FINANCIAL RESOURCE MANAGEMENT PRACTICES THAT ENHANCE QUALITY EDUCATION IN HIGHER EDUCATION: INSIGHTS FROM SOUTHERN ETHIOP

Abstract

Financial management is a vital tool in the operations of public universities, enabling them to navigate the rapidly changing external environment that impacts the quality of education. However, universities face various technical challenges in the financial system, which hinder overall institutional sustainability, particularly in academics, student support, and research and community service. Consequently, this study examined the linkage between financial management practices and the quality of education in higher education in Southern Ethiopia. The study employed an explanatory research design and collected data from 117 university staff. The study used both descriptive and inferential statistics (correlation and multiple linear regression) to analyze the data. Results revealed that the financial management practices were moderately effective in achieving education quality. Results showed that the internal control systems, budgeting, and financial reporting provide a reliable measure of quality education. Key issues were linked to inadequate financial resources, the bureaucratic nature of operations, and inadequate attention to students’ diverse needs. Key areas of importance include identifying financial risks and corruption in the allocation of financial resources, which undermine the provision of quality education.