The Influence of Integrated Financial Management Information System on Timely Financial Reporting in the National Sub County Treasuries in Nyanza Region, Kenya

Abstract

IFMIS as an automated system of information it facilitates tracking of events of financial nature, summarization of information, which actually leads to timely financial reporting, fiduciary responsibilities, timely decision-making on policy issues, and preparation of reliable financial reports.. The National Treasury adopted IFMIS in Kenya in 1998 and later in 2003 launched in other line ministries. Whereas Financial reports aim to improve budget compliance and provide a means for internal or external actors to asses government performance. IFMIS improves financial controls by availing reliable and timely financial information. .A more detailed IFMIS gives accurate, timely, consistent and relevant financial information for the purpose of management and decision making functions.Public Finance Management practices have been characterized by challenges in revenue collection, lack of transparency and accountability in the national and county governments. It has been observed that accurate financial position both at individual reporting level and government wide level was not possible within IFMIS due to the prevalent use of manual cash books and asset management was in manual system thus making it difficult to produce timely financial reports within the IFMIS and more so IFMIS servers are hosted in a shared data center managed by government information technology services, which have no proper financial controls and physical security on the data center, such as surveillance systems. There have been increasing allegations of misappropriations and untimely financial reporting on public resources despite the existence of IFMIS. The objective of the study was to determine the influence of IFMIS on timely financial reporting in National Sub County Treasuries in Nyanza Region,Kenya. To achieve this objective, the study was guided by one objective; to determine the influence of IFMIS on timely financial reporting in National Sub County Treasuries in Nyanza Region,Kenya. The research adopted descriptive survey and it targeted 45 National Sub County Treasuries in Nyanza Region, Kenya. The data collection was through the questionnaire and data capture form for secondary data. The spss was key in the analysis of data. The findings from the study were presented by use of Figures,Tables, Means, and standard deviations.established that with all 3 independent variables taken into consideration and constant at Zero, timely financial reporting performance will be at 71.228. The findings further show that taking all the other independent variables at zero, Reliability and compatibility of IFMIS would be the highest strategy at 28.527 to positively influence the Timely financial reporting while the lowest independent variable to influence timely financial reporting would be IFMIS Infrastructure at 10.165.The findings also imply that a unit increase in IFMIS Infrastructure would lead to 10.165 increase in timely financial reporting. A unit decrease in IFMIS Internal Control would lead to -20.132 decrease in timely financial reporting. Hence the need for the government to invest in latest technology systems that would influence timely financial reporting in National Sub County Treasuries, in Nyanza Region, Kenya and unto the rest of the regions in Kenya.