Modern School Financial Management

Tutut Sholihah

Islamic State Institute of Palangka Raya

sholihahplk21@gmail.com

Keywords: Financial management, modern school.

Abstract: Finance in schools is an urgent thing for school progress. It should be managed in efficient management,

effective, efficient and proportional so that the school operational activities, infrastructure, facilities and

overall welfare school staffs can be fulfilled. Every Modern school should implement a concept of school

financial management systematically, easy to access, programmed and supported by professional treasurer,

capable and having integrity. The purpose of the study is to analyse and offer a concept of model financial

management. The method of the study uses descriptive qualitative approach. The data are collected through

in-depth interviews, field observation and documentation. The main subjects of the study are the school

principal, treasurer, and Division informants are education foundations, head of committee, head of

administration, teachers and parents. The results of the study reveal: 1) the source of funds received by schools

is obvious and transparent; 2) School expenditure budget plan is set up professionally and legalized by

principal, committee and foundation; 3) implementation of the financial budget is used according to plan in

RAPBS; 4) Financial accountability is reported to the central government, provincial government online

agencies; funds from parents are reported to the committee and foundation; and 5) the concept of a financial

management model is systematized with backing up data and cooperation with the bank in the process of

payment, storage, and managed by a treasurer that honest, trustful, capable and having integrity to establish

a successful modern school in progressing school.

1 INTRODUCTION

Finance and financing is one of the resources that

directly support the effectiveness and efficiency of

education management. According to National

Education Department, financial management is an

action management and financial administration

covering recording, planning, implementation,

accountability and reporting (National Education

Department 2002). Funding that comes to school

either from government, or society, especially

student-parents should be prepared by school system

students for its management. A school that cares

about the administrative order must have a school

financial management system, to ensure that its

financial management is conducted orderly, effective,

efficient, transparent, and accountable. This

professional school financial management system

will later be expected to be able to avoid misusing

funds, manipulation, corruption and misusing budget

in schools.

2 MODERN SCHOOL

FINANCIAL MANAGEMENT

SYSTEM

2.1 System

The word ‘system’ comes from the Latin (systēma)

and the Greek (sustēma). It is a unity composed of

components or elements that are connected together

to make easier the flow of information, materials or

energy to achieve a goal. According to Raymond

Mcleod: "System is a set of interrelated elements to

form a unity intact and integrated ". (http://

restisanggraini. blogspot.co.id/2014/11). This means

that system emphasizes on two approaches:

procedures and elements. Procedural approach refers

to related mutual networking, gathering together to

perform an activity or to accomplish a particular goal.

196

Sholihah, T.

Modern School Financial Management.

In Proceedings of the Annual Conference on Social Sciences and Humanities (ANCOSH 2018) - Revitalization of Local Wisdom in Global and Competitive Era, pages 196-200

ISBN: 978-989-758-343-8

2.2 Financial Management

Etymologically, the word ‘management’ comes

from Old French ‘menagement,’ which means the

art of implementing and managing. In English, the

word ‘management’ comes from the word to manage,

which means to order, manage, guide and supervise.

Management is also defined as a systematic effort to

organize and mobilize people involving in the

organization in order that they work with all their

might and possessed ability (Lecturer Team of the

Department of Education Administration UPI, 2001,

p.16). Another definition is that management is the

process of planning, organizing, leading, and

controlling efforts for organization with all its aspects

to achieve organizational goals effectively and

efficiently. (Nanang Fattah, 2009, p.1). This means

that financial management is a process of doing

activities to manage finances effectively and

efficiently by mobilizing skills of others, starting

from digging financial resources, planning,

implementing, up to reporting and accountability.

2.3 Sources of Finance and Funding in

Educational Institutions /School

Mulyasa argues that the source of funding in a school

basically can be grouped into three sources (Mulyasa,

2006, p.177):

 Government (central and regional government).

 Student Parents / learners (tuition fee,

committee fees and development costs).

 Societies (donations of individuals, institutions,

groups of businessmen).

Sulistyorini states that the source of funds at an

institution Islamic education or public school

basically can be grouped into three sources: the

government, both central and regional, student -

parents and learners, the society that is the donator

(2006, p.132-133). Therefore, schools are required to

manage these finance effectively and efficiently,

transparency and honestly accountably to the funders.

