By: Susan Nasimiyu Simiyu, Mr Samson Kaplelach
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.
Key Words: IFMIS, Integrated Financial Management Information System, Project Implementation, Public Finance Management
This is an open-access article published and distributed under the terms and conditions of the Creative Commons Attribution 4.0 International License, United States unless otherwise stated.
About the Authors:
- Susan Nasimiyu Simiyu– Correspondent Author, School of Business, Kenyatta University, Kenya
- Mr Samson Kaplelach – Lecturer, Department of Business Administration, Kenyatta University, Kenya