The Impact of Integrated Financial Management Information System (Ifmis) on Financial Probity in the Public Sector in Kenya

Abstract

Financial management information systems (FMIS) is the computerization of public expenditure management processes including budget formulation, budget execution, and accounting with the help of a fully integrated system for financial management of line ministries and other spending agencies. Having sound financial management and reporting in the public sector is an important contributor in achieving greater transparency, accountability, fiscal responsibility and, hence, improved governance. Automated payments, combined with sophisticated document management and identity management systems associated with IFMIS enable governments globally to improve efficiency, effectiveness, security, convenience, financial control and stakeholder confidence. The main objective of this study was to determine the relationship between IFMIS and financial probity in the public sector. The specific objectives included: establishing the effect of IFMIS on perceived financial probity of civil servants at the Ministry of Foreign Affairs; and determining the effect of IFMIS on the delivery of public service at the Ministry of Foreign Affairs. The study applied a case study design on 40 users of IFMIS in the ministry. Primary data was collected using a questionnaire. The study established that the employee’s ethical conduct had improved since the introduction of IFMIS within the ministry. The research findings revealed that the provision of rules that provided clear instructions, processes and procedures for employees was the most prevalent culture. The study further established since the implementation of IFMIS within the ministry corruption practices have reduced as the civil servants act with integrity while carrying out transactions and offering services to the public. The study further established that implementation of IFMIS affects the overall procurement performance in the government ministries in Kenya where management commitment, capacity and training, the resistance and acceptance of IFMIS, and the level of IFMIS adoption have a positive effect on financial probity. The study rrecommends that iimplementation of IFMIS is necessary in order to address the impact of IFMIS in financial probity, this study provides a number of broad recommendations as follows: Firstly, the Government should ensure e-government timescales are customized to current realities and all stakeholders must be motivated to a great extent. The Government needs to undertake more awareness programmes to create positive stance towards e-government projects amongst stakeholders where IFMIS falls.