PUBLIC FINANCE COMPLIANCE, ACCOUNTABILITY MANAGEMENT AND
SERVICE DELIVERY IN LOCAL GOVERNMENTS OF UGANDA:
THE CASE OF NWOYA DISTRICT LOCAL GOVERNMENT
OCIRA GEOFFREY
15/U/2554/MBA
A RESEARCH PROPOSAL PRESENTED IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE AWARD OF DEGREE OF MASTERS
OF BUSINESS ADMINISTRATION (MBA)
OF GULU UNIVERSITY
DECEMBER, 2016
DECLARATION
This research proposal is designed to investigate public finance compliance, accountability management
and service delivery in Nwoya District Local Government. It was produced purely following Gulu University
research guidelines and without any amount of plagiarism. I therefore declare that it has been my own
efforts and is now ready for presentation at the Faculty of Business and Development Studies for further
examination.
Ocira Geoffrey
Reg No: 15/U/2554/MBA
Signature -----------------------------------------------------Date--------------------------------------------------------------------
APPROVAL
This research proposal was conducted by Mr. Ocira Geoffrey under the topic “Public Finance Compliance,
Accountability Management and service Delivery in Nwoya District Local Government. I confirm that the
work was done under my guidance/supervision; I approve it for further examination at the faculty of
Business and Development Studies.
Mr. Olido Kenneth
(Supervisor/Research coordinator)
Signature--------------------------------------------------------Date-------------------------------------------------------------
TABLE OF CONTENT
LIST OF ABBREVIATIONS AND ACRONYMS
CHOGAM
Common wealth Heads of Governments Meetings
IFMS
Integrated Financial Management Systems
MDG’s
Millennium Development Goals
MoFPED
Ministry of Finance Planning and Economic Development
OAG
Office of Auditor General
PFMA
Public Finance Management Act
PPDA
Public Procurement and Disposal of Assets
SSA
Sub Saharan Africa
US
United States
IMF
International Monetary Fund
CHAPTER ONE
INTRODUCTION AND BACKGROUND OF THE STUDY
1.1-Introduction
Nwoya District Local Government is one of the Local Governments in Uganda implementing the
decentralization policy where services are being provided to the community through the district council. The
District has eleven departments responsible for provision of services to the community. In all these
departments’ issues of public finance compliance, accountability management and service delivery are
mandatory as envisaged in laws like the Public Finance and Accountability Act, 2003, the Local
Government Finance Act and Public Finance Management Act, 1999 among others . These departments
are required to generate activities and translate them into budgets periodically. For the last three years, the
district has been on auditor general reports on varying irregularities relating to lack of financial compliance,
accountability issues and poor service delivery.
The Auditor General’s Report for Financial Year 2012/2013 indicated diversion of Ugandan
shillings 169,000,000 spent on unplanned activities. In financial year 2013/14, the body reported that
Ugandan shillings 164,494,000 lacked update advance ledgers, during the same period, Ugandan Shillings
1,055,450 was diverted and spent on health and environmental programmes instead of Urban and rural
Roads and in the audited financial year 2014/2015, revealed several irregularities ranging from diversion of
Ugx 30,000,000 meant for Primary Health Care activities for micro procurement, incompletely vouched
expenditure amounting to Ugx 144,750,900 (Auditor General Report 2014/2015 Financial Year). These
actions deprived the 133,000 population of Nwoya District of basic services ranging from health care,
education and social services among others. This study will therefore explore the implementation of
financial management laws, regulations, policies and procedures in Nwoya District Local Government and
their effects on health service delivery.
1.2-Background to the Study
PFC, which stands for Public Finance compliance, refers to adherences to established laws, procedures,
policies or regulation, for management of public monies through the budget process, which includes
formulation, execution, reporting, and analysis (Leclerc 2006). PFM systems should include management
of revenues as well as expenditures. However, in this paper we use the term PFM, following general
convention, to refer to expenditures only.
