Integrated Financial Management Information System Implementation and Public Finance Management in Kilifi County, Kenya
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Date
2018-08
Authors
Simiyu, Susan Nasimiyu
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Sound integrated financial management information systems (IFMIS) can not as it were offer
assistance creating nation governments pick up successful control over their funds,but too
upgrade straightforwardness and responsibility, reducing political tact and acting as a obstacle to
debasement and extortion. The county governments of Kenya have been required by the Public
Financial Management (PFM) Act, 2012 to execute IFMIS since 2013 when they got to be
operational, but the implementation process has so far been ineffective. The financial
management of public funds is a very important element for any government and the public have
to see that resources are mobilized well and expenditures used is done effectively and efficiently.
In addition to implementing the Public Finance Management requirements and governance, it is
necessary for governments and sub-governments that are involved in handling public resources
to institute measures that will ensure that public finance management is followed. Different
financial systems have been previously implemented to account for public resources, and in the
year 2013 Kenya IFMIS was implemented as a platform of managing the national and county
resources. The system has been implemented in various counties and it was seen as a system that
will improve public finance management since it links all the departments. Kilifi being one of the
counties that has implemented the IFMIS system may not fully understand the effects of the new
system which motivates the objective of the study, to investigate the effect of Integrated
Financial Management Information System (IFMIS) on public finance management in Kilifi
County, Kenya. The specific objectives were, to analyze effectiveness of budgeting systems in
IFMIS on public finance management in Kilifi County, Kenya, to verify the effects of accounts
receivable in IFMIS on the public finance management in Kilifi County and to assess the
effectiveness of accounts payable in IFMIS on public finance management in Kilifi County,
Kenya. Relevant theories and literature have been used to gain greater understanding of the
subject, which include the contingency theory of accounting information system, meta-theory
model and structuration theory. The study employed a descriptive research design. The target
population was users of IFMIS in the county governments. A census of the 67 county employees
who use IFMIS in the county departments was done. Data was collected by means of a
questionnaire and was analysed using descriptive statistics. From the seven different IFMIS
sections/departments, the study used stratified sampling design and selected 80% employees
from each section to give a sample size of 54 respondents. The study used a questionnaire as a
tool for data collection in order to provide the relevant information for the research questions.
This data was quantitative and qualitative in nature, and the data was then sorted, coded and
analysed using Kruskal-Wallis technique in order to answer the research objective. Secondary
informatin were inferred from work area audit of annual information on IFMIS for all factors for a
period of three years (2015-2017). The study found that budgeting frameworks, accounts receivable
and accounts payable emphatically and significantly impacted the public finance management in
Kilifi County. The ponder prescribes that managers can utilize this data to arrange and formulate
budgets; screen the utilize of fixed assets; examine results against budgets and plans; oversee cash
equalizations; track the status of receivables and obligations and monitor the performance of
particular departments or units.
Description
A Research Project Submitted to the School of Business in
Partial Fulfilment for the Requirements of the Award of the
Degree of Master in Business Administration (Finance) Kenyatta
University