International Journal of Social Sciences and Entrepreneurship Vol.

1, Issue 12, 2014

EFFECT OF INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM

ON PERFORMANCE OF PUBLIC SECTOR: A CASE OF NAIROBI COUNTY
GOVERNMENT

Julius Njau Njonde

Master in Business Administration, Jomo Kenyatta University of Agriculture and Technology,
Kenya
Kalundu Kimanzi
Jomo Kenyatta University of Agriculture and Technology, Kenya

CITATION: Njonde, J. N. & Kimanzi, K. (2014). Effect of integrated financial management

information system on performance of public sector: A case of Nairobi County Government.
International Journal of Social Sciences and Entrepreneurship, 1 (12), 913-936.

ABSTRACT

The purpose of this study is to analyse the effectiveness of Integrated Financial Management
Information System (IFMIS) on performance of public sector in Kenya. Public finance
management has come under immense scrutiny by donor community as well as general public in
a call for enhanced accountability of the government expenditures for an improved public service
delivery. This study aimed to analyse how the government of Kenya has tackled this problem
and how effectively the system in use has succeeded in meeting this objective. The study
therefore analysed four variables; financial reporting, budgeting, internal control and
implemented government projects to assess the effectiveness of the implemented system. The
study used descriptive research design to collect data. To analyse the effectiveness of identified
factors on the use of the system, descriptive and inferential statistics were used. The target
population of the study was 150 employees from Nairobi County Government. The sample size
was drawn from the sections of finance department that includes, budgeting, procurement and
internal audits, and at public works department where the financial systems are applied. The
primary data was collected through questionnaire with set questions relating to specific
objectives of the study. Random sampling technique was applied to get a sample population that
was issued with the questionnaires. The study used quantitative and qualitative method of data
analysis using descriptive statistics on quantitative data and inferential statistics on qualitative
data. Data results and findings were presented in tables and figures. The study found that IFMIS
has been effective in financial reporting, budgeting and internal controls as well as
implementation of government projects, although there were challenges faced in internal
controls. The study revealed that there was a positive relationship between the effectiveness of
IFMIS on public financial management and the independent variables; financial reporting,
budgeting, internal controls and projects as was revealed in the regression analysis. The study
concluded that there was a relationship between IFMIS in public finance and financial reporting,

http://www.ijsse.org ISSN 2307-6305 Page | 1

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

budgeting, internal control and government projects as 72.4% of the effectiveness of IFMIS was
accounted for by the study independent variables. The relationship gave 95% confidence level
of effectiveness. The study recommended that the IFMIS be enhanced and improved at system
development level so that it gives real figure and factor in more functions of operation linked to
financial service for better service delivery. The Nairobi County Government should consider
prioritizing on improvement of internal controls module of the system as this presents and
manages all other finance management functions.

Key Words: integrated financial management information system, performance, public sector,
Nairobi County Government

Introduction

Over the past decade developing countries have increasingly embarked on computerizing their
government operations particularly with respect to Public Sector. This follows a growing interest
in the quality of public sector financial management in developing countries by the donor
community. In contrast, during the cold war, aid was generous, but often doled out to political
allies with few questions (Hashim, 2006). In the early years after the fall of the Berlin Wall in
1989, interest in the state affairs was limited, but following the World Bank’s report, the role of
the state became increasingly prominent in development efforts, and particularly in the drive
against poverty (World Bank, 2008). The new agenda recognized that, while there may be too
much intrusion in the state economy, there may be also too little government capacity to make
policy, perform basic administrative functions, work with private partners, and ensure the
provision of infrastructure and public services (Hopelain, 2004). In 2003, the UK's Department
for International Development (DFID) issued its guide on public expenditure management which
noted that, in recent years, there has been a dramatic surge of interest in public expenditure
issues amongst governments, development agencies and the wider public. This shift was seen in
the eyes of World Bank to offer Africa a chance to leapfrog intermediate stages of development
(DFID, 2003). As a result, consultants and other advisors of governments in Africa started toying
with idea of the introduction of modern information technology, the Integrated Financial
Management Information Systems -IFMIS (World Bank, 2004).

The government of Kenya has for a long time been very much concerned over the persistent poor
performance in financial management due to lack of reliable and timely information for decision
making. A review by the department of accountant general at treasury, financial management,
accounting systems and role of audits revealed weaknesses in the management of financial
information. The review focused on the need to develop a strategic plan aimed at improving the
financial management systems; skills and capacity within the government financial operations
units. It also reviewed how timeliness of financial information, if improved, could form the basis
for improving control of expenditure against budget (Kinyua, 2003). The government of Kenya
took an initiative to address the shortcomings of the financial reporting system and to ensure

http://www.ijsse.org ISSN 2307-6305 Page | 2

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

good governance. The International Monetary Fund (IMF) carried out a survey in government
accounting in early 1993 followed by a diagnostic study sponsored by the World Bank; this led
to introduction of IFMIS. The main objective of this project was to computerize the whole
accounting and auditing system in the country. The idea behind computerizing the whole system
was generation of accurate and reliable financial statements; to monitor fiscal deficit; to forecast
flow of cash; to manage public debt and to achieve effective financial controls (Kinyua, 2003).
The old accounting system lacked timeliness, accuracy and most importantly transparency.
Accounts of any organization, large or small, are the most important tool for curbing the
corruption by keeping an eye on cash flows and more importantly to give the overall inner
picture of the organization to the stakeholders which helps them take informed decisions
(Kearney, 2004).

While talking about the country as an organization the importance of the accounts becomes much
more vital. So the importance of these accounts increases in manifolds. The old manual system
was like a haunting monster even to a common government employee where employees were
going to the accounts office for a number of services like salary issues, provident fund and
pension deductions and take long time to have any of the issues processed. Experience gained
showed that, in the old system a common man had a series of unlimited problems and hurdles to
face in order to get his financial claims accomplished on time. But, unfortunately, till the recent
past the government did not pay proper attention to overcome these problems due to the status of
the economy of the country. On the other hand common man faces enormous difficulties and
lacking in transparency in benefiting from public financial management. After the introduction
of IFMIS this ultimate goal was achieved almost immediately. The main objectives of this
project was to achieve timely, accurate and complete accounts with transparency and most
importantly to facilitate the common government, employee regarding their financial status. But
to date, there is a lot more to be done to achieve this goal and maintain it effectively (PIFRA,
2004).