PFM systems are established by regulations, within a specific legal context. In many cases, an organic
budget law comprises mostly of PFM system. The limitation was that, Although, Public Finance and
Accountability Act (PFAA), 2003 and the Budget Act, 2001 provide the basic legal platform for the budget
formulation, execution and auditing process, financial managers may not be disciplined enough, hence
leading to penalties. However there may be a positive trend. The limitation may be that, although, Public
Finance and Accountability Act (PFAA), 2003 and the Budget Act, 2001 provide the basic legal platform for
the budget formulation, execution and auditing process, the financial managers may again not be
disciplined enough leading to penalties.
Kothari (2004) affirmed that one of the most important objectives of a PFM system is management of the
budget, and should include management of revenue as well as expenditure. However, in this paper we use
the term PFM, following general convention, as synonymous with budget process and limit it to expenditure
only. The budgeting process varies from place to place but typically requires budgets to be prepared and
presented to the legislature for approval by a certain date. Public resources are allocated, appropriated,
and spent following legislative approval. The budgeting process also covers revenue, financing, and asset
management issues, to varying extents. Otherwise, they are covered in other fiscal legislation. Various
institutions, including the legislative and executive institutions, play a role in this process, and this role
varies according to the form of government. The process of implementing the approved budget begins with
the authorization by the legislature to the executive to appropriate funds to incur spending.
During the past 20 years there has been noticeable increase of macro-economic stability and economic
growth in Sub-Saharan Africa (SSA) (Radelet, 2010), although SSA still lags significantly behind other
regions in Economic Development and Socioeconomic indicators. Sustainable development in SSA has
thus become the focus of aid initiatives of the G-7countries as well as of multilateral and bilateral agencies.
A substantial amount of donor aid, estimated to be around US$60 billion from bilateral and multilateral
sources was expected to flow to SSA between 2008-2012 to help these countries alleviate poverty and
achieve the Millennium Development Goals, but little has been realized to date (MDGs) (Ryan, 2014). A
country's economy may pay a high price for weak financial management in the public sector, while the
benefits of sound financial management and reporting can be immense. Good financial reporting underpins
good financial management and it makes it easier to manage government expenditure, to set fiscal
performance targets, and to measure and improve the efficiency of producing public goods and services
(Fakie, 2011).
In Africa, there was recent upsurge in public demand for accountability by public servants at all levels.
This has emerged from greater acceptance of democratic values and traditions around the globe.
Accountability is the obligation to render an account for a responsibility conferred. It presumes the
existence of at least two parties: one who allocates responsibility and one who accepts it with the
undertaking to report upon the manner in which it has been discharged, although the idea of holding public
servants accountable is intuitively attractive, making it attractive raises non-trivial procedural and according
enables policy adjustments to be made (Hupkes, 2010). In Uganda, the Public Finance Management Act
1999 gives the OAG an independent oversight of government operations through financial and other
management audits. The objective of the audits conducted by the Auditor General is to enforce
accountability on accounting officers. The PFMA is regarded as a tool that promotes the objective of good
financial management in order to maximize service delivery through the efficient and effective use of limited
resources. The PFMA extends the Auditor -General’s mandate not only to monitoring and reporting on the
accounting for funds used, but also to the efficiency and effectiveness with which such funds are used as
well as adherence to prescribed rules and procedures.
The sound practices demand that those responsible for implementing procurement should ensure
that the objectives are clear and that quality services are sustained. There should be sound client and
contract deliverer competencies in communication, team building and sound planning for control purposes.
Government of Uganda through the Ministry of Finance Planning and Economic Development (MoFPED)
has introduced an Integrated Financial Management System (IFMS) for all government departments and
institutions intended to improve financial management and accountability. The exercise is being undertaken
using Oracle, one of the best software applications and it is being used to record fiscal transactions in the
respective ministries, agencies and local government units
Therefore in a nut shell, Public Finance and Accountability Act, 2003 of Uganda as amended
received assent on 22 May 2003 provides for the development of an economic and fiscal policy framework
for Uganda. However specifically, it is promulgated to regulate the financial management of the
Government, prescribe the responsibilities of persons entrusted with financial management in the
Government, regulates the borrowing of money by Government and to provide for the audit of Government,
state enterprises and other authorities of the State. The scope of the powers, duties and responsibilities of
the Office of the Auditor General (OAG) inter alia derives from the Public Finance and Accountability Act
2003. Additionally this power is also enforced in the Constitution of the Republic of Uganda, 1995 which
requires all persons in leadership and responsibility in their work to be answerable to the people (Oguchi,
2014).
