EFFECT OF COMPUTERIZED ACCOUNTING SYSTEMS ON FINANCIAL CONTROL IN PUBLIC SECONDARY SCHOOLS IN NAROK COUNTY

Abstract

The development of information and technology has made manual accounting techniques steadily unsuitable for decision-making. In order to ensure effective and efficient information flow in the recording, processing, and analysis of financial data, both public and private sector companies in emerging and established economies consider computerized accounting information systems as a vehicle. This study's main objective was to determine how computerized accounting systems affected financial control in Narok County's public secondary schools. The specific objectives were: to establish the effect of electronic transaction processing on financial control in public secondary schools in Narok county, to analyze the effect of electronic reporting on financial control in public secondary schools in Narok county, to find out the effect of electronic audit on financial control in public secondary schools in Narok county and to establish the effect of electronic payroll on financial control in public secondary schools in Narok county. The study used a descriptive survey design. The study targeted a population size of 656. A sample size of 240 officers in public secondary schools in Narok County was used. The study used primary data. Data was collected using a questionnaire. The data was analyzed using descriptive statistics for frequency and percentages, Pearson correlation analysis, simple linear and multiple linear regression using SPSS version 23 to summarize and classify data, to establish the relationship between the variables, to determine the effect of independent variables on dependent variable and to determine the overall effect of all the independent variables on financial control. The study established that electronic transaction processing was an important factor in enhancing financial control in public secondary schools (r= 0.639, p- value = 0.000), the study also established that electronic reporting was important in enhancing financial control in public secondary schools (r = 0.621; p- value = 0.000). The study further noted that electronic audit was important in enhancing financial control in public secondary schools (r = 0.684; p- value = 0.000). On the effect of electronic payroll on financial control majority of the respondents agreed that it has an influence on financial control (r = 0.670; p- value = 0.000). The hypothesis of each of the four factors was tested using simple linear regression analysis, where all the four null hypotheses were rejected based on the t-values which were all greater than critical t-values. There was a general perception from most of the accounting officers that sound financial control in public secondary schools was influenced by electronic transaction processing, electronic reporting, electronic audit and electronic payroll. The study therefore concluded that public secondary schools should ensure that appropriate computerized accounting is adopted to enhance sound financial control. The findings of the study will assist in the formulation of appropriate policies on sound financial control for not only public secondary schools in Narok county but for all other public secondary schools in Kenya. The was limited to Public secondary schools and therefore the results might not be generalized to other public sectors. Therefore, a similar study incorporating other public sectors should be conducted.