THE FINANCIAL MANAGEMENT OF SECTION 21 FUNDS IN

MM - P&DMThe South African Schools Act, Act 84 of 1996, states that the school principals are responsible for managing personnel and finance and should therefore plan, control and budget properly (Section 3). S/He is responsible for money and property and should therefore plan, control and budget properly in line with the South African Schools Act. The Act further puts emphasis on the overall control of the school finances as the responsibility of the school governing body (SGB). The SGB of the public school must establish a school fund and administer it in accordance with the direction issued by the principal. All the money received by a public school including fees and donations must be paid into the school account. The SGB would plan, according to their education needs, taking provincial policy into account, and all such expenditure must be accounted for. The purpose of this exploratory study was to investigate how previously disadvantaged schools are managing their section 21 funds. This was done by first looking at the formation of the school governing bodies, their roles in managing the school funds, and lastly challenges of functioning in an environment that is not unique to them. Section 21 status requires schools to be self-reliant. This status needs governors who are well versed in financial management skills. The study used a sample of four schools from the MEGA District 11 Soweto in the Gauteng Province. It used the exploratory case method as an instrument in data collection. The study has established that SGBs from previously disadvantaged schools lack skills and competencies to thrive in the self-reliant environment. In some instances no training was given. Where training was given, it was insufficient, as governors do not understand their roles. There was no clarity on who is accountable for the funds of the school. Central to this is the fact that some of the parents are functionally illiterate, while others lack interest in the running of their school. To them, the smooth running of the school is the sole responsibility of the principal and the teachers. This affects the financial contribution needed in their schools when compared to the former Model C schools. In order to avoid mismanagement of the funds, the study recommends that continuous training and support be provided on how funds should be used and managed