Basic Concepts of School Financial Management

Basic Concepts of School Financial Management A. Definition of School Financial Management Financial management is one of the substances of school management that will also determine the running of educational activities in schools. As is the case in the substance of educational management in general, financial management activities are carried out through the process of planning, organizing, directing, coordinating, supervising or controlling. According to the Ministry of National Education (2003), financial management is an act of financial management/administration which includes recording, planning, implementing, accountability and reporting. Thus, school financial management can be interpreted as a series of activities to manage school finances starting from planning, bookkeeping, spending, supervision and accountability of school finances. Darwanto (2013) stated that school financial management is the entire process of activities that are planned and implemented/attempted intentionally and seriously, as well as continuous guidance on school operational costs so that educational activities are more effective and efficient and help achieve educational goals. From the above opinion, it can be concluded that school financial management can be interpreted as a process of planning and implementing the acquisition of financial use effectively, efficiently, and responsibly in order to facilitate the achievement of educational goals and the achievement of the school's Vision and Mission. B. Objectives and Functions of School Financial Management The purpose of implementing school financial management is to meet funding needs related to school activities that can be done by planning in advance, procuring them, recording them transparently and also using them to finance school programs effectively and efficiently. In general, the purpose of school financial management is to: a) To be able to increase the effectiveness and efficiency of the use of school funds b) Increase accountability and transparency related to school finances c) Minimize misuse of the budget for unnecessary things. The functions of financial management itself are as follows: a) Financial Planning, making plans for income and expenses and other activities for a certain period. b) Financial Budgeting, follow-up to financial planning by making detailed expenditures and income. c) Financial Management, using school funds to maximize existing funds in various ways. d) Financial Search, finding and exploiting existing sources of funds for school operational activities. e) Financial Storage, collecting school funds and storing and securing these funds. f) Financial Control, evaluating and improving finances and financial systems at schools. g) Financial Audit, conducting internal audits of existing school finances to avoid irregularities. h) Financial Reporting, providing information on the financial condition of the school as well as evaluation material. C. Principles of Implementing School Financial Management In its implementation, school financial management needs to pay attention to a number of principles. Law No. 20 of 2003, article 48 states that the management of education funds is based on the principles of justice, efficiency, transparency, and public accountability. In addition, the principle of effectiveness also needs to be emphasized. The following discusses each of these principles, namely transparency, accountability, effectiveness, and efficiency. a) Transparency Transparent means openness. Transparent in the field of management means openness in managing an activity. In educational institutions, transparent financial management means openness in the financial management of educational institutions, namely openness of financial sources and their amounts, details of use, and accountability must be clear so that it can facilitate interested parties to find out. b) Accountability Accountability is a condition of a person who is assessed by others because of the quality of his performance in completing tasks to achieve goals that are his responsibility. Accountability in financial management means that the use of school money can be accounted for in accordance with the planning that has been set. Based on the planning that has been set and the applicable regulations, the school spends money responsibly.