KONSEP DAN MODEL PENGURUSAN KEWANGAN BAGI INSTITUSI PENDIDIKAN

Definisi dan ciri-ciri pengurusan kewangan bagi institusi pendidikan Konsep dan elemen dalam pengurusan kewangan Model berkaitan dengan pengurusan kewangan bagi institusi pendidikan

OUTLINE
1. Pengenalan kursus 2. Konsep pengurusan kewangan dalam sektor pendidikan 3. Istilah dalam pengurusan kewangan 4. Model pengurusan kewangan 5. Implikasi kewangan dalam sektor pendidikan

School finance / School financial management School business administration Educational finance

KONSEP PENGURUSAN KEWANGAN DALAM SEKTOR PENDIDIKAN

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DEFINISI KEWANGAN
Kewangan (Finance) Address the ways in which individuals, business, business entities and other organizations allocate and use monetary resources over time - investment - loan, debt, bond

KONSEP PENGURUSAN
Maksud pengurusan (management) is the organizational process that includes strategic planning, setting objectives, managing resources, deploying the human and financial assets needed to achieve objectives, and measuring results.

Fungsi pengurusan
1. 2. 3. 4. 5. Perancangan Mengorganisasi Penstafan Mengarah Mengawal

Financial management
financial management is defined by Pandey (1995) as that management activity which is concerned with the planning and controlling. financial management is concerned with decisions on how to procure, expend and give account of funds provided for the implementation of the programmes of an organization. In educational institutions, financial management refers to that management activity that is concerned with decisions on how to procure funds, of an organization's financial resources, disburse and give account of funds provided for the implementation of educational programmes.

School Financial Management

Pengurusan kewangan dalam pendidikan adalah berkaitan dengan pengagihan dan penggunaan sumber kewangan oleh institusi pendidikan bagi memenuhi tujuan penyediaan perkhidmatan pendidikan dan pencapaian kejayaan pelajar. (Odden & Picus, 2004).

SCHOOL DEVELOPMENT PLANNING MODEL (Source: Davies and Ellison, 1992, p.9)
Core Elements: CURRICULUM & CURRICULUM DEVELOPMENT SCHOOL VISION, MISSION AND AIMS Support Elements: PHYSICAL RESOURCES PUPIL ROLL & MARKETING MANAGEMENT STRUCTURES & APPROACHES FINANCIAL RESOURCES
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HUMAN RESOURCES
PUPIL WELFARE & PASTORAL CARE

SCHOOL MANAGEMENT DEVELOPMENT PLAN

MONITORING AND EVALUATION MECHANISMS EFFECTIVE EDUCATION

The purpose of financial management in education

1. The raising of funds and ensuring that the funds so mobilized are utilized in the most effective and efficient manner. This is based on the fact that resources are scarce and so heads of educational institutions should ensure optimal utilization of funds. 2. To assist educational managers and administrators to keep a record of their stewardship in financial matters for the benefit of the government, the proprietors or the governing council of the institution. 3. It is, also, the supervision of cash receipts and payments and safe guarding of cash balance.
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Scope of financial management in education

(a)The procurement and raising of funds. (b) The allocation o f financial resources to different educational institutions. (c) The effective utilization of funds. (d) Supervision of cash receipts and payments. (e) Safeguarding of cash balance.

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School business administration contributes to teaching and learning by providing information and services that speak to questions such as:
1. What are educational needs that have business implications? 2. What are the nature and cost of each feasible alternative to meet a given educational need? 3. What is the most efficient means to provide each alternative? 4. What is the cost-effectiveness of each alternative (to what extent does each alternative meet the educational need, and how does this equate to the expenditure involved)? 5. What is the relative priority of each expenditure decision to all of the other expenditure decisions in the school system?
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Educational finance
Any aspect of raising and spending revenue for educational purposes education finance is one of those subjects which lie on the border line between economics of education and education law. It is concerned with the income and expenditure of authorities of educational institutions and with the adjustment of one (income) to the other (expenditure). Ogbonnaya (2000) described education finance as the process by which tax revenues and other resources are derived for the establishment and operation of educational institutions as well as the process by which these resources are allocated to institutions in different geographical areas.
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Scope of education finance

(a) Financial concepts like imprest, payment vouchers, finance virement, authority to incur expenditure, Bank statements, cash management and financial control. (b) Taxation (c) Budget (d) Classification of government expenditure. (e) Types of cost analysis - current versus capital cost, recurrent and capital expenditure. (f) Role of government and non-government agencies in the funding of education. (g) Sources of funds and problems of finding educational programmes
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KOMPONEN DALAM PENGURUSAN KEWANGAN (Garner 2004)