2.4 Planning and Implementation of

Institutional Budget Education

Institution/ School

According to Romayulis, planning includes priority

determination in order to make the implementation of

education run well and effectively. The priority needs

involve all components involving in the education

process, society, and even students. Goal setting is as

guidelines and as an evaluation of the implementation

and outcomes of education (2008, p. 271). In order to

make effectively the school financial budget, then

those who are very responsible as the executor is the

school principal. The school principal must be able to

develop a number of dimensions administrative

developments. Designing of RAPBS requires past

period of analysis and the external environment

including strength, weakness opportunities and

threats (Nanang Fattah, p.54).In the same case related

to the implementation of financial management, there

are some ways to make the funder trust to an Islamic

educational institution. The school is obliged to

maintain the trust such as:

 The use of the budget should be completely in

accordance with the planned program.

 The budget should be used as efficiently as

possible.

 Avoid image that the use of funds just spend all

the budget.

 Disbursements are only made by authorized

officers. (Mujamil, 2007, p.169)

It means that to achieve goals in financial

management at the education institution, it is strongly

needed regulation in budget planning and also in

carrying out what is already planned. This means that

it needs transparency, accountability, effectiveness,

and efficiency.

2.5 Reporting and Accountability of

School Financial

The financial accountability of school includes all

school financial expenditure related to what has been

achieved in accordance with determined goals; the

process of accountability acceptance, storage, and

payment or transfer of funds to the parties having

right to know it. (Mulyasa, 2006, p.178).All financial

expenses in schools from any sources should be

accounted for. Accountability becomes a form of

financial management transparency. Basically,

accountability is done by following regulation of the

source budget. Nevertheless the principle of

transparency and honesty within financial

accountability of schools/ Islamic education

institutions should be consistently upheld. Dealing

with the financial management, which needs to be

noticed by the treasurer of the educational institution

is as follows: 1) At the end of each fiscal year, the

treasurer shall make financial statements to

committees / assemblies of institutions to be matched

with RAPBS, 2) The financial statements must be

attached with evidence of the available report,

including proof of tax deposit (Income Tax) if any, 3)

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197

Receiptor proof of purchase or receipt of a signature,

acceptance of honorarium / assistance / proof of other

legal expenses, 3) Balance Sheet finances should also

be shown to be checked by liability finance from

institute committees. (Mulyasa, 2006, pp. 267-268).

2.6 Concept of Modern School

Financial Management Model

Concepts are a number of theories pertaining to an

object. Concepts are created by grouping and

classifying certain objects having the same

characteristics. (Umar, 2004, p.51). According to

Indonesian Big Dictionary (KBBI), model is a pattern

which is used as a reference, variety, of something to

be created or produced. The concept of modern

school financial management models a systematic

theory having a unique pattern in school financial

management by mobilizing human resources having

capability and being integrated, both in the process of

planning, execution, supervision, and reporting.

School finance management having modernized

system mechanism with IT systems, easily accessible

online. All data are computerized and systematized

by giving ease of satisfaction service by bank as

partner of school cooperation in terms of funding,

storage, and security funds. Therefore, it avoids from

any form of manipulation, leaking and misuse of

funds.

If compared with previous studies, this study is

different from them. The study analyses the financial

management system of modern schools, which are

effective, efficient, and transparency, starting from

the clarity of funding sources, the planning system

and system of funds usage, financial management

systems, reporting and evaluation systems and system

of financial accountability of schools and finding the

concept of the modern school financial management

model.

3 RESEARCH METHOD

The research method used in the study is descriptive

qualitative approach. The data are collected through

in-depth interviews, field observations and

documentation. The main subjects of the study are the

principal, treasurer, and chief of division. The

informants are foundations, head of committees, and

head of administration, teachers and student- parents.

4 RESEARCH FINDINGS

A concept of school management model is also

applied on a concept of a school's financial model,

especially in financial management, which is sourced

from student- parents. Since, in private schools, the

biggest source of fund comes from student-parents. A

concept can be defined as a preparation of an activity

based on the procedure. Meanwhile, model can be

defined as a simplified design of an activity system.

