Adoption of Accounting Information System and Financial Accountability in TVET Institutions in Eastern Region Kenya

Abstract

The purpose of the study was to determine the effect of adoption of accounting information system on financial accountability in TVET institutions in Eastern Region Kenya. The target population was 69 participants, encompassing principals, Board of Governors (BOG) chairs, and finance officers from 23 TVET institutions within the Eastern Region. Census method was adopted and a mixed-method approach using a descriptive design was employed in this research. Questionnaires were used to collect primary data while scrutinizing audited financial statements to amass secondary data. The data was processed through a blend of descriptive and inferential statistical methods presented using tables and explanations. The questionnaire findings indicated that 24(41%) respondents strongly agreed and 11(19%) agreed that the adoption of an AIS had facilitated timely financial reporting in my institution (mean of 4.16). Additionally, 12(21%) respondents strongly agreed and 17(29%) agreed that implementing an AIS had augmented the efficiency of financial processes and data capturing in our institution (mean of 3.70). Further, 16(28%) respondents strongly agreed and 14(24%) agreed that an effective AIS improved the accountability of financial resources in the institution (mean of 3.67). The secondary results revealed that expenses had a mean of 4.21 and as well as debtors had a mean of 4.35. Nevertheless, the net profit had a low mean of 2.74. The Pearson correlation coefficient r=0.151** at α < 0.019 and 99% significance level. On accounting information system, the study concluded that there was a significant effect of adoption of accounting information systems on financial accountability in TVET institutions in the Eastern region of Kenya. It was noted that the implementation of AIS had enabled most TVETs to report their financial standings on time due to efficient processing of information when inputted accurately. Therefore, it was considered an enhancer towards financial accountability in regards to the proper utilization of TVETs’ institution. The study thus recommends that TVET management should provide more funding to strengthen the current accounting information systems from cyber-attacks. This will reduce malware attacks and siphoning of institutional funds to facilitate more efficient on bookkeeping and reporting, which are a function of ensuring financial accountability.