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‡ Performance in our schools very much depends
on the efficiency with which school resources are
managed. The management of these resources is
the responsibility of the head of that institution.
The BOG, the Parents Teachers· Association
(PTA) or other stakeholders group may lend
their support to the head of the institution in
respect of resources management but that
support does not constitute a change of the
primary responsibility.
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‡ The management of learning institutions shall be accountable to
parents, pupils, the governments and donors as appropriate for
the use of the schools resources.

‡ By the end of this presentation, school heads should be able;
a. To improve school performance through proper planning,
management and control of resources.
b. To develop and implement effective and efficient procurement
storage and disposal procedures.
c. To demonstrate transparent, a committable and ethical leadership in
internal decision making.
d. To identify corruption prone areas and implement prevention and
mitigation actions plans.
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„t is important that proper planning and budgeting is done by the
school to ensure that scarce resources are utilized in the most
economical way and that transparency and accountability is upheld.
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The budget should be approved by the SMC BOG by October of the
preceding (running) year. This should give adequate time for other
procedures to be followed.
Extra levies should be discussed by the BOG, PTA, and parents DEB
and then forwarded to the MOE for approval schools should not
commence charging levies before such approval is granted.
This is the actual implementation of the budget which involves
revenue collection, procurement and expenditure.
Adequate internal controls should be put in place to ensure accuracy
and completeness in recording of financial transactions.
The recommended procedures and timing should be followed.
‡ Planning is the process of establishing objectives or goals for the
organization and determining the means by which the objectives will be
‡ A budget is a plan quantified in monetary terms, prepared and approved
prior to a defined period of time usually showing planned income to be
generated and the expenditure to be incurred in the period.
‡ Budgetary control is a system of planning and controlling costs. „t·s
objectives is therefore to plan and control cost of both the normal income
and expenditure and capital expenditure (construction, purchase of a bus
etc) of the institution.
‡ „t can also be defined as a plan quantified in monetary terms, prepared and
approved prior to a defined period of time usually showing planned
income to be generated and the expenditure to be incurred in the period.
‡ )-,&'*"#&" is a system of planning and controlling costs. „t is the
establishment of the budgets relating to the responsibilities of the
administration to the requirements of a policy, and the continuous
comparison of actual with the budgeted results, either requiring action or
providing a basis of revision.
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‡ To determine financial and other resources required in
carrying out the plans and services of the institutions.
‡ To obtain board of governors approval of the principal
who is the accounting officer·s programme and
resources requirement.
‡ To provide a basis for financial control.
‡ Focuses on priority area to ensure effectiveness.
‡ Enhance teamwork and participation by other
‡ Enhances transparency and accountability.
‡ Reduces uncertainity and risks. A school can predict the
future by planning and make provisions.
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‡ „dentify the school·s activities ² This is based on the
schools known requirements.
‡ Prioritizing of activities ² Ensures that high priority
activities are allocated funds first and should also be
based on available funds.
‡ Determine the expected income. This should be based on
realistic projections of expected government grants, user
charges, school income generating activities, planned
funds drive or donors.
‡ Determine the target expenditure for the period. This is
based on the estimated receipts and standards in the
previous points. The Head teacher should be able to
issue specific guidelines on funds i.e. limitation, cost
estimation and activity priorities.
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‡ A system of Budgetary Control will serve the
following purpose;
‡ Planning
‡ Co-ordination
‡ Control
‡ The objectives of budgetary control therefore are
to plan and control the following;
‡ „ncome and expenditure of the institution
‡ Capital expenditure of the institution
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‡ A budget can be classified by either preparation or
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‡ Under preparation classification- we have the
$5 )!) %)-,& ² This is where the overall projected
budget shows more than that the projected
$$5 ($*$&%)-,&6 This is where the overall budget
shows that projected expenditure is more than the
projected income
$$$5 #*-%)-,&6 This is where the overall projected
income is equal to the projected expenditure.
‡ Classification by expenditure is generally namely;
‡ |*)#&%)-,& ² This is a budget for items that
appear every year. „t is basically meant for the general
running of the schools e.g. activity, RM„ etc
‡ ".*&-7"!+#&%)-,&
‡ This is a budget for a distinct activity which is not for the
running of the school. Once it has been executed and the
project accomplished, it will not appear again e.g.
construction of class room, laboratory, dormitory and
purchase of a bus etc. normally banked after collections
separately in PTA savings A/C.
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‡ A school budget can be approached from two
² 0!#-$&) !!"*/
‡ This is the approach where you first list down your
projected expenditure and get the total, and then you
start looking for how to raise income to finance that
² #*"+ !!"*/
‡ This is the approach where you first list down your
projected income and arrive at a figure. You then start
arranging your expenditure according to the projected
income. Normally it is advisable for a school to adopt
this approach because the projected income is normally
fixed by way of fees guidelines and from the ministry.
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%)-,&$# */""

