The Effect of the Integrated Financial Management Information System on Operational Efficiency in Local Governments in Uganda: A Case Study of Wakiso District.

Abstract

MUSOKE PATRICK (2012-M102-20038) The Effect of the Integrated Financial Management Information System on Operational Efficiency in Local Governments in Uganda: A Case Study of Wakiso District. The study investigated the effect of integrated financial management information system (IFMIS) on operational efficiency in local governments. Specifically, the study sought to establish the effect ofIFMIS on e-purchasing, e-payment, and e-accounting for which Wakiso district local governmentwas used as a case study. A case study design was employed to undertake the study. Purposive and simple random sampling techniques were used to select a sample of 60 respondents. Different questions on a likert scalewere used to measure the corresponding variables that included e-purchasing, e-payment, e-accounting and operational efficiency. All the analysis was conducted using the statistical package for the social sciences (SPSS). The findings of the study showed a strong positive correlation ( rho = .646) between e-purchasingand operational efficiency, a very strong positive correlation ( rho= .838) between e-payment and operational efficiency and a strong correlation ( rho= .710) between e-accounting and operational efficiency. It was concluded from the findings that integrated financial management information system significantly affected operational efficiency in local governments. The study recommended that Wakiso district management should improve e-purchasing, e-payment and e-accounting in order to enhance operational efficiency by automating all activities via electronic systems, encourage end-users optimally utilise the IFMIS, sensitise all district end-users about the IFMIS, improve the security of the district data in IFMIS and reliably connect the IFMIS to its endusers. Key Words: Integrated Financial Management, Information System, Operational Efficiency, Local Governments, Wakiso District.