INTRODUCTION:

Finance is one of the important aspects to the school for its operation functioning smoothly. Finance is necessary for the arrangement of physical-cal facilities, purchasing equipment in the science lab, of library with modern facilities, computer laboratory, material for extracurricular activities, the wages for the personnel and other miscellaneous expenses in school. Finance imbued with any organization and is involved in all human and economic activities. It affects the psychological behavior of individuals, as well as the socio-economic environment of organizations. Thus, Fund a very crucial position in the decision-making process and the development in school organizations.

Schools require sound financial sources, especially in private unaided schools. Without private schools do not receive financial assistance from the Government, only recognition gave to this school of Govt. It must manage its own source of funding. These private unaided schools have been established in Gujarat for quite long. To identify the management financial in these schools, re-researcher has identified some components of finance management for this study. The components are sources of finance, budgeting, budgeting process, prob-LEMS met during and after the establishment of the budget, finance school management process by the Director in schools private without help of Gujarat. Generally, schools private unaided in Gujarat have few sources of funding. Managing the source limited finance by principals for provened a quality education to the students is need of the hour for the proper functioning of the school.

Financial management of un-added private school:

Financial aid management is the managerial activity which deals with the planning, controlling, organizing the financial resources of an organization; in other words, the management of the finances of a company in order to achieve the financial objectives of the company (Donnell and Keontz, 2004). Raphael (2000) expressed the view that financial management can be defined as the process inters by ensuring that financial resources are acquired and used both profitable and effective, i.e. in the accomplishment of objectives of the organization. It is an activity of managerial who is interested in planning and con-fishing trolling of the financial resources of the Organization (Anene, 2001).

UKEJE (2006) found that financial resources means power purchasing, in the form of cash or credit. The essence of the management of financial is the Administration efficient and effective financial resources of the Organization to achieve the objectives of the organization.

Organization of schools need to take care of the main sources of funding, especially at school in private unaided, in which Government recognized that these schools but no financial has helped. So, Board of Directors of the private schools without help and principals are required to plan an appropriate budget for their school. Schools must need analysis of Finance before bud - get is planed, identified sources for school finance, planning the budget based on available finance, followed by the bud - get, major and minor expenditure record of schools. Regular audit in these schools is necessary so that the school learned about the systematic use of school finance. Main schools and the Management Committee are responsible for managing the Finances of the functioning of schools so that students can gain the expected quality of education in their schools.

Un-aided Private Schools in Gujarat:

Gujarat, the birth place of Mahatma Gandhi, is a state situated in the western part of India and shares its northwestern boundary with Pakistan. Rajasthan, Madhya Pradesh and Maharashtra are the neighboring states of Gujarat. Gandhinagar is the capital and Ahmedabad is its largest city and the main commercial hub of the region. Gujarat houses a wide variety of industries and is considered one among the best industrialized states of the nation. Gujarat is also home to some of the prestigious educational institutes of the nation. Gujarat Population Census Data shows that it has Total Population of 6.03 Crores which is approximately 4.99% of total Indian Population.

The Right to Education (RTE) Act, 2009, has, without doubt, become a major milestone to ensure that children aged 6 to 14 are able to get free and compulsory education. However, initially, Gujarat was one state which seemed extremely subdued in implementing it. In January 2012, it was one of the three states – West Bengal and Karnataka were the other two – who had failed to come up with rules to implement the Act. This came to light when the Government of India asked West Bengal, Gujarat and Karnataka to notify RTE rules in order to begin implementing the Act.

Budget Allocation:

India’s elementary education budget has increased more than two fold since 2007-08, from Rs. 68,853 Crores to Rs. 147,059 in 2015-16. In 2016-17, the average allocation per student in India’s government elementary schools was Rs. 11,509 for the same period. In the current Financial Year 2016 – 2017, The Government of India’s allocation for Sarva Shiksha Abhiyan is Rs. 27,258 Crores¹⁰. The above table presents the per student allocation on elementary education across India. It compares major states in India and India. Per student budgetary allocation towards primary education in Gujarat increased – in FY 2011-12 it was Rs 13,562, which went up to Rs 14,607 in FY 2012-13, which was a rise of seven per cent. The allocation remained considerably lower than 15 states in India including smaller states. These are the states in first 3 position which have been doing extremely well in per student allocation for education such as Goa, Kerala and Himachal Pradesh allocated Rs. 45,867, Rs 37,667 and Rs 29,785 per student, respectively, in 2016-17.