Integrated Financial Management Information System

An IFMIS is a fiscal tool for government that bundles all financial management functions into
one suite of applications. It is an Information Technology (IT) based budgeting and accounting
system designed to assist the government entities on how to plan budget requests, spend their
budgets, manage and report on their financial activities, and deliver services to the public more
efficiently, effectively and economically. IFMIS operates on a common structure and platform
that will enable improved compatibility and consistency of fiscal and financial information,
reduces governments overall investment in the development of expensive accounting systems in
each government entity. One of the basic features of the IFMIS is the ability to interface with a
number of existing and planned automated systems such as the Integrated Personnel Payroll Data
(IPPD) and Government Payments Solution (G-pay). IFMIS software to Kenya government was
contracted to oracle financials in 2003. Oracle financials being an Entrepreneur Resource

http://www.ijsse.org ISSN 2307-6305 Page | 3

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

Planning (ERP) was designed to consolidate the core modules to all ministries, these are;
purchasing module, accounts payable module, general ledger module, cash management module
and public sector budgeting module (Ministry of Finance, 2003). Effectiveness and improved
outcomes are important goals for any IFMIS acquisition. The objective of implementing an
IFMIS system is to increase the effectiveness and efficiency of state financial management and
facilitate the adoption of modern public expenditure management practices in keeping with
IPSAS. The benefits of an IFMIS include: better fiscal management, more optimal resource
allocation, improved management of resources (value for money), reduced fraud and corruption,
improved transparency and accountability, lower transaction costs (Ministry of Finance, 2003).

Information technology management is a combination of two branches of study; information

technology and management. There are two incarnations to this definition. One implies the
management of a collection of systems, infrastructure and information that resides on them.
Another implies the management of information technologies as a business function. Information
technology is the acquisition, processing, storage and dissemination of vocal pictorial, textual
and numeric information by a microelectronics based combination of computing and
telecommunications, effective use of information technology contributes to high level of
effectiveness in execution of various organization functions (Michale, 2001). Information
management system is therefore the combination of information, communication and system
components with management approach to ensure effective information processing retrieval and
communication in a systematic manner (Goll, 2003). The integration of the information
processing and management in a system is perceived as a useful technique of processing and
maintaining data, controlling and communicating useful information in the manner that is needed
(Casals, 2004). The government of Kenya has embraced the use of this tool of management and
accountability through the IFMIS to execute effective financial management in the various
government ministries and public institutions (Kang'ethe, 2002).

Statement of the problem

According to Kinyua (2003), the government had consistently experienced misappropriation of

funds and lacks appropriate control mechanisms in PFM of funds which leads to poor service
delivery and overspending. Despite existence of manual based control systems, lack of
accountability in government expenditure has been a concern to the general public and
international institutions such as World Bank and IMF (Kinyua, 2003). This calls for enhanced
PFM and accountability. In the year 2005, IFMIS was introduced to cushion the government
against loss of revenue against unauthorized expenditure. There is a broad agreement that freely
functioning IFMIS can improve accountability by providing real time information that financial
and other managers can use to administer programs effectively, formulate budget and manage
resources. It was on this background that the study aimed at assessing the effectiveness of IFMIS
on public sector in Kenya.

http://www.ijsse.org ISSN 2307-6305 Page | 4

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

General objective of the study

The general objective of the study was to analyse the effectiveness of IFMIS on performance of
public sector in Kenya.

Specific study objectives

1. To analyse effectiveness of IFMIS on performance in public finance.

2. To verify effects of IFMIS on budgeting of public finance.
3. To assess how IFMIS has affected internal controls in public finance.
4. To establish how IFMIS has affected performance of government projects in public
finance.

Theoretical framework

Information theory

Information theory, a concept of R.A. Fisher (1962) provides a background which has diverse
meanings, from everyday usage to technical settings. The concept of information is closely
related to notions of communication, control, data, form, instruction, knowledge, meaning,
mental stimulus, pattern, perception, and representation media. Information is the result of
processing, manipulating and organizing data in a way that adds to the knowledge of the person
receiving it. Information management entails organizing, retrieving, acquiring and maintaining
information in a medium. Information is any type of pattern that influences the formation or
transformation of other patterns. In this sense, there is no need for a conscious mind to perceive,
much less appreciate, the pattern of communication. Fisher information is thought of as the
amount of information that a message carries about an unobservable parameter. It can be
computed from knowledge of the likelihood function defining the system. For example, with a
normal likelihood function, the Fisher information is the reciprocal of the variance of the law. In
the absence of knowledge of the likelihood law, the Fisher information may be computed from
normally distributed score data as the reciprocal of their second moment.

Communication theory

Bill (2001) said that communication theory provides a numerical measure of the uncertainty of
an outcome. For example, we can say that "the signal contains thousands of bits of information".
Communication theory tends to use the concept of information entropy, generally attributed
Information Communication Technology (ICT) which is a general term that describes any
technology that helps to produce, manipulate, communicate or disseminate information. ICT
merges computing with high-speed communications links carrying data, sound and video. ICT

http://www.ijsse.org ISSN 2307-6305 Page | 5

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

can also be defined as an automatic acquisition, storage, manipulation, movement, control,

display, switching interchange, transmission or reception of data or information. The two
important major components of ICT are computers and telecommunications (Michale, 2001).

Recent developments in the fields of communications and information technology are indeed
revolutionary in nature. Information and knowledge are expanding in quantity and accessibility.
In many fields future decision-makers will be presented with unprecedented new tools for
development. In such fields as agriculture, health, education, human resources and
environmental management, or transport and business development, the consequences could be
really quite revolutionary. Communications and information technology have enormous
potential, especially for developing countries, and in furthering sustainable development (Annan,
1997).

