The relationship between integrated financial management system and financial accountability:

Abstract

The sought to establish the relationship between integrated financial management system and financial accountability in Pallisa District Local Government. The study objectives were: the effect of system budgeting, system accounting, and system reporting on financial accountability in local governments, with a focus on Pallisa District Local Government in Uganda. A cross-sectional research design was employed, using a quantitative research approach based on statistical analysis. Data were collected from selected officials in the district and analyzed to establish the predictive power of each system component on financial accountability. The findings revealed that system budgeting significantly enhances financial accountability by providing structured resource allocation and expenditure control mechanisms. System accounting was found to positively influence financial accountability through accurate recording, classification, and reporting of financial transactions, thereby improving transparency and decision-making. Similarly, system reporting had a significant positive effect on financial accountability by ensuring timely, relevant and reliable financial information for oversight and governance. The study concluded that strengthening system budgeting, system accounting, and system reporting is critical for promoting financial accountability in local governments. It recommends the establishment of robust budgeting frameworks, competent accounting systems, and comprehensive reporting mechanisms to enhance transparency and reduce the risk of financial mismanagement. However, the study was limited by its cross-sectional design, reliance on quantitative methods, and focus on a single district. Future research should adopt longitudinal designs, incorporate qualitative approaches, and expand the scope to cover multiple regions while considering mediating or moderating variables to better understand the mechanisms linking these systems to financial accountability.