INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM (IFMIS) PRACTICES AND FINANCIAL PRUDENCE OF KISII COUNTY GOVERNMENT, KENYA

Abstract

This study examined the influence of IFMIS practices on the efficiency of financial management in Kisii County Government. The study was supported by the Technology Acceptance Model (TAM), which was developed by Fred Davis in 1986, and the institutional theory fronted by Meyer and Rowan (1977). The inquiry used a descriptive survey research design to collect data from financial management staff, including accountants, financial analysts, auditors, and budget officers. The population of the study was all 86 financial management staff at Kisii County Government. A stratified random sampling technique was used to select a sample of 75 respondents. Data was collected using a structured questionnaire for accountants, financial analysts, and budget officers, and an interview schedule for auditors. Data was analyzed using descriptive and inferential statistics. Descriptive statistics such as frequencies, percentages and means was used to summarize the data collected, while inferential statistics such as Pearson correlations and regression analysis was used to establish the associations between the study variables. The study established that IFMIS aided cash management, procurement management, revenue management and budget preparation had significant positive influence on financial prudence of County government of Kisii. This implied that increase in utilization of IFMIS would enhance performance of the County government of Kisii. The study concluded that that utilization of IFMIS has significant influence on financial prudence of county governments in Kenya. The study therefore recommended that there is need of linking of electronic budgeting with other units’ modules so as to improve monitoring and evaluation on budget spending. This would also improve effective budgeting controls within county government. Further, the study recommended that county governments in Kenya need to link Automated Cash Management to IFMIS modules used in other units for effective financial control. This would enhance the payment processes in the country and therefore reduce misuse of public funds. Key Words:   IFMIS, Budget, Procurement Management, Cash Management, Revenue Management CITATION: Ogachi, D. M., Miroga, J., Otinga, H. N. (2024). Integrated financial management information system (IFMIS) practices and financial prudence of Kisii County Government, Kenya. The Strategic Journal of Business & Change Management, 11 (2), 622 – 641. http://dx.doi.org/10.61426/sjbcm.v11i2.2932