The Effect of Cash Management Systems on the Financial Accountability of Bungoma County Government, Kenya

This study aimed to understand the impact of Cash Management Systems on financial accountability. The study used the theoretical framework of the Technology Acceptance Model (TAM) and the Resource-Based View (RBV) Theory. The descriptive research design was used. The target population consisted of 204 respondents who were representative of junior accountants, finance managers, senior accounting officers and departmental heads in different departments of County Government of Bungoma. Stratified and simple random sampling techniques were used to obtain respondents of 136. Structured questionnaires were used for data collection to gather primary data. A pilot study was carried out in Kakamega County to check the validity and reliability of the research instrument. The data were analysed descriptively, using frequencies, percentages, means and standard deviations, and inferentially with correlation and multiple regression analysis. Different normality, multicollinearity and heteroscedasticity diagnostic tests were carried out to ensure the suitability of the models. Ethical issues were adhered to throughout the study. The results indicated that cash management systems were all positively and statistically significant in determining the financial accountability of the CMSs (B=0.089 & p=0.022. The study found that the effective implementation of Cash Management Systems play a significant role in enhancing financial accountability in the County Government of Bungoma. The study advises to strengthen the cash management system, budgetary controls, financial reporting system, and implement proper record keeping techniques with continued staff training to optimize utilization of the CAM and accountability results.