BUDGETING PRACTICES AND FINANCIAL PERFORMANCE OF PRIVATE SECONDARY SCHOOLS IN MUKONO DISTRICT, UGANDA

Abstract

The primary objective of this study was to examine the relationship between budgeting practices and financial performance of private secondary schools in Mukono District, Uganda. The study was carried out in Mukono District. The population of the study consisted of private secondary schools in Mukono District. Mukono had 88 private secondary schools. 50 of which had been in existence for a period of not less than 5 years. Only 30 out of the overall 88 private schools were selected. These schools formed the unit of analysis and provided room for comparison, saving time and resources for the researcher. A sample size of 90 respondents was selected from the target population of 30 in private secondary schools. These schools were selected based on Krejcie and Morgan (1970)’s guide for sample selection. From the target population, 30 headteachers, 30 bursars, and 30 principals were selected using simple random sampling. Stratified sampling was used to group respondents into categories of headteacher, bursar, and principal. The schools were randomly selected, with at least five schools per subcounty in Mukono District. The findings highlight the significance of well-established budgeting practices in contributing to overall financial performance. Schools with systematic review processes, documented policies, and clear strategic alignment demonstrated higher financial stability and growth. The study found that schools with robust budgeting practices, including systematic reviews, board approvals, and strategic alignment, were better positioned for financial success. This highlights the need for schools to prioritize structured budgeting processes as a fundamental aspect of financial management.