EFFECT OF FINANCIAL MANAGEMENT PRACTICES ON FINANCIAL PERFORMANCE OF CHURCH OF UGANDA FOUNDED PRIVATE SECONDARY SCHOOLS IN GREATER ANKOLE DIOCESES.

This study investigates the effect of financial management practices on financial performance of Church of Uganda-founded private secondary schools in Greater Ankole Dioceses. These schools face persistent financial challenges, including inadequate funding, low liquidity, and limited revenue generation, which threaten their ability to deliver quality education and maintain financial performance. The study is grounded in the Resource-Based View Theory, Incremental Budgeting Theory, and Systems Management Theory, which emphasize the strategic management of internal resources, harnessing approaches to resources and the importance of organizational components in financial decision-making. The research adopted a mixed-methods approach, combining quantitative and qualitative methodologies to provide a comprehensive understanding of the relationship between financial management practices and financial performance. Key financial management practices identified include resource mobilization strategies, financial reporting, financial planning, and internal control systems. Quantitative data were collected from 365 respondents using structured questionnaires, while qualitative data were gathered through in-depth interviews with 14 key stakeholders, including school administrators, financial officers, church representatives, and government officials. Structural Equation Modeling (SEM) was employed to analyze the quantitative data, while thematic analysis was used to interpret the qualitative findings. The study's quantitative analysis revealed a statistically significant but negative relationship between financial management practices (FnMP) and financial performance (FnP), with a path coefficient of -0.3888 (p = 0.022). This counter intuitive finding suggests that current financial management approaches may be unintentionally undermining the schools' financial health. The findings highlight the critical role of robust financial management practices in addressing the financial challenges faced by these schools. Furthermore, the study emphasizes the importance of stakeholder engagement, capacity-building programs for school administrators, and the adoption of innovative resource mobilization strategies to enhance financial performance. Schools that effectively implemented these practices demonstrated improved budget performance, enhanced revenue generation, and better liquidity management. This research contributes to the academic literature on financial management in educational institutions and provides practical recommendations for policymakers, school administrators, and stakeholders. By adopting effective financial management practices, Church of Uganda-founded private secondary schools can achieve financial stability and sustainability, ensuring their ability to fulfill their educational mission in the long term. Keywords: Financial management practices, resource mobilization, financial reporting, financial planning, internal control systems, financial performance, Church of Uganda schools