Effect of Accounts Payable Management on Performance of Coastal County Government Ministries

Abstract

Financial performance within devolved government units is of critical importance in enabling those units to perform their mandates. The devolved government units across the world have always had challenges in their financial performance. The study focused on the role of account payable timelines, account payable procedures, account payable structure and account payable controls and on the financial performance of Coastal County governments. It adopted a descriptive research design to achieve its objectives. The study targeted a total of 72 chief officers of the Coastal County governments ministries who are directly involved with account payables. Structured questionnaires were utilized in data collection. The study found that accounts payable credit timelines, accounts payable procedures, accounts payable structure, and accounts payable controls, individually, have positive influence on financial performance of Coastal County governments’ ministries. It thus recommended that County Governments comply with account payables timelines to ensure that the suppliers are paid and avoid hefty fines in court. The study also recommended that County government ministries adhere to account payables conditions for accountability in financial resources usage, that maturity dates of account payables be established before County governments begin work on developmental projects for continuity of the projects, and that measures for controls over the timelines of account payables including cash flow, efficiency in local revenue collection, and allocation of funds to developmental and recurrent expenditure be put in place.