Abstract:
Effective cash management in the district treasuries is very essential in the control of funds that are received by government departments. This is because proper cash management practices have a positive effect on the treasuries performance in meeting its objectives. This study therefore aimed at assessing the effectiveness of cash management techniques on treasuries performance in district treasuries in Kisii County. The study surveyed all sections of the district treasury headed by section heads who in turn are under the District Accountant. The research aimed at finding out how those section heads manage cash, accounts receivables, accounts payable and the adherence to the financial management policies. The secondary data was from various scholars on peer reviewed journals, books, articles and magazines as well as conference papers. Also districts treasury audit reports were reviewed. Independent variables were management of accounts receivable, management of accounts payable and financial management while the dependent variables were district treasuries performance, timeliness, improved efficiency and effectiveness. Intervening variables were monitoring and evaluation system, financial management policies. A descriptive research design was used in this study and the study targeted a population of 60 staff members who work at the district treasuries. A census was used to pick population for the study. A semi structured questionnaire was used to collect data from the respondents. The questionnaire was administered personally to the respondents and collected after 3 days. Validity of the research instruments was ensured through seeking the expert opinion of the University Supervisors. Reliability was ensured by use of test retest run technique. Data was analyzed by the use of weighted averages, percentages, chi- square and presented using frequency tables, pie charts and interpretive reports for ease of interpretation. Findings indicated that majority of the respondents were clerical officers and the least were district accountants. On competence the researcher established that the majority were professionals CPA holders. The majority of treasury staff had served for 5years. It was found out that a large number of staff had attended one session of in-service training on financial management. It was also found out that received funds were moderately adequate in meeting expenditures. Findings showed that the use of regulations was average while challenges to effective cash management had an average effect. There was statistical significant relationship between effective cash management and treasury performance as revealed by the chi-square tests. The conclusion was that treasury performance was greatly dependent on effective cash management.
