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· Volume V Issue I


Financial management entails activities that the school undertakes to maximize the utilization of the allocated budget and resources. The purpose of this study was to explore the barriers encountered by the financial management team and create an action plan to address the identified barriers. A mixed method of research was used to analyze and interpret the data. A questionnaire, unstructured interviews, and document analysis were utilized to collect data. According to the findings of the study, the barriers encountered differ depending on the process and the source of funds. The action plan was formulated to address the barriers and enhance the implementation of the financial management activities. Therefore, school financial resources may be generated from the different stakeholders and can be beneficial to the school through the internal financial management process and competence of the staff considering the possible barriers and risks to its implementation.

Keywords: financial management, financial resources, budget allocation


Financial management is critical in maximizing the use of the school's financial resources. It is the school principal’s and designated financial staff's responsibility to manage these resources efficiently and effectively. School financial management is made up of processes and activities carried out by the principal and the school's financial staff. These procedures concentrated on the development and implementation of the financial plan, its accounting and recording, and the safekeeping of the property. Financial concerns at the school will be addressed appropriately and successfully if the school's head and financial staff, as well as other members of the school, are properly trained on their financial management tasks and responsibilities. As a result, the school's financial resources will be fully utilized and desired goals and objectives will be achieved and maintained.

Over the years, financing education has become a concern of governments. It remains important to provide quality education, especially at the basic level. It is seen by governments as an investment in human capital and the country’s wealth in the future (Rahman & Radzi, 2016). Financing education remains important and financial management is a great concern for schools. The government allocates a budget to finance the school's operations. The school should be responsible for managing the finances allocated by the government to address the curriculum and administrative needs. However, challenges in financial management confronted the school during the school operations.

In the Philippines, school financial management was fully integrated into the school operation by implementing School-Based Management (SBM). Martin (2019) described SBM as the transfer of power, authority, and resources to the school level, based on the concept that school leaders, teachers, community leaders, and parents are aware of the cause of the problems and the possible solutions. It is a change in the governance structure wherein the decision-making on how to handle all the resources was entrusted to the individual school as the primary unit of improvement.

It is undeniable that barriers occurred in managing the school's finances. Similarly, Manito Central School is confronted with the same barriers to financial management that result in budget underutilization and consequently affect the implementation of planned school programs, projects, and activities due to a shortage of budget or mismanagement of resources.

The goal of this research is to look into the barriers encountered that hinder the maximum utilization of the allocated financial resources and create action plans and strategies to address the identified problems and barriers.

The purpose of this study was to determine Manito Central School's financial management in the following areas: fiscal planning and budgeting; cashiering and disbursement; procurement; accounting and recording; asset and liability management; and physical and financial reporting. In particular, they determined the specific barriers encountered during planning, disbursement, procurement, accounting, and reporting of the financial resources and proposed an action plan to enhance the financial management of the school.



The descriptive quantitative research method was used in this study to determine the financial management processes and activities of Manito Central School over three fiscal years. This study's twenty-four respondents were polled using a survey questionnaire. They were the teachers who were directly involved in the financial management activities as well as the parents who handled and performed the tasks associated with the financial management of the PTA funds. The questionnaire's content was derived from the DepEd Financial Management Operations Manual, which served as the school's financial management reference.

The interview was also used to clarify and verify the respondents' answers. Documentary analysis, on the other hand, was used to investigate financial records and reports in order to obtain the necessary data.

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