Budgetary and financial control in Maltese private educational institutions : an analysis

Abstract

Purpose: The main purpose of this study is to assess and evaluate the school budgetary process applied in Maltese private schools, including budget preparation, the budget structure, and an analysis of who is involved in the budget process apart from the financial controller. Furthermore, this study establishes any differences when budgeting for recurrent and capital expenditure and analyses the role of budgets in private schools when it comes to establishing school fees. Design: A qualitative approach was deemed to be the most appropriate method in order to achieve the research objectives. The researcher conducted six faceto-face semi-structured interviews with financial controllers and headmasters in private schools, who are involved in the school budget process. Findings: The main findings indicate that the four interviewed private schools implement very similar school budget processes. The findings highlighted that the school budget is prepared by the financial controller with assistance provided by the leadership team. Moreover, the main source of income for private schools is the school fee, which is a very stable source of income, considering that parents do pay the fees on time. Furthermore, Maltese private schools acknowledge the significance of planning and preparing the school budget process to allocate their resources effectively and efficiently. This is particularly crucial to private educational institutions as they rely on school fees to finance capital and recurrent expenditure. Conclusion: From this study, it was concluded that private schools understand the importance of planning and preparing an effective budgetary process. Indeed, within private schools, significant importance is provided to allocating funds in the best interest of the school and its students. Value: This study contributes in assisting Maltese private schools to improve the effectiveness and efficiency of the school budget process. Additionally, it provides the general public with a clearer understanding of how budgeting is performed in Maltese private schools.