Financial management practices and financial reporting in the education industry in Wakiso district, a case study of Al-Mustafa Islamic college Kyengera.

Abstract

The purpose of the study was to examine the relationship between financial management practices and financial reporting in the education sector in Uganda, using Al-Mustafa Islamic College as a case study. The objectives were to examine the relationship between financial records-keeping and financial reporting in Al-Mustafa Islamic College, to assess the relationship between financial reconciliations and financial reporting in Al-Mustafa Islamic College and to examine the relationship between financial data validation and financial reporting in Al-Mustafa Islamic College. The study adopted a cross-sectional research design and employed a mixed methods approach. A sample size of 86 respondents was drawn from a population of 110 staff using both purposive and simple random sampling techniques. Data was collected using self-administered questionnaires, interviews and document review. Quantitative data were analyzed using Pearson correlation and regression analysis, while qualitative data were analyzed thematically. Results showed that financial records-keeping had a statistically significant positive relationship with financial reporting (r = .714, p = .000). Financial reconciliations also had a statistically significant positive relationship with financial reporting (r = .610, p = .000) and financial data validation had a statistically significant positive relationship with financial reporting (r = .550, p = .000). Regression results revealed that financial records-keeping was the strongest predictor of financial reporting (Adjusted R² = .562), followed by financial reconciliations (Adjusted R² = .380) and financial data validation (Adjusted R² = .288). Based on the findings, it was recommended that Al Mustafa Islamic College should strengthen digital records-keeping systems to improve the accuracy and completeness of financial information. Management should also enforce routine financial reconciliations and provide staff with regular training on reconciliation procedures. Lastly, financial data validation protocols should be enhanced through adoption of automated tools and strengthened oversight to improve the credibility of financial reports