Assessment of the Effects of Cost Control Measures on Financial Performance of County Governments: A Case Study of Machakos County Government
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Date
2019-05
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Publisher
Daystar University, School of Business and Economics
Abstract
The purpose of this study was an assessment of the effects of cost control measures on financial performance of county governments with a focus on Machakos County Government. The study adopted descriptive research design. The target population for this study comprised of 680 employees who were in the top, middle, operational and junior level of management for the eleven departments within the county. The sample size of the study was 68 respondents. The collected data were coded and analysed using SPSS software and findings were summarized and presented in the form of frequencies, distribution tables and bar charts. In regard to the cost control measures that were in use, the study found out that cost control measures used by the county include budgetary control, information technology, capacity building and outsourcing. The study identified revenue collection, value of county assets, payment of suppliers, reduction of debt and quality of services provided to residents as the measures of financial performance used by the county. These cost control measures helped to reduce costs and enhanced revenue collection according to the study. The main challenges faced in implementing the cost control measures included the high cost of implementation, steep bureaucracy, jobs losses, illiteracy among the employees. The study concluded that the county had financial performance measures in place that it used to evaluate their financial performance. The study recommended that Machakos County Government should set more financial performance indicators and allow corrective measures to be put in place in regard to wasteful use of resources.
Description
MASTER OF BUSINESS ADMINISTRATION
in Finance
Keywords
cost control measures, financial performance, Machakos County Government
Citation
Nzioka, C. K. (2019). Assessment of the Effects of Cost Control Measures on Financial Performance of County Governments: A Case Study of Machakos County Government. Daystar University, School of Business and Economics