Basic Concept of Education Financing

BASIC CONCEPT OF EDUCATION FINANCING A. Effectiveness of Education Costs Education financing is all activities related to the arrangement of sources of use and accountability of education funds in schools or educational institutions. Activities in the effectiveness of education costs include three things, namely budget preparation, accounting bookkeeping, and auditing. Education costs are a source of money that is received and will be used for the implementation of education. In education financing according to Jones (1985) includes: 1) Financial planning, namely the activity of coordinating a resource that is available to achieve the desired target systematically without adverse side effects from the finances. 2) Implementation, namely activities based on previously made plans 3) Evaluation, namely the process of assessing the achievement of the objectives of education financing. B. Basic concepts of education financing 1. Budgeting concept. In general financial activities, education financing activities include three things, namely budgeting, accounting, and auditing. a) Budgeting Budgeting is an activity or process of preparing a budget. Part is an operational plan expressed quantitatively in the form of monetary units used as a guideline within a certain period of time. Therefore, the budget describes the activities that will be carried out by an educational institution. Budgeting is a positive step to realize the plan that has been prepared. This activity involves the leaders of each unit in the educational unit. Basically, budgeting is a negotiation or negotiation of agreement between leaders and subordinates in determining the amount of cost allocation for a budget in education. b) Accounting This management includes two things, namely first, managing matters concerning the authority to determine policies to receive or disburse educational funding. The second management concerns follow-up matters from the first sequence, namely receiving, storing and disbursing educational funding money. This management does not concern the authority to determine but only implements and is known as the treasurer's affairs. c) Auditing Auditing is an activity that concerns the accountability of receipt, storage and payment or submission of educational costs carried out by the treasurer to authorized parties. 2. Principles in the education financing budget. a) The planfond principle, that the education budget expenditure that may be requested does not exceed the highest amount that has been determined. b) The principle of expenditure based on budget items, meaning that expenditure must be based on budget items that have been determined in the education unit. c) The indirect principle, namely a provision that each recipient of money may not be used directly to meet the needs of expenditure in the education unit. 3. Things that affect education financing a. External factors • the development of educational democracy • government policies • demands for education • inflation. b. Internal factors • educational goals • approaches used • materials presented • level and type of education 4. Characteristics of educational financing Some things that are characteristics or features of educational financing are as follows: a) Education costs always increase, the calculation of educational financing is stated in unit cost units which include: • complete unit cost, namely the calculation of unit cost based on all facilities issued for the implementation of education. • semi-complete unit cost, only takes into account the cost of needs related to materials and equipment that are gradually depleted even though the time period is different. • narrow unit cost, namely the unit cost obtained only by taking into account educational costs that are directly related to calculating other costs related to teaching and learning activities. b) The largest cost in implementing education is the cost of human factors. Education can be said to be a human investment, which means that the largest costs are absorbed by human power. • The unit cost of education will increase in line with the level of school. • The unit cost of education is influenced by the type of educational institution. The cost of vocational schools is greater than the cost of general schools. • The components funded in the education system are almost the same from year to year.