Financial Accountability, Resources and Competence of Proprietors, and Performance of Private Universities in Uganda

Abstract: The purpose of this study was to examine the effect of financial accountability on performance of private universities in Uganda. The study is guided by a hypothesis, that financial accountability have a statistically significant effect on the performance of private universities. The study taps into the voices of university stakeholders seeking their opinion on how to address the university performance challenges and 162 sample units were selected and participated in the study.  The study follows the post-positivism philosophical stance which calls for the use of mixed techniques, while a descriptive, analytical and cross-sectional research design was utilized. Data was analyzed using two statistical software programs: Analysis of Moments of Structures (AMOS) for structural equation modeling (SEM), and SPSS was used for preliminary data analysis. In contrast, content analysis was employed in the qualitative approach. The results were presented using, Scatter plots, regression analysis, correlation coefficients and percentage tables while SEM was used to perform confirmatory factor analysis, principle component analysis, variance analysis, correlation coefficients and regression analysis. There was positive significant correlation between the financial accountability and the University performance (r = 0.641, P<0.01). The results further indicate that financial accountability individually explains 41.1% (R Square Change = .411) of the variations in University performance. The study found out that all dimensions of financial accountability exhibit a positive and significant relationship with performance. Hence value for money, financial reporting and audited accounts can ensure transparent financial transactions avoid diversion of funds, create robust strategies for mobilizing resources and save funds that can be utilized to improve financial sustainability and education quality in private universities. The study recommends that private universities should establish transparent financial reporting, promote active engagement of proprietors in financial decision making and resource mobilization, adherence to fiscal responsibilities, and effective financial governance as well as training proprietors in university financial management.