1. 2. 3. 4. Struktur pengurusan Program, perkhidmatan dan aktiviti sekolah Belanjawan Sistem kewangan yang menguruskan belanjawan dan perakaunan

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AKTIVITI DALAM PENGURUSAN KEWANGAN

Mendapatkan sumber kewangan
Pentadbiran belanjawan Menjana pendapatan

Melaksanakan program/projek/aktiviti sekolah

Perolehan Penggajian Pengurusan aset

Mengawal sumber kewangan

Pengurusan tunai dan hutang Penyediaan laporan Kehilangan, hapuskira dan pelupusan Pengauditan

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Konsep Pengurusan Kewangan Kerajaan

Perlu Mengikut Langkah Langkah Tertentu Untuk Memperolehi Dan Seterusnya Mengagihkan Sumber Sumber Berdasarkan Kepada Keutamaan Menggunakan Cara Cara Dan Kawalan Tertentu Untuk Mencapai Objektif Berkenaan Dengan Cekap Dan Berkesan

Skop pengurusan kewangan dalam konteks Malaysia

1. 2. 3. 4. 5. Pengurusan Perbelanjaan Pengurusan Perakaunan Pengurusan Pungutan dan Tunggakan Hasil Pengurusan bekalan dan aset Penyediaan dan Pembentangan Penyata Kewangan dan Laporan Tahunan Badanbadan Berkanun

LATIHAN 1 ISU DALAM KEWANGAN SEKOLAH

Bincang dalam kumpulan dan cuba senaraikan masalah utama dalam pengurusan kewangan di tempat anda bertugas. Terangkan bagaimana masalah yang dikenal pasti boleh menjejaskan proses pengajaran dan pembelajaran. Jelaskan apakah langkah-langkah yang boleh diambil untuk mengatasi masalah tersebut.

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Cost Economy Efficiency Effectiveness Productivity Value for money

ISTILAH DALAM PENGURUSAN KEWANGAN

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The nature of costs

Costs is resources foregone to acquire other human or physical resources to achieve an objective. (eg: people, premises, time within the school day or personal time, intangible resources - morale, health, motivation, energy of teachers, students Non-financial costs : teachers time, students travel, students earning foregone, students nutrition, home electricity, vandalism
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Costing
Costing is the art of measuring the consumption of resources in financial terms Costing of inputs is much easier than costing of processes or outcomes Costing is also difficult because it is often by no means clear which resources should actually be included.

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Opportunity Costs
The next-best alternative use for these resources Eg: A PTA tells a headteacher it has some money for the purchase of microscopes. The head accepts with gratitude, although feeling that a higher priority would be to expand the basic equipment in one of the laboratories.

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Cost classification
Cost information needs to be organised into a pattern before significance can be read into it. a. Direct and indirect costs b. Prime and subsidiary costs c. Variable and fixed costs d. Controllable, sunk, and idle costs e. Unit costs
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Direct and indirect costs

Direct costs are costs that can be easily identified with a cost centre (it is responsible for its own budget and that all expenditures incurred by it are debited to it). Indirect costs are costs that cannot be so identified and have to be apportioned (overhead).

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Prime and subsidiary costs

Costs between resources related to a schools prime educational function and those relating to its subsidiary administrative, transport and catering functions. The division of total school costs into such categories, with percentages for each, is important. It makes it possible to monitor the percentage over years and see if the proportionate and actual expenditure on the subsidiary categories is shrinking or rising.
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Variable and fixed costs

Variable costs are those that change in proportion to the quantitative changes in the processes of the industry Fixed costs are those that remain unchanged for a given period of time, despite fluctuations in the volume of the activity undertaken. It is particularly important at a time of falling rolls, when a number of costs may remain completely or relatively fixed, and so squeeze the finance available for variable costs
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Controllable, sunk and idle costs

Who controls costs? Budgetary responsibility is aimed at identifying the person who has the most effective cost control over the item concerned. Costs may not really be controllable because expenditure cannot be reduced or recovered sunk costs. Costs may not be fully controllable because premises or other resources are underused idle costs
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UNIT COSTS
Unit costs = Total costs Number of units

Units can be students, classes, schools, courses, time, hours, lessons or days

Cost characteristics of school (Knight, 1993)

