finance
For capital budget allocation that has been made based on political commitment, It IS
recommended that the Bureau has to review the capacity of budget before entering into
commitment and also find other alternative resources. The Bureau should encourage
professionals to participate in budget preparation and develop incentive mechanism to
maintain personnel undertaking financial operations. In addition the Bureau has to
make periodiC financial pelformance evaluation for beller pelformance.
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Factors that affect educational