‡ Poor fees collection

‡ Reduction in enrolment of students
‡ Natural calamities ² floods, wind
‡ Student strikes
‡ Change of government policy (policies) in
the middle of the year i.e. release of with
held certificates without any payment
‡ „nflation
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‡ Budget for the following year should be tabled
before a full small management committee in
the third term of the current year, preferably in
October. „n addition to the approval of the BOG,
PTA and DEB, PTA projects should also have
the following information right from the
a. Estimated costs
b. Source of funds
c. Time frame (period of the project)

‡ Book keeping is the analysis, classification
and recording of financial transactions in
books of accounts.
‡ Making a basis of financial planning and
‡ Keeping a record of the financial transactions
effected by the institution to assist in financial
management by the managers.
‡ Storing financial information for interested
‡ Fulfilling the government requirement on public


‡ This is a document used to acknowledge receipt

of money. A good receipt should;
² Bear the name, address and telephone (if any) of the
² Date
² Show vote heads under which money is received
² Be serialized
² Printed in duplicated or triplicates
² Mode of receipts (cash money orders) etc
² Signature of the person receiving
² Name of student
² Admission number of the students
‡ This is a document used to make payments. A good
payment should have the following ingredients.
² Name and address of payee
² Date of transaction
² Narration (reason for payments) should be self explanatory
² Vote head charged
² Amount in words and figures
² Cheques number if payment is done by cheques
² Payment voucher number running serially throughout the year
² Bursars / accounts clerks signature
This is a book where all the money received, paid,
banked or withdrawn from the bank are recorded.
The ministry recommends (Grants-
in-aid). „t
should be written as regularly as the transaction
occur. Total per vote head are transferred to the
ledger every month.

This is a book which summarizes the transactions
of every vote head monthly. „t is from here that a
trail balance is prepared.
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‡ The cashbook is divided into two. That is, the left hand side records
receipts and is technically known as debits (Dr) while the right hand
side records payments and is technically known as credit (Cr).
Therefore, all the receipts in monetary or financial terms are
recorded on the left hand side of the cash book. While all payments
including bank charges are recorded n the right hand side of the
‡ Cashbook must be written in daily basis and at the end of each day,
cash on hand should be reconciled. That is physical cash with the
cashbook figure.
‡ The writing of the cashbook should be done by use of documents of
origin or source documents. They include: -
² Receipts
² Payment vouchers
² Bank pay in slips
² Withdrawal forms (slips)
² Bank credit notes
² Bank debit notes
‡ Trial balance is a list of accounts from the ledger
showing their debit and credit balances in separate
columns. „t·s extracted on a monthly basis cumulatively
before the preparation of other relevant financial
statements like income and expenditure and balance
sheet. The receipts should equal the payments.