Nick (2012) estimated that Sub-Saharan Africa’s economic output would increase by 5.5% in 2012 as new
resource production in many countries and a recovery in Western Africa helped to boost the region’s
performance. However, the International Monetary Fund said the forecast was subjected to ‘substantial’
downside risks. IMF (2012) said the biggest threats would come from renewed financial stresses in the
Euro zone and the potential for geopolitical uncertainties to cause a surge in global oil prices.
Government of Uganda through the Ministry of Finance Planning and Economic Development (MFPED)
has introduced an Integrated Financial Management System (IFMS) for all government departments and
institutions intended to improve financial management and accountability. The exercise is being undertaken
using Oracle, one of the best software applications and it is being used to record fiscal transactions in the
respective ministries, agencies and local government units. While the system applies appropriate
accounting and budgeting controls effectively, provide real time (up to date) information for budgeting and
monitoring on compliance with the relevant laws, regulations, policies and procedures, it also provide real
time information for economic planning and management and provide timely and reliable financial reports to
parliament, government and the citizens of Uganda. It also tracks details on inflows and outflows of funds,
as well as complete inventories of financial assets and liabilities. In addition, it stores, organizes and makes
access to financial information easy while it stores the approved budgets for yesteryears. The introduction
of the IFMS follows the Public Finance and Accountability Act (PFAA) of 2003, which provides for the
development of an economic and fiscal policy framework for Uganda.
Therefore in a nut shell, Public Finance and Accountability Act, 2003 of Uganda as amended received
assent on 22 May 2003.The purpose of this Act is to provide for the development of an economic and fiscal
policy framework for Uganda. However specifically, it is promulgated to regulate the financial management
of the Government, prescribe the responsibilities of persons entrusted with financial management in the
Government, regulates the borrowing of money by Government and to provide for the audit of Government,
state enterprises and other authorities of the State. The scope of the powers, duties and responsibilities of
the Office of the Auditor General (OAG) inter alia derives from the Public Finance and Accountability Act
2003. Additionally this power is also enforced in the Constitution of the Republic of Uganda, 1995 which
requires all persons in leadership and responsibility in their work to be answerable to the people (Oguchi,
2013).
In carrying out its mandate, the OAG looks at among others Accountability and its process, procurement
related issues and adherence to rules and regulations regarding handling of public offices. Accountability is
the obligation of an individual or organization to account for its activities, accept responsibility for them, and
to disclose the results in a transparent manner. It also includes the responsibility for money or other
entrusted property while procurement is the act of obtaining or buying goods. Busubya, (2010).The process
includes preparation and processing of a demand as well as the end receipt and approval of payment.
Busubya (2010) further argues that It often involves purchase planning, standards determination,
specifications development, supplier research and selection, value analysis, financing, price negotiation,
making the purchase and supply contract administration, strategy because the ability to purchase certain
materials will determine if operations will continue. A business will not be able to survive if it's price of
procurement is more than the profit it makes on selling the actual product
1.3-Problem statement
The global
1.4- Purpose of the Study
The purpose of this research is to investigate issues of compliance in public finance, aspects of
accountability management and their impacts on service delivery in Nwoya District Local Government.
1.5–Specific objectives of the Study
The specific objectives of this study shall include the following:
i. To assess the effect of public finance laws on accountability management and service delivery in
Nwoya District Local Government
ii. To examine the effect of public finance regulations on accountability management and service delivery
in Nwoya District Local Government
iii. To analyze the effect of public finance policies on accountability management and service delivery in
Nwoya District Local Government
iv. To establish the effect of public finance procedures on accountability management and service
delivery in Nwoya District Local Government.
