Challenges Affecting Effective Implementation of Financial Management Information Systems in Local Government Authorities in Tanzania as Part of the Digital Ecosystem — Oak Academic Publishing
Research ArticleOpen AccessGoogle Scholar indexed
Challenges Affecting Effective Implementation of Financial Management Information Systems in Local Government Authorities in Tanzania as Part of the Digital Ecosystem
Department of Business Administration and Management, Nelson Mandela African Institution of Science and Technology, Arusha, Tanzania
,
The Open University of Tanzania, Arusha, Tanzania
1 Department of Business Administration and Management, Nelson Mandela African Institution of Science and Technology, Arusha, Tanzania
2 The Open University of Tanzania, Arusha, Tanzania
This study examined the obstacles to the efficient implementation of the Financial Management Information System (FMIS) by Tanzanian local government authorities. To formulate and test the dependency of variables, the researchers used both descriptive and inferential statistics, including a chi-square test. According to the findings, FMIS deployment faces technical, user, and organizational-related challenges. The study recommended that the Tanzanian government, through the Ministries of Finance and Planning, President’s Office Regional Administration, and Local Government Authorities, continue to offer a full commitment to ensuring the effective implementation of FMIS by guaranteeing the constant supply of electricity in all district councils; the supply of modern comput ing machines; good organizational management; as well as staff facilitation and motivation. In addition to the internal workforce, the engagement of qualified firms and consultants from the private sector to assist with the implementation of successful change management is strongly advised.
KeywordsFinancial Management Information SystemLocal Government AuthoritiesDigital EcosystemTanzania
Americas’ Accountability Anti-Corruption Project/Casals and Associates/USAID (2004). An Assessment of Corruption in Panama.
Bird, A. (2003). Country Case Study 7: Design and Implementation Features of Medium Term Expenditure Frameworks and Their Links to Poverty Reduction. Overseas Development Institute, Centre for Aid & Public Expenditure.
Boland Jr., R. J., & Hirschheim, R. A. (1987). Critical Issues in Information Systems Research. John Wiley & Sons, Inc.
Brar, P. (2010). IFMIS in Africa: Some Key Issues and Challenges. Journal of End User Computing, 13, 12-21.
Byrne, G. (2007). A Statistical Primer: Understanding Descriptive and Inferential Statistics. Evidence Based Library and Information Practice, 2, 32-47. https://doi.org/10.18438/B8FW2H
Cain, P. (2001). Information, Not Technology, Is Essential to Accountability: Electronic Records and Public-Sector Financial Management. The Information Society, 17, 247-258. https://doi.org/10.1080/019722401753330841
Chalu, H. (2019). The Effect of IFMIS Adoption on Financial Reporting Quality in Tanzanian Local Governments. Business Management Review, 22, 1-31.
Chene, M., & Hodess, R. (2009). The Implementation of Integrated Financial Information Management Systems (IFMIS). Transparency International, 20, 185-190.
Chetan, K. (2015). Concept, Role and Importance of MIS. https://www.linkedin.com/pulse/concept-role-importance-mis-kumar-chetan
Diamond, J., & Khemani, P. (2005). Introducing Financial Management Information Systems in Developing Countries. IMF Working Papers, 2005, 1-32. https://doi.org/10.2139/ssrn.888065
Diamond, J., & Khemani, P. (2006). Introducing Financial Management Information Systems in Developing Countries. OECD Journal on Budgeting, 5, 97-132. https://doi.org/10.1787/budget-v5-art20-en
Farelo, M., & Morris, C. (2006). Status of E-Government in South Africa. http://hdl.handle.net/10204/966
GOA (2004). Critical Factors in Developing Automated Accounting and Financial Management Systems. US Printing Office.
