Influence Of Intergrated Financial Management Information Systems On Financial Performance In Public Organizations

Abstract

Integrated Financial Management Information System (IFMIS) is a government to government (G2G) or inter-agency relationship. It is the automation of the Public Financial Management (PFM) processes, from budget preparation and execution to accounting and reporting, with the help of an integrated system for financial management of line ministries, agencies and other public sector operations (Rodin-Brown, 2008). The objectives of the study were to determine how plans and budget formulation using IFMIS influence performance of water infrastructure in Bomet County, to determine how procurement using IFMIS influence performance of water infrastructure projects in Bomet County, to determine how reporting using IFMIS influence performance of water infrastructure projects in Bomet County, and to determine how revenue collection using IFMIS influence performance of water infrastructure projects. The issues discussed on the literature review included concept of financial performance, influence of components of IFMIS on financial performance, theoretical review, empirical review and conceptual framework. Descriptive survey was used to collect both primary and secondary data. The target population of the study was employees of Bomet County Government. Questionnaires are the research instruments that were used. Secondary data included periodicals and administrative challenge decisions. Data was analyzed using SPSS version 21. Summaries of data findings together with their possible interpretations was presented by tables, mean, percentages, frequencies, variances, and standard deviation. The study found that IFMIS has positive effects in financial performance. IFMIS ensures the timely provision of quality information, promotes empowerment of employees and long term goals, intervention aimed at improving entrepreneurship and self-employment, IFMIS has modernize the system of financial management in the county. It has led to economic growth, the country government has become more accountable, and IFMIS eliminate waste and corruption in the use of public assets. The study concluded that IFMIS improved financial performance.