Assessment of effectiveness of financial Management system in local government Authorities: a case of Nachingwea district Council
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Mzumbe University
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Dissertation Submitted to Mzumbe University, Dar es Salaam Campus College
in Partial Fulfillment of the Requirements for the Award of the Degree of
Master of Science in Accounting and Finance (MSc. A&F) of Mzumbe
University
The study was conducted to assess the effectiveness of financial management system in Local Government Authorities: A Case study of Nachingwea district. The government has put more effort to institute various oversight mechanisms in order to ensure proper financial management system in the local councils, but the Local councils performance are still poor. Is there effective financial management system in local councils? The objectives of this study were to examine if there are effective and functioning controlling mechanisms in LGAs; to determine whether LGAs follow the existing financial regulations and laws; and to determine whether the council’s budgets and accounts provided an indication of the quality and realism of budgeting. Sampling methods such as purposive and random sampling were used. Data were collected through interviews and questionnaires. Secondary data were extracted from relevant reports and other documentary materials. Both qualitative and quantitative data were analyzed using SPSS computer programme. The descriptive analysis concentrated on numbers/frequencies and rates/percentages through tables and figures. The results of study showed that there are weak internal controls, payment controls and authorization procedures. Most documents were not supported by the required documents, procurement services were made contrary to government laid down procedures and most financial regulations and laws were violated. LGA’s face problems in implementing the budgets. The budget preparations in most of the LGAs were not participatory (grass root levels) are not involved. There was poor control over budget. Therefore most of local government authority lack effectiveness in FMS. The findings recommend; PMO-RALG to strengthen an appropriate internal control to support LGA’ in their daily operation, Management should ensure council’s accountable documents are properly safeguarded and made available for verification, procurement procedures should be followed and budgetary control should be properly emphasize
The study was conducted to assess the effectiveness of financial management system in Local Government Authorities: A Case study of Nachingwea district. The government has put more effort to institute various oversight mechanisms in order to ensure proper financial management system in the local councils, but the Local councils performance are still poor. Is there effective financial management system in local councils? The objectives of this study were to examine if there are effective and functioning controlling mechanisms in LGAs; to determine whether LGAs follow the existing financial regulations and laws; and to determine whether the council’s budgets and accounts provided an indication of the quality and realism of budgeting. Sampling methods such as purposive and random sampling were used. Data were collected through interviews and questionnaires. Secondary data were extracted from relevant reports and other documentary materials. Both qualitative and quantitative data were analyzed using SPSS computer programme. The descriptive analysis concentrated on numbers/frequencies and rates/percentages through tables and figures. The results of study showed that there are weak internal controls, payment controls and authorization procedures. Most documents were not supported by the required documents, procurement services were made contrary to government laid down procedures and most financial regulations and laws were violated. LGA’s face problems in implementing the budgets. The budget preparations in most of the LGAs were not participatory (grass root levels) are not involved. There was poor control over budget. Therefore most of local government authority lack effectiveness in FMS. The findings recommend; PMO-RALG to strengthen an appropriate internal control to support LGA’ in their daily operation, Management should ensure council’s accountable documents are properly safeguarded and made available for verification, procurement procedures should be followed and budgetary control should be properly emphasize
Keywords
financial Management system i