1.6- Research Questions
i. What is the effect of public finance laws on accountability management and service delivery in Nwoya
District Local Government?
ii. What is the effect of public finance regulations on accountability management and service delivery in
Nwoya District Local Government?
iii. What is the effect of public finance policies on accountability management and service delivery in
Nwoya District Local Government?
iv. What is the effect of public finance procedures on accountability management and service delivery in
Nwoya District Local Government?
1.7- Conceptual Framework
Figure 1. 1- Shows the conceptual framework that will guide this research
Independent variables
Compliance in Public
Finance
 Public finance laws
 Public finance
regulations
 Public finance
policies
 Public finance
procedures
Dependent variables
Accountability
management
 Change in attitude
 Competency of staff
 Leadership
 Training and education
Service delivery
 Timely delivery of services
 Quality services
Source: Author’s own construction from literatures
1.7. 1- Variables conceptualization
The conceptual framework above focuses on explaining the relationship within compliance in public
finance, accountability management, and service delivery. Public finance compliance require adherence to
laws, regulations, policies and procedures regarding the management of finances whereas on the other
hand, accountability management involves the aspects of change in attitude, competency of staff,
leadership, training and education. All these if put together is expected to improve service delivery where
the population is expected to enjoy timely delivery of services,
Basing on the framework, the researcher believes that accountability management can partly be
affected by the independent variables, which can lead to either poor accountability management or good
accountability management. It is important to note that adequate compliance with laws and regulations
compounded with adequate supervision, monitoring in Local Government will positively affect the quality,
and quantity of outputs in service delivery and the reverse is true. Further, the conceptual framework
indicated that the moderating variables have the potential to influence accountability management. For
instance, lack of adequate funds to finance the National budget, which has led to challenges in the efficient
allocation of resources. Inadequate planning in terms of macro and fiscal forecasting compounded this,
which also requires linking laws, regulations, policies and procedures. However, whenever one of the
extraneous variables intervene in between the independent and dependent variables, accountability
management is likely to be affected positively or negatively.
1.8- Scope of the Study
1.8.1- Geographical Scope
This research will be conducted in Nwoya Distract Local Government. Nwoya District is located in the
Northern part of Uganda. The District is bordered by the Districts of Gulu from the East, Amuru in the North,
Nebbi from the West, Oyam from South East and Bulisa from the South. The district is governed by an
elected District Council, which is the highest policy making organ. The Council works through standing
committees, Statutory Boards and Commissions. The District Civil Service is headed by the Chief
Administrative Officer who implements policies of the Council through the standing Committees of the
Council are Education and Sports, Health, Management and Finance, Works and technical Services,
Production and Marketing, Social Services and Natural resources. From the Population and Housing
Census, Nwoya district has a total population of 133,000 people. Out of this, males account for 46,000 of
the total population while females accounted for 87,000.
1.8.2- Content Scope
The study will be limited to assessing the effect of public finance laws, regulations, policies and procedures
on accountability management and service delivery in Nwoya District Local Government.
1.8.3- Time Scope
The study will be limited to two financial years since there has been a puzzlingly quick, marked
improvement in performance with the district getting qualified reports from the OAG and rewards from
national assessments team in the late 2014. These financial years will specifically include 2012/2013 and
2013/2014.
1.9- Significance of the Study
The findings of this research will be of significance in the following ways:Policy issues
The recommendations arising from the findings of this study will go a long way in enhancing the
effectiveness of implementation of Local Governments Accountability Systems.
Managerial issues
Upcoming researchers
The findings will focus at informing the readers about the factors driving compliance in public finance and
accountability management and service delivery in Nwoya District Local Government.
Institutions
The study will provide vital information to Nwoya District Local Government to ascertain the causes of
decline in performance and ways of improvement and the factors that lead to flouting of financial
regulations in the district and making recommendation on how violation of laws and regulations can be
reduced in the short run and can be eliminated in the long run.
