Abstract:
This study sought to determine the relationship between accounting practices and management of funds in public
institutions in Kisii County. Specifically, the study sought to; determine the relationship between budgeting practices and
management of funds, explore the relationship between book keeping practices and management of funds, explore the relationship
between internal control practices and management of funds and examine the relationship between automation accounting and
management of funds in public institutions in Kisii County. Target population was 352 schools where the school bursars and the
Principals were the respondents. Stratified random sampling was used to select 187 respondents who were school bursars. The study
used correlation research design and the primary source of data was self-administered questionnaire. Validity of the instrument was
achieved by using experts in the field while reliability was determined using Cronbach Alpha coefficient test, which was 0.87. The
data was analyzed using inferential and descriptive statistics with the aid of SPSS software and the results presented using the
percentages, mean and mode to draw the conclusions. The finding indicated that budgeting significantly affected funds management
(P<0.05). Bookkeeping was found to have positive significant to funds management (P<0.05), budgeting practices had a
significance of (P<0.05), Internal control practices had a significance of (P<0.05) and accounting automation had a significance of
(P<0.05). The research concludes that budgeting, bookkeeping and internal control significantly affect the funds management. The
study recommends that government through Ministry of Education to standardize the automation and use of computerized
accounting systems.
