Basic Concepts of Educational Financial Management

Basic Concepts of Educational Financial Management Educational institutions at all levels of education from preschool, school to college are organizational entities that in their operations require and need money to mobilize all the resources they have. In Rofiq's understanding, A. (2017) explains that this money is a rare and limited resource. Therefore, it needs to be managed effectively and efficiently to help achieve educational goals. For this reason, the study of financial management in the educational environment is discussed thoroughly in the Financial Management and Education Financing course. Educational finance (financial management education), and financing are determining elements in educational services in schools. In relation to the management system, financing and financial management are inputs and processes to produce output in the form of quality educational services provided by schools. Financial management and education financing are also understood as a concept of thinking globally, generally and comprehensively as a form of implementation of various regulations, policies, rules, and programs regarding educational financial management, education budget, education funding, education financing and various other educational resources that directly support the effectiveness and efficiency of educational services. The educational resources referred to and viewed as production instruments or processes that determine whether or not the educational process takes place are money factors. The concept of human thinking in various activities has always viewed money as having a strategic role, like the proverb (wisdom word) which states that money is not everything, but don't forget, everything needs money, including in managing educational institutions. Educational institutions also cannot achieve high targets, become the best, become quality, have a good reputation and many other achievement labels that they want to achieve. Of course, my belief and many other parties think that it is impossible to realize without adequate money support, especially if it is not supported by good management. Therefore, money resources are very important in determining the achievement and the target can be realized if managed professionally, fairly, sufficiently, and sustainably. Financial sources and school financing are grouped into three, namely (1) the central and regional governments which are allocated for educational purposes; (2) parents or students; (3) the community (Suryana, 2008). Law of the Republic of Indonesia Number 20 of 2003 concerning the National Education System emphasizes that the fulfillment of education funds is a shared responsibility between the government, community, and parents. Sources of school finance and financing are regulated in Government Regulation of the Republic of Indonesia Number 48 of 2008 concerning Education Funding Article 51 Paragraph 1 that education funding comes from the budget of the government, regional government, and the community. Furthermore, Government Regulation of the Republic of Indonesia Number 48 of 2008 concerning Education Funding Article 51 Paragraph 2 explains that the government budget comes from the central government; while the regional government budget comes from the provincial, city or district government; funds from the community in the form of legal and binding participatory funds and non-binding foreign assistance. School financing sourced from state finances is regulated in laws and regulations. Law of the Republic of Indonesia Number 15 of 2004 concerning Audit of State Financial Management and Accountability Chapter 1 Article 1 Paragraph 6 explains that state financial management is all activities that include planning, implementation, supervision, and accountability by state financial management officials in accordance with their positions and authorities. According to Mestry and Tom (2009:3), the definition of school financial management is the performance of management policies related to aspects of school financing with the achievement of school effectiveness brought by management. Sutomo (2011:67) explains that school budget or cost management is a planned and implemented process and continuous guidance on school operational costs. School financial management according to Bafadal (2004) can be interpreted as the entire process of obtaining and utilizing funds in an orderly, efficient, and accountable manner, so that educational operational activities are increasingly effective and efficient in order to achieve educational goals. The school financial management process is based on Law Number 20 11 of 2003 concerning the National Education System Chapter XIII which is implemented through: (1) Education funding is a joint responsibility of the government, local government, and the community. (2) Sources of education funding are determined by the principles of justice, adequacy, and sustainability. (3) Management of education funds is based on the principles of justice, efficiency, transparency, and public accountability. (4) Allocation of education funds other than teacher salaries and civil service education costs is allocated at least 20% of the APBN and APBD.