Public financial management and financial performance of public organizations:

Abstract

The purpose of this study is to establish the relationship between Public Financial Management and Financial Performance of public organizations. The study was guided by 3 specific objectives which include; to establish the relationship between budgeting and efficiency of public organizations, to ensure that budget management is closely observed so as to maintain effectiveness throughout the financial years of public organization, and to examine the relationship between financial reporting and the economy of public organizations. The study adopted a case study design, a quantitative approach that was used as the study approach and a cross section design which was the time dimension. The sample size for the study was 50 respondents and questionnaires were used to collect data. The research findings established that there is a significant positive relationship between Budgeting and Financial Performance, a significant positive relationship between Budget management and Financial Performance, and lastly, there is a significant positive relationship between Financial reporting and Financial Performance. The study therefore recommends management of public organizations, to continuously ensure that budgets are approved and disseminated to staff so as to enable them to work towards achieving organizational objectives and also regularly provide for financial reporting, prepare regular reports and include all entities that have material impact on government’s fiscal position so as to attain financial performance.