In the implementation of any educational plan, programme
or project, it is important that the necessary resources are
available. There are four main types of resources which can
be mobilised. These are human, material, time and financial
resources. This unit will deal specifically with financial resources
and how they can be mobilised.
Once the needs for human and material resources have been
identified, estimates of the amount of financing required
to deploy and use these resources effectively should be worked
out. In Unit 1 sources of school funds were identified. They
include the government, parents and the community, as well
as the school itself through finance generating projects,
such as a school farm, handwork. Mobilisation of any of these
sources involves sensitisation, education, justification for
the activities to be done and a plan for achieving the objectives.
This unit considers the availability of finance, budgetary
prioritisation in a school, the distribution and use of financial
resources and possible extra-budgetary sources of financing.
Individual study time: 3 hours
Mobilising available finance
By the end of this unit you should be able to:
mobilise available finance
organise financial resources based on the budgetary
priorities set within the school
demonstrate skills of distribution and the use of school
financial resources by budget items
describe how to make provisions for additional sources
of finance for school projects and programmes.
(1) List the four types of resource which are needed for the
implementation of school projects or programmes and which were
identified in the Introduction to this unit.
(2) Identify the three major sources of school finance which
were identified in the Introduction to this unit and which were
discussed in Unit 1.
Financing availability may be described as the percentage
of public expenditure given to education. In the case of an
individual school, financing availability can be considered
as a percentage of education expenditure on the appropriate
sector. The examples below illustrate how financing availability
can be determined.
If in 1991/92 the total government expenditure was shs 95.5
billion and total expenditure on education was shs 11.3 billion,
what was the financing availability?
(Note: shs = shillings)
||shs 95.5 billion
||shs 11.3 billion
(in percentage terms)
||11.3 x 100/95.5
The education expenditure on primary education in 1991/92
was shs 4.74 billion. If Mengo Primary School was getting
a capitation grant of shs 20,000/= per student per year and
the enrolment of the school was 1000, calculate the financing
|Education expenditure on primary schools
||shs 4.74 billion
|Expenditure on Mengo Primary
||20,000/- x 1000
|Financing availability of Mengo Primary
||20m x 100/4740m
| (in percentage
If in 1992/93 government expenditure was shs 197.5 billion and
expenditure on education was shs 18.5 billion, calculate the
financing availability for education.
As defined earlier, the financing availability for education
is the percentage of government expenditure allocated to education.
In your calculation you should have discovered that the financing
availability for education in 1992/93 was 9.4 per cent.
In 1990/91 Kasongoire Primary School had an enrolment of 850
pupils. If each pupil was given a capitation grant of shs 25,000/-
calculate the total amount of money spent on the school. If
in the same year the government spent shs 1,080m/- on all primary
schools in the country, what is the financing availability of
Kasongoire Primary School?
First work out the total amount of money available to Kasongoire
Primary School by multiplying the enrolment by the capitation
grant for each pupil. Then find what percentage this amount
is of the total expenditure on primary schools. In your calculation
you will find that the financing availability of Kasongoire
Primary School is 1.97 per cent.
Most African countries have low financing availability and
because of this, government and communities need to mobilise
additional financial resources. It should be noted that mobilisation
of financial resources for education is strongly affected
by changes at both the national government level and education
sector level. Readjustments in expenditure from, say, military
spending might be diverted to education. In some countries
government priorities are directed to providing the infrastructure
(such as roads, electricity and water) to support economic
development. The balance of argument in the 1990s is now back
in favour of additional funding for education, particularly
for basic education (literacy and numeracy) and for disadvantaged
groups, such as those living in rural areas, and, in some
countries, women and girls. Schools should take note of this
and, as far as possible, adjust their plans or projects accordingly.
School heads should try to ensure that they are receiving
a fair allocation of funds, particularly those from government
Budgetary prioritisation in a school
Likewise the head of a school should arrange developmental activities
in order of importance, so that funds may then be allocated.
Because an institution's financing availability might not
meet all its educational requirements priorities have to be
set. Educational planners, including school heads, seek to
channel resources to the educational activities which will
have the greatest impact and are likely to be able to solve
educational problems. Prioritisation involves putting first
things first, that is, deciding on the activities that must
be done before others are carried out. The countries which
define their sectoral priorities in accordance with an overall
development policy have more chances for mobilising resources
(1) List all the activities or items on which you would like
to spend money in the next financial year. (Perhaps set yourself
a limit of ten items - and please make sure the items are realistic!)
(2) Rearrange them in order of priority.
There is a wide range of activities or items which you might
have identified, for example: purchase of teaching materials,
stationery, furniture, co-curricular equipment and farm implements;
construction of a classroom block, teachers' houses and a
library; repair of a leaking roof, painting of a dormitory
and purchasing a pick up for school transport; staff allowances
and wages and a party for staff etc. Considering the importance
of each item you should be able individually or in a group
to prioritise the items.
Prioritising may mean having to make hard choices. Clearly
the leaking roof must come before a party for the staff, since
it is necessary to stop more damage being done. Some decisions
relate to direct improvements in the teaching and learning
environment, whilst others are more to do with personnel and
welfare matters. Thus would money spent on a teacher's house
be more beneficial than building a library room? How about
balancing say, four less expensive things against one more
expensive item? Perhaps you suggested in your answer that
you might concentrate on different types of things from one
year to the next; so this year you could target one more expensive
item and next year give something to each area.
