Financial planning competence and funds utilization in government secondary schools in Uganda, a case of Kakumiro district.

Abstract

The purpose of the study was to examine the relationship between financial planning competence and funds utilisation in government secondary schools in Uganda basing on a case study of Kakumiro District. The objectives were to assess the relationship between budgeting skills and funds utilisation, to investigate the influence of financial forecasting on funds utilisation and to assess the association between resource allocation on funds utilisation. The study adopted a cross sectional survey design employing both quantitative and qualitative data approaches. The study used probability and non-probability sampling by purposively and a simple random selecting respondents to ensure fair representation of all categories. A sample of 92 respondents was selected from a population of 120 and data was collected using self-administered questionnaire and interview guides. Under objective one, results revealed that budgeting had a positive significant association with funds utilisation (r=.587, p=000). This means that there is a significant relationship between the two variables implying that enhanced budgeting will lead to a positive increase in funds utilisation by a mean factor of .587 (58.7%). For objective two results revealed that financial forecasting had a positive significant effect on funds utilisation (r=.364, p= .000). For objective three the results showed that resource allocation had a positive significant association with funds utilisation (r=.453, p=000). The study concluded that when budgeting is approached with competence, inclusiveness, and alignment to school priorities, it strengthens accountability mechanisms and enhances the alignment between financial inputs and educational needs. It was also concluded that the degree to which forecasting improves fund utilisation is inherently tied to contextual stability, institutional capacity, and access to reliable data. In addition, resource allocation alone cannot guarantee efficient utilisation unless supported by institutional autonomy, transparent oversight, and administrative competence. The study recommended that school administrators should adopt participatory budgeting approaches that involve key stakeholders such as teachers, finance officers, and school management committees in developing annual budgets. It was also recommended that the Ministry of Education and Sports, there is a need to develop and disseminate simple forecasting tools and templates tailored to the capacities of government secondary schools in rural districts like Kakumiro. The study also recommended that District education authorities should support schools by providing technical assistance and periodic audits focused on resource allocation and utilisation.