Correlation between Funds Allocation and Performance of County Forest Conservancies Against Their Performance Contracts Targets as Indicated in Their AWP&B Using Feasible Model in the Optimization in Kenya

Abstract

Annual Workplan and Budget (AWP&B) are prepared annually by public organization as required by the government policy for funds allocation by the treasury which presents a focused role and a determined direction that estimates organization finances against her activities in a financial year. This study analyzed the effect of AWP&B on the performance of County Forest Conservancies (CFCs) in Kenya. Specifically, the study derived a correlation between funds allocation and the performance of CFCs. A descriptive research design was employed to analyze the AWP&B on the performance of CFCs. The result of the correlation between funds allocation and performance of CFCs with the application of the Linear Programming (LP) model of optimization provided optimal solution on performance that will lead to lasting output, especially the allocation of enough funds for better implementation of the activities towards the achievement of planned targets. In conclusion, funds allocation and performance of CFCs correlated with established constraints of budget, raw materials cost, labour cost, and machine operation cost due to limited fund allocation, which had a negative effect on performance in terms of the level of activities done. LP model clearly provided optimal solutions to the viability of carrying out seedling production and other activities in the counties. To this effect, the LP model is to be enhanced to help the organizations optimize decisions on variables to solve problems of limited resources and multiple objectives incurred when implementing AWP&B.