Cash management and budget performance in public universities in Uganda

This article reports the findings of a study that analysed the effect of the cash management functions of cash planning, cash collection and cash control on the budget performance of three public universities in Uganda. Data was collected using a self-administered questionnaire from 115 employees selected from the finance departments of the universities. The data was analysed using descriptive statistics and regression analysis. The findings were that cash flow planning and control were conducted. However, cash collection was far below expectation. The universities neither sufficiently planned for their cash needs nor effectively monitored utilisation of their cash. Their cash management functions had a positive (and significant) effect on budget performance. However, cash collection was found to be the best predictor of budget performance. The study urges the universities to reduce their fees default rate, improve their cash planning, and closely monitor utilization of their cash.