Effect of Integrated Financial Management Information Systems on Financial Performance of Garissa County, Kenya
Abstract
The acceptance of integrated financial management information system in Kenya has been
advocated as the best approach in justifying the ensuing effects of public procurement
embezzlements that have dogged the public sector since independence. Integrating
financial management systems increases capability of controlling and checking of the
spending and receipts in Government departments, rises the possibility of accessing the
information on financial and working performance, increase ability to access information
on Government’s cash position and information on economic performance; and increase
ability to establish accountability to donors and the public. Despite the introduction of the
system at both national and county level, cases of mismanagement of public resources are
still rampant. In light of these adverse developments, this research sought to assess the
effect of IFMIS on financial performance in County Governments of Kenya with a focus
on Garissa County. The study was hinged on the Weick's Model of Organizing, Etechnology
perfective Theory, Technology Acceptance Model (TAM) Theory and System
Theory. The study employed a descriptive research design. The study collected secondary
data from the County treasury department on the budgetary allocations towards
improvement of various IFMIS subsystems. An ordinary regression model was used for
analysis. The study findings revealed that IFMIS has a positive and significant effect on
financial performance of Garissa County. An increase in the expenditure towards
improvement of the IFMIS system led to an improvement in financial performance of the
County in terms of the total revenue collected by the county. The study recommends that
county governments need to increase the frequency of using IFMIS for cash management
as well as an increase the expenditure towards improvement of cash management IFMIS
systems since it will play a significant role in establishing efficiency in financial
management leading to better financial performance. The study also recommends that there
is a need for county governments to increase the frequency of using IFMIS in financial
reporting as well as increase the expenditure towards improvement of financial reporting
IFMIS systems since it will result to a significant improvement in financial performance
of the county. The study further recommends the county governments should increase the
frequency of using IFMIS in internal control as well as increase the expenditure towards
improvement of internal control IFMIS systems since it will lead to an improvement in
financial performance of the county.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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