System theory

In Systems theory, Wang (2005) refers to information in the sense that assuming information
does not necessarily involve any conscious mind, and patterns circulating (due to feedback) in
the system can be called information. In other words, it can be said that information in this sense
is something potentially perceived as representation, though not created or presented for that
purpose. According to Kang’ethe (2002), a system is a group of related and interacting
components, which work together to achieve a desired purpose or set of objectives. The writer
further observes the need to have control elements to ensure that the process gives the desired
level of out-put and avoid or reduce wastage. The need for efficiency and effectiveness therefore
brings forth another need of ensuring harmony and synergy between the human resource as the
core resource that controls other resources on the one hand and the other tools of trade, in
particular modern ICT on the other hand so as to realize the objectives of office secretarial
management. There is therefore the clear need to understand the perception of human resource
and areas with potential for conflict in the course of interaction between the human resource and
modern ICT. When computer and communication technologies are combined, the result is
information technology systems, or "InfoTech". Information technology is a general term that
describes any technology that helps to produce, manipulate, store, communicate, and/or
disseminate information. Presumably, when speaking of information technology as a whole, it is
noted that the use of computers and information are associated.

Emerging Information and Communication Technology (ICT) can play an important role in
fighting corruption in public finance systems by promoting greater comprehensiveness and
transparency of information across government institutions. As a result, the introduction of
IFMIS has been promoted as a core component of public financial reforms in many developing
countries. Yet, experience shows that IFMIS projects tend to stall in developing countries, as
they face major institutional, political, technical and operational challenges. Case studies of more
successful countries indicate that factors supporting successful implementation include clear

http://www.ijsse.org ISSN 2307-6305 Page | 6

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

commitment of the relevant authorities to financial reform objectives, ICT readiness, sound
project design, a phased approach to implementation, project management capability, as well as
adequate resources and human resource capacity allocated to the project (Chena, 2009).

Empirical Review

According to USAID (2008) report, integrated financial management information system is an

information system that tracks financial events and summarizes financial information. Generally
it refers to the use of information and communication technology in financial operations to
support management and budget decisions, fiduciary responsibilities and the preparations of
financial reports and statements. In the government realm, IFMIS refers more specifically to the
computerizations of PFM process from budget preparation and execution to accounting and
reporting with the help of an integrated system for financial management of line ministries,
spending agencies and other public sector operations. The principal element that “integrates” an
IFMIS is a common, single, reliable platform database (or a series of interconnected databases)
and from which all data expressed in financial terms flow (Casals, 2004).

Since 1990, governments around the world have been executing major technological limitations
in order to take advantage of the potential of emerging information and communication
technology. IFMIS enhances effectiveness and transparency of the system by computerizing the
process in which public financial resources are managed. However, the results from
international experience with IFMIS, including World Bank have been so far quite mixed. While
some countries have improved on transparency of public financial management processes, many
other countries were found that their reforms have not been fully successful in combating
corruption. This is according to E-Transparency Conference organized by Institute for
Development and Policy Management Report (IDPM) 2003. The report further stated that IFMS
consists of several sub-systems which plan, process and report public financial resources. The
basic sub-systems include accounting, budgeting, cash management, debt management and
related core treasury systems. In addition to this basic set of core sub-systems, countries have
often chosen to enhance their IFMIS with non-core systems such as revenue collection (tax and
customs), procurement management (often called e-procurement), asset management, human
resource and payroll systems and pension and solid security system (IDPM, 2003).

Barry (2001) says that the level of complexity of IFMIS is much higher than other ICT-based
government reforms due to inherent complication of public financial management system. It
involves not only ministry of finance but also all line ministries and other multiple spending
units. However, integrated public financial management system is quite a challenging task and
requires multiple conditions to be satisfied for successful implementations of long term
sustainability. Even though ICT automates the tasks involved in performing business processes
such as purchase requisitions, quotations, quotations analysis, and preparation of local purchase
orders, deliveries and goods receipts. With IFMIS programs changes the way government

http://www.ijsse.org ISSN 2307-6305 Page | 7

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

information is captured, summarized and communicated and the benefits of these advances
should not be underestimated. The introduction of IFMIS system should not just be seen as a
technology fix, since simply automating tasks that did not need to be carried out in the first place
rather IFMIS implementation should be seen as a public financial reform that affects how things
are done across government ministries and parastatals (Diamond and Khemani, 2005).

IFMIS and government business

There are three major reasons why governments undertake IFMIS program mainly in the
implementation process to integrate financial data since finance has its own set of revenue
numbers. Procurement has another version and other different business units may each have
their own versions of how much they contributed to revenue. An IFMIS creates a single version
of the truth that cannot be challenged because everybody is using the same system. To
standardize the government financial accounting and budgeting process, computerized system
for treasury management together with policy framework and institutional reforms must be
implemented to the letter (Hashim, 2001).

The implementation of financial systems requires consolidation and rapid compilation of large
amounts of data across a set of financial offices and spending units dispersed across the company
and the functional process associated with these systems are repetitive in nature and follow a
prescribed set of rules. In such an environment the IFMIS provides government financial
managers with a set of tools to consolidate compile and access reliable and timely financial
information for decision making process (Khemani, 2005). It also identifies unique operations to
process government business transactions efficiently, apply necessary control and simultaneously
gather timely and accurate financial information. Two aspects of this enhanced efficiency are
particularly important, first the IFMIS makes it possible to integrate business transaction
classification and posting with transaction processing. This means that as a transaction is
processed e.g. as payment is made it can be simultaneously classified. Secondly, the system
facilitates automation of many controls and procedures since as transaction is processed, the
system can apply the necessary controls e.g. ensure that a proper budget allocation exists prior to
making a commitment or approving a payment. In these cases, the IFMIS would keep an
appropriate audit trail that would include details regarding the authorization for the exception
(Bill, 2001).

The IMF and the World Bank have been involved extensively in advising governments in
developing policy and institutional budgeting and accounting set up and function in accordance
with international practices. These reforms are especially important in transition economics
where the legal and institutional infrastructures need to be set up. Some of the key actions and
policy reforms include development of comprehensive budget management law, adoption of
budget classification system, consolidation of government bank accounts to Treasury Single
Accounts (TSA) at the central bank, implementation of systems for detailed regulations covering

http://www.ijsse.org ISSN 2307-6305 Page | 8

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

TSA – based budget execution and enhancement of cash management units (IMF, 2006). With
the rapid infusion of Information Technology in Kenya, organizations are now realizing the
critical role that ICT pay in business financial management in all sectors. IFMIS are also
implemented and used successfully almost all the time in the commercial world. The design and
functionalizing government IFMIS is critically different from that of private enterprise systems
because governments are not driven by profits but rather by measures of accountability, ensure
compliance with budget laws, other public finance rules and regulations and an entirely different
set of accounting rules and reporting requirements. They must be designed to support a
multitude of distinctly public sector-oriented functions and organizational arrangement (Soh,
2007).