Budget Outlay of Education – Gujarat:

Total Budget of Education Department

Rs. 13752.4985 Crores

Total Budget of the State

101135 Crores

Percentage of Education out of Total budget of the State

13.06%

The total budget expenditure for education department was Rs. 12042.67 Crores in year 2010-11 and the revised estimates in 2011-12 is to be Rs. 13261.29 Crores and budget estimate for education department is Rs. 13752.4985 Crores. The budget estimates of year 2012-13 suggest that the government has made outlay of around 60.81% for primary education. (I to VIII). The outlay for secondary education is Rs.3351.08 Crores (30.25%). The Higher and University education will have an outlay of Rs. 820.10 Crores (7.40%), followed by adult education Rs. 3.41 Crores (0.03%), the other expenditure including scholarship or distribution of books etc. has an outlay of Rs. 162.2421 Crores (1.46%).

Review of Related Literature:

Researcher has reviewed some of studies related to the present study to conceptualize the management problems of school education and the methodology followed by the researchers in carrying out their studies. Peter (2009) studied on Principals’ and students’ perceptions on parental contribution to financial management in secondary schools in Kenya. It was found that principals and students’ perceived parental involvement in financial management, and parents had positive influence on financial management of the school. Ajileye (2011) studied Financial Resource Management Capacity of Public Secondary School Administrators’ in Ondo State, Nigeria. He was found that finance management of school depends on the administrators/principals’ capacity for fund sourcing, capacity for budget preparation and execution, and capacity for financial accounting. Some recommendations from this study are: i) The school budget should be prepared by both the senior teaching staff and the administrators but not by the school head alone, ii) There should be regular budget review and auditing in the school, iii) There should be proper control and financial check of mismanagement of school finance, iv) There should be management workshop for re-training school administrators to enhance their performance in financial management. Fidelis (2012) studied the Financial Management Practices in Cross River State Secondary Schools: Means and Methods for Attainment of Excellence. It was found that major sources of revenue for the bursars and principals come from tuition fees, levies from PTA; school principals and bursars practices in managing the available funds; principals spend funds available in line with planned objectives, involve sectional heads and heads of departments in budget preparation. The few studies reviewed reveal the following, (1) Schools have financial problems, and parental involvement helped in school finance management. (2) Financial management of school is largely dependent on principal’s capacity for budget preparation and execution, and his capacity for financial accounting. For managing school finance, trustee members and principal must invite more persons who have in-depth knowledge in budgeting at the time of preparation on school budget. (4) It is also required to keep proper control and regular financial checkup of the planned budget at school. (5) In un-aided private schools, tuition fees is the main source of finance, there-fore, school is required to be planned out the budget minutely for effective functioning of school.

Justification of the study:

Financial management in private unaided schools, it is a Ghent - your need because parents enroll their children in private schools without help in Gujarat with high probability of a quality education. The total number of students enrolled in independent schools without help of the 6th class at 8th is 66.29% (say, Flash, 2012-2013 statistics). The number of private secondary schools has increased from 40 in 1980 to 467 in 2012 (Board of secondary education, Gujarat, 2012). It is necessary to have transparency in financial transactions and the management of the money levied by the tuition of students by school in the name of providing quality education. Argentin you fees charged by the students must be used for the overall development of the students of these schools. Therefore, directors and members of management committees should plan budget of the school with the help of an expert in the area of budgeting. So that the school can have systemic operating instructions the amount received from the tuition of students. If private schools without help in the face of an irregularity financial and not maintained the quality, the school will not be able to have the registration of the students. School it can be difficult to maintain and may not be able to have material resources, equipment, personal development activities, providing a sufficient amount of teacher's salary. Ultimately, the goal in which the schools are established will not be served. It is therefore high time to study how without help from private schools in managing the finances of the school. Therefore, here are some of the relevant research for this study.

