Public financial management practices effect on budgetary absorption in Mandera County, Kenya
Hassan, Said Maalim
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In order for the government of Kenya to meet its fiscal objectives, it is necessary that county government effectively be able to spend budgeted provisions to the highest levels. Government officers need to understand the importance of being able to fully utilize funds as budgeted and as efficiently as possible so as to have an impact to the highest population. The broad objective of this study was to establish the effects of public financial management practices on budgetary absorption in Mandera County, Kenya. The specific objectives of this study were to determine the effect of financial administration on budgetary absorption in Mandera County, to find out if financial controls has an effect on budgetary absorption in Mandera County, to determine the effect of budget management on budgetary absorption in Mandera County and to find out the effectiveness of fiscal accountability on budgetary absorption in Mandera County. The theories reviewed were new public management theory, peacock and Wiseman’s theory of expenditure, theory of financial control and differential association theory. This study adopted a descriptive research design. The target population for this study was all employees of Mandera County in the finance department totaling to 105. Primary data was derived from questionnaires. Content analysis was used on qualitative data collected. On the other hand the researcher used inferential statistics that includes multiple linear regression model and correlation models to analyse the quantitative data. This study used descriptive statistics in the form of the mean, median and frequency distribution table as the measure of central tendency and standard deviation as the measure of spread. The findings revealed that there was a significant association between financial administration reports and budgetary absorption. The findings revealed a significant relationship between financial control processes and budgetary absorption. The findings revealed that there was a significant association between budget management and budgetary absorption. The findings revealed that there was a significant association between fiscal accountability reviews and budgetary absorption. Based on the findings the study concluded that financial administration reports,financial control processes, budget management and fiscal accountability reviews have a positive and a significant effect on budgetary absorption. The study recommended that financial administration employees should also be engaged in the county projects that involve government funding. The study also recommended that the organizations should hire professionally trained personnel in the finance department to ensure that they are conversant with the financial reporting standards for improved financial performance. The study recommended that organizations should undertake effective financial control processes to ensure that funds are utilized optimally and for the intended purposes. This in turn leads to improved financial performance. It is recommended that organizations should undertake regular financial audits in order to identify discrepancies in the expenditures. The study also recommended that organizations should adopt fiscal accountability measures which may include segregation of accounting activities eventually leading to improved performance.