An assessment of the performance of the School fees credit system in Uganda: a case study of St. Matia Nursery and Primary School
Abstract
This study was carried out with the purpose of assessing the performance of credit systems in
Uganda, a case study of St Matia Grammar nursery and secondary school.
The Objective of the study was to assess the performance of school fees credit policy in Uganda
A lot of institutions evolve around the credit part and this study is to help us understand the role
played by the credit policy on financial performance of these institutions. The main way of getting
information was through secondary data from the schools accounting department and payment
slips.
The findings indicated a positive significant relationship (r = 0.356) implying that credit policies
affects the financial performance of institutions with a minimal effect since there other more
factors that affect financial performance with a greater effect. The results of the regression analysis
indicate that the dependent variables are both individually and jointly significant and have an effect
on financial performance. From the values of the coefficients we discern that the independent
variables are correlated to the dependent variable. The results indicated that classification of
amount owed significantly affects financial performance (β=0.524, p-value= 0.008) and response
to collection efforts by (β=-0.458, p-value=0.32). In conclusion, the study established that the two
independent variables significantly affect financial performance. From the study, it is
recommended that institutions should enhance their collection policy by adapting a more stringent
policy to a lenient policy for effective debt recovery. The study also recommends that there is need
for institutions in Uganda to enhance their client appraisal techniques so as to improve their
financial performance.