The Site-Based School Budget - Case Study Example

Site-Based School Budget Site-Based School Budget Introduction Budget refers to a quantitative allocation of the use of finances within a given fiscal period. Just like any other organization, a school should have a budget which is used to plan its annual expenditure based on its projected revenue. Without a budget, it might be so challenging for the school administrators to use the resources they have (Aman, K. & W.B. Hildreth, 2002). Therefore, it is upon each authority to ensure that logical budget estimates are made during each school financial year. This paper gives an in-depth and critical overview of the site based school budget. Site-Based School Budget Site based school system simply refers to the decentralization of school budgeting process to the respective school principals. Under this system, the entire budget process is left in the hands of the school principal. As the administrator, the principal is given a mandate to prepare, implement and account for the school revenue. This is quite different from the centralized budgetary system in which the whole process requires an active participation of the relevant entity such as the Ministry of Education. Here, the school principal collaborates with the school board to identify the school’s revenue sources and comes up with a budget on how to spend it in order to run the school and enable it accomplish its objectives. This implies that the principal is the chief budgetary officer within his or her institution. However, as an administrator, he or she is obliged to liaise with other stakeholders including the school management board, vice principal, departmental heads, subject teachers and the members of all the departments within the institution (Varian, H.R., 2007). It is these people who know whatever project they need to initiate or complete in their departments. Since school is an institution which constitutes different categories of staff, it is essential for the principal to encourage a team work so as to eliminate any conflict which might arise from the budget allocations. Each of the department within the school system should be adequately funded. The Process of Site Based School Budgeting As already highlighted, a school is an institution which consists of several stakeholders: school management board principal, teachers, auxiliary staff, parents and the school community. In order to draft a good budget, each of these stakeholders should be involved. Although controlled by the principal, the entire budget making process should be inclusive. It should include the input of representatives from all the departments in the school. This is the best way through which the interests of these diverse groups should be catered for. As a matter of fact, each and every department has programs which need to be funded. However, these should be funded based on their priorities. Meaning, the vice principal, departmental heads, other senior teachers and the subject teachers should be consulted while making the budget. On the other hand, the principal can seek professional collaboration of the office of the school bursar. The first thing to do is to make the estimates. As an institution, the school can manage to get revenue from different sources. It can be funded by the government (through the Ministry of Education), Non-Governmental Organizations (NGOs), businesspeople, well-wishers. At the same time, it can acquire additional funds from the book rental schemes and school fees levied on the learners. It is important to estimate the total amount of school revenue because it is necessary in planning. As a financial officer, the principal should mainly base the budget on the available resources. This is the most absolute way to make a logical budget (Adams, H.C., 2007). After estimating the revenue, the principal should list all the possible projects on which the money will be spent. Among the most important common school projects which should be included as part of the expenditure are text books and other reading materials; food; utilities (electricity, water, telephone bills); sanitation; vehicle maintenance; repair and maintenance; laboratory equipments and chemicals; auxiliary staff, just to mention, but a few. These are essential areas which the school cannot operate without. They have lots of value to add to the school. For instance, the reading materials should be enough to cater for all the students. Any inadequacy can totally hinder the smooth learning process. Meanwhile, it is also recommended to consider the student population before making any budgetary conclusion. After taking proposals from all the representatives of all the departments within the school, it is upon the school administrator, in conjunction with the bursar, to identify the most priority areas to be funded (Sullivan, A. & Steven M. S., 2003). However, while doing this, it is necessary for the principal to ensure that none of the departments is ignored. Moreover, deliberate steps should be taken to choose the most important programs to fund based on the available resources and their urgency. However, priority should be given to the ongoing projects which need to be completed before initiating new ones. Once each department is properly funded, they will feel recognized and dignified as part of the school management. Thus, they will be motivated and be proud to associate with the institution. One area of concern in the budget making process is that it should be done in a timely manner. Since it is made on annual basis, deliberate steps should be taken to start it earlier right before the actual implementation date. Meaning, adequate time should be allocated for all the stakeholders to identify their priority areas that need to be funded by the school. Besides, such a proper timing can help the budget making team to make their estimations and present to the ministry for approval (Marshall, A., 2005). The creation of enough time is an essential element of the school budget. It creates room for the team to come up with logical estimates which are not rejected, but approved by the government for use as a school budget during the whole financial year as estimated. Benefits of Site-Based School Budget According to educationists, site-based school budget is a noble idea. Despite its drawbacks, it has lots of benefits to the school and its administrators. First, it promotes autonomy amongst the school principals. Since it leaves the entire process in their hands, the school administrators can feel free and independent to make their own budgetary estimates without unnecessary pressure from anywhere (Aman, K. & W.B. Hildreth, 2002). Besides, if properly drawn and implemented, it can help in promoting accountability and eradicating any conflict of interest which might arise. Given that it is made by the school administrators, they become accountable and responsible for the use of school resources. Thus, it eliminates any wastages and losses which might result from misappropriation and theft. This is due to the fact that the administrator charged with its preparation and implementation is eventually held accountable for it. The ministry expects to receive monthly updates of the expenses incurred. In conclusion, site-based school budget is a good idea for the schools. It is worth to leave the budgeting exercise to the school principals. As administrators, they know much about the school financial history and needs. Therefore, given a chance, they can incorporate their staff to identify the most priority areas to fund. However, in order to reap optimal benefits from this process, it is upon the school administrators to incorporate members all the concerned stakeholders. If adequate time is allocated for each department to present their proposals, the budget making process will be properly done to give rise to an accurate and logical estimation which will not only satisfy everyone, but also help in accomplishing the institution’s goals. Education is a very important sector which needs funding and a proper plan to manage the available resources. References Adams, H.C. (2007). The Theory of Public Expenditures. New York: American Economic Association. Aman, K. & W.B. Hildreth (2002) Budget Theory in the Public Sector. Quorum BooksAman Khan, W. Bartley Hildreth. Marshall, A. (2005). Principles of Political Economy, v. 1, pp. 1–2 [8th ed.]. London: Macmillan. Sullivan, A. & Steven M. S. (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. Varian, H.R. (2007). "microeconomics", The New Palgrave: A Dictionary of Economics, v. 3, pp. 461–63. London and New York: Macmillan and Stockton. Read More