CHAPTER TWO
LITERATURE REVIEW
2.0 -Introduction
The literature review in this chapter is designed to demonstrate what is already written about the study
under investigation. It shows the researcher’s attempt to address the gaps in the existing knowledge. This
literature review involves use of text materials, internet materials, journals and general articles from
newspapers. Several sources will be consulted and the researcher will critically analyze and appraise the
various authors for literature so far read and related to the study variables. The chapter is therefore
organized into sub-themes as per the research objectives of and the sub variables in the conceptual
framework.
2.1-Public Finance Compliance
2.1.1-Public finance laws
Law is a recognized causal link or principle whose violation must or should result in a penalty as failure,
injury, loss, or pain or he binding rules of conduct meant to enforce justice and prescribe duty or obligation,
and derived largely from custom or formal enactment by a ruler or legislature. These laws carry with them
the power and authority of the enactor, and associated penalties for failure or refusal to obey. Law derives
its legitimacy ultimately from universally accepted principles such as the essential justness of the rules, or
the sovereign power of a parliament to enact them Byekwaso, (2014).
The Financial Management and Accountability Programme (2011) analyzes that proper
accountability ensues from accountability laws. The laws should be unambiguous about organization and
personal accountabilities. The heads of organizations should be accountable for achievement of objectives,
enforcement of internal controls and financial discipline and ensuring that value for money is received.
Personal accountability of public managers and junior staff covers obligations to adhere to principles of
probity, prudence and due care in the use of public resources.
Leclerc et al (2010) affirm that, accountability law is only start of the accountability process. Much
needs to be done at the level of ministries, especially, ministry of finance to implement the law. A proper
accountability framework would require that the government devise guidelines for preparing and approving
work plans, methods- of monitoring those plans, reporting on performance, accumulation of portfolio of
evidence on performance reporting, system of validation and oversight of performance reports, establishing
and resourcing public accountability institutions, training public managers and guidelines for dealing with
political institutions by the public managers. All this would need to evolve with the passage of time. In
absence of an elaborate accountability framework, mere passing of laws would not be of much use. There
was limited government supervision, monitoring and evaluation, which made the financial managers to
continue to mishandle finances however, due to government follow up and supervision, there has been
general improvement in the district financial performance as well as achievement of the district goals.
2.1.2-Public finance regulations
Regulation is a general principle or rule (with or without the coercive power of law) employed in controlling,
directing, or managing an activity, organization, or system. Law: Rule based on and meant to carry out a
specific piece of legislation (such as for the protection of environment). Regulations are enforced usually by
a regulatory agency formed or mandated to carry out the purpose or provisions of legislation. Also called
regulatory requirement. (Thomas, 2004).
In Uganda, the Minister may by statutory instruments, make regulations for better carrying into
effect the provisions of an Act. Local government act CAP 243. The legal and regulatory framework for
local government financial management includes the constitution, local government Act, The Public
Finance and accountability act 2003. Budget Act 2001 Local Government Financial and accounting
regulations 2007. The accounting Manual, Procurement and Disposal of public Assets act 2003, Uganda
Government standing orders and Job Specifications in Local Government Act (1998).
Following the progressive introduction of a new legal and regulatory framework for PFM (Budget
Act 2001 and Public Finance and Accountability Act 2003) the key institutions involved in PFMR in GoU
take on their responsibilities accordingly. The 1995 Constitution (Amended, November 2005), the Public
Finance and Accountability Act (PFAA), 2003 and the Budget Act, 2001 provide the basic legal platform for
the budget formulation, execution and auditing process. The Budget Act stipulates first and foremost the
information on the budget process that Government is required to present to Parliament and when. The Act
also regulates the budget scrutiny procedures within Parliament; however there was a positive trend 1n
2009-2010, that created regulations leading to rewards, a sign for better performance hence promoted
proper financial accountability and budgeting. Parliament of Uganda (2003).
