The Effect of the Integrated Financial Management System (Ifmis) on Operational Efficiency in Local Governments in Uganda: a Case Study of Wakiso District

Abstract

The study investigated the effect of integrated financial management information system on operational efficiency in local governments. Specifically, the study sought to establish the effect of IFMIS on e-purchasing, e-payment, and e-accounting for which Wakiso district local government was 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 scale were used to measure the corresponding variables, included e-purchasing, e-payment, e-accounting and operational efficiency. All the analysis was conducted using the statistical package for social scientists (SPSS). Findings of the study showed a strong positive correlation ( = .646) between e-purchasing and operational efficiency, a very strong positive correlation ( = .838) between e-payment and operational efficiency and a strong correlation ( = .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. It recommended 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 utilize the IFMS, sensitize all district end-users about the IFMS, improve the security of the district data in IFMS and reliably connect the IFMS to its end-users.

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