Effects of Budgetary Accounting Techniques on the Management of Financial Resources at the County Government of Kakamega

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Date

2021

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Abstract

"Available information reveals that management of public financial resources at the county government has continued to dwindle despite implementation of efforts to their budgets with its inherent control features. Budgetary Control refers to how well managers utilize budgets to monitor and control costs and operations in a given accounting period. It is a process for managers to align financial management goals with budgets, compare actual results and adjust performance. Management of public financial resources at county levels in Kenya still remain a challenge as often reported by Office of the Auditor General where a majority have been found to; be operating on negative working capital, uncontrolled capital expenditure, fraud among others. The main objective of the study is to establish the Effect of Budgetary Accounting Techniques on the management of public financial resources at the county levels in Kenya. The specific objectives guiding the study were; to establish the relationship between Planning and management of public financial resources at county level, to establish the relationship between Control and management of public financial resources at county level, to establish relationship between Revenue Optimization and management of public financial resources at county level. It was guided by a conceptual framework relating the variables of study. The study was premised on theories such as; Theory of Budgeting, Budgetary Control Theory, Fund Accounting Theory and Stewardship Theory. Questionnaire were distributed targeting; Economic planning department, Revenue department and County treasury department. Data was elicited from selected respondents using structured questionnaire whose content validity and reliability were checked. Descriptive and ANOVA methods were used to analyse data. Chi-square method was used to determine existence of significant relationship between independent and dependent variables at x2 0.05 (95% confidence level). The results indicated existence of a significant relationship between Budget Planning, Revenue optimization, Budget Control and Management of Financial resources at the county levels in Kenya as exemplified by X2 values of; 4.94 and 9.15 respectively. The findings of the study may guide policy makers in underscoring the value of Budgetary Accounting Techniques on Management of financial resources at county level and other organizations. It would also go a long way in forming a basis for future similar research studies."

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accounting

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