Integrated Financial Management Information System (IFMIS) and the Public Financial
Management (PFM)

Integrated financial management information system in public financial management involves a

number of steps which are simulated from single point of data entry widely accepted as the basic
requirement to accomplish real time financial data or fiscal discipline. This format may use
functional structured approach for all financial management functions under one umbrella for the
purpose of transparency, accuracy and timeliness. United States Agency for International
Development guide considered function of budgeting in PFM as illustrated in figure 1 below.
This demonstrated the complex set of various functions of government that may be supported by
IFMIS. These include the typical functions that make up the PFM cycle, from budget
formulation to budget execution and review, to audit and evaluation of financial performance and
results (USAID, 2008).

Figure 1: IFMIS and the public financial management cycle

Source: USAID IFMIS Practical Guide (2008)

http://www.ijsse.org ISSN 2307-6305 Page | 9

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

IFMIS and government projects

In the outlay of government activities are numerous projects range for implementation. Many
countries in Africa have struggled with completing projects and a result remains undeveloped or
in developing process (Heidenhof, 2002). Some of the factors associated with the state of poor
development strategies are cited as lack of accountability, poor public financial management,
capacity building and lack of appropriate skills to manage a project. Introducing a budget
execution and expenditure management system that will monitor and account for revenue and
public expenditure is important elements towards effective accounting system, cash management
controls and monitoring income and expenditures. To ensure effective performance and
completion of projects, Charts of accounts (COA) was introduced to capture all project financial
activities. This structure and platform is a model of project performance management. Kenya has
just completed her medium term expenditure outlay which indicates readiness towards full
implementation and execution (World Bank, 2006).

The conceptualization of IFMIS and Public Finance Management

Accountability

The accounts classification code structure is a methodology for consistently recording each
financial transaction for purposes of expenditure control, costing and economic and statistical
analysis. A standard government wide classification code structure should be set up during
IFMIS implementation process to provide a consistent basis for integration of planning,
budgetary and accounting, compilation of budget allocations on program and project cost within
and across various government agencies, capturing of data at the point of entry through the
government and consolidation of government wide financial information (Walsham, 1988).

The COA represents the basic building block of any accounting system, IFMIS included. The
COA list all accounts tracked by the system. Each account in the chart is assigned a unique
identification or an account number, involving a series of information tags that denote certain
things about the data being entered into the system. The account number attached to the data
serves accounting, management and all other reporting purposes. It also forms a part of data
validation process indicating things such as whether or not a vendor exists, whether or not there
is an authorized budget and whether or not funds have been committed. COA is an integral part
to the success of an IFMIS. Without an intelligently designed COA, information cannot be
stored or accessed properly (Bartel, 1996).

According to Cho (2003), financial accounting, whether in private or government, there are
basically two accounting methods; cash and accrual. Most developing countries like Kenya
record their finances in a cash basis. However, best practice suggests that the accrual while
relatively complex is a better method for accessing the government’s true financial position and

http://www.ijsse.org ISSN 2307-6305 Page | 10

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

performance against budgets and plans. Fortunately, using a well designed COA and sometimes
some tailored interfaces, an IFMIS can be configured to generate reports using either method,
literally at the click of a button. Furthermore, the COA can be compromised by the frequent
changes in leadership and priorities which form the characteristics of most governments. There
is constant pressure to restructure or re-shuffle administrative units or shift responsibilities for
programs each time there is an election or a minister replaced. The COA is designed to permit a
complete reconciliation between opening balance transactions and the economic flows and
closing balance. Such a reconciliation is not possible in a cash basis system rather accrual
system because the recording of stocks and flows (particularly valuations) in systems that rely
only on cash information is inherently incomplete. While many inherently incomplete systems
will remain predominately cash basis for some time to come, an important elements of treasury
system design in that it should include scope for progressive improvement in the accounting
information available to decision makers (Casals, 2004).

Financial Reporting

The adoption and subsequent use of COA allows for the continuation of cash basis reporting - a
necessary element of accrual system which serves as the logical step in improving the data basis
of the treasury system. The government must specify reporting requirements and objectives in
two areas; external reporting to provide information for the legislature and the public as well as
other countries, international organizations, overseas investors and financial market and internal
management reporting for government policy makers and managers. In general the broad
requirements for external reporting are specified in the budget regulations and detailed
requirements are given in regulations, instructions and administrative practices (e.g. reports
format) actually in use in Kenya and other developing countries (Mark 2007). Mark further
noted that from the point of view of resource allocation, increasing emphasis has been given in
recent years to improve reporting standards by linking financial and performance information
and giving a clearer perspective on resource use by using accrual-based reports in addition to the
usual cash-based government accounts. Development of such report formats is in general
accruing mainly in industrialized market economies. Technological business requires highly
skilled staff to ensure operations move smoothly and breakdowns handled with a record recovery
period (Ferdinand, 2006).

Budgeting

The functional process of budgeting can be categorized as those carried out by the central
agencies and those carried out by the spending ministries and agencies. Those of the former
group are most directly linked to the control framework-indeed one of the main functions of the
central agencies (particularly the ministry of finance) is to ensure that the control framework is
properly applied through government ministries. This functional process covers two interrelated
areas; macro fiscal forecasting, budget preparation and approval, and budget execution, cash

http://www.ijsse.org ISSN 2307-6305 Page | 11

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

management and accounting. The first set of processes supports the objectives of setting fiscal
policy and strategic priorities. The second set supports the objective of optimizing the use of
budgeted resources and ensuring accountability (Allan, 1999).

