Accounting information systems and decision-making: a case study of ministry of finance planning and economic development.
The study focused on examining the relationship between the accounting information systems and decision making at MoFPED. It was guided by the following specific objectives to; establish the effect of data entry on decision making at the MoFPED, examine the influence of data presentation on decision making at the MoFPED and assess the effect of data reporting on decision making at the MoFPED. The study adopted a case study design where both qualitative and quantitative methods were applied in data collection and analysis. The study gathered both primary and secondary data. Primary data was obtained through interviews and questionnaires to randomly selected employees. Secondary data included; MoFPED Resource Centre (RC) which streamlines the flow of information within the Ministry and published reports. Regression analysis was used for the data analysis and drawing inferences from the findings. The findings revealed that accounting information system 1s an indispensable tool in decision making. The findings MoFPED revealed that AIS was used to capture data collected, store, manage, process, retrieve and report financial reports, to attain an effective control and coordination of activities. MoFPED adopted AIS in order to support decision system, communication, monitoring, knowledge management and controlling activities. The Ministry used AIS to capture, present data and reporting through financial reports to aid optimal decisions. Reports such as IPPs aided Decisions such as payroll and decentralization management to avoid delayed salaries for civil servants. The study concludes that, using AIS to capture, present and report quality financial information on a timely basis enhances realization of effective decisions such as implementing performance management and service delivery through decentralization of the payroll. Further still the study deduces that use of AIS requires high level of accuracy in financial transactions and recordkeeping and to make financial data easily available to those who legitimately need access to it, all while keeping data intact and secure in order to balance the diversification of financing, accountability, and autonomy in public entities. The study recommends that, Management of the MoFPED should impart staff with training and knowledge transfer in using AIS to conduct financial analysis. MOFPED should evaluate accounting policies used in the set time table and it should be revised according to the principal and standard for giving more useful accounting information systems in case of need. There is need to transform AIS in order to meet the challenges due to the funding reform by realigning their organizations with the environment, redesigning themselves to achieve new goals, redefining staff roles and responsibilities, and reengineering their organizational processes.