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‡ To check the arithmetic accuracy of the institution·s
accounting records.
‡ To ensure that book keeping principle of ´double entryµ
has been taken into account, i.e. ´for every debit entry,
there must be a corresponding credit entry and vice
‡ Analyze the expenditure trends per vote head balances
against the budget can be taken where necessary.
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‡ „t summarizes all the income and
expenditure of an educational institution
for a period. „t is an equivalent of profit
and loss account in trading companies or
‡ All the monies received and those spent
are added up. The differences between the
two totals may either be a surplus or over
||  | |  
The biggest amount of school funds are
used in the procurement of various goods
and services. To ensure that these funds
are properly utilized, procurement
procedures are therefore put in place.
Procurement is the process of acquiring goods, works and services for
an organization.
‡ The procedures of undertaking such a process are clearly articulated
in the public Procurement Regulations 2006 (Legal Notice No. 174).
‡ The head of the institution has to observe procurement procedures
that ensure quality goods/works/services are acquired at
competitive prices. This will enable the institution to have adequate
resources necessary for effective budget implementation.
‡ „n the budgeting stage, the requirements and respective costs are
identified. Based on the magnitude of activities and cost, an
appropriate procurement method is chosen. This gives rise to a
procurement plan, which articulates the requirements / needs to be
acquired and the various steps in the procurement process with
respective time schedules. Whereas, the budget is approved by the
SMC, the procurement plan shall be approved by the tender
committee, a body charged with the responsibility of procurement
of goods / works / services in an institution
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‡ Enhance transparency and accountability of funds ensuring that
the stakeholders get value for their money.
‡ Enhances efficiency by ensuring that entities acquire quality
goods/works/ services at reasonable prices.
‡ „ncreases integrity and public confidence.
‡ The various procedures adopted ensure that there is fair
treatment of suppliers and therefore for suppliers to get an order,
their products must be of good quality and reasonable price.

‡ Means the cycle that starts with the initiation of the process of an
individual procurement requirement and when the goods/works
or services have been delivered and accepted.
‡ For procurement to be done as required, a procuring entity needs to
set up a tender committee. „n case of schools, the composition is as
below: -
" $&$"# &$
‡ /$! "# The Deputy principal appointed in
writing by the Principal
‡ !)&'/$! "# The officer in charge of finance or
equivalent appointed by the Principal
At least 6 Heads of Department or
members of teaching staff including
matron or officer in charge of boarding
facilities where applicable appointed
in writing by the Principal
‡ *&' The officer heading the procurement unit
The quorum for the tender committee is 5 members including the
chairperson. The principal shall appoint an alternate member for
each member of the tender committee and only the alternate shall
attend any meeting of the tender committee whenever the member
is unable to attend.
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‡ Ensure that procurement and disposal is done within the regulations
and the Acts.
‡ Approve the selection of the successful tender or proposal
‡ Award the procurement contract
‡ Ensure that the procuring entity does not pay in excess of the prevailing
market rates
‡ Review the selection of procurement method and ensure adoption of
any other that is within the Act.
‡ Pre-qualification of suppliers for restricted tendering, request for
quotations / proposals.
‡ Review tender documents and requests for proposals to be in line with
the Procurement Act / Regulation 2006
‡ Approve variations of contract conditions of contracts previously
awarded by the committee.
‡ Approve bids through open tender for sale of the institution·s stores
The tender committee undertakes the procurement process with assistance of
other sub committees.
‡ "*)+#&"++$&&
‡ This committee is responsible for procurement of goods / works / services
whose value does not exceed Kshs. 500,000.00 using the direct procurement
or request for quotations methods.
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‡ Chairperson ² An official delegated by Head teacher
‡ Other members ² Finance or officer carrying related activities
‡ 3 other members appointed by the Head teacher
9)")+("+&$#,6 Chairperson and at least two other members. Any
member who is unable to attend meeting may delegate to another person
but such a person should possess the necessary skills/experience to
represent him / her in the meeting.
Decisions of the procurement committee shall be by consensus and where there
is no consensus, the decision shall be through voting by simple majority.
Where there is a tie, the chairman shall have a second or casting vote.
The procurement committee may invite independent advisers or members of
the procurement unit to explain submissions or provide technical advice,
where required the committee can: -
‡ Approve submission
‡ Reject a submission with reasons
‡ Approve a submission subject to minor clarifications by the procurement
B. )&$"#"++$&&
‡ Consists of chairperson and at least 2 members all appointed by the
accounting officer or the Head of the procuring entity upon
recommendation by the procurement unit.
‡ Charged with the responsibility of the technical / financial
evaluation of tenders and give report to the tender committee.
Members of this committee should not be those in tender committee
² one should be from user department.
‡ The evaluation committee shall undertake the tasks of: -
² The technical evaluation of the tenders or proposals received in
strict adherence to the compliance and evaluation criteria set out
in the tender document.
² Performing the evaluation with all due diligence and within a
period of 30 days after opening of tenders.
‡ Each tender received is assigned a rating by the committee and such
a report with recommendations is submitted to tender committee
for the final decision.
‡ "&3 the evaluation and comparison shall be done using the
procedures and criteria set out in the tender documents and no
other criteria shall be used.
‡ A worked example on evaluation given on the lesson plan attached
C. # !*&$"##- **!&#*
‡ Comprised of a chairman and at least 2 members appointed by the accounting officer
or the head of the procuring entity on recommendation of the procurement unit.
‡ )!" 6 to inspect and review the goods / services to ensure compliance with the
terms and specifications of the contract.
Accept or rejects goods, works/services on behalf of the procuring entity.