You are the head of a certain school and your plan is to establish
a school farm in order to be more productive and become self-reliant.
(1) List all the activities that will require funds.
(2) Arrange the activities in order of priority to facilitate
the mobilisation of resources.
Some of the items you may need to set up a farm include the
purchase of implements, seeds, animals and pesticides, the
hire of a tractor, storage facilities, transport of produce
Distribution and use of school financial resources
In general, financial resources are scarce and this scarcity
can be made worse by the inappropriate distribution or misuse
of such resources. It is, therefore, necessary to rationalise
all expenditures. This can be achieved by drawing up proper
criteria for resource distribution and thus to reduce imbalances.
Inequalities frequently exist in the sharing out of resources
committed for education. One such inequality is the way that
resources are distributed between urban and rural schools.
Normally the urban schools are advantaged while the rural
schools are considered marginal in matters of education and
other social services. Another inequality occurs when the
resources allocated have high administrative costs which limit
implementation of projects.
From the national point of view the distribution of financial
resources for the education sector is affected by pressure
from other sectors for which there seems to be greater justification
regarding the distribution of funds. It is true that in the
education sector significant results are reached only in the
medium or long-term, while in other sectors they are realised
in the short-term and often with greater efficiency.
It is important to note that often the good use of financial
resources is limited by administrative problems. Utilisation
is satisfactory when:
the allocation of funds takes account of the activities
to be carried out
there is the capacity to use the funds committed
resources are provided in time
expenditure is properly accounted for and is according
Mention two factors that cause inequality in the distribution
of financial resources.
You may have listed the inequalities mentioned in the first
paragraph of this section or others. Inequalities may arise
when more importance is given to preferred levels of education,
or between boarding and day, or within a given school when
more importance is given to examination classes than to lower
(1) Give reasons why financial resources for education are limited.
(2) What are the conditions that can ensure the satisfactory
use of financial resources?
Considering the number of sectors sharing the national revenue,
education gets a smaller share as it is not a productive sector
in the short run. Among the necessary conditions for the satisfactory
use of resources can be included:
the capacity to use available funds
the provision of funds in time
the proper accounting for expenditure based on priorities.
Possible extra-budgetary sources of finance
Most of the financial resources for the different levels
and types of education are provided by the public sector.
In Uganda the situation is different: government contributes
between 10-15 per cent of the revenue needed to meet most
of the educational requirements, while 90 per cent is obtained
from other sources. There has to be a constant search for
other sources of finance. Parents have played a big role in
meeting the largest part of education costs.
In education systems the most important component is personnel
since the sector makes intensive use of human resources. In
other words, the running or recurrent costs reach much higher
levels than investments. Among extra-budgetary sources the
contributions which the parents and the community can make
constitute an important supplementary way of mobilising financial
resources allocated to education.
Resources mobilisation strategy
In order to mobilise extra-budgetary resources a strategy
is needed, which may involve the following aspects:
1 To increase financial resources for education, account
should be taken of the fact that it is important to improve
the lot of disadvantaged population groups since they provide
continuing examples of social inequalities.
2 Non-budgetary resources should be sought urgently to supplement
those coming from government and tuition fees, taking into
account each school's characteristics.
3 Despite the lack of appreciable economic impact made by
the non-budgetary resources, it is desirable to mobilise them
to promote participation of the population in solving community
4 Extra-budgetary resources should be sought to reduce unit
costs and improve the implementation of plans or projects,
taking into consideration the financial burden imposed by
the labour intensive use of staff.
It is difficult to find additional sources of financing,
given the great variety of sources already used in most countries.
For the most part it is only a matter of using differently
those sources which are already being used. For instance,
in organising fund raising, it is the parents, as well as
the relevant ministry, who are likely to contribute to the
There are a variety of ways of mobilising financial resources
which are commonly used in some schools. Some of these have
already been mentioned in Unit 1. They include the following:
1 A Special Education development tax: this can be restricted
to an area within which the school is located, for instance
a subcounty or a county, or a district.
2 Fund raising functions: these may involve activities like
raffles, drama, concerts, charity walks, collecting various
items and auctioning them, cash donations.
3 Contributions or donations by private companies.
4 Special grants by government for specific activities.
5 Sales of school products.
6 Borrowing from financiers provided security is guaranteed.
Examine the various ways of mobilising financial resources and
determine which one of them gives the best returns. What are
the risks for each of them? Can you mention any other ways you
consider important but which have been omitted?
In this unit you have been able to learn a number of concepts
or ideas concerning mobilisation of financial resources.
These can be summarised as follows:
1 The main types of resources are human, material, time and
financial resources. These need to be mobilised to facilitate
implementation of the school plans, or programmes, or projects.
2 To mobilise financial resources one must consider the financing
availability, which is the percentage of the public expenditure
given to education or, in case, of a school it is the percentage
of the education sector expenditure given to that school.
3 Budgetary prioritisation is the arrangement of items or
activities in order of importance and allocating money which
will facilitate their execution. Often there are inequalities
which arise in the distribution of financial resources nationally
as well as at the school level. Great care must be taken in
distribution of the available funds.
4 As the financing availability is extremely small, a search
for extra budgetary sources of financing educational activities
has to be carried out.
5 Various mobilisation strategies should be used to obtain
the necessary funds in order to implement the school plans.