Foundations of School Finance - Money Matters in Education - Essay Example

The paper "Foundations of School Finance - Money Matters in Education" is an excellent example of an essay on finance and accounting. Money matters in education are critical in ensuring that there are equal opportunities for all students in public schools. All aspects of school finances fall under money matters and touch on specific foundations of school finances i.e. the sources of funds for the school and the budgeting process. In my view, money matters necessitate the collaboration of all stakeholders especially those people who are mandated with the task of sourcing for funds.

The primary sources which the government and other institutions utilize to gain funds for managing its education programs include; tax base, yield, equity, economic effects of tax and administration and compliance issues(Thompson and Wood, 2001) Public school financing is one of the issues that affect the schooling process and it involves a number of issues on finances such as revenue collection, budgeting, and accounting of funds, accounts, and value of revenue. This foundation of school finance help in the understanding of how expenditures and accounting of school funds especially with reference to model accounting structures such as the NCES.

it also widely agreed that it makes more than it meets the eye to ensure sound financial planning and monitoring in school financial management. (Hartman, 2003) There must equity and adequacy in school finance and this is achieved through a properly instituted budgeting process. The budget gives a level of satisfaction of financial planning information to the state, the local authorities and also the federal government. It also gives useful information to the taxing authorities. And it is used by the school to show how accountable the school is.

In line with money matters, the school administrators especially those dealing with school finances ensure that there are specific constituencies which become part of the management and resource of school finances. (Odden and Picus, 2008) The school board manages all the operation and function of the school. The other constituencies apart from the school board are; students, classified staff, community partners, members of the public, state educational representatives, leadership teams and the district administrators that include the local authorities.

All these constituencies are part of the process of development and are usually included in all operations, functions and management duties of the district. They play a major role in decision making and one of the decisions is budget development through elections. Funds are developed for specific activities and its establishment is run according to the laws, restrictions, and regulations of the school. Each established fund is an independent and separate accounting entity that has its individual assets and liabilities together with the fund’s balance (Odden and Picus, 2008).

The school districts will determine how many funds are created, financed and accounted. All these funds do not depend on the size but the operations of the school district. The major funds that can be created include; education, transportation, operations and maintenance, bonds, and interest, municipal retirements, rent, working cash, and lastly fire prevention and safety. While many people would like to remain committed to education systems that promote equal educational opportunities regardless of their status, many people are frustrated by the cost of the same and the school financing systems (Thompson and Wood, 2001).

In addition, it has been noticed that some taxpayers have their own perceived types of inequality in resource funding thereby galvanizing the introduction of new measures of public financing reforms. It is therefore not possible to provide the following three issues of public finances simultaneously; containing growing education burden, providing equal education opportunities and resolving the perception that has arisen on lack of control and management of school finances.