1. Most schools are non-profit organisations. 2. Schools are service organisations and perform a social as well as an economic function. 3. School cost structure are very stable 4. Schools work within a very slow cycle. 5. School unit costs tend to rise when education become more technical and science-centred. 6. Schools are very labour-intensive 7. School calendar cause high costs 8. Schools are constrained by legislation, regulations, policies and attitudes that have often developed without consideration for costs, and yet which considerably affect them. 30

Key concepts for effective financial management (Knight, 1993)

1. 2. 3. 4. 5. 6. Economy Efficiency, cost-eficiency Effectiveness, cost effectiveness Cost/benefit analysis Productivity Value for money

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KEY CONCEPTS FOR EFFECTIVE FINANCIAL MANAGEMENT

Economy
careful use of resources, frugality and good housekeeping. It implies the avoidance of expenditure above a reasonable minimum or of a speculative sort Only relates to expenditure, and not to its use

Eg: repair of equipment rather than a new purchase Purchase of equipment only after thorough survey of the market and negotiation of discount

KEY CONCEPTS FOR EFFECTIVE FINANCIAL MANAGEMENT Efficiency

The fullest possible attainment of specific objectives or standards Eg: A heating system which brings all rooms to the desired temperature; A security system which detects intruders effectively A clerical system which collects payments for hire of school premises promptly

KEY CONCEPTS FOR EFFECTIVE FINANCIAL MANAGEMENT

Cost-efficiency
Relates efficiency to its cost. More cost-efficient greater efficiency at the same cost or the same efficiency at lower cost

Eg: A new boiler which provides the same heat more economically Reduced expenditure on an administrator rather than a teacher to administer school examinations Preventive maintenance of buildings which avoids long-term maintenance costs

KEY CONCEPTS FOR EFFECTIVE FINANCIAL MANAGEMENT

Effectiveness is the fullest possible attainment of the goals and objectives of the school. Eg: Improved performance, possibly against performance indicators, such as improved examination results or test scores (but only if this is not caused by some external factor such as improved quality of student intake) Improved student attitudes and behaviour; Better parent and community relations Improved school environment

KEY CONCEPTS FOR EFFECTIVE FINANCIAL MANAGEMENT

Cost-effectiveness Relates effectiveness to the cost incurred greater effectiveness for the same or low additional costs, or the same effectiveness at lower costs. Eg: Expenditure on promotion of the school bring increased enrolment; Purchase of a minibus brings expansion in educational visits and off-campus learning Peer tutoring improves student performance with little extra cost.

KEY CONCEPTS FOR EFFECTIVE FINANCIAL MANAGEMENT

Productivity increasing outcomes for each unit of input (RM, teacher hours, student hours) Higher school productivity implies one of the following Cheaper education, the same for less cost Increased education, more for the same cost Speedier education, the same in less time

Productivity in education
Concerned with the quantity and quality of educational outcomes that result from a given investment resources. The research focus on estimating an education production function that links school inputs to educational outcomes and identifies the impact of changes in inputs (e.g., teachers on student outcomes (e.g., achievement as measured by test scores)

Issues: 1. What should schools produce and how should we measure the quality and quantity of the product? 2. Should we focus on basic functional competencies or critical thinking skills? 3. Will standardized tests suffice to measure progress and if so, what sort of test? 4. What about civic responsibility, economic self-sufficiency, cultural awareness

Issues: 1. What are the inputs to the production of education? - Purchased inputs: teachers, school buildings, books - Nonpurchased inputs: donated goods and services

KEY CONCEPTS FOR EFFECTIVE FINANCIAL MANAGEMENT

Value for money How much does this cost? Is it good value for money? Is this was my business, would I spend my money like this?

1. School financial management model (Knight, 1993) 2. Spending Models on Educational Resources (Sutton, 1996) 3. Models of Educational management (Bush, 1995) 4. Human capital theory 5. Agency theory

TEORI DAN MODEL DALAM PENGURUSAN KEWANGAN

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Dana Sekolah Kerajaan Derma Yuran Sumber lain

