The efficacy of financial accountability in the public sector of Uganda: a case of Kampala Capital City Authority

Abstract

This study aimed to establish the efficacy of financial accountability in public sector of Uganda, a case of KCCA. The study objectives were to establish the efficacy of budget control system, to establish the efficacy of quality financial reporting practices and to establish the efficacy of Internal Audit. A descriptive research design was adopted and using close ended questionnaires data was collected from a sample of 115 respondents. Findings revealed that the KCCA budget is well-prepared and detailed with adequate stakeholder engagement, budget implementation documents are always complete which enhances effective utilization of public funds. Further results however indicated an inadequate resource envelope, untimely release of funds from government and absence of oversight committees all of which affect budget implementation. The findings also revealed that the financial reporting system is compliant with international financial reporting standards, financial reports are produced timely, availed to all stakeholders and easily understood by users. However, the reports do not contain all relevant information in regards to the authority’s financial operations and thus are not reliable. It was also established that the internal audit directorate is independent permitting objective performance, there is a structured authorization procedure for all financial transactions which ensures accountability at each stage of operation. There was however a noted lack of compliance and audit quality improvement meetings. The study recommended that public institutions should ensure adequate stakeholder engagement in their operations, prepare financial reports that are up to standard and ensure independence of the audit unit so as to enhance financial accountability. Key words: Financial accountability, budget control, internal audit, quality financial reporting, Public Sector, Kampala Capital City Authority.