Research Questions:

· What is the process of budget preparation in un-aided private schools of Gujarat?

· What are the problems faces during and after budgeting in these schools?

· What are the sources of finance to manage un-aided private schools of Gujarat?

· What are the problems related to sources of finance in such schools?

· How principals of un-aided private schools manage school finance?

Objectives of the Study:

The present study is conducted with the following objectives.

1) To study the process of budgeting in un-aided private schools of Gujarat.

2) To study the problems faces during and after budget in un-aided private schools of Gujarat.

3) To study the sources and problem of sources of finance of un-aided private schools of Gujarat.

4) To study the procedure of managing school finance by principal of un-aided private schools of Gujarat.

Methodology of this Study:

Survey method is used for the study of finance in the schools without help of Gujarat. Details of the methodology is presented below.

Population and sample for the study:

This study population is composed of 264 private schools without help from two districts of Gujarat namely Surround areas of Ahmedabad and Gandhinagar East and Surround areas of Ahmedabad and Gandhinagar West. This population that exists, 15 without help from private schools were selected according to the technique of random sampling for the study.

Tools for the study:

A Questionnaire prepared by the researcher helped collect the data from the study. Questionnaire was distributed to all school principals without private help sample 15 of Gujarat. These principals fill the questionnaire and it is up to the researcher. The tool consists of 17 elements linked to the budgeting process, sources of funding, problems of funding sources and likely solution, and how principals have used the finances of the school for the development of schools.

Data Analysis and Interpretation:

The data collected have been classified into different sections according to the objectives of the study: budgeting process of the Finance of unaided private schools, sources of funding for these schools, problems of funding sources, means of finance school manage by school principals.

Process of School Budgeting:

The responses of 15 guiding schools on school budgeting process followed in their schools are totaled, analyzed and mentioned in table - 1.

Table -1. Process of School Budgeting in Un-aided Private School

Budget in Different headings	Responses from 15 principals
Budget prepared in different heading	11 (73%)
Budget prepared not in different heading	04(26%)
Deficit of Budget
Considered previous Deficit of Budget	10 (67%)
Do not considered previous deficit of budget	05(33%)
Members of Budget Preparation
Trustee members prepared budget	07 (46%)
Trustee and Principal	05(33%)
Only Principal	03 (20%)

Table above 1 a revealed that without private help principals Gujarat prepared annual budget every year but in 11 (73%) schools without help prepared the budget at different positions and needs of the previous budget analysis has been done, but closed san s help, 4 (26%) schools did not prepare the budget in different positions and require an analysis was not done. Most of the schools i.e. 10 (67%) unaided private schools have seen deficits of the previous year, where as 5 (33%) unaided private schools did not consider budget deficit of the previous year at the time of the preparation of the budget of schools. In most of the schools without private help, 7 (46%), the budget is prepared by the trustee members themselves. Another 5 (33%) schools budget is established by members of trustee as well as their Director of school and only 3 (20%) schools budget are established by managers only.

Problems School Budgeting:

Responses from managers of the 15 schools on school budgets and after school budgeting problems are tabulated this analyses and are listed in the table below-2

Table -2 Problems of Budgeting in Un-aided Private School

Problems of School Budgeting	Responses from 15 principals
No problems of Budgeting	05 (33%)
Problems of budgeting	10 (67%)

The table above - 2 revealed that in 5 (33%) of schools in private without help of Gujarat have not all the problems then bud - get has been prepared and these schools not yet problems after the budget has been established. But in 10 (67%) of the private schools without help of Gujarat have problems during the preparation of the budget: ratio of funds available, later sanctioned to lend money. However, there are a few problems after that the schools budget was established and these problems are accounting unavailability appropriate document and negligence in accounting; poor planning and expenditure according to budget; review of the payment of staff after the budget is already planned; and beyond the planned budget overruns.

