Abstract
A financial function is one of the aspects of a business enterprise and a
department that is involved with finances of the business is known as a
financial department. Financial management, as a discipline, is
interlinked with other activities that occur within a business organization
such as production, marketing, purchasing, personnel functions, et
cetera (Cronje, et. al. 1991:16,22). In a school organization there are
different departments and committees, which are dependent on the
financial committee of the institution for their survival. The finance
committee focuses on making decisions with regard to the finances of the
school and the generation of extra income, through alternative sources to
add value to the organization, for the reason that schools cannot operate
successfully with school fund only. Berkhout and Berkhout (1992:4)
outline sources of finance that can assist the committee to generate more
funds. For a school to operate and perform, the financial management
function effectively, it is necessary for one to understand the internal and
external environmental factors, which can affect the smooth running of
the school.
Dr. P.J. du Plessis