Hadzic, M., & Dillon, T. S. (2008). Application of Digital Ecosystems in Health Domain. In 2nd IEEE International Conference on Digital Ecosystems and Technologies (pp. 543-547). Institute of Electrical and Electronics Engineers. https://doi.org/10.1109/DEST.2008.4635222
Hendriks, C. J. (2012). Integrated Financial Management Information Systems: Guidelines for Effective Implementation by the Public Sector of South Africa. South African Journal of Information Management, 14, Article No. 529. https://doi.org/10.4102/sajim.v14i1.529
Hoogervorst (2011). Objectives of Financial Reporting. International Accounting Standards Board. https://www.iasplus.com/en/news/2011/November/hoogervorst-speech
Hove, M., & Wynne, A. (2010). The Experience of Medium Term Expenditure Framework & Integrated Financial Management Information System Reforms in Sub-Saharan Africa-What Is the Balance Sheet? https://www.africaportal.org/documents/18256/OP_9.pdf
IFAC News (2006). Public Sector Accounting Standard Board Issues Consultation Paper on Heritage Assets. https://www.ipsasb.org/news-events/2006-02/ifacs-public-sector-accounting-standards-board-issues-consultation-paper-heritage-assets
Indeje, W. G., & Zheng, Q. (2010). Organizational Culture and Information Systems Implementation: A Structuration Theory Perspective. Working Papers on Information Systems.
United State of America (2008). International Consortium on Governmental Financial Management. https://www.icgfm.org
Isa, A. A. (2016). The Treasury Single Account (TSA) as an Instrument of Financial Prudence and Management: Prospects and Problems. Research Journal of Finance and Accounting, 7, 66-71.
Jaba, S. T. (2010). Local Government Authorities in Tanzania. UDSM Tanzania.
Kimwele, J. (2011). Factors Affecting Effective Implementation of Integrated Financial Management Information Systems in Government Ministries in Kenya. University of Nairobi.
Koross, B. (2012). The Use of Oral Language Approaches in Developing Writing Skills in English Language among Kalenjin Secondary School Students in Rift Valley in Kenya. https://www.iiste.org
Kothari, C. R. (2004). Research Methodology: Methods and Techniques. New Age International (P) Limited.
Leiderer, S., Holick, B., Kabey, E., Roll, M., Schitzer, S., & Ziegenbein, J. (2007). Public Financial Management for PRSP Implementation in Malawi: Formal and Informal PFM Institutions in a Decentralizing System. German Development Institute.
Manning, N., Shepherd, G., & Guerrero, A. (2010). Chapter 2. Why Trust in Government Matters? In P. Arizti, et al. (Eds.), Results, Performance Budgeting and Trust in Government (pp. 49-74). World Bank, Washington DC.
Martin, C. (2015). Logistics and Supply Chain Management (2nd ed.). FT Prentice Hall.
Mauldin, E., & Ruchala, L. (1999). Towards a Meta-Theory of Accounting Information Systems. Accounting, Organizations and Society, 24, 317-331. https://doi.org/10.1016/S0361-3682(99)00006-9
McChlery, S., Godfrey, A. D., & Meechan, L. (2005). Barriers and Catalysts to Sound Financial Management Systems in Small Sized Enterprises. Journal of Applied Accounting Research, 7, 1-26. https://doi.org/10.1108/96754260580001040
Miheso, S. (2013). Adoption of Integrated Financial Management Information Systems by National Government in Kenya. University of Nairobi.
Mutui, M. F. (2014). Integrated Financial Management Information System on Procurement Performance of the Public Sector. University of Nairobi.
Muwema, T., & Phiri, J. (2020). The Impact of Integrated Financial Management Information Systems on Procurement Process in Public Sector in Developing Countries—A Case of Zambia. Open Journal of Business and Management, 8, 983-996. https://doi.org/10.4236/ojbm.2020.82062
Mzyece, M. (2006). A Critical Analysis of E-Government in Zambia. The African Journal of Information and Communication, 12, 110-127.
Ngwilizi, H. (2002). The Local Government Reform Programme in Tanzania—Country Experience. The Commonwealth Advanced Seminar on Leadership and Change in the Public Sector.
