Benefits Of The Integrated Financial Management Information System On Expenditure In The Public Sector: A Case Of The Ministry Of Agriculture, Livestock, Fisheries And Irrigation

Abstract

IFMIS is an information system that supports budgeting and accounting for the Government of Kenya. It is an online system that manages budgeting, payment processing, expenditure and reporting for National Government, County Governments and other entities involved in public financial management. This study focused on the challenges experienced by the Ministry of Agriculture, Livestock, Fisheries and Irrigation in implementing IFMIS and sought to identify key interventions that would ensure consistency in the net benefits. The researcher interviewed financial managers and users at The Ministry Headquarters and Departments at the Counties of Busia and Bungoma, as well as The National Treasury. By obtaining valid and latest data as a reference to the implementation of IFMIS, an analysis was done to determine the relationship and the influence of variables according to DeLone and McLean model. Data collection techniques used included questionnaires to obtain answers concerning problems related to variables and a review of the help desk logs at the implementing agency. Respondents revealed increasing confidence in using IFMIS and improved availability of the various modules. Users noted that IFMIS provided detailed information in simple and easy to generate reports. There was increased accountability by managers as a result of timely and accurate data. Challenges remain in system availability and this was attributed to the delays in the realization of the national optical fibre backbone. The quantitative data was analyzed and presented using descriptive and inferential statistics. Factor analysis was used for hypotheses testing to determine the relationships between the independent and dependent variables. The study rejected all the null hypotheses and re-affirmed the importance of IFMIS in Public Expenditure Management. The net benefits of the IFMIS implementation far outweigh the costs related to the system roll out and subsequent training of users. The turn-around time for transactions within MALFI is tremendously short as attested to by most users. It also reduced time spent by clients travelling to make follow-ups at the ministry while eliminating geographical barriers. In terms of government expenditure and reporting IFMIS sets a precedent on prudent utilization of funds and a high threshold on accountability.