Factors Influencing Financial Transparency and Accountability in Local Government: Evidence from IFMIS Implementation in Ghana
DOI:
https://doi.org/10.17509/jaset.v16i2.74873Keywords:
IFMIS, MMDAs, Financial transparency, and accountability, Decentralization, Public financial managementAbstract
The objective of this research is to determine the impact of
Ghana's Integrated Financial Management Information System's
(GIFMIS) ability on the financial accountability and transparency of
MMDAs. The research utilized quantitative and Ordinary Least
Squares (OLS) regression analysis to investigate the impact of
government policies, organizational culture, resource availability,
technical infrastructure, user acceptance, and training on the
performance of GIFMIS. The research found that technological
infrastructure, resource availability, organizational culture, and
government policies positively influenced financial transparency
and accountability. Conversely, user acceptance and training have
a detrimental impact on system efficacy. The data indicates that
decentralization moderates these associations, leading to a
significant reduction in the beneficial effects of the independent
variables. Strengthening user training and aligning financial
management practices across decentralized institutions can
enhance system performance. Theoretical implications suggest
the need to reinforce government policies and resources to ensure
transparency and balanced supervision and how decentralization
complicates the adoption of financial management systems. The
research uniquely delves into the performance characteristics of
GIFMIS within a decentralized governance system, unprecedented
as it demonstrated the impact of decentralization on the
relationship between organizational culture, technological
infrastructure, government regulations, and financial
accountability and transparency, in contrast to prior research that
has focused on centralized systems.
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