Advertisement in local dailies for bidders to know of the prequalification and declare
their interest in participating and demonstrate their ability in a given business.
Prospective bidders are given standard application forms to complete giving out the
necessary data and return them for evaluation just like an open tender. Those who
qualify are then requested to bid on appropriate bidding documents.

The following information is normally requested for pre-qualification:

‡ Contractor·s identification
‡ Experience and performance
‡ Personnel
‡ Equipment
‡ Financial status
‡ Present commitments
‡ Personnel and equipment available for the proposed project
‡ Any other relevant information on the project
5 # !*&$"##- **!&#*"++$&&
‡ Depending on size and nature of transaction involved,
the entity may use any of the methods here below to
procure goods /works / services:
1. Direct procurement
Open tender
National competitive bidding
2. „nternational competitive bidding
3. Restricted tender
4. Request for quotations
5. Request for proposal
6. Low value procurement
7. Use specifically permitted procedures
5 # !*&$"##- **!&#*"++$&&
‡ $*&!"*)+#&6 used where no reasonable
alternative exists ² dealing with only one bidder.
‡ !#&#-6 advertisements made in dailies of wide
circulation nationally and internationally.
‡ | &$*&-&#-$#,6 this method is available for large
and complex contracts. This method is justified in view
of the cost involved in preparing tenders for complex
and specialized goods, works or services and the
desirability of avoiding tenders from unqualified
bidders. Most complex project contracts are often let
through this method, the bidders are first selected
through pre-qualification.
‡ |:) &"(:)"&&$"# 6 it is used for readily available
goods / works / services. At least 3 quotations are
received before selection process ² maximum 10 out of
pre-qualified suppliers.
5 # !*&$"##- **!&#*"++$&&
‡ |:) &("!"!"  6 applicable for services of
intellectual nature. At least 3 proposals maximum 7 out
of those who expressed the interest.
‡ "2)!"*)+#&6 applicable if use of the other
methods will be time consuming and can cost more than
the cost of goods/services/works for goods whose value
in budget does not exceed kshs 5000.00
² „f the procedure is not being used for the purpose of
avoiding competition.
‡ The use of the procedure has been recommended by the
committee after market survey.
‡  "( !*$'!+$&&-!"*-) 4 where the
market conditions or behaviour do not allow effective
application of the Act and Regulations i.e. in use of
frequent fluctuations of prices e.g. maize.
‡ For specialized or particular requirements that are
governed by harmonized international standards or
D. $ !" "++$&&

‡ An officer in charge of finance
‡ The head of procurement unit who shall be secretary
‡ The head of the accounting department
‡ Two heads of departments and user department
‡ The committee shall select a chairman from among its
‡ The disposal committee will first meet within fourteen
days of its appointment and subsequently at least once
in every quarter.
‡ Stores management is the process of planning,
organizing and coordinating all the stores activities of
an institution. „t is absolutely necessary for the
purchased goods, works, and services to be put in
proper use as intended by the procuring institution.
The procuring institutions, therefore has to establish
and maintain such control of stores as will be kept to
the minimum consistent with the need.
‡ „n replenishing stock, inventory is considered to be
composed of active inventory which is that portion
carried to satisfy average expected, and safety stock
which is that portion for protection against stack
depletion accruing when demand exceeds average
expected demand, or when lead time is longer than

