Integrated financial management system and financial performance of local governments a case of Mbale city council.

Abstract

The study determined the effect of integrated financial management system (IFMS) on Financial Performance of Local Governments in Mbale City Council. The study was supplemented by specific objectives which included determining the effect of Financial Planning and Budgeting on Financial Performance of Local Governments, establishing the effect of Financial Reporting on Financial Performance of Local Governments and assessing the effect of financial Auditing on Financial Performance of Local Governments in Mbale City Council. The researcher used a descriptive research design. Both qualitative and quantitative approaches were adopted to determine the effect of financial management systems. To achieve the set objectives the study used simple random sampling and purposive sampling techniques in sample selection. A sample of 63 respondents was used. This was because of their knowledge and experience about the topic understudy. Questionnaires and interview guide were used during the data collection process and the introduction letter was obtained from the head of department Business Administration introducing the researcher to the field of research. Results of the first objective indicated that IFMIS significantly predicts the outcome of fraud and embezzlement as reflected by p-value 0.852 or 85.2%. This implies that when IFMIS is employed, there are likely reductions in fraud and embezzlements within the organization. The second objective of the study results indicated that IFMIS reporting system significantly predicts the variation of timely reporting as reflected by the p-value 0.166 or 16.6%. The last objective results revealed that there is a positive and significant relationship between IFMS and financial performance as represented the p