Effects of Financial Management Practices on Performance of Kenya Medical Training College
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Date
2013-10Author
Golda, Akinyi D
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Financial management in public organizations is concerned with ensuring funds are
available when needed and that they are obtained and used in the most efficient and
effective way to the benefit of the citizens. Managing the movement of funds in
relation to the budget is essential for a public academic institutions performance. But
experience reveals that the financial management processes of public academic
institutions are generally weak and dominated by conditions of resource scarcity visà-
vis the ever increasing agenda of development activities on which such funds could
be spent. Despite KMTC being ISO 9001:2000 certified, its performance in terms of
service delivery continue being poor as depicted by the high level of employee
turnover, delays in service delivery, low student retention rate and low customer
satisfaction index. The study sought to establish the effect of financial management
practices on performance of KMTC. This study was conducted through the use of a
descriptive design. The target population of this study was the 201 finance staff of
KMTC from which 60 were selected using stratified random sampling. This study
made use questionnaires for primary data collection. Data collected was purely
quantitative and it was analyzed by descriptive analysis. In addition, the researcher
conducted a multiple regression analysis so as to determine the effects of each of the
independent variables on performance of KMTC.The study found that the annual
budget process affects the performance of Kenya Medical Training College mainly
through cost-minimization emphasis, budget inflexibility, resource allocation and
budget accuracy. Financial reporting and tracking through record keeping, having
internal accounting experts, data management and financial information
communication affect the performance of KMTC to a very great extent. The study
concludes that that financial reporting and tracking had the greatest effect on the
performance of KMTC, followed by annual budget process while level of internal
controls had the least effect on performance. The study recommends that for the
institution to reap the maximum benefit from their budgets, the managers should be
evaluated in part on the accuracy of their budgets. KMTC should also improve their
financial reporting and tracking by automating their record keeping.
Citation
Golda,Akinyi D.;October,2013.Effects Of Financial Management Practices On Performance Of Kenya Medical Training College.Publisher
University of Nairobi School of Business