Title: The effect of control environment on public financial management in selected Local governments in Uganda.
Authors: Acen Catherine Bokello, Dr. Kibuuka Muhammad, Dr.Maina Enock
Volume: 8
Issue: 7
Pages: 356-360
Publication Date: 2024/07/28
Abstract:
Effective public financial management (PFM) is crucial for the efficient and transparent utilization of public resources at the local government level. One key factor that can influence PFM is the control environment - the overall attitude, awareness, and actions of management and employees towards internal controls and risk management. This study aimed to investigate the effect of the control environment on public financial management in selected local governments in Uganda. A cross-sectional survey design was adopted, collecting data from 120 finance and accounting personnel across 8 local government authorities. The results showed that elements of the control environment, such as the tone at the top, risk assessment processes, and control activities, had a statistically significant positive relationship with various dimensions of PFM, including budget execution, financial reporting, and internal control systems. The study provides empirical evidence on the importance of establishing a robust control environment to strengthen PFM practices at the local government level in developing country contexts like Uganda. The findings can inform policy and capacity building efforts to enhance financial accountability and transparency in decentralized public sector units. Further research is recommended to explore contextual factors and management strategies for cultivating an optimal control environment for improved PFM outcomes.