Paper ID: TAGJ20102502

Adoption of Integrated Financial Management System (IFMS) and Financial Management Efficiency in Local Government:  A Case of Ibanda District, Uganda

Omoding Christopher, Sadick Mwesige

Faculty of Humanities and Social Sciences, Ibanda

Abstract

This study examined the impact of Integrated Financial Management System (IFMS) budget implementation on financial management efficiency in Ibanda District Local Government, Uganda. A descriptive mixed-methods design was employed, targeting district administrators, finance officers, accountants, and internal auditors. A sample of 120 respondents was selected using purposive and random sampling techniques. Data collection involved questionnaires, interviews, and document reviews. Quantitative data were analyzed using SPSS (v20.0), while qualitative data were thematically analyzed. The results show a strong positive correlation (r = 0.74, p = 0.001) between IFMS budget implementation and financial management efficiency, indicating that better budget implementation enhances efficiency. The Chi-square test (χ² = 16.38, df = 8, p = 0.038) confirms a significant association between the two variables, while the t-test (t = 2.81, df = 48, p = 0.009) shows a significant difference, proving that effective IFMS use improves financial efficiency. The mean scores (3.59 each) reflect a positive perception of both variables. Regression results show that budget implementation (B₂ = 0.45, p = 0.0002) significantly predicts financial management efficiency, confirming that IFMS-driven implementation directly enhances efficiency. However, challenges such as limited training, technical breakdowns, and resistance to change were noted. The study concludes that IFMS budget implementation improves efficiency but requires continuous system support and capacity building. It recommends investment in ICT infrastructure, regular training, and improved monitoring to optimize IFMS benefits. 

Keywords: Integrated Financial Management System, Budget Implementation, Financial Management Efficiency, Local Government, Ibanda District.

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