‡ „t is also necessary that, when establishing active stock levels,

average demand of individual items, space availability, movement
costs and inventory carrying costs should be considered.
‡ „t is worth noting that; the Principal who is the accounting officer is
directly and financially responsible for the efficient performance of
supplies function within the school or institution. However, by
delegating the responsibility to officers or teachers he or she makes
them personally or financially responsible for under taking the
supplier task allocated to ensure.
‡ Supplies of any kind are safeguarded against loss, damages,
misuse or deterioration or
‡ Supplies functions are carried out efficiently and as
economical as possible for effectiveness.
‡ 3 Accounting for stores therefore implies providing clear and
accurate records of their purchase, receipts, location and disposal.

+!"&#*"(&" #,+#&
‡ Enhances proper planning of procurement of goods
‡ Ensure proper accountability
‡ Guards against loss of stores hence ensures optimum use
‡ Enhance prudent decision making
‡ Ensures that the right quantities and qualities are delivered to the
‡ Ensures timely deliveries
3 Stores management therefore entails receiving, verification and
recording of goods.
‡ The goods when delivered from the supplier should be
accompanied by a delivery note, invoice which should be compared
with a copy of local purchase order which remained to the institute
‡ The stores can be classified on the basis of cost, durability and
+##& &"
‡ They are those which stay for more than two years. They a re
recorded in permanent stores ledger and they include: -
² )#$&)34 tables, chairs, cabinets, cupboards and sideboards
² */$#'34 school bus, tractors, televisions, computer, typewriter,
² *$#*:)$!+#&34 voltammeter, galvanometer, microscope
"# )+% &"
‡ They are those that change their nature form on being used or
are incorporated as fixture in works and in addition item which
retain their identity in use but an initial value of less than 10/-.
They can also be called perishable stores. They are recorded in
consumable stores ledger and they include: -
‡ Food stuffs ² vegetables, beans
‡ Building materials ² cement, iron sheets
‡ Fuel
‡ Office stationery ² duplicating papers
0!#-% &"
‡ They are those that are neither permanent nor consumable. They
are recorded in expendable stores ledger and they include: -
² *$#*:)$!+#& )*/
‡ Glassware
‡ Test tubes
‡ Flat bottomed flask
‡ Black wall ruler
² "-$#,:)$!+#& )*/ 
‡ Bedding, sufurias
‡ Text books
‡ „nventory books should be maintained by each person or department to
whom/which permanent or expendable stores are issued. „t is illegal for
any person to have institution/school property not entered into the
&" -"*)+#& *"++"#') -
‡ The under mentioned are the document
commonly used in institution
‡ Requisition form
‡ LPO and LSO
‡ Delivery note
‡ „nvoice
‡ Cash sale receipt
‡ Official rubber stamp / stores rubber stamp


