Budget control and financial performance in selected government aided “O” level secondary schools in Hoima district, Uganda

Abstract

The study established the effect of budget control on financial performance in selected Government aided ‘O’ level secondary schools, A Case Hoima District. Specifically, the study aimed to examine the effect of budget planning on financial performance in selected Government aided ‘O’ level secondary schools in Hoima District, ii) to analyse the contribution of budget implementation on financial performance in selected Government aided ‘O’ level secondary schools in Hoima District and iii) assess the influence of budget monitoring on financial performance in selected Government aided ‘O’ level secondary schools in Hoima District. The study adopted a cross-sectional research design and employed quantitative and qualitative research approaches. Simple random sampling and purposive sampling techniques were used to select 124 respondents who were drawn from a population of 180 individuals. A self-administered questionnaire, interview guide and focus group discussion were used to obtain data from respondents under each sampled school. The findings for the first objective revealed adjusted R-squared value of 0.324 indicating that approximately 32.4% of the changes in financial performance can be explained by changes in budget planning, suggesting a moderate but meaningful relationship between the two variables. The findings under objective two revealed an adjusted R-squared value of 0.360 indicating that approximately 36.0% of the changes in financial performance can be explained by changes in budget implementation, suggesting a moderate but meaningful relationship between the two variables. The findings under objective three revealed and adjusted R-squared value of 0.175 indicating that approximately 17.5% of the changes in financial performance can be explained by changes in budget monitoring, suggesting a weak but meaningful relationship between the two variables. The study concluded that effective budget planning serves as a cornerstone for sound financial management and enhanced institutional performance in government-aided ‘O’ level secondary schools in Hoima District. It was also concluded that effective budget implementation serves as a vital mechanism for promoting financial discipline, accountability, and operational efficiency in government-aided ‘O’ level secondary schools in Hoima District. Based on this, for objective one, it was recommended that MoES should develop and provide standardized budget planning guidelines and templates for government-aided ‘O’ level secondary schools to ensure that all institutions follow a consistent and comprehensive budgeting process that aligns resources with national education priorities. It was recommended that NCHE should provide training and technical support to school administrators on effective budget implementation practices, including monitoring expenditure, adhering to financial guidelines, and linking resource use directly to educational outcomes. It was also recommended that the DEO should conduct periodic supervision and review of schools’ budget monitoring practices, offering guidance on improving the frequency, accuracy, and comprehensiveness of financial reviews to ensure alignment with approved plans.