Effect of integrated financial management information system implementation on service delivery in Homabay county, Kenya

Abstract

The role of public sector and more specifically the civil service in the effective delivery of public services that are key to the functioning of a state economy cannot be overemphasized. Constrained or ineffective service delivery affects the quality of citizens’ life and the national development process. Expectations from citizens are such that Government will establish and maintain utmost ethicality and integrity in the public sector. This minimum set of principles requires public officials to maintain and strengthen public trust and confidence through competency, efficiency and effectiveness; to make decisions and act solely in the public interest. Adoption and implementation of Integrated Financial Management Information System (IFMIS) was meant to enhance inefficiencies, ineffectiveness and quality of public services by Kenyan Government to cushion it against loss of revenue and unauthorized expenditure. However, it is still uncertain on whether IFMIS has realized its goal as the Auditor General reports indicate. Therefore, the purpose of this study was to establish the effects of IFMIS implementation on service delivery in Homa Bay County in Western Region. Specifically, the study sought to establish; the effect of automated revenue collection on service delivery, effect of automated budgetary process on service delivery and the effect of automated financial reporting on service delivery in Homa Bay County in Western Region, Kenya. The study was carried out in Homa Bay County and targeted 20 Finance Officers, 10 Procurement Officers, 10 Internal Audit staff and 5 quality assurance staff. The study adopted a census survey due to the small population size. Pilot study was undertaken in Siaya County. Content validity of the instruments was checked using expert judgement. Reliability test was done by analyzing data from the pilot study and comparing it to Cronbach’s standard alpha value of 0.7. The data was collected using a semi-structured questionnaire. The data was analyzed with the help of SPSS version 20. Descriptive statistics such as percentages, mean, composite mean and standard deviation were adopted. In addition, a multiple linear regression model was adopted. Findings from this study can be beneficial to: Policy Makers, County Governments in fostering transparency, accountability and efficiency in revenue collection, budgeting, financial reporting and e-procurement. Null hypothesis was tested at p<0.05. Consequently, for null hypothesis one; the standardized Beta obtained was -0.221. In conclusion, the null hypothesis that there is no significant effect of automated Revenue collection on service delivery in Homa Bay County was rejected and alternative hypothesis stated. Null hypothesis two had standardized Beta of -0.034, therefore the null hypothesis that there is no significant effect of budgetary process on service delivery was rejected and alternative hypothesis stated. Finally null hypothesis three had a standardized Beta of -0.004, in conclusion the null hypothesis that there is no significant effect of automated financial reporting on service delivery in Homa Bay County was rejected and alternative hypothesis stated. Consequently, the study recommends that Homa Bay County should automate all revenue collection points to ensure viable achievement, sustainability and efficient service delivery to the locals; regulated adoption and strategic involvement in automated budgetary processes; and strict adherence to financial reporting policy guidelines, legal financial reporting obligations and execution of technology in financial reporting in Homa Bay County.