The PFAA provides the legal framework for enhancing the control and management of public
resources and strengthening fiscal transparency and accountability. In particular, it requires that: (i)
supplementary appropriations require prior Parliamentary approval before any commitment is made; (ii)
Improved definition of the respective roles and accountabilities of the Minister, the Permanent
Secretary/Secretary to the Treasury, the Accountant General (Acc Gen) who is allocated specific authority
over accounting officers of Ministries, Departments & Agencies (MDAs) with respect to determination of
accounting bases, principles, standards and systems; (iii) AOs of MDAs are required to be accountable to
Parliament for outputs in addition to regularity and propriety, to ensure control over commitments and to
establish and maintain audit committees; (iv) Specific offences and penalties or procedures for recovery of
losses; (v) the accounts must include flow of funds statements and broader coverage of government
expenditure. This also points to, Public Finance and Accountability Act (PFAA), 2003 and the Budget Act,
2001 provide the basic legal platform for the budget formulation, execution and auditing process.
Adherence to Financial and accounting regulations act 2007, Budget act 2003, the local
government Act Cap 243 PPDA act 2003 forms the foundation on which a strong decentralization base is
built a strong centers’ of service delivery and public accountability centers. A study by Eyaa, & Oluka
(2011), states that Shoddy Compliance levels continue to be low in public entities in Uganda despite efforts
by the Public Procurement and Disposal of Assets Authority (PPDA) to put in place measures to improve
compliance (PPDA Capacity Building Strategy Report, 2011-2014). Procurement audits carried out in PDEs
revealed of non – compliance with procurement regulations despite the Public Finance and Accountability
Act (PFAA).
2.1.3-Public finance Policies
According to Ryan & Walsh (2004), a policy is a principle or rule to guide decisions and achieve rational
outcomes. A policy is intent, and is implemented as a procedure or protocol. Policies are generally adopted
by the Board of or senior governance body within an organization whereas procedures or protocols would
be developed and adopted by senior executive officers. Policies can assist in both subjective and objective
decision making. Policies to assist in subjective decision making would usually assist senior management
with decisions that must consider the relative merits of a number of factors before making decisions and as
a result are often hard to objectively test e.g. work-life balance policy. In contrast policies to assist in
objective decision making are usually operational in nature and can be objectively tested e.g. password
policy. Nevertheless, the Budget Act, 2001 provide the basic legal platform for the proper service delivery.
Agaba & Shipman (2007) affirmed that Public Financial Management (PFM) is a critical instrument
in the implementation of economic policy, and it works by influencing the allocation and use of public
resources through the budget and through fiscal policy, in general. A well-functioning PFM system, the
donors felt, would provide the assurance that the funds released through debt forgiveness would be
productively used in a transparent and efficient manner. A well-functioning PFM system, as defined by
certain key indicators, would improve the use of aid as well as overall budget performance, and thus
contribute to macroeconomic stability and growth. It would contribute to overall governance through
protection of public resources against the risk of expropriation and corruption. The limitation may be that,
whereas, Public Finance and Accountability Act (PFAA), 2003 and the Budget Act, 2001 provide the basic
legal platform for the budget formulation, execution and auditing process, the financial managers may not
be disciplined enough, hence may lead to penalties.
According to Ahuja (2005), good PFM contributes to the achievement of fiscal policy goals. At the
same time, sound fiscal policies are likely to contribute to a better PFM system through the allocation of
resources for development of the PFM processes and institutional knowledge. The quality of a PFM system
is usually correlated with other aspects of the economic and institutional environment. Although in
developed countries, it is unusual for a well-functioning PFM system to go hand-in-hand with an institutional
environment in which corruption is tolerated. However, this correlation is not perfect, as there are separate
influences on each at work. This influences performances levels.
2.1.4-Public finance procedures
2.2- Accountability Management
Public Procurement and Disposal of Assets Authority. (2003) asserts that there has been a remarkable
improvement in Uganda’s Public Financial Management (PFM) systems since the last Public Expenditure
and Financial Accountability (PEFA) assessment in 2008. Significant improvements have been made in
alignment of budgets to Government policies prepared with some level of key stakeholder participation. The
utilization and control of public funds although not yet perfect, has largely been successful despite the fact
that some challenges remain with accumulation of domestic arrears and frequent supplementary requests.
