Accounting Practices and Fund Management: An exploratory study of financial practices of private schools in Maiduguri, Nigeria

Abstract

The dearth of public secondary schools in recent times in Nigeria has seen many parents opt for private education for their children. This has resulted in a thriving business for private school owners and the need to employ several accounting practices to manage their finances and maximize profitability. The study explores accounting practices and fund management in private schools in Maiduguri, Borno State, Nigeria. A sample of 131 respondents (principal and bursars) across Maiduguri metropolis were randomly surveyed using a single structured questionnaire. Face validity of the instrument was ascertained by senior lecturers from the department of accounting, University of Maiduguri. Cronbach alpha coefficient was also run to assess the instrument’s reliability and items’ consistency. Data was collected, coded and analyzed with the aid of Statistical Package for Social Science (SPSS) version 23. Results from the principal component analysis shows accounting practices (bookkeeping, internal control and budgeting) are associated with fund management practices in private schools. The study concludes that private should not underscore the relevance of imbibing appropriate accounting practices in managing their funds. The study recommends further confirmatory studies to validate the exploratory results.