INFLUENCEOFPRINCIPALSAPPLICATIONOFACCOUNTINGPRINCIPLESONTHEEFFECTIVETHESECO

NDARYSCHOOLBUDGETINIKEDURUL.G.A
CHAPTER1
INTRODUCTION
Inthischaptertheresearcherpresentthefollowingsub-
headings;Backgroundtothestudy,Statementofthestudy,scopeofthestudy,purposeofthestudy,sign
ificantorthestudy.
Backgroundtothestudy
SecondaryeducationistypeofeducationChildrenreceiveafterprimaryeducationbeforehighereduca
tion.InNigeriathetwoboardaimofsecondaryeducationarepreparationoftheindividualforusefullivi
ngwithinthesocietyandFederalGovernment(FGN2019)includeamongotherstoinspirestudentswit
hthedesireforself-
improvementandachievementsofexcellenceandtoraiseagenerationofpeoplewhichcanthinkforth
emselvesrespectthefeelingandviewofothers,respectsthedignityoflaborandliveasgoodcitizen.Inor
dertoachievetheselaudableaimsandobjectives,Secondaryschoolneedsprincipalwhocanmobilized
stakeholders;parent,teacher,studentandcommunitytogtinvolvedmeaningfullyintheoperation,ac
tivityanddevelopmentprojectoftheschool.Indointhis,theprincipalhavetobeFinanciallyaccountabl
ebothwiththeincomeandexpendituresoftheschool
Accordingtoonye(2019)Accountingprinciplesaretherulesandguidelinesthatschoolsandotherbodi
esmustfollowwhenreportingfinancialdata.Theserulesmakeiteasiertoexaminefinancialdatabystan
dardizingthetermsandmethodsthataccountantsmustuse.Amojoro(2015)seeprincipleofAccountin
gasTheultimategoalofanysetofaccountingprinciplesistoensurethatacompany’sfinancialstatemen
tsarecomplete,consistent,andcomparable.Accountingprinciplesarerulesandguidelinesthatcomp
aniesmustabidebywhenreportingfinancialdata.Whetherit’sGAAPintheU.S.orIFRSelsewhere,theo
verarchinggoaloftheseprinciplesistoboosttransparencyandbasicallymakeiteasierforinvestorstoco
mparethefinancialstatementsofdifferentcompanies.
AccordingtotheFederalRepublicofNigeria(FRN,2013),educationinNigeriaisaninstrumentof"parex
cellence"foraffectingnationaldevelopment.Atthesecondaryeducationlevel,specificnationalobjec
tiveshavebeenidentifiabletobeachieved,andtorealizethem,theprincipalisappointedtoserveasthe
chiefaccountingofficertoensureeffectiveschooladministration.Effectiveschooladministrationgrea
tlyfocusesonoptimalmaximizationofthefinancialresourcestoensurethathuman,materialandtimer
esourcesareadequatelyornearadequatelyprovidedtoenhanceeffectiveandefficientteachingandle
arningactivities.
ABudgetisadocumentwhichcontainsestimatesofrevenueandproposedexpendituresusuallyforafix
edperiodofoneyear.Budgetisaguidelineorblueprintofallexpectedrevenuegenerationsourcesandp
articularsexpectedtoexpendwithinaspecifiedperiodinthefuture.ABudgetisaneducationalprogram
mewhichisexpressedinfinancialterm.Abudgetforaneducationalorganizationhasaneducationalpla
nwithanestimateoftheamountofmoneytobereceived(receipt)andtheamountofmoneytobspent(e
xpenditures)inordertoactiveeducationobjective.Abudgetplanismadeforagivingperiodoftimeusua
llyayear.Awell-
formulatedschoolbudgetshouldconsitofaneducationalplan,anexpenditureplanandrevenueplan.I
tprovidesameansforthoseprovidingthefundstomeasurewethertheheadteacher,whoisthecustodi
umisworthyoftheirtrustandconfidence.Itprovidesaninstrumentforcontrollingexpendituresandev
aluatingperformance.
RecordkeepingIsanothervitatheaspectoffinancialmanagementitisexpectedthatwayschoolfundsis
receivedorspent,recordsofsuchincomeorexpenditureareProperlykept.Idoka(2007)stressthat,for
purposeofeffectiveness,evaluation,accountability,decisionmakingandco-
ordinatiomoftaskfinancialrecordsmustbekeptmeticulously.AccordingtoAdams(2015)schoolrecor
dlikeledgerarerecordsoffinancialtransactionsofeducationalinstitutionsastheyoccur.Itbecomesth
edutiesofheadofsecondaryschooltogivespecificinstructionstoallstaffinvolvedthemanagementoff
undsintheschool.Withoutthisspecificinstructiononhowfundswouldbemanagedaccountsofficers
mayembezzlefundsentrustedtotheircare.Forthisreasonallheadofsecondaryschoolshouldbeintere
stedonhowfundsallocatedtothemaremanaged,becausetheyareaccountingofficersoftheinstitutio
n.Theschoolorganizationhasresourceswhichmustbemaintainedtoenableitachievetheaimofteachi
ngandlearning.