Timeliness of reporting has also improved particularly at Central Government with the extension of the
Integrated Financial Management Systems at Ministries, Departments and Agencies including automation
of financial management at Ugandan Missions abroad. Effective Audit and Scrutiny by Auditor General and
Parliament continues to improve. By 2005-2006, the Public financial Management had a number of un-
conditionalties; however, by 2010-2012, a remarkable change in auditing and financial management
provided a report on the improvement in services hence encouraged the performances.
The Republic of Uganda (2001) affirms that research has established that previous scholars have carried
out studies relating to public finance and accountability management. The legislation also provides for
regulations for elaboration of policies, definition of records management activities, instructions, monitoring
and compliance. However, the studies were not directly related to factors driving the compliance. There is
therefore need to extend frontiers in acknowledgement of the fore mentioned theme. The current study will
analyze the effect of public finance policies on accountability management in Nwoya District Local
Government. According to the researchers’ opinion, policies perform significantly when implemented
effectively. However if limited policy are in place, an organization tend to become ineffective to prioritize
and this result into poor services delivery.
2.2.1-Change in attitude
2.2.2-Competency
2.2.3-Leadership
2.3.4-Training and education
2.3- Service delivery
2.3.1-Timely service delivery
2.3.2-Quality service delivery
CHAPTER THREE
METHODOLOGY
3.1 - Introduction
This chapter explains the methodology that will be used in the study. It is a systematic study of methods
that will be applied within the discipline. It will facilitate development of thinking to observe the field
objectively. (Kothari, 2004) observe that when employed properly, the methodological approach is capable
of enabling researchers attain their long time puzzling objectives, answer related questions and test various
hypotheses. The ensuring sections of the methodology will include the research design, population of the
study, sampling procedures, sampling size, data collection methods and instruments, validity and reliability,
data analysis, ethical consideration, and the limitations of the study
3.2-Research Design
The research will use cross sectional survey where the entire district will be looked at in its totality. Data will
be qualitatively and quantitatively collected and analyzed. The researcher has chosen cross sectional
survey because according to Neale, Thapa, & Boyce (2006), cross sectional survey provide much more
detailed information that what is available through other methods, such as case study do not provide. It
allows researchers to present data collected from multiple methods
Quantitative data will provide information about relations, comparisons, and predictions of the links
among the variables being studied (Huberman & Miles 1994). Similarly, qualitative data will be generated
from face-to-face interviews and will enrich the quantitative data. It will also help in describing the
association among the different variables.
3.3- Population of the study
The study will target heads of departments and sectors, and all the technical staff under their departments.
These groups are considered relevant in that they are the main decision and policy-makers of the district on
issues of public finance compliance, accountability management and service delivery.
Table: 3.1 Study Population
S/no
Departments
Population
Heads of
Technical
Elected
departments
staff
leaders
Total
1
Administration
01
29
00
30
2
Finance and Planning
01
14
00
15
3
Council and Statutory Bodies
01
05
40
46
4
Production and Marketing
01
19
00
20
5
Community Based Services
01
17
00
18
6
Health
01
24
00
25
7
Natural resources
01
04
00
05
8
Works
Technical 01
07
00
08
119
40
167
and
Services
TOTAL
08
Source: Extract from Principal Human Resource Office, 2016
3.4 - Sampling Procedures
Stratified random sampling techniques will be used. Respondents will be drawn from the list selected for
the study. After selection, every tenth name will be chosen from the list of the members .The rationale for
using the sampling method is based on the research design. Random selection will ensure that the sample
selected is a good representation of the study population. Random selection also minimizes the chances
that those selected are not only from one section of the study population.
