Abstract: This study investigates the effect of automation of financial management processes using information communication technology (ICT) on the financial management of the county treasury, county government of Trans-Nzoia. The recognition of the noble role of automating the financial management cannot be gainsaid. In the Last decade, the Kenyan government has increased spending in developing the ICT sector compared to other countries in the sub-saharan Africa with similar GDP per capita. Kenya spends a significant amount on ICT based financial management systems such as LAIFOM and IFMIS.ICT cuts across all sectors of the economy. Specifically, this study seeks to establish the effect of automation of financial processes using ICT tools such as IFMIS on the financial performance through improved budgeting processes, revenue management, financial records and information handling, procurement to payment process. The county governments of Trans-Nzoia treasury employees who interact with the system were the target population where all the 50 employees were included through a census where purposive sampling technique was applied. Questionnaires and interviews schedules were the major data collection instruments. Collected data was analyzed using descriptive (frequency and percentage) method. Having analyzed the data and the findings the researcher came up with the following conclusions as possible remedial measures to be taken in the organization. The study concluded that: County Treasury use Internet to support financial Management. It also concluded that ICT/LAIFOMS enables tracking the performance of the revenue collection process. Furthermore it concluded that the use of IFMIS and LAIFOMS ensures timely financial reporting e.g quarterly. Finally the study recommends that use of ICT facilities. E.g., e-mails, SMS, for communication has resorted into quick decisions making at the county government hence enhancing a quicker budget making and the use of ICT for correspondent by the County government has led to an increase in public participation in the activities and programs of the county government especially during the budget making process. From the findings the researcher recommends that the organization should improve on ICT system and Databases to be used in budgeting and procurement processes. It also recommends that automation of the revenue management process should be improved to enhance efficiency in the revenue collection process. It also recommends that the organization to maximize employee’s multi-dimensional abilities for better performance. Finally, It recommends that the automation of the budget making process should enabled the use of a single chart of accounts (SCOA) hence making and automation of the procurement process through the use of e-procurement platform should achieved an end to end process from requisition to Payments. The study suggested that further study be done on effect of automation of financial management systems on financial performance of County Governments in Trans-Nzoia County Government.
Keywords: Automation, Financial Management Systems, Financial Performance & Information Communication Technology.
Title: Effect of Automation of Financial Management Systems on Financial Performance of County Government of Trans-Nzoia
Author: Hezron Kiplagat Kemboi, Dr. Willy Muturi
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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