AASSSSEESSSSMMEENNTT OONN AADDVVAANNCCEE PPAAYYMMEENNTT MMAANNAAGGEEMMEENNTT AANNDD CCOONNTTRROOLL SSYYSSTTEEMM OOFF PPUUBBIICC OORRGGAANNIIZZAATTIIOON

Abstract

The paper is about advance payment method management and controlling system assessment. Advance payment method is largely applicable method in public budget expenditure payment. The method plays an important role for better budget performance. It enhances suppliers to build capacity in procuring goods and services timely basis. The objective of the thesis is centering to assess the advance payment management and control system in public organizations. It focuses to examine the significance of advance payment method in budgets payments in the government agencies. The assessment beside the role it investigate the legal framework, the strength of the management of advance payment. The impact of uncollectable accounts on annual budget performance and the trend of unsettlement balance observed through data analysis. The study has been conducted using narrative literature review and quantitative research methods. The research was made analyzing the government institution; the Ministry of Environment, Forest and Climate change the financial management targeting the expenditure payment modality “advance payment Method” 26 directorates listed in the structure of the ministry, management members and employees of the organization population the sample basis of the study. The literature reviewed includes public finance management; government budget, legal framework financial resources and receivable management. The study is expected to benefit as basis for other researchers, government agencies and the ministry which under studied MEFCC. A conceptual framework was developed where independent variable was Advance payment method management while the dependent variable was annual budget performance. Frequency and percentage amount was used to record the responses. The target population was 237 employees and management members in the area of study. Stratified sampling was used. The sample size was 81 accountants’ non-finance staffs and management members. The result was expected telling the existing advance payment management situation and what should be the future.