Integrated Financial Management Information System and Resource Management in Kericho County Government, Kenya.
Loading...
Date
2024-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Kenya is divided into 47 devolved units, known as counties, which are required to utilize the Integrated Financial Management Information System to track financial resources and provide summaries of financial data. Despite the adoption of the Integrated Financial Management Information System to improve transparency and financial management, Kericho among others continue to face significant challenges in resource management resulting to high unpaid projects, pending bills, and corruption. Therefore, there is need to examine the Integrated Financial Management Information System in relation to county resource management. The main objective of the study is to establish the effect of Integrated Financial Management Information System on county resource management in the County Government of Kericho. The specific objectives are to establish the effect of financial reporting quality, internal control process, budget control process and financial accounting process on resource management in County Government of Kericho. Grounded in systems theory, resource-based theory, and agency theory, the study adopts a descriptive research design, targeting 96 county executives and 16 administrators. Data was collected via questionnaires and analyzed using descriptive and inferential statistics, including Pearson correlation and multiple regression analysis. Results were presented through tables, graphs, and charts. Key findings indicate that integrating financial reporting in Integrated Financial Management Information System improved financial control, transparency, and the quality of resource management, with a significant positive effect. Internal control process integration reduced corruption and mismanagement by enhancing financial auditing and tracking. Similarly, the integration of budget control processes facilitated e-transactions and e-procurement, leading to better financial allocation and reduced procurement costs. Furthermore, financial accounting integration improved accounting processes, cash flow access, and record-keeping, positively impacting resource management. The study concludes that integrating financial reporting, internal controls, budget controls, and financial accounting within Integrated Financial Management Information System significantly improves resource management in county governments. The study recommended that the County Government should strengthening financial controls, improving audit and cash flow management, ensuring reliability in financial statements, controlling budgetary allocations to minimize overspending, and simplifying financial accounting processes to enhance efficiency. These measures aim to mitigate corruption, improve resource allocation, and reduce operational costs in county governments.
Description
A Research Proposal Submitted in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Admnistration (Finance Option), School of Business, Economics and Tourism Kenyatta University, November 2024.
Supervisor
J.M Theuri