The Effect of Public Sector Financial Reforms On Service Delivery in Uganda’s Local Government System: A Case Study of Busia District

ABSTRACT The study sought to assess the effect of public sector financial reforms on service delivery in Busia District Local Government. It was guided by the following objectives; to assess the effect of implementing the Integrated Financial Management Systems (IFMS) on service delivery in Busia District Local Government; to determine the effect of implementing the Treasury Single Account (TSA) on service delivery in Busia District Local Government; and to examine the effect of implementing the Integrated Personnel and Payroll System (IPPS) on service delivery in Busia District Local Government. The study will adopt a case study design. The case study design will be adopted because the study intends to conduct an intensive investigation on the variables under study in a particular local government in Uganda which is Busia District Local Government The study will use both qualitative and quantitative approaches. The study population will be comprised of 407 people who will include: 1 L C 5 Chairman, 1 Chief Administrative Officer (CAO), 8 L C III Chairpersons, 8 Sub County Chiefs, 57 Councilors, and 332 District Staff. The study sample will be comprised of 241 respondents. The study used the questionnaire method, interview method to collect data. The study found out that The Local Government Reform Program is considered the vehicle through which the Government promotes and drives the decentralization process. Its over-arching goal is to contribute to the national drive towards the improvement of services delivery to the citizens. Its stated purpose is Political, administrative and fiscal responsibilities devolved from central to local government, underpinned by good governance, so enabling Local Government Authorities to provide more equitable, quality services to Uganda ns, especially the poor. According to the existing secondary information used by the researcher it was found that Public sector reforms in Local governments for improving service delivery to the public targeted the study concluded that Reforming public sector has been an on-going process in Uganda for two decades. The impulse for such reforms came as a result of combination of a number of factors. Civic engagement in planning and decision making is indicated that there is improvement. The study recommended that there is a need to enhance training to both councilors and local authority employees on reforms so as to improve the impact of the reforms on service delivery. There is a need for improved public awareness as key stake holders in the reforms. There is a need to improve timely allocation of resources to facilitate reforms. and hence bear fruition on service delivery.

TABLE OF CONTENTS

Contents

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT

LIST OF ABBREVIATIONS v

TABLE OF CONTENTS

LIST OF TABLES

ABSTRACT

CHAPTER ONE 1

INTRODUCTION 1

1.0 Introduction 1

1,1 Background to the Study 1

1.1,1 Historical Background

1.1.2 Theoretical Background 5

1.1.3 Conceptual Background 6

1.1.4 Contextual Background 7

1.2 Statement of the Problem 10

1.3 General objective of the Study 11

1.6 Study Hypotheses 12

1.7 Conceptual Framework 13

1.8 Significance of the Study 14

1.9 Justification of the Study 15

1.10 Scope of the Study 15

1.10.1 Content Scope 15

1.10.2 Geographical Scope 15

1.10.3TimeScope 15

1.11 Operational definition of key terms and concepts 16

VII

CHAPTER TWO 17

LITERATURE REVIEW 17

2.1 Introduction 17

2.2 Theoretical Review 17

2.3 Actual Literature Review 19

2.3.1 Integrated Financial Management Systems (IFMS) 19

2.3.2 Treasury Single Account (TSA) 21

2.3.3 Integrated Personnel and Payroll System (IPPS) 23

2.4 Empirical Literature Review 23

2.4.1 Implementation of the Integrated Financial Management Systems (IFMS) and service

delivery 23

2.4.2 Implementation of the Treasury Single Account (TSA) and service delivery 25

2.4,3 Implementation of the Integrated Personnel and Payroll System (IPPS) and service delivery

26

2.5 Summary and Gaps Identified in the Literature 27

CHAPTER THREE 28

METHODOLOGY 28

3.1 Introduction 28

3.2 Research Design 28

3.3 Study Population 29

3.4 Study Sample 29

3.5 Sampling Techniques and Procedure 29

3.6 Data collection Methods 30

3.6.1 Questionnaire Survey Method 30

3.6.2 Interview Method 30

3.6.3 Document Review Method 31

3.7 Data Collection Instruments 31

3.7.1 Self-Administered Questionnaire 31

3.7.2 Interview Guide 31

3.7.3 Document Review Checklist 32

VII!

3.8 Validity and Reliability ofthe Research Instruments 32

3.8.1 Validity 32

3.8.2 Reliability 32

3.9 Research procedure 32

3.10 Data Analysis 33

3.10.1 Analysis of quantitative Data 33

3.10.2 Analysis of qualitative data 33

3,11 Measurement of variables 33

CHAPTER FOUR 35

DATA PRESENTATION, ANALYSIS AND INTERPRETATION 35

4.1 Introduction 35

4.2 Respondents’ Background Information 35

4.2.1 Age of respondents 35

4.2.2 Gender of respondents 36

4.2.3 Highest level of education 36

4.2.4 Duration of service 37

4.3 To assess the effect of implementing the Integrated Financial Management Systems (IFMS)

on service delivery in Busia District Local Government 38

4.3.1 The effect of implementing the Integrated Financial Management Systems (IFMS) on

service delivery in Busia District Local Government 39

4.3.2 Regression of Integrated Financial Management Systems (IFMS) on service delivery in

Busia District Local Government 40

4.4 To determine the effect of implementing the Treasury Single Account (TSA) on service

delivery in Busia District Local Government; 40

4.4.1 The effect of implementing the Treasury Single Account (TSA) on service delivery in

Busia District Local Government 42

4.4.2 Regression of implementing the Treasury Single Account (TSA) on service delivery in

Busia District Local Government 43

4.5 To examine the effect of implementing the Integrated Personnel and Payroll System (IPPS)

on service delivery in Busia District Local Government 43

ix

4.5.1 The effect of implementing the Integrated Personnel and Payroll System (IPPS) on service

delivery in Busia District Local Government 45

CHAPTER FIVE 46

DISCUSSIONS, CONCLUSION AND RECOMMADATIONS 46

5,0 Introduction 46

5.1 Discussion 46

5.1. iTo assess the effect of implementing the Integrated Financial Management Systems (IFMS)

on service delivery in Busia District Local Government 46

5.1.2 To determine the effect of implementing the Treasury Single Account (TSA) on service

delivery in Busia District Local Government; 47

5.1.3 To examine the effect of implementing the Integrated Personnel and Payroll System

(IPPS) on service delivery in Busia District Local Government 48

5.2 Conclusion 49

5.3 Recommendations 51

REFERENCES 54

APPENDIX I: QUESTIONNAIRE 58

APPENDIX II: TNTEVIEW GUIDE FOR KEY INFORMANTS 63

APPENDIX III: DOCUMENTARY REVIEW CHECKLIST 65