Sources of Finance:

The responses of 15 principals on funding sources are compiled, analyzed, and mentioned in the table below-3.

Table -3 Sources of Finance in Un-aided Private School

Sources of Finance of Schools	Responses from 15 principals
Students tuition fees	12 (80%)
Students’ tuition fees, donation from society and loan from Bank.	03 (20%)

The table above-3 showed that in 12 (80%) of the schools private without help of Gujarat depends on tuition fees to the student as a source of funding. Most of these schools have raised tuition fees to the student each month. However, in the 3 (20%) schools have various sources of funding, i.e. the tuition of students, donations from members of the company and loan from the Bank for the school building. Almost all private schools are dependent on their source of fresh funding from student fees.

Problem of Source of Finance:

Responses of 15 school principals on the problem of financing sources are compiled, analyzed, and mentioned in the table-4 being weak.

Table -4 Problem of Sources of Finance in Un-aided Private School

Problem of Sources of Finance of Schools	Responses from 15 principals
School have problems of sources of finance	13 (87%)
Schools do have problems of sources of finance	02 (13%)

The table above - 4 revealed that in 13 (87%) of the schools without help of Gujarat have problems of funding sources and problems are the irregular payment of tuition fees, leaving students between the two without payment of fees tuition, loan received some time towards the end. However, in 02 (13%) of the schools without help of the Gujarat do not have funding problems. These schools are able to regularly collect student tuition fees.

Ways to Manage the Financial Problems:

The responses of 15 school principals on ways and means to manage the financial problems without help from private schools are compiled, analyzed and appear in table - 5 being weak. The table 5 has revealed that in 13 (87%) of private unaided schools of Gujarat has suggested the means and ways to manage the financial problems at the school.

Table – 5 Ways to Manage Finance of Un-aided Private School

Ways to Manage Finance	Responses from 15 principals
Schools suggested ways to manage school financial problems	13 (87%)
Schools do have problems of sources of finance	02 (13%)

The tracks are instant ready to private bank with affordable interest rate, used school funds, send a circular to the parents for the regular payment of the costs of tuition, strict collection of registration fees, issues admit card upon review, fine of fees for late payment of tuition, increased student tuition fees to the financial problems of the school. However, in 2 (13%) of the private schools without help Gujarat have not all funding problems.

COORELATION BETWEEN FINANCIAL MANAGEMENT AND VARIABLE:

Correlations
		OCB	OBMP	OIPMS	OIBPFM	OFM
OFM	Pear*	.726^**	.752^**	.695^**	-.014	1
	Sig. **	.000	.000	.000	.827
	N	264	264	264	264	264

*Pear= Pearson Correlation; **Sig. = Sig. (2-tailed)

H₀There is no significant relationship between overall all financial management and over all checks and balance with respected to private school in Gujarat.

H₁ There is a significant relationship between overall all financial management and over all checks and balance with respected to private school in Gujarat.

Here researcher conducts the opinion of 264 financial managers in India. The researcher raised 13 construct with 5 point likert scale and 3 construct raised on financial management. We derive submitted scales and evaluate the relationship between two variables. The correlation co-efficient value 0.726 indicates very strong relationship between two variables. While significant 2-tailed value is 0.000 which is less than 0.05 shown that null hypothesis is fail to accepts, therefore there is a strong correlation between the two variables like overall financial management check and balance systems with respect to various private schools in various part of Gujarat.

H₀There is no significant relationship between overall all financial management and over all effect of board of management practices with respected to private school in Gujarat.

H₁ There is a significant relationship between overall all financial management and over all effect of board of management practices with respected to private school in Gujarat.

Here researcher conducts the opinion of 264 financial managers in India. The researcher raised 4 construct with 5 point likert scale and 3 construct raised on financial management. We derive submitted scales and evaluate the relationship between two variables. The correlation co-efficient value 0.752 indicates very strong relationship between two variables. While significant 2-tailed value is 0.000 which is less than 0.05 shown that null hypothesis is fail to accepts, therefore there is a strong correlation between the two variables like overall financial management effect of board of management practices systems with respect to various private schools in various part of Gujarat.

