Integrated Financial Management System(IFMS) and financial performance of Tororo district

Abstract

This study examined the effect of integrated financial management infom1ation system IFMIS) on performance of Tororo district local government. The objectives of the study were: to assess how the application of integrated financial management information systems (IFMIS) in financial planning has affected the performance of Tororo District Local Government; to analyze how the use of integrated financial management systems (IFMS) in budgeting has affected the performance in Tororo District Local Government; to establish how use of integrated financial management systems (IFMS) in financial repo11ing and accountability has affected performance of Tororo District Local Government. The study had a high average response rate of 77 % (r= 175) of the respondents who answered the questionnaires and key informants interviewed. Only 23 % (nr=52) did not respond to the questionnaires. The majority of the respondents were aged 36-45 years which represents 56 (31.72%) followed by those between 26-35 years accounted for 54 (30.8~%) and 46-55 years accounting to 39 (22.47%), and 20-25 years accounting to 26 (14.98%) of the population who responded to the questionnaires and interview guide. The study revealed that implementation of IFMIS in planning had a positive effect on performance with a regression coefficient of 0. 769a. This depicts a strong linear effect of IFMIS in planning on performance. The effect is significant at 0.002. Capacity and training ( 4.58), and the resistance and acceptance (4.4) of IFMIS adoption both have positive significant effect on performance with mean values of 3.554 and 3.4122 respectively. This implies that the use of IFMIS in planning had highly affected the financial performance of Tororo district local government. From table 4.11 , (96.6%) of the respondents agreed that efficient use of IFMIS in budgetary management acts as a tool for measuring perfonnance. The model summary showed that adjusted R2 is 0.5201. This indicated that 0.5201 variance of budgeting is a good predictor of performance of Tororo district local government. Since adjusted R2 is 0.5201 adoptions of IFMIS in budgeting suggest that there is a moderate effect on financial performance. Financial reporting and accountability did not have strong effect on performance with regression coefficient R2 0.172 and adjusted R2 0.156 implying it was not a good predictor of performance since it only explained a 15.6% variation and other factors contribute 84.4%.