Public finance management strategies and financial accountability in local government in Uganda, a case of Nansana municipal council

Abstract

The study was about the influence of public finance management strategies on financial accountability in local governments in Uganda with specific reference to Nansana Municipal Council. It was guided by three objectives which are i) to examine the influence of audit oversight on financial accountability in Nansana Municipal Council, ii) to assess how financial reporting influences financial accountability in Nansana Municipal Council and iii) to examine the influence of capacity building and financial accountability in Nansana Municipal Council. The research study used a cross-section research design and adopted quantitative and qualitative research aproaches to collect data from 108 respondents who were selected using the Krejcie and Morgan, (1970) table from a population of 150. The respondents were further selected using purposive and simple random sampling techniques which both ensured fair representation of all individuals from Nansana Municipal Council. The study findings on the first objective about audit oversight and financial accountability revealed that Nansana Municipal Council has made efforts to promote financial accountability through regular audits, financial tracking systems, and public access to audit reports. However, the effectiveness of these practices is hindered by weak oversight and delayed action on audit findings. In regard to the second objective about financial reporting and financial accountability, it was revealed that financial reports are often not published consistently, and public access to these documents remains limited. Additionally, concerns were raised about the timeliness of report submissions and the lack of adherence to international reporting standards. The results on the third objective about capacity building and financial accountability showed that while some training in budgeting and financial reporting exists, there is no clear or consistent system for the professional development of financial staff. Training for internal auditors is irregular, collaboration with external experts is limited, and opportunities for peer learning are minimal. It was therefore recommended that Nansana Municipal Council should establish an independent audit committee that is separate from the administration to ensure unbiased oversight of financial reports and audit findings. It was also recommended that financial reports should be rewritten in a more user-friendly language, avoiding overly technical terms to ensure they are understood by non-financial stakeholders. Also, to broaden the expertise within the municipal council, the administration should actively collaborate with external financial experts and consultants.