H₀There is no significant relationship between overall all financial management and over all influences of principles management skill with respected to private school in Gujarat.

H₁ There is a significant relationship between overall all financial management and over all influences of principles management with respected to private school in Gujarat.

Here researcher conducts the opinion of 264 financial managers in India. The researcher raised 6 construct with 5 point likert scale and 3 construct raised on financial management. We derive submitted scales and evaluate the relationship between two variables. The correlation co-efficient value 0.695 indicates very strong relationship between two variables. While significant 2-tailed value is 0.000 which is less than 0.05 shown that null hypothesis is fail to accepts, therefore there is a strong correlation between the two variables like overall financial management influences of principles management systems with respect to various private schools in various part of Gujarat.

H₀There is no significant relationship between overall all financial management and over all influences of budget participation with respected to private school in Gujarat.

H₁ There is a significant relationship between overall all financial management and over all influences of budget participation with respected to private school in Gujarat.

Here researcher conducts the opinion of 264 financial managers in India. The researcher raised 3 construct with 5 point likert scale and 3 construct raised on financial management. We derive submitted scales and evaluate the relationship between two variables. The correlation co-efficient value -0.14 indicates low level negative relationship between two variables. While significant 2-tailed value is 0.827 which is less than 0.05 shown that null hypothesis is accepts, therefore there is no significant relationship between overall all financial management and over all influences of principles management skill with respected to private school in Gujarat.

Correlation co-efficient value is positive that indicates that overall employee readiness for change is positively associated with all independent variables of the study. Moreover, significance value of all the variables is 0.00 that is less than 0.05 and hence null hypothesis is not accepted for all the independent variables of the study.

Principal Uses of School Finance:

Responses from principal of the 15 schools in the free use of the finances of the school by the Director of the school without help from private schools in Gujarat are compiled, analyzed and referred to in table 6 below.

Table – 6. Principal’s Freedom of using School Finance

Principal’s Freedom of using School Finance	Responses from 15 principals
Principal need permission from trustee to use school finance	10 (67%)
Principal does not need permission from trustee to use school finance	5 (33%)

The table above - 6 has revealed that in 10 (67%) of the schools without help of Gujarat, principals must make approval of the trustee members for the use of the schools finance. In these guiding schools do have the freedom to use the finances of the school for all school development. They must take the permission of the Secretary of the school to use even in small quantities. But, in 5 (33%) of the directors of the schools private without assistance to have the freedom to use the finance of the school for the development of the school. It shows that in private unaided schools, principals have no freedom to use finances directly such school decided by him.

Findings of the Study:

Most of the private schools of without help of Gujarat had financial problems. Schools consult any person well informed or ex-pert all in budgeting. Most trustee members have developed the school budget. Principals are less involvement in the preparation of the school budget. Most of the financial records of private school without assistance, cash memo and an expense receipt are standardize arranged in the school Office. Most of the directors of the school not received specific guidance of the Steering Committee of the school to use the finances of the school and they did not have the freedom to use the finances of the school. Only few schools have taken Bank loan as sources for school finance. School principals worked a few ways to overcome the financial irregularity in their schools.

Conclusion:

Finance is one of the most important elements of school organization. The school cannot exist without financial support. Therefore, the management of finance must be made carefully specially in unaided private school, where finance is entirely dependent on tuition fees from students. Schools must plan the budget with financial expert so that schools face no financial irregularities. The school can organize a workshop for the preparation of the budget and how to maintain a financial record of the school. Financial transaction to school documents will be regular maintained by members of the trustee, the main and the parents of joint and transparent way. Parents will have access to their schools budget and financial transactions. As finance is one of the main aspects of the management of the school, an element of serious and sincerity brought to him. Proper financial management can lead to the quality of the school.

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Received on 13.10.2018 Modified on 11.11.2018

Res. J. Humanities and Social Sciences. 2018; 9(4): 995-1000.

DOI: 10.5958/2321-5828.2018.00167.5