Theimportanceoffinanceinsecondaryeducationalsystemisoveremphasized.Thepoorstateofsecon
daryschoolenvironmentwouldbeattributedtothefinancialproblemsuchasmismanagementandthe
economycrunchinthecountry.Itisclearthatpoorfinancialmanagementisoneofthegreatestobstacle
sofeffectivemanagementschool.Theproblemusuallyemanatesfromtheinabilityofmanyschoolman
agerorprincipaltoplanandexecuteschoolbudgetinlinewiththeobjectivesoftheschool.Itisanotablef
actthatmanyschooladministratorsfallintheirstatutoryfunctionintheidentificationofsourcesofscho
olfinances,methodemployedinitscollectionandhowtherevenueareeffectivelyappliedtotheschool
system.Ithasbeenobservedthattheconditionofsecondaryschoolhasworsensomuchthatteachinga
ndlearninghavereceivedpoorattentiondespiteallthefinancialcontributionsifthegovernmentandot
hersourcesoffundsavailabletoschool.
STATEMENTOFTHEPROBLEM
Despite the significance of accounting principles in financial management and reporting, there
are concerns that some secondary school principals in Ikeduru LGA, Imo State, may not be fully
adhering to these principles in the preparation of their school budgets. This lack of adherence
could lead to inaccuracies, inconsistencies, and inefficiencies in the budgeting process, which in
turn can negatively impact the financial health and accountability of the schools.
The problem is that the application of accounting principles in the preparation of secondary
school budgets is not well understood or monitored, leading to potential issues in financial
management and reporting. This lack of understanding and oversight can result in the
misallocation of resources, poor financial decision-making, and reduced accountability to
stakeholders, including parents, teachers, and the government.
Therefore, this study aims to investigate the influence of principal's application of accounting
principles on the effective preparation of secondary school budgets in Ikeduru LGA, Imo State,
with the goal of identifying the challenges and opportunities associated with the
implementation of these principles in the budgeting process. The study will provide
recommendations for improving the application of accounting principles in secondary school
budgeting, which can ultimately enhance financial management and reporting in the
educational sector.
SCOPEOFTHESTUDY
The scope of the study on the project topic "Influence of Principals' Application of Accounting
Principles on the Effective Preparation of Secondary School Budget in Ikeduru LGA, Imo State"
will involve a detailed examination of how the application of accounting principles by school
principals impacts the budgeting process in secondary schools within Ikeduru Local Government
Area. The study will focus on analyzing the adherence to accounting principles, Impact on
Financial Transparency, Budget Allocation and Resource Management, Comparative Analysis,
Recommendations for Improvement.
PURPOSEOFTHESTUDY
The purpose of this study is to investigate the influence of principals' application of accounting
principles on the effective preparation of secondary school budgets in Ikeduru Local
Government Area (LGA), Imo State. The study aims to address the following research questions:
1. To what extent do principals adhere to accounting principles in the planning stage of
the budget?
2. To what extent do principals adhere to accounting principles in the implementation
stage of the budget?
3. How does the qualification of principals in educational administration affect their
application of accounting principles in the budgeting process?
4. How does the gender of principals influence their application of accounting principles in
the budgeting process?
SIGNIFICANCEOFTHESTUDY
The significance of the study on the project topic "Influence of Principal's Application of
Accounting Principles on the Effective Preparation of Secondary School Budget in Ikeduru LGA,
Imo State" is multifaceted.
Firstly, the study will provide insights into how the application of accounting principles by
principals affects the budgeting process in secondary schools within Ikeduru LGA, Imo State.
This is crucial as proper financial management is essential for the effective running of the
schools and the provision of quality education.
Secondly, the study will assess the extent to which accounting principles are being
implemented by principals in the preparation of the secondary school budget. This will provide
a basis for evaluating the effectiveness of the current budgeting process and identifying areas
for improvement.
Thirdly, the study will examine the relationship between accounting principles and the financial
management of secondary schools in Ikeduru LGA, Imo State. This will provide a better
understanding of the importance of accounting principles in ensuring financial accountability
and transparency in the management of schools.
Fourthly, the study will provide recommendations for improving the application of accounting
principles in the preparation of the secondary school budget. This will help to enhance the
financial management of schools and ensure that resources are being used effectively to
support the education of students.
Lastly, the study will contribute to the existing body of knowledge on the role of accounting
principles in the financial management of secondary schools in Nigeria. This will be useful for
policymakers, educators, and researchers who are interested in improving the quality of
education and financial management in secondary schools.
In summary, the study is significant as it will provide valuable insights into the application of
accounting principles in the preparation of the secondary school budget, assess the
effectiveness of the current budgeting process, and provide recommendations for improving
the financial management of schools in Ikeduru LGA, Imo State.

RESEARCH QUESTIONS:
The research questions on the project topic "Influence of Principals' Application of Accounting
Principles on the Effective Preparation of Secondary School Budget in Ikeduru LGA, Imo State"
are crucial for guiding the study towards achieving its objectives. Based on the provided
sources, the following research questions can be formulated:
1. To what extent do principals in secondary schools in Ikeduru LGA apply accounting
principles in the preparation of budgets?
2. How does the application of accounting principles by principals influence the
transparency and accuracy of financial reporting in secondary schools within Ikeduru
LGA?
3. What impact does the adherence to accounting principles have on the allocation of
resources and financial decision-making in secondary schools in Ikeduru LGA?
4. How do accounting principles, such as accrual basis accounting, consistency, and
materiality, affect the financial health and sustainability of secondary schools in Ikeduru
LGA?
5. In what ways can the effective application of accounting principles by principals enhance
the overall financial management and budgeting process in secondary schools within
Ikeduru LGA, Imo State?