BUDGETARY CONTROL AND FINANCIAL PERFORMANCE OF DEVOLVED UNITS IN MIGORI COUNTY
Abstract
The general objective of the study attempted to determine the relationship between budgetary control and financial performance of devolved units in Migori County Government. The study was based on the following specific objectives; - to establish the influence of budget planning on financial performance, to determine the influence of budget review on performance, to assess the influence of revenue maximization on financial performance and to establish the influence of resource allocation on financial performance of devolved units in Migori County Government. This study used a concurrent triangulation (mixed method) research design. The study targeted employees in financial and accounting positions at the County headquarters. The unit of analysis was 85 employees. Census method was applied to get a sample size of 85 employees. Questionnaires were employed as the data collection instruments. The results revealed that there is significant influence of budget planning, budget review, revenue maximization and resource allocation on performance of devolved units in Migori County Government at 5% significance level. Overall, budgetary control significantly accounted for 67.2% of variation in performance of devolved units in Migori County Government. The study therefore concluded that budget planning, budget review, revenue maximization and resource allocation are significant predicator of performance of devolved units in Migori County Government. The researcher through the study findings recommended the need to strengthen budget planning processes. This can be achieved by involving key stakeholders in the planning process and conducting regular reviews to ensure alignment with organizational objectives. Further, it is essential to enhance budget review practices. Clear guidelines and timelines should be established for conducting audits and reviews. The study recommended that there is need to conducting comprehensive assessments of resource needs and priorities to ensure optimal allocation and utilization is essential. Exploring opportunities for diversifying revenue streams beyond traditional sources such as taxes and fees is recommended.
Key Word: Budget Planning, Budget Review, Revenue Maximization, Resource Allocation
CITATION: Nchagwa, M. M., Juma, D., & Miroga, J. (2024). Budgetary control and financial performance of devolved units in Migori County. The Strategic Journal of Business & Change Management, 11 (2), 541 – 569. http://dx.doi.org/10.61426/sjbcm.v11i2.2930
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2930
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