At the start of the budget cycle, the central agencies generally the ministry of finance send the
sector agencies a budget circular indicating economic prospects and broad policy objectives (in
some cases based on the formal micro economic framework), and giving the parameters within
which the budget for each ministry is to be prepared. The circular may give specific ceilings for
expenditure by each agency and program. The sector agencies respond with their budget
proposals (World Bank, 2004). Since budget requests generally exceeds, negotiating at the
technical level between central and sector agency staff are required to review costing for existing
discussions and are often required to set inter sectarian priorities and priorities among the
program and project proposals to ensure that the selected proposals can be funded within the
macroeconomic framework. The framework should be updated frequently particularly during
budget initiation and finalization as well as subsequent reviews during the financial year. As a
result of these discussions, a draft document is prepared (Ministry of Finance Report, 2008).

The report indicated further that, after preparation of the draft document, by the executive, the
legislature reviews the estimates and approves the budget. This approved budget becomes the
legal basis of the Public Sector Work Program (PSWP) to be executed by the sectarian
ministries. It gives estimates of expected revenues and borrowing and the amount of expenditure
authorized to be spent on approved programs. Once the budget is approved, the ministry of
finance has the task of controlling the release of funds, mounting progress on budget
implementation and managing the cash resources of the government. Warrants authorized by the
ministry of finance are sent to the treasury that is the custodian of the consolidated fund to make
payments out of the consolidated fund or make money available for payment by the responsible
accounting officers.

Internal Control

Financial management information systems are implemented and used successfully almost in all
time in the commercial world (Hashim, 2001). The IFMIS system control ensures that before a
purchase is committed to, there is sufficient cash allocated for the expense and the allocation
matches the appropriate budget. To ensure proper expenditure control, sector agencies and
government ministries are required to institute a system of committee planning and control to
ensure that expenditure does not exceed the sum approved by parliament for specific purposes
and expenditure is within the warrant amounts. The later elements of expenditure control are
often used by the ministry of finance to ensure that expenditures do not exceed accrual resources
which may be less than estimated in the budget (Walsham, 1988).

According to Allan (1999), when a receipt shortfall occurs, it is essential that the treasury be
aware of the commitments for which cash is needed during the year. Tax revenues from custom

http://www.ijsse.org ISSN 2307-6305 Page | 12

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

duties, income and land taxes are managed by the revenue collection agencies. These revenues
are deposited in local commercial banks and remitted to the government central account in the
central bank. The central bank then sends a daily report to the treasury on inflows to this central
account. Non tax revenue from fees, administrative charges and product sales are also managed
by the collection agencies and transferred to the consolidated fund. The accounting function
entails maintaining records of spending authorizations at the appropriation and funds release
levels, processing expenditure and receipt transactions, maintaining ledger accounts to monitor
and control actual spending and receipts against budget and warrant controls and reporting
details.

Government Projects

One of the key elements of IFMIS entails reporting and auditing systems to ensure transparency,
accountability and compliance with the budget or with existing regulations that govern public
expenditure management (Heidenfod, 2002). According to Heidenfod this element accelerates
execution of projects in the view of ensuring proper use of funds, and government remaining
focused in ensuring completion of the projects. In 2003, the government embarked on a number
of projects such as free primary education, public health, and water resource management. These
required improved system of financial management to ensure timely completion of medium term
projects. Under the ministry of industrialization a department to steer this was formed under the
burner of ‘Kenya Vision 2030’ the key role of the department being to identify and coordinate
development projects that will foster growth of Kenya economy. A number of projects have
been completed under this department. The integration of different functions and entities within
a shared database provide managers with tools to plan manage and control public resources.
Automation of projects financial activities is a key feature for completion as it improves
efficiency in financial controls and other expenditure management procedures, improve
consistency of information and improved checks and balances (Nzuve, 2012).

Reforms in financial management has effects on restructuring of institutions through financial

management reform programs, comprehensive public sector reforms, structural adjustments with
particular focus on economic management resulting to massive reforms on central government
and local governments in service delivery in all ministries, this has seen an improvement in a
number of medium term projects under the budget preparation based on Medium Term
Expenditure Framework (MTEF). It is in these reforms programs the government has been able
to spur growth and development as envisaged in the Kenya vision 2030 projects (Ministry of
Planning, 2011).

http://www.ijsse.org ISSN 2307-6305 Page | 13

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

Research Methodology

Research design

The study applied descriptive research design. Descriptive research includes surveys and fact
finding enquiries and is applied where the study is using comparative variables in the field of
study and the case at hand has no control over the variables and the researcher can only report on
what has happened or what is happening (Mathooko et al, 2011). In this study the design was
used to describe the effectiveness of IFMIS on performance of public sector relating to various
independent variables, identified as; financial reporting, budgeting, internal controls and
government projects. Each variable was analyzed in relation to the effect it has on public
financial management system. This restricted and guided the researcher in remaining focused on
to the specific objectives of the study.

The target population

The target population in this study was 150 employees from Nairobi County Government in the
sections of finance department that includes financial reporting, budgeting and internal audits,
and at public works department where the financial systems are in use. The researcher had
ascertained this population with the administration department of the council on the possible
number of employees in each of the department under study.

Sampling frame and technique

The sample frame in this study was 150 respondents drawn from the target population. These
comprised users of the IFMIS selected from the sections of finance department that include;
financial reporting, budgeting and internal control, and public works department. This aimed at
achieving comprehensive and reliable data. Stratified random sampling technique was used. This
was because the study population is not homogenous as it comprised employees from different
departments. This technique was used to select the sample size that was represented the actual
number of respondents who were picked from each population category and issued with
questionnaire. A proportionate probability ratio of 0.8 was used to ensure over 80 percent of the
sample frame population responds for maximum representation of the total population of the
study. This technique also ensured fair and accurate representation of the general target
population. According to Kothari (2004), at least 30 percent of the target population is a
recommended size to study the population. A sample size of 120 respondents was selected
through the use of stratified random sampling technique and issued with the questionnaire.

http://www.ijsse.org ISSN 2307-6305 Page | 14

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

Data collection methods and tools

Primary data and secondary data collection methods were both used in the study. The primary
data was collected using questionnaire that related to specific objectives of the study. The
questionnaire had structured and unstructured questions to ensure data collection validity and
reliability that ensured deep insight on the statistical variables. The structured questions were
presented in the Likert scale for respondents’ measurement on their opinions on various aspects
of IFMIS on public financial management that as guided by the study objectives. Secondary data
that involved past reports such as annual budget data, progress reports and internal audits reports
since when the system implementation started and had key information that was helpful to the
research study was used. This data was obtained through desk review of the reports at the County
Government.