PEFA (2013). Public Expenditure and Financial Accountability, Assessment of Mainland Tanzania (Central Government). PEFA Secretariat, Washington DC. https://www.pefa.org/sites/pefa/files/assessments/reports/TZ-Sep13-PFMPR-Public.pdf
PEFA (2017). Tanzania—Assessment of the Public Finance Management Systems of the Central Government Applying the PEFA 2016 Framework. FISCUS Public Finance Consultants, UK, to the Government of Tanzania and the Danish Ministry of Foreign Affairs (Danida). PEFA Secretariat, Washington DC. https://www.pefa.org/node/711
President’s Office, & Regional Administration and Local Government Tanzania-PO-RALG (2022). Public Financial Management Reform Programme. President's Office, Regional Administration and Local Government Tanzania. https://www.tamisemi.go.tz/pfmrp
Public Expenditure & Financial Accountability (PEFA) Performance Assessment Report (2022). Tanzania—Assessment of the Public Finance Management Systems of the Central Government Applying the PEFA 2016 Framework. Draft Report, Submitted by FISCUS Public Finance Consultants, to the Government of Tanzania and the Danish Ministry of Foreign Affairs (Danida), PEFA Secretariat, Washington DC.
Public Financial Management Reform Programme PFMPR (2009). Public Financial Management Performance Report on Mainland Tanzania. Annual Progress Report for Year 2012/13. Ministry of Finance and Planning, United Republic of Tanzania.
Public Financial Management Reform Programme—PFMPR (2013) Public Financial Management Performance Report on Mainland Tanzania. Annual Progress Report for Year 2012/13. PEFA Secretariat, Washington DC. https://www.pefa.org/sites/pefa/files/assessments/reports/TZ-Sep13-PFMPR-Public.pdf
Rodin-Brown, E. (2008). Integrated Financial Management Information Systems: A Practical Guide. http://pdf.usaid.gov/pdf_docs/PNADK595.pdf
Roy, K. C., & Tisdell, C. A. (1998). Good Governance in Sustainable Development: The Impact of Institutions. International Journal of Social Economics, 25, 1310-1325. https://doi.org/10.1108/03068299810212775
Rozner, S. (2008). Best Practices in Fiscal Reform and Economic Governance. Introducing Integrated Financial Management Information Systems. http://blog-pfm.imf.org/pfmblog/files/ifmis_bpn_web1.pdf
Saunders, M., Lewis, P., & Thornhill, A. (2009). Research Method for Business Students (5th ed.). Rotolito Lombarda.
Sequeira, A. H., Pai, S., & Surehka, V. (2012). Financial Management Information System. https://ssrn.com/abstract=2049782
Tikk, J., & Almann, A. (2011). Developments in Public Sector Financial Management in Estonia. Business and Economic Horizons (BEH), 5, 47-56. https://doi.org/10.15208/beh.2011.14
Vickland, S., & Nieuwenhuijs, I. (2005). Critical Success Factors for Modernizing Public Financial Management Information Systems in Bosnia and Herzegovina. Public Administration and Development: The International Journal of Management Research and Practice, 25, 95-103. https://doi.org/10.1002/pad.354
Warioba, M. (1999). Management of Local Government in Tanzania. Some Historical Insights and Trends. Research Information and Publication.
World Bank (2000). Financial Management Information Systems (FMIS) 25 Years of World Bank Experience on What Works and What Doesn’t. The International Bank for Reconstruction and Development/The World Bank.
World Bank (2009). Financial Management Information Systems (FMIS). https://www.worldbank.org/en/topic/governance/brief/financial-management-information-systems-fmis
World Bank (2011). Financial Management Information Systems (FMIS) 25 Years of World Bank Experience on What Works and What Doesn’t. The International Bank for Reconstruction and Development/The World Bank.
World Bank (2022). Financial Management Information Systems (FMIS). https://www.worldbank.org/en/topic/governance/brief/financial-management-information-systems-fmis