EFFECT OF CASH MANAGEMENT AUTOMATION ON FINANCIAL MANAGEMENT IN MERU COUNTY GOVERNMENT
DOI:
https://doi.org/10.47941/ijf.316Keywords:
Information, Communication, Technology Adoption, Financial ManagementAbstract
Purpose The main purpose of the study was to find out if ICT adoption has a significant effect on financial management in the Meru County Government. Effective public financial management has attracted attention of many scholars in identifying the best practice and how to install fiscal disciplines. In search of good governance and sound financial management, the World Bank has been at the forefront in championing this aspect. Lack of effective financial management practices hinders effective service delivery.
Methodology: Technology Acceptance Model (TAM) theory is one of the models used to explain how technology is accepted by users. Descriptive survey research design study was used. The population for this study composed of the Meru county government staff. The sample size was 70 respondents in total, a questionnaire was used as the research tool whose validity and reliability was measured accordingly. Mean and regression analysis was computed when analyzing data.
Results: The findings established that Cash management automation enables county leadership to understand the true cost of service delivered by the county per activity; that Through Cash management automation, the county finance department is able to reconcile transactions data in real-timeOn Cash management automation the study concludes that successful cash management automation in any institution is essential due to difficulties that come with accessing credits whenever an organization is facing liquidity several constraints.
Unique contribution to theory, policy and practice: From the findings on cash management automation the study recommends that automation systems should be fully implemented as it increases cash management. For Meru county Government to realize growth, investment in technology should be made in order to enhance service delivery and transparency in cash management.
Downloads
References
Abubakar, S. S. (2013). Cash management practices in public sector enterprises. Facilities, 33(11/12), 736-751.
Bill (2001). Case study research: Design and methods (2nd ed.). Beverly Hills: Sage Publishing, New Delhi.
Brealey, A. R., Myers, C. S &Allen, F. (2018). Principles of Corporate Finance, New York:McGraw-Hill/Irwin.
Cooper, D. and Schindler, P. (2011) Business Research Methods. 11th Edition, McGraw Hill, Boston
Dorotinsky, B. (2003). Implementing financial management information system projects: TheWorld Bank experience, retrieved on 6the match 2017 fromhttp://blog-pfm. imf.org/AIST2/Dorotinsky.
GoK. (2011). Integrated Financial Management Information System (IFMIS) IFMIS Re-Engineering. From Modular, to Full Cycle End-To-End Processes, Strategic Plan 2011-2013. Nairobi: Government Printer.
Hansen AS, et al. (2015) High-throughput microfluidics to control and measure signaling dynamics in single yeast cells. Nat Protoc 10(8):1181-97.
Heidenhof, G.(2002). Design and Implementation of Financial Management Systems: An African Perspective. Africa Region Working Paper Series No. 25.
Kenton, W. (2017). Effect of Automation of Financial Management Systems on Financial Performance of County Government of Trans-Nzoia. International Journal of Management and Commerce Innovations, 4(2), 352-359.
Kothari, C. R. (2007). Research Methodology (2nd ed. edition). New Delhi: New Age International Pvt Ltd Publishers.
Kothari, C. R. (2014). Research Methodology (2nd ed. edition). New Delhi: New Age International Pvt Ltd Publishers.
Lienert, I. (2013). Modernizing Cash Management. Fiscal Affairs Washingtom D.C: World Bank;I nternational Monetary Fund.
Mugambi, K. W., Fridah, M., & Theuri, S. (2014). The Challenges Encountered By County Goverments In Kenya During Budget Preparation. Journal of Business and Management, 16(2), 128-134.
Nkeobuna, J., & Ugoani, N. (2017). Effect of Weak Public Financial Management on Public Sector Management and Sustainable Development in Nigeria. American Journal of Environment and Sustainable Development Effect, 2(3), 23-32.
Orodho, J. A. (2012). Techniques of writing research proposals and reports in education and social sciences. Nairobi. Kanezja publishers.
Pandey, I.M. (2010). Financial management (6th Ed.).New Delhi: Vikas Publishing House PVT Ltd.
Peterson, S. C. Kinyeki, J. Mutai, Kipsang, S. W. (2008). Computerizing Accounting Systems in Developing Bureaucracies: Lessons from Kenya. Public Budgeting and Finance, Vol. 16(4). Winter, pp. 45-58.
Sekaran, U. (2006). Research methods for business: A skill building approach. John Wiley & Sons.
Selfano, O. F., Peninah, A., & Sarah, C. (2014). Integrated Financial Management Information System and Its Effect on Cash Management in Eldoret West District Treasury, Kenya. International Journal of Business and Social Science,5(8).
World Bank. (2018). Alternative Paths to Public Financial Management and Public Sector Reform Experiences from East Asia. Washington DC: International Development in Focus.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2019 Bonface Mutuma Mugambi, Dr. Paul Gichohi, Mrs Susan Kambura
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