Data Collection Procedures

The designed questionnaire based on the research questions was administered to the sample
population to obtain data relevant to the study. First, 5 questionnaires were used for pre-test to 5
respondents who were selected randomly from the target population of 150 to ascertain the
suitability of the instrument before the actual administration. This enabled the researcher to fine
tune the questionnaire for objectivity and efficiency of the process of researching as well as time
needed per questionnaire. Questionnaires were issued to respondents in the four categories of the
target population. The respondents were given enough time to complete the questionnaires, the
questionnaires were later picked and data analysis commenced. Secondary data was obtained
through desk review of relevant records and information obtained on IFMIS performance from
the County Government for the last six years from 2007 to 2012.

Data Analyses Methods

The study used both quantitative and qualitative method of data analysis. Quantitative analysis
was used on data collected through questionnaires. Collected data was first coded and then
quantitatively analyzed according to statistical information derived from the research questions.
The coded data was then tabulated and presented for statistical analysis by calculating the
percentages, means and variance on each variable. Data results were presented in tables and
charts to give a clear picture on the findings. Secondary data was derived from desk review of
annual information on IFMIS for all variables for a period of six years (2007-2012). The
secondary data was subjected to a multilinear regression equation model to test the relationship
between the dependent variable, IFMIS Performance and the independent variables of financial
reporting, budgeting, internal control and government projects. The multilinear regression
equation assumed the following form:

http://www.ijsse.org ISSN 2307-6305 Page | 15

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

Ŷ = a + b1X1+ b2X2+ b3X3 +b4X4+ ε

Where: Ŷ = Change in IFMIS performance

a = Public finance
X1 = Financial Reporting
X2 = Budgeting
X3= Internal Control
X4= Government Projects
b1,2,3,4= Slopes associated with X1, X2, X3 and X4 respectively
ε = Error term or the random disturbance term

= ∑(Y - Ŷ)2
n - k -1

Where:
Y= Sample values of the dependent variable
Ŷ= Corresponding estimated values from the regression equation
n= Number of data points in the sample
k= Number of independent variables

Qualitative analysis was carried out from the unstructured questions and the secondary data. The
results of analysis were evaluated and comparison made in interpreting the research findings.
The deductions were used to make conclusions and recommendations of the study.

Research Results

The study had sought to analyze effectiveness of IFMIS on public finance in Kenya through
financial reporting, budgeting, internal control, and completed government projects. The results
indicated that, 68 percent of the respondents noted accuracy and speed as some of the benefits so
far realised. This indicated that IFMIS had improved on accuracy of information reported and at
the same time increasing the speed while reducing time taken to report. 34 percent recorded no
benefits realised on use of the system. Asked if there was need to improve the current IFMIS in
use, 78 percent of the respondents indicated that, the current system needed improvement as
some of the modules such as payroll and internal audits were giving ambiguous figures that were
either too far away the expectation, i.e. too low or too high. In some instances, an employee will
have nil figures as monthly salary, which was not the true scenario. In many occasions the
accounts worksheet had posted abnormal figures of an expenditure of one billion shillings for a
project worth valued at one hundred thousand shillings.

Majority of the respondents, 84 percent indicated that budgeting have improved by use of IFMIS,
as there was timely preparation of the budget and the approvals were done immediately. There

http://www.ijsse.org ISSN 2307-6305 Page | 16

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

were no delays that used to be occasioned by verification process in the previous system. On
what was the difference in budgeting as compared to previous formats of budgeting, 72 percent
of the respondents indicated that the system was enhancing budgeting through use of
standardised format for all departments in the council. The IFMIS structure of budgeting enabled
quick entry of budget elements and the system was useful in checking on the accuracy of data
entered. The system is also secure and cannot be modified once entries have been made. 80
percent did agree with the opinion that IFMIS add value to the budgeting system. A number of
challenges were faced in ensuring effective internal controls within the county government in
using the IFMIS; this was indicated by 65 percent of the respondents who cited that the system
was not water tight and would give ambiguous figures in final reports. This was attributed to
operating systems and on the structure of the soft ware in use. The complexity of the council’s
financial systems also contributed to ineffectiveness of IFMIS on internal controls. However,
IFMIS accountability requirements have been met effectively in public financial management as
was indicated by 71 percent of the respondents. Parking fee collection system, business licensing
system, salary processing systems were named as some of the projects that were initiated after
the launch of the system.

Regression analysis

This section presents regression analysis used to establish the relationship between the dependent
variable, change in IFMIS performance and independent variables which were financial
reporting, budgeting, internal controls and government projects. In order to understand the
relationship the following regression model was developed.

Ŷ = a + b1X1+ b2X2+ b3X3 +b4X4+ ε

Where;
Ŷ = change in IFMIS performance
a = Public finance
X1=Financial reporting
X2= Budgeting
X3= Internal control
X4= Government projects
b1,2,3,4= Slopes associated with X1, X2, X3 and X4 respectively
ε = standard error

From table 1, the coefficient of determination, R2 explains the amount of variation in the
effectiveness of IFMIS in public finance management on financial reporting, budgeting, internal
controls and projects implemented, the closer the value to 1, the better the model. From the
above model there was a positive relationship between the dependent and independent variable,
i.e. the adjusted R2 was 0.724 (72.4 percent). This means that 72.4 percent of change in
effectiveness of IFMIS was accounted for by independent variables i.e., financial reporting,

http://www.ijsse.org ISSN 2307-6305 Page | 17

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

budgeting, internal control and reporting at 95 percent confidence level. Independent coefficients
for X1, X2, X3 and X4 are 0.6332, 0.6092, 0.431, and 0.404 respectively.

