Financial Reporting and Decision Making in Selected Public Enterprises in Uganda

ABSTRACT The study was set to investigate the relationship between financial reporting and decision making in selected public enterprises in Uganda. It was guided by three research objectives which included establishing the level of financial reporting in terms of financial planning, financial control and financial implementation, the level of decision making in terms of decision forecasting, decision planning and decision implementation in the selected public enterprises. It covers the broad spectrum as regards the relationship between financial reporting and decision making in public sector organizations. The study employed a correlation research design based on both quantitative and qualitative research approaches. The study employed a study population of 191 people with sample of 130 respondents chosen from the respondents in the selected public enterprises of Kampala Uganda. The findings revealed that financial planning is good (mean 2.46, standard deviation 0.86) financial control was good with mean (2.60, standard deviation of 0.75), financial implementation was poor with (mean 2.27, standard deviation 0.91) and finally decision making levels was good with mean (2.603, Standard deviation of 0.84) it was finally established that there is a positive relationship between financial reporting and decision making in the selected public enterprises in Kampala Uganda. The researcher therefore recommends that the following be adopted to enhance financial reporting for decision making. Government should make an effort to embrace good financial reporting; effective financial planning through effective financial reporting improves the operation of the government entities. Therefore, there is need for utmost attention regarding the value of capacity development, need to incorporate all employees to embark on skills development in order to enhance the performance of the government. There is need for strengthening of reporting framework and culture by the various parties, there is need for organizations to strictly follow regulations in controlling the organizational finances. Ensure sustainable financial reporting through enhanced networking and information exchange. Financial implementation should be directed towards enhancing abilities and values that will enable organizations, groups, and individuals to improve their performance and achieve their development and the need to match the financial capacity and the implementation to attain success in implementations. There is need for enhancing financial reporting to attain value for money and effective decision making. Financial reporting should be aligned to international and national reporting standards such as International Financial Reporting Standards board,