The Impact of the Public Financial Management Reforms on Financial Operations of the Ministry of Finance: a Case of Ministry of Finance

Abstract

The purpose of this study was to establish the impact of financial management reforms on financial operation in the Ministry of Finance. This study adopted a descriptive survey design where the population comprised of 98 accountants at the Ministry’s headquarters. The researcher used primary sources to collect the data through the use of a questionnaire which comprised of both open-ended and close-ended questions. The reliability coefficient was found to be 0.73 and thus the instruments were reliable. Thorough editing of data was done; data collected was analyzed both qualitatively and quantitatively. Qualitative data analysis considered inferences that were made from opinions of respondents that were then analyzed thematically where the collected data was analyzed, coded and classified into major topics from which summary report was made. Quantitative data was analyzed by use of descriptive statistics supported by tables, frequency distributions, percentages, mean, mode and variance that were established. Findings revealed that, the Ministry of Finance has to a large extent improved on commitment control and reduced variance between budget provision and releases. I he development of professional cadre, development of accounting reporting system and review of legal and regulatory framework are among the objectives that the Ministry ol Finance has largely accomplished towards the PFM reforms. It was disclosed that, the Ministry of Finance has been able to establish workable institutional arrangements, develop legal and regulatory framework, ensure competition in tendering and support internal control and commitment control. Therefore, there should be established budget stabilization fund through an Act ol Parliament. There is also need to have capacity building and improved terms ol sen ice for public officers. The application of international standards and methods in macroeconomic analysis, budgeting, accounting, procurement and audit requires skilled staff that can apply new methods in professional manner. Introduction ol II MIS and other computerized system requires specific skills and training for public officers.