Table 1: Regression Analysis Model

Variable Coefficient Std Error t-statistic Prob.
a .520 .0552 11.064 0.0000
X1 .6332 0.79917 7.638 0.0000
X2 .6092 0.68621 5.121 0.0000
X3 .431 0.81210 4.652 0.0000
X4 .404 0.74146 2.543 0.0001
R-squared 0.878 Mean dependent variable 171.000
Adjusted R2 0.724 S.D. dependent variable 16.232
S.E. regression 4.311 F-Statistic 69.046
Log likelihood 1204.1 Probability 0.0011
Durbin Watson stat 70.224

The study regression model is therefore presented as:

Y (72.4%) = 0.520 + 0.6332 X1 + 0.6092 X2+ 0.431 X3+ 0.404 X4

From the above regression model, holding all independent variables constant the effectiveness of
IFMIS on performance of public sector would be 0.520. However as a results of interaction of
variables in the IFMIS its established that, a unit increase in financial reporting through IFMIS
caused an increase on performance of public sector by a factor of 0.6332, a unit increase in
budgeting would cause an increase on performance of public sector by a factor of 0.6092, also a
unit increase in internal control would cause an increase on performance by a factor of 0.431,
finally unit increase in projects would cause an increase performance by a factor of 0.404. The
study established there was strong relationship between the IFMIS and financial reporting
(0.6332).

From the findings, IFMIS was found to be effective on performance of public sector, in both
quantitative analysis and in regression analysis. This agrees with IMF (2006) findings on use of
IFMIS in public finance management. The study found that financial reporting had improved due
to use of IFMIS. This also agree with USAID(2008) that reporting systems have been improved
by use of a single reliable platform of financial reporting since IFMIS tracks financial events and
summarize reports effectively.

The study findings show that there was timely preparation of budgets using IFMIS. This echoes
IMF recommendations for use of a comprehensive budget management system for prompt
service delivery. As was noted by Bill (2001), although automated systems facilitates many
controls during transaction process, the study found that internal controls faced a number of
challenges as the system was not water tight in controlling all the financial processes. Heidenholf

http://www.ijsse.org ISSN 2307-6305 Page | 18

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

(2002) had noted that the difficulties faced by governments in completing projects were related
to lack of effective public financial management systems. The study found that through
application of IFMIS especially on budgeting, and in reporting, a number of projects initiated
through the system have been successfully completed and on time.

Summary of findings

Findings confirm that there were effects on public finance by IFMIS as signified by the
individual independent variable analysis. Financial reporting was reported to have significantly
improved and IFMIS was found to have been very effective in enhancing financial reporting at
the Nairobi County Government. Accuracy and timely budgeting was attributed to effectiveness
of IFMIS. Although there were cases of ineffectiveness in internal controls, IFMIS had
increased the level of internal controls. A number of challenges were reported to be experienced
in ensuring effective internal controls within the Nairobi County Governmet on using the IFMIS
where 65 percent of the respondents cited that the system was not water tight and would give
ambiguous figures in final reports. This was attributed to systems operating systems and to the
structure of the soft ware in use. The complexity of the county’s financial systems also
contributed to ineffectiveness of IFMIS on internal controls. The findings also indicated that
IFMIS accountability requirements have been met effectively in public financial management.

Summary of the regression equation generated from the study revealed that there was a positive
relationship between the effectiveness of IFMIS on performance of public sector and the
independent variables; financial reporting, budgeting, internal controls and projects. The adjusted
R2 was 0.724 (72.4%). This means that 72.4% of change in effectiveness of IFMIS was
contributed by study independent variables, i.e., financial reporting, budgeting, internal controls
and projects at 95% confidence interval.

Conclusions

The following conclusion can be drawn from the study findings. The study found that a
relationship existed between IFMIS and public finance in financial reporting, budgeting, internal
control and government projects. This shows that IFMIS had influenced pubic finance
management in Kenya. Financial reporting in the Nairobi County Government was greatly
influenced by IFMIS. Budget was adequately managed by IFMIS in public finance in the county.
Internal controls although faced with challenges had improved on use of IFMIS. However, if
these challenges were addressed as recommended it would further enhance the effectiveness of
IFMIS on internal controls in public finance. The study further concludes that all the projects
started and completed on IFMIS platform were effectively implemented and therefore, the
system is seen as tool in public sector finance management. The study further concludes that if
the challenges revealed in internal controls such as casting of ambiguous figures were addressed
at the system development level, the system will be of great help in ensuring timely budgeting

http://www.ijsse.org ISSN 2307-6305 Page | 19

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

and funding of government projects, and therefore facilitating effectiveness in government

service delivery in public sector.

Recommendations

The study made recommendations deduced from the findings. Since only 72.4 percent of the
entire IFMIS is explained by the four variables; financial reporting, budgeting, internal controls
and projects, 27.6 percent is not explained and therefore this study recommends that the IFMIS
be enhanced and improved at system development level so that it gives real figure and factor in
more functions of operation linked to financial service for better service delivery. The Nairobi
County Government should consider prioritization on improvement of internal controls on the
IFMIS as the module controls all other modules of the system.

Areas for further research

This study focused on financial reporting, budgeting, internal controls and projects which
ultimately explain 72.4% of the IFMIS on performance of public sector. More research studies
should be carried out to find out on more other factors that could enhance effectiveness of IFMIS
on performance of public sector. While the focus of this study was Nairobi County
Government future research studies should consider similar studies in other public institutions
so as to give a wider representation of views of IFMIS users for broader factual information.

References

Allan, W. & Hashim A.(1999). Core Functional Requirements for Fiscal Management Systems.
International Monetary Fund, Washington DC.

Allen, R. & Thomas C. (2004). Assessing and Reforming Public Financial Management: A
New Approach. Washington DC.

Annan, K.F. (1997). ICT development in Africa; First Edition; United Nations Press,Geneva.

Barry, H.& J. Diamond (2004). Guidelines for Public Expenditure Management, International
Monetary Fund, Washington DC.

Bartel, M. (1996). Integrated Financial Management Systems: A Guide to Implementation Based

on the Experience in Latin America. Washington, DC: Institute for Democratic
Strategies, LATPS Occasional Paper Series.

Bill, J.L. (2001). ICT Project management. First Edition; Newline Press, New Delhi.

Casals and Associates (2004). Integrated Financial Management Systems Best Practices. Bolivia
and Chile, funded under USAID.

http://www.ijsse.org ISSN 2307-6305 Page | 20

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

Cho, J., Dorotinsky & William (2003). The World Bank’s Experience with Financial
Management Information System (FMIS) Projects. World Bank Washington DC.

