Financial management as the function of the school governing body.

A financial function is one of the aspects of a business enterprise and a department that is involved with finances of the business is known as a financial department. Financial management, as a discipline, is interlinked with other activities that occur within a business organization such as production, marketing, purchasing, personnel functions, et cetera (Cronje, et. al. 1991:16,22). In a school organization there are different departments and committees, which are dependent on the financial committee of the institution for their survival. The finance committee focuses on making decisions with regard to the finances of the school and the generation of extra income, through alternative sources to add value to the organization, for the reason that schools cannot operate successfully with school fund only. Berkhout and Berkhout (1992:4) outline sources of finance that can assist the committee to generate more funds. For a school to operate and perform, the financial management function effectively, it is necessary for one to understand the internal and external environmental factors, which can affect the smooth running of the school.Dr. P.J. du Plessi