Exploring the level of understanding by governing body about financial reporting A case study of five selected public schools in uMgungundlovu District, KZN

This study sought to explore the Level of understanding by governing body about financial reporting by adopting a case study of five selected public schools in uMgungundlovu District, KZN. The main aim was to develop policy framework that can be used by governing bodies to understand the financial reporting procedure. Corruption Watch reported cases of mismanagement of funds in South African public schools. There is, however, a gap in research regarding the level of understanding by the governing body about financial reporting. To collect detailed and meaningful data, a qualitative research approach based on the interpretivism paradigm was used. To collect data, semi-structured interviews in the form of a narrative inquiry were employed. The data from participants were analysed using thematic analysis in this study. Fifty participants were interviewed from five selected public schools. The study found that most of the school governing bodies lack financial knowledge and practical training regarding the procedure to follow when reporting to Department of Basic Education. The study further, revealed that principals are the one how selects the independent auditors on behalf of governing bodies. The study recommends that each district should have an audit committee. Furthermore, the financial training of governing bodies should be done on monthly basis, to circumvent mismanagement of funds and promote accountability. Key Words:Accountability, financial reporting, governing bodies, public schools, financial statements