Effective Financial Management on Private Schools Sustainability: The Case of Al-Rayan International School

Abstract

The study explored the financial management strategies of Al-Rayan International School as a case study using qualitative methods. Its study revealed that, tuition, application and registration fees; sale of paraphernalia and donations were the most sources of income generation of the school. On the other hand, staff salaries, advertising, audit fees, insurance, utilities were the cost drivers of Al-Rayan International School (ARIS). Within the financial management structure (capital structure, capital budget, and capital management), foresaw the investment strategies of ARIS in fixed deposits, tier 2 pension investments, rental services and other multiple business source just to sustain the operations of the school. As a requirement, the study further find out that, recommended books such as accounts payable books, cash and purchase books, fixed assets books, purchase books and payroll books were all properly kept reporting on the financial state of ARIS stipulated by the IFRS compliance. With a twice auditing cycle designed by ARIS indicates a good sustainable financial management practice that keeps their accounting and financial activities in check. In effect, the revenue management strategies, the investments, cash flow management, managing expenditures including assets in the current form of Al-Rayan indicates a description observation of better and effective financial management processes. The study recommends that; a quantitative approach of methodology be used to study Al-Rayan to determine the efficiencies and effectiveness using accounting ratios as this study was qualitative and offered opinions on the words and activities of the accounting staff of the organization.