ë/&$  &"*1&1$#,;
‡ „t is an independent physical counting and
verification of remainders (balances) being
compared with the record balance.
‡ „t should be done: -
² To check the condition under which stores are kept
² Verify the order (accuracy) of stock records
² Check whether there are losses and damages or
pilferage done on stock
‡ The requisition, purchasing, paying officers are not using any of the above
mentioned documents i.e. LP, LSO, ledgers invoices and delivery notes.
‡ Orders are made verbally where bursar/accounts clerk meets the supplier
in offices,, streets and a deal is made.
‡ The supplier/producer/seller does not use any business documents e.g.
² Order forms
² Catalogue
² Delivery notes
² „nvoice
‡ These documents must be received by institution.
‡ Good/stores are delivered into the stores without the knowledge of bursar
or principal. Suppliers are keen to avoid the offices of the important people
until after some time when he/she appears for payment.
‡ Payment to the supplier too, does not follow any laid down procedures e.g.
inspection of the de livery stock checked and counter checked with the
delivery note.
‡ All procurements in the schools should be done as per the
procedures laid down in KESSP and the ACT, 2005. No any other
procedure should be used.
‡ Stock control in the maintenance of stocks at the appropriate levels
to satisfy customer requirements at the minimum costs.
‡ Lead time is the length of time from the notification of non
availability of an item to the time is purchased and is in the store.
‡ Minimum stock level is the quality of stock below which stocks
should to be allowed to fall before a new order delivery is received
to replenish the stocks.
‡ Maximum stocks level is the highest quality of stocks which is
expected to be achieved when a new delivery for replenishment of
stock is received.
‡ Re-order level is the quality of stock for a particular item when
action to place a new order is taken.
‡ Reserve or buffer stocks are extra stock for critical items to take care
of increased demand or lengthened lead time.
‡    |        
  |    |   

‡ „n management of resources which includes human,
financial, material, tools and equipment requires
ethics and integrity from school management. Ethics
refers to the concept of what is right and wrong,
moral and immoral. That is doing what the society
expects and accepts.
‡ Corruption on the other hand, entails misuse of one·s
office for private gain or unofficial end. „t involves
both monetary and non-monetary benefits. That is,
bribery, extortion, influence, peddling, nepotism,
scams, frauds, ¶grease money·, and opportunism
readily springing to mind.
‡ a    

‡ Weak and unaccountable enforcement institutions.

‡ Poor design of oversight and monitoring institution.
‡ Gaps in procurement integrity.
‡ The need to service patronage network in politics
‡ Weak political commitment to fight corruption.
‡ Stark disparities in income
‡ Lack of freedom of access to information
‡ Lack of protection for whistle blowers
‡ Judiciary being perceived as corrupts
‡ Desperation within the citizenry: - People have given up on
any feasible solutions to their problems and naturally accepting
the status quo.



 Lack of records showing all funds received from multiple sources. The school may
receive funds from FPE program, CDF, LATF and other donors. Lack of
records increases temptation.
 Lack of specific guidelines on maximum number of bank accounts a school is
required to pen and maintain. This creates opportunities to open other
accounts which would be used to receive and siphon individual grant.
 Selection of projects for personal interest rather than the school·s interest 
conflict of interests.
 mplementation process favouring particular supplier or pay off.
 Contracting through irregular process to corrupting firms and suppliers
 isuse of value information.
 Corruption prone areas
 Appointment of committee members
 Changing the rules
 Selection of tendering methods
 Exaggerated costs or prices
 nformation leakage
 External influence
 uick awards
 Poor quality goods
 Loop holes
 Toll stations
² Hoarding information
‡ "2&"*"+%&*"#&"")!&$"#
‡ Ethical education is central in preventing corruption by fostering
attitudes that do not tolerate corruption among the new generation.
‡ The creation and maintenance of transparent regulatory systems,
strengthening management capacities for greater accountability and
enhancing ownership of management process that helps build a
virtuous tricycle that is favourable to educational systems free from
corruption. Therefore, there is need.
‡ To combat corruption, there is need for
‡ Clear norms and regulations, transparent procedures and explicit
policy framework specifying, for each of the steps involved, the
distribution of responsibilities between different stakeholders in the
allocation, distribution and use of educational resources,
‡ „mproving skills in management, accounting monitoring and audit
are basic requirements for reducing corruption in education. Better
training of not only administrative staff at the different levels
involved, but also of other stakeholders in the system, such as PTA,
unions, SME ¶s and other relevant civil society organizations, should
be considered accordingly.
‡ Accessing information for both the public at large is indispensable
for building participation, ownership and social control.

‡ Grafts affects the country·s education system by

undermining the rule of law, eroding fairness,
violating human rights, facilitating organized
crimes and deterring foreign investment.
‡ „t is therefore prudent that financial
management is upheld in all aspects of
educational institution·s management to ensure
the stakeholder gets the value for money.