FINANCIAL CONTROLS ON FINANCIAL PERFORMANCE OF NATIONAL GOVERNMENT CONSTITUENCY DEVELOPMENT FUND IN MT. ELGON CONSTITUENCY, BUNGOMA COUNTY

Abstract

This study sought to examine the Financial Controls on Financial Performance of National Government-Constituency Development Fund in Mt. Elgon Constituency, Bungoma County. It was carried out in respect of the following research objectives: to examine the effect of Budgeting on Financial Performance of National Government-Constituency Development Fund, to assess the effect of Financial Reporting Systems on Financial Performance of National Government-Constituency Development Fund in Mt. Elgon Constituency, Bungoma County, Kenya. The study was anchored on the Public Budgeting model and Resource Dependency theory. A descriptive research design was adopted for a target population of 80 respondents which comprised of National Government-Constituency Development Fund Committee Members (15), Project Management Committee Members (14), Community Leaders (36) and Youth Leaders (15). The study employed the purposive sampling technique in selecting the number of Community leaders and a census method was adopted in order to reach all members of the target population. Questionnaires were used for data collection. The study utilized both descriptive and inferential statistics for data analysis. The study findings were presented in tables and figures that captured both descriptive and inferential statistical results; Correlation and regression analyses and Analysis of Variances. A multiple regression model was then extracted from the data analysis results which were carried out using the SPSS v24 Software. The study findings had a statistically significant effect among variables with an F-ratio of 6.980. The correlation results had Financial Reporting System at (r=.414*, P<.001) and Budgeting at (r=.341, P< .001). The study findings will be expected to add to the already existing reservoir of information in the finance field as well as become a basis for research reference to future scholars.