Therefore, it is necessary to design a concept of a

school's financial management model, as follows:

 Service Satisfaction is providing satisfactory

service.

 Transparency is to provide open and honest

financial information.

 Accountability is able to account for financial

management.

 Effective is the achievement of the desired goal.

 Efficient is the best comparison between input

and output or between power (including energy,

mind, time, cost, and result).

 Facilitating the function of supervision or

controlling.

 Facilitating reporting and accountability

functions.

Based on the experts’ opinions on financial

management and as the results of field research in the

management system finance, it can be said that in

general, it is in good management. The government

funding sources comes from BOS funds,

management of funding sources from student-

parents, and fund management comes from the

regional government, that is, routine funds, as

described as follows:

 Planning

a) Planning appropriate to technical guidance,

b) Matching with national education standards,

c) Arranged by a capable team,

d) Completed details by divisions,

e) Careful and covers all school activities

 Realization / the use of funds

a) In accordance with the planning,

b) Right on target,

c) Reached accordingly to the objectives,

 Mobilized human resources (Treasurer)

a) Managed by human resources (treasurer)

having capability in accounting,

b) Having ability to operate system,

c) Having ability to manage finances,

d) Not wasteful,

e) Careful and efficient,

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f) Quality improvement (Treasurer) is internally

conducted with training program schools

(Smart Saturday), involved in school

external training held by national and

regional government, always keep up with

developments, if there is a change of system

then the school will send the treasurer for

joining training.

 Document archiving

a) Completely archive, whether archived in

administration section or recorded in

computerization,

b) Complete transaction evidence for income,

withdrawal, and spending

 Carry out effective management, because the

right goal of use and achieved in accordance

with the goals and target.

 Efficient, as seen from spending time, energy

and cost. Activities can be said to be efficient

when spending time, effort and cost can be

reduced minimally to achieve determined goals.

If it is seen from the output, activities can be said

to be efficient if the use of time, energy and

certain costs provide as many outcomes both

quantitatively and qualitatively.

 Reporting / accountability always on time using

online systems (all data are computerized) for

BOS funds and routine funds from the

government. Meanwhile, the accountability of

fund sources coming from student parents is

directly reported to institution and school

committee.

According to the researcher, the process of

school financial management involving Banks in

terms of receiving funds, storage, funding, systematic

data, and security, if it is then supplemented by the

theory of some experts on school financial

management, as well as management finance

principle, it can be concluded that in managing

school financial having effective, efficient,

transparent, accountable, there should be provided

satisfactory service, easy process of controlling, and

of course, this will have implications for the

successful school management to achieve goals,

vision and mission of the school.

5 CONCEPT OF MODERN

SCHOOL FINANCIAL

MANAGEMENT MODEL

 Skilled financial managers, professional,

innovative, creative, having brilliant ideas,

 Source of funds clearly comes from anywhere,

so it will be clearly in the process of

accountability,

 School cooperates together with bank, in the

process of receiving funds, storage, transactions

in and out of funds,

 Planning is mature by the team who has ability

to design program plans, activities, financing

based on goals and vision-mission of school,

 Human resources or treasurer has ability and

expertise in accounting process, able to operate

the system, and having high integrity,

 The realizing process on the budget use is in

accordance with the planning, right targets, and

transparency,

 Running control system from school as well as

from government agencies,

 Reporting and accountability, which are

accurate, punctuate, complete and accountable,

 Online system, data are backed up,

systematized, computerized.

The concept of modern school financial management

model will be achieved to effectiveness, efficiency,

transparency, accountability, facilitating school,

satisfactory service for student parents, facilitating in

control system. All of them will be achieved and run

well in the presence of cooperating together between

school and bank.

6 CONCLUSIONS

School management, which is effective, efficient

and transparency can be implemented with the

concept of modern school financial management

model.

ACKNOWLEDGEMENTS

This research can be conducted with cooperation

among Islamic Integrated elementary school staffs

such as the school principal, the board of teachers,

and all those who help this study. The researcher also

thanks to IAIN Palangkaraya, since this study is

funded by DIPA 2017.

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199

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