DFID (2003). Understanding and reforming public expenditure Management, Guidelines for
Department for International Development. www.dfid.gov.uk/pubs/files/pfma-
pem.pdf

DFID (2003). Making it Work; “Implementing Effective Financial Information System in

Bureaucracies in Developing countries”. United Kingdom, Discussion paper No.
447,HHD, P 1-26.

Ferdinand, R.J. (2006). Computer Networks. First Edition; New York Press, New York.

Fisher, R.A. (1962). A General Systems Theory Perspective Advances in Management

Information Systems; The Theory of Interest. Macmillan Press, New York.

Goll, W.H. (2003). Data Networks technology. First Edition; New York Press, New York.

Hashim, A. & W. Allan (2006). Information Systems for Government Fiscal Management.
World Bank Sector Study Series, World Bank, Washington DC.

Heidenhof, G. (2002). Design and Implementation of Financial Management Systems: An

African Perspective. Africa Region Working Paper Series No. 25

Hopelain, D.G. (2004). The Structure of Information Systems Design; Five Axioms for the
Management of Systems Development. T.M.Belbelmans (Ed) “Beyond
Productivity Information Systems Development for Organizations Effectiveness”
Esleiver Science Publishers, Amsterdam.

Imbuye (2012). Factors influencing the use of IFMIS in Public Sector, Resaerch Study, Nairobi,
Kenya.

IMF (2006). World Economic Outlook. Washington DC.

Ipwin (2007). Fundamental’s Financial and Management Accounting Concept. Mc-Graw-

Hillirwin Publishers, New York.

Jack & Khemani (2005). Introducing Financial Management Information Systems in Developing
Countries, IMF,Washington DC.

Kang’ethe, P.M. (2002). ICT in Learning institutions. First Edition; Longman Publishers,
Nairobi, Kenya.

Kearney & Dally (2004). Development of model in financial time series management, GARCH
Model, New York Stock Exchange, New York.

Kerlinger & Fred N. (1973). Foundations of Behavioral Research. Winston, New York.

Kinyanjui, N.W. (2003). Computer Networks; First Edition; New York Press, New York..

http://www.ijsse.org ISSN 2307-6305 Page | 21

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

Kinyua, J.K. (2003). Kenya Economic Survey. Ministry of Finance, Nairobi, Kenya.

Kombo, K.D. & L.A. Delno (2006). Proposal and Thesis writing; An Introduction. Pauline
Publications Africa, Nairobi, Kenya.

Kothari, C.R.(2004). Research methodology: Methods and Techniques. New Age International
(P) Ltd, New Delhi.

KPMG (2011). Accountant General Report. East Africa Financial Review, Nairobi, Kenya.

Marie, C. (2009). The Implementation of Integrated Financial Management System, Benefits and
Challenges. http://issuu.com/cmi-norway/docs/expert-helpdesk-196/1, Norway.

Mathooko, J.M. (2011). Academic proposal writing, a guide to preparing proposals for academic
research. 2nd edition,GRAMSs publishers, Nakuru, Kenya.

Mark & Gallagher (2007). Building Fiscal Infrastructure in Post-Conflict Societies. Task Order
No. 06. “Interim Report on Efforts and Further Actions Needed to Implement a
Financial Management Information System in Iraq,” Office of the Special
Inspector General for Iraq Reconstruction, SIGIR-08-001.

Michale, P. (2001). IMCL http://www.icgfm.org/downloads/2004miami/Parry.ppt , Miami.

Ministry of Finance Report (2003). Public Performance Contracting Report. Nairobi, Kenya.

Mugenda, O.M. & A.G. Mugenda (2008). Research Methods. Qualitative and Quantitative
Approaches. Act Press, Nairobi, Kenya.

Murphy, P. (2002). Road Map for Implementation of an Integrated Financial Management

(Accrual Based) System in a Developing Country Environment. (mimeo).

Nzuve, I.N. (2012). Impact of Integrated Financial Management in Government Ministries.

Research Study. UON Press, Nairobi, Kenya.

Pandey, I. M. (2005). Financial Management. 9 ed., Vikas Publishing House, New Delhi.

Potter & H. Barry (1999). Guidelines for Public Expenditure Management: International
Monetary Fund. Washington.

Ronald, J. (2007). http://www.icgfm.org/documents/3-DesignComponents-Ron Points.pdf,

Consultant, World Bank, New York.

Rosen, H. (2002). Public Finance: McGraw-Hill. Boston

Soh, J.P. (2007). Database management systems. Third Edition; Mombay, Indian Press,
Mombay.

Transparency International (2009). Factors influencing implementation of IFMIS in Kenya

Public Service Delivery. A Research Study. Nairobi, Kenya.

http://www.ijsse.org ISSN 2307-6305 Page | 22

 International Journal of Social Sciences and Entrepreneurship Vol.1, Issue 12, 2014

USAID (2008). IFMIS A Practical Guide. http://pdf.usaid.gov/pdf_docs/ PNADK595.pdf)

Walsham, G. & T. Waema (1988). Information Systems as Social Systems- Implications for
Developing Countries. Information Technology for Development,Vol. 3, No. 3

Wang, R. Y. & W. Y. Chung (2005). Redefining the Scope and Focus of Information Quality
Work: Advances in Management Information Systems. M.E. Sharpe Inc, Armonk,
New York.

World Bank (2006). Public Financial Management (PFM) Reform database, PFM automation
and IFMIS:
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/EXTFINANCIAL
MGMT/0,contentMDK:21475540~isCURL:Y~menuPK:3914586~pagePK:21005
8~piPK:210062~theSitePK:313218,00.html.

World Bank PIFRA (2004). http://en.wikipedia.org/wiki/PIFRA.

World Bank Report (2008). World Development Indicators Database.

[www.worldbank.org/data]. 80 Economic Status.

World Bank (1999). Public Expenditure Management Handbook: World Bank, Washington DC.

Yin, R. (1994). Case study research: Design and methods (2nd ed.). Beverly Hills: Sage
Publishing, New Delhi.

http://www.ijsse.org ISSN 2307-6305 Page | 23