| dc.description.abstract | Computerized Funds Transfer (CFT) system is an electronic method of exchange of money from
one bank account to another either within a single financial institution or across multiple
institutions, through computer based system. Due to economic meltdown in various countries
around the world, it created a demand for payment system that could improve cash management
and efficient way of handling government payments. The government of Kenya in an attempt to
reduce receipts and payments exposure risks introduced a computerized funds transfer system in
1992 and whose effect have not yet been known. However, a number of complaints have come
up in the cause of its implementation. This study, therefore sought to investigate the effect of
computerized funds transfer system on government departments cash management at Mbita Sub
County Treasury. Specifically it sought to: establish the association between computerized fund
transfer system and time management within Mbita Sub County Treasury, determine the
association between computerized fund transfer system and privacy and security of cash
management in Mbita sub County treasury, determine the association between productivity of a
system and Government cash management in Mbita Sub County Treasury and establish the
association between authorization and inspection and cash control transactions in Mbita Sub
County Treasury. Stratified random sampling was used to sample 28 respondents out of a
population of 45 departmental heads. The study used questionnaires to obtain primary data while
secondary data were from documented relevant sources. Reliability test was conducted on ten
departmental heads that were not included in the actual data collection. A minimum Cronbach's
coefficient of 0.784 was obtained, suggesting that the instrument was reliable when compared
with threshold of 0.7. Data were analyzed using Pearson correlation which gave the association
between the variables while regression helped in generating the relationship between the
independent and dependent variables. The study established that amount payable had a
significant positive association with cash control transaction (r =0.548, p=0.003) and time
management (r=0.414, p=0.028). Similarly, authorization and inspection has significant positive
association with cash control transaction (r=0.493, p=0.008), privacy and security (r = 0.435,
p=0.021) and Time management (r = 0.841, p = 0.000). It also showed that authorization and
inspection (f3 =.561, p =.001) and amount payable (f3 =.411, p=.033) both had significant positive
effects on Government cash management. The positive associations mean that a 'Positive change
in the elements of computerized funds transfer would imply a positive change in the government
cash management. The regression results also showed that a unit change in the dimensions of the
independent variable would also lead to appositive change in the government cash management
as suggested by the beta coefficients. | en_US |