PELAJAR Bilangan Umur Kebolehan Akademik Motivasi

SUMBER KEWANGAN Modal Pendapatan Belanjawan

SUMBER MANUSIA DAN ASET FIZIKAL Guru Kakitangan am Peralatan Bangunan

PENGGUNAAN MASA Kalendar persekolahan Jadual kelas Hari dan waktu bekerja

PROSES PENDIDIKAN Kurikulum, kaedah, teknologi, latihan

KELUARAN Pengetahuan Kemahiran Sikap

Pengalaman pembelajaran pelajar

Perkhidmatan sokongan

MANFAAT Tenaga kerja Warganegara baik Individu seimbang

Donated funds Yuran

Donated resources

Donated time Staff Pelajar Ibubapa komuniti

Fund raising

Petunjuk

Sumber yang masuk Maklumbalas dalaman Maklumbalas luaran Model sistem pengurusan kewangan Knight

DASAR PENDIDIKAN, POLISI, PERATURAN Kerajaan PIBG Politik

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A model for school financial management (Knight,1993)

Several features of this model stand out: 1. Finance triggers and controls the system. 2. Financial resources are only a part of the system. 3. The whole system is susceptible to good management. 4. Given the importance of feedback to the system, good management information is essential. 5. Financial management has two face
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Spending Models on Educational Resources (Sutton, 1996)

1. Centralised model 2. Decentralised model 3. Hybrid model

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Centralized model

Decisions are made by a single body. Can operate through a single person at the extreme or through collective decision making by committees of staff.

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Decentralized model

Decisions are made by individual teachers acting as budget holders. The process of allocating resources is very much simpler, quicker, more open, and perceived to be objective and fair.

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Hybrid model

A combinations of decisions making. Some centralized decisions may be made and other decisions may be made by others through delegation.

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MODELS OF EDUCATIONAL MANAGEMENT

1. 2. 3. 4. Rational models Collegial models Political models Ambiguity models

The Role of Economics in Education Policy Research

Economics is defined as the study of allocation of scarce means to satisfy competing ends (Becker as quoted by Walberg and Bast, 2003, p. 182 Economist study how individuals, organizations, and society employ time, money, and effort. In the case of education, economists are interested in how society organizes and uses resources to produce various types of knowledge and skills through formal schooling and distributes them to various groups in society.

(Brewer et al, in Ladd & Fiske, 2008)

 Economists begin an explanation of observed phenomena by building a theory or a model in order to simplify reality and highlight key characteristics. A model contains a set of assumptions, and yields predictions, ceteris paribus (all other things being equal)

Economic theories are built on three basic foundations: 1. Scarcity assumption that individuals and society will never have enough resources to completely satisfy their unlimited wants. 2. Rationality peoples ability to make decisions in a systematic and purposeful way. 3. Optimizations either profit or goal maximization in reference to organizations or utility maximization in reference to individuals.

Economics is a framework for helping understand the behavior of individuals and organizations in allocating resources 1. How much education should an individual acquire? 2. How should education be produced and allocated by a society? 3. Can we be more efficient in organizing the production of education?

Human Capital Theory

Economist view education (and training as an individual investment decision designed to achieve monetary return in the labor market. Human capital (Adam Smith, John Stuart Mill, Alfred Marshall) individuals skill could contribute to their economic status. Underlying the concept is the idea that knowledge and skills acquired through educational investments increase human productivity enough to justify the costs incurred in acquiring them.

AGENCY THEORY

PENILAIAN DALAM PENGURUSAN KEWANGAN

Analisis kos faedah (Cost-benefit analysis)
The process of weighing the total expected costs vs. the total expected benefits of one or more actions in order to choose the most profitable option

Keberkesanan kos (Cost-effectiveness ) Cost-effectiveness relates effectiveness to the cost incurred greater effectiveness for the same or low additional cost, or the same effectiveness at lower cost.
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1. RMKe-10 (Pendidikan) 2. Model Baru Ekonomi (NKEA) 3. Program Transformasi Kerajaan Bidang Keberhasilan Utama Negara (NKRA) Pendidikan 4. Pelan Pendidikan 5. Bajet

IMPLIKASI KEWANGAN DALAM SEKTOR PENDIDIKAN

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Isu dan Cabaran dalam Pembiayaan Pendidikan di Malaysia (Shahril@Charil Marzuki, 2008)
1. Pertambahan bilangan pelajar 2. Menyediakan dan mewujudkan sistem pendidikan yang berkualiti 3. Sumber pembiayaan terhad 4. Sumbangan masyarakat masih terhad 5. Peratus perbelanjaan agak rendah 6. Agensi income-generating tidak menjana pendapatan 7. Peruntukan PCG peringkat prasekolah, rendah dan menengah 8. Kos pendidikan teknikal dan vokasional tinggi
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