Integrated Financial Management Information System and the Financial Performance Of County Government of Nandi, Kenya
Koros, Isaac Kipkemboi
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In Kenya, despite the inception of County Governments as means of ensuring that services including finance reach the citizen; Nandi County has been highlighted for misappropriation of funds, unpaid projects and corruption even after introduction of Integrated Financial Management Information System thus affecting service delivery. These aspects are clear indication of unfavorable financial performance in the county government and has thus raised the question of the role of IFMIS in timely reporting, accurate reports, easy referencing and enhanced decision making in Nandi County Government. The study aimed at examining how integrated financial performance information system affects financial performance and emphasize on the effect of Integrated Financial Management Information System on financial performance, effects of Integrated Financial Management Information System on, timely reporting, accurate report, easy referencing and enhanced decision making in the operation of Integrated Financial Management Information System at the County. Research theories used were agency theory, system theory, stewardship theory and stakeholder theory. The study employed exploratory research design. The target population was 119 from management of county government, County Assembly and other IFMIS parties. The stratified sampling technique was used to select a sample of 92 respondents. Structured questionnaires were used to collect data. The data collected was analyzed using descriptive and inferential statistics. Mean and standard deviation were adopted in descriptive statistics while regression analysis was used in inferential statistics. The effects of timely reporting, accurate reports, easy referencing and enhanced decision making on the financial performance of County Government of Nandi, Kenya were statistically significant. The study concluded that the timeliness of audited corporate annual financial reports is regarded as an important factor influencing the usefulness of information made available to various users, accurate financial statements build trust which enables the investors to confidently put their hard-earned money into it, IFMIS enables the collection and dissemination of financial, nonfinancial, and performance data that contribute to efficient and effective public administration and the use of IFMIS in the County is one of major factors for successful managerial decision making. The study recommended that the County must improve the timeliness of its financial reporting, the County should set aside the time required for financial reporting. Understand the key business drivers and their impact on the numbers, and hire financial advisors if possible, managers should use IFMIS to plan and formulate budgets, compare results to budgets and plans, manage cash balances and the County should implement timely and adequate training programs for all system users, ensure adequate hardware and software linkages between all levels of government.