Effect Of Integrated Financial Management Information System On Public Expenditure management In Kenya

Abstract

In the recent world, information systems have changed the traditional way of business management. Modern organizations have been adopting new financial management information systems to be in-line with the new technology. Introduction of IFMIS in the organization acts as a reform towards the governance, financial information and user accountability in the public sector. In the study on the effect of the implementation of IFMIS on public expenditure management by Kenyan government, the specific objectives were; to establish the effectof IFMIS procurement module on public expenditure management, to assess the effect of the IFMIS budgeting module on public expenditure management and to determine the effect of IFMIS accounting module on public expenditure management. The study sought to show how implementation of integrated system can assist management to reduce misuse of public resources through improved public expenditure management. The study adopted descriptive survey design and a sample of 103 respondents from a combined population of 140 drawn from five ministries in the National Governments using Multiple Regression model, Correlation coefficient and SPSS software. The analyzed data was used to make conclusions on the study findings. The study presented strong positive and significant relationship between IFMIS applications and the public expenditure management. This shows that IFMIS has greatly improved the management of public expenditure though the study results indicates that there is need for further integration of the system modules to enhance proper monitoring controls of public expenditure. The study suggested that adequate skills to be given to the system implementers.