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.