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The factors that influence the management of finance in an organization must be understood failure to which a lot of energy and effort will continue to be spent without much improvement in the performance of the organization. This could mean failure and is an excellent recipe for disaster. Therefore a research on the factors that affect financial management is an important management issue in the public secondary schools. This means that whether one is concerned with organizational success or failure, it is apparent that financial management issues feature more prominently.

Procurement procedures is one of the financial management systems in public educational institutions, that calls for proper planning so as to realize accountability and value for money. Purchasing is an area of concern to the Higher education institutions.

Follow up:

The concern being as a result of a report of the House of Commons public accounts committee, university purchasing in England. The report being in part to ensure not only accountability in the use of public resources but also to ensure value for money from the purchasing function since this offers a very real opportunity for reducing the operating costs of individual institutions through the achievement of the lower prices for the goods and service they purchase.

Accountability: The managers will be provided with resources and be responsible to carry out the organization policies by translating them into appropriate programmes. They will be expected to report back to the relevant authorities the result of their programmes. The requirement for accountability is fewly served if everyone responsible for the successful operation of an organization receives appropriate, accurate and timely information. This would ensure compliance with rules and regulations and hence enhance overall prudent financial management in the organizations.

Value for money (VFM) This is defined as the optimum combination of whole life cost and quality (or fitness for purpose) to meet the users requirements. Securing VFM in procurement is crucial to the wider objective of delivering high quality, cost effective public service. Therefore, the purchasing function has to develop clear strategies for the continual improvement in acquisition of goods and services. The VFM considerations should involve assessment of risk and an appropriate allocation of risk. The awarding of contracts based on VFM following competition contributes to the competitiveness of suppliers in the market. The criteria is based not on only the price but also other factors such as the whole life cost, quality and delivery against price. The VFM is looked at in terms of the “3E’s”- economy, efficiency and effectiveness. Economy- This is the acquiring of resources at the lowest cost keeping in view the objectives of the organization. This entails the procurement of goods and services to satisfy the following criteria.

• at the right amount
• at the right place
• at the right time
• at the right cost
• at the right kind

This is achievable where acceptable standards are available.

Efficiency – This is the relationship between the inputs and outputs to a performance standard. It relates to utilization of resources. It’s achievable where the standards of input and output are available.

Effectiveness- This is the extent to which an organization achieves its objectives. It assumes the existence of measurable objectives or outcomes of programmes. The procurement procedure is a critical function that if properly managed would lead to a “proper and transparent management of funds to ensure efficiency and cost effectiveness in the use of resources The procurement function has to actively engage in long term planning so as to support the long term strategic goals of the schools and this entails developing materials and plans, forecasting materials availability and prices. It also involves providing advice to the top management regarding the procurement policies and strategies.

The move by the government to introduce FSE has enabled schools to realize a steady flow of funds compared to when they used to receive schools fees bits from parents sometimes realizing only 50% of their expected revenue. The government funds the schools in a chart of accounts system (note heads). The noteheads are a budget line or expenditure ceilings for each item in the budget allocation. The education institutions are considered as not the profit organizations and therefore while they are required to operate with the available income, the expenditure is likely to be closely related in income .

Therefore the school should have proper procurement plans so as to meet the competing needs of the schools and procure within the limitation of the school obligation authority i.e. the BOG. The procurement procedures are meant to serve the following purpose:

• It provides guidance to the procuring entities.
• It enhances economy – Best prices and quality are realized by allowing competition among suppliers.
• It enhances efficiency-by providing a choice and alternative methods where efficiency is achieved without hindering competition.
• It increases transpotency-by following written procedure throught the process and using explicit criteria to award contracts.
• It increases integrity procedure to ensure fair treatment of supplies.
• It ensures full accountability through proper management and monitoring of procurement delivery and receiving process

The method of procurement at school level will be viewed from the following perspectives; Opening tender method - advertisement is posted in a conspicuous place in the school premises, local market or new papers.

Restricted tendering method- used when the goods are urgently needed and the need could not have been foreseen.

Direct procurement method- used when the goods are urgently needed and the need could not have been foreseen.

Request for proposal method-used for procuring services or a combination of goods and services.

Request for quotation method – Its used for procuring goods.

Low value procurement methods-used for the procuring items of low values and should not be used to run away from competition.

Specially permitted procurement procedures-used when it’s not possible to apply the procurement act and pemussion for we should be granted by the tender committee. The components of financial management system in public school are as shown