3.5 - Sample size
Formulae formulated by Yamane (1967:886) n=N/1+Ne2. is used to determine the sample size
Here: n=Desired population
N=Population
e=Level of significance (0.05)
n=N/1+Ne2
n=167/1+100(0.05)2
n=167/1+100(0.0025)
n=167/1+0.25
n=167/1.25
n=134
Table 3.1: Selection of respondents
S/no
Departments
Sample
Heads of
Technical
Elected
departments
staff
leaders
Total
1
Administration
01
29
00
30
2
Finance and Planning
01
14
00
15
3
Council and Statutory Bodies
01
05
30
36
4
Production and Marketing
01
10
00
11
5
Community Based Services
01
11
00
12
6
Health
01
20
00
21
7
Natural resources
01
04
00
05
8
Works
Technical 01
03
00
04
08
96
30
134
and
Services
TOTAL
Yamane (1967:886) n=N/1+Ne2
3.6 - Data collection methods and Instruments
Data will be collected both from primary and secondary sources. Overall, three methods namely; individual
in-depth interviews, self-administered questionnaires and document analysis will be used to gather the
information required for this research.
3.6.1- Interviews
In-depth interviews will be conducted with key informants. In this case the interviews will be administered to
departmental staff, CDO’s, elected leaders and heads of departments.
Face to face verbal discussions with respondents will also be used to collect data. An interview
scheduled will be developed after seeking appointment with the respondents. The interviews are expected
to be useful in eliciting qualitative information relating to the variables under study in Nwoya District Local
Government. The interviews will help to cross validate the information that will be provided by the
respondents.
3.6.2-Questionnaires methods
These will be structured questions filled by the respondents at their own time. It will target members of the
PDC. This will be done for the purpose of filling in missing information as well as assessing specific
technical issues that the interviewing and document reviews may not be in position to provide.
3.6.3-Document reviews
Document analysis will be the major method of collecting secondary data. This will consist of desk review of
existing documents from sector/ line ministry reports, NGOs report, and workshop reports and writes ups,
monthly magazines. They will provide the statistical reviews which may give the latest information on public
finance compliance and accountability management in the district.
3.7 – Validity and Reliability
The questionnaires will be self administered and pilot tested to determine their reliability and validity. Data
collection instruments will be pre-tested to randomly selected respondents in Nwoya District before it could
be used in the field. The questions in the interview guide will be discussed with colleagues at the
workplace. The researcher will ensure that the dimension and elements of the study variables are well
delineated as recommended by Sekeran (2003).
3.8-Data Analysis
The study will use both qualitative and quantitative data. First the data that will be collected using
questionnaire will be analyzed using the computer soft ware SPSS 15.5 or descriptive statistics and
analysis methods.
The use of correlation and regression analysis will be applied to determine the associations and
disassociations within the research variables
3.9 - Ethical Considerations
In research, knowledge cannot be pursued at the expense of human dignity (Onen and Oso, 2008).The
informed consent of all participants will be sought before they participated in the research. A consent form
stating the aims of the study and the proposed use of the information collected will be presented and
explained to the respondents before the interviews. None of the participants will be subjected to
stigmatization as a result of statements they will make during both the individual interviews and the
questionnaires.
All participants will have the right to decline their participation in answering the questionnaires or to
be interviewed and or any activities related to this research. The results of the questionnaires and the
names of interviewees will be kept anonymous. In addition, participants will be advised about confidentiality
discussed during the interviews would be subjected to privacy measures contained in the consent form that
will be given earlier on.
3.10 - Limitations of the Study
This research may experience a few short comings. They include limitation in the sample size (100) which
appears to be rather small for results of the current study to be replicable outside the area. This challenge
will be overcomed by making recommendations for further research to be done on specific variables that
may not be exhaustively discussed.
The area of coverage may also rather be limited in reflecting the overall socio-economic situations
of the district under study. To resolve this limitation the researcher will select sub-counties with the highest
population and cases of lack of compliance.
Limitation in data collection because of time. This may be overcome by increasing the number of
research assistants to cover the 7 sub counties. Furthermore, some key informants who are planned for
may decline to provide information as requested. This challenge will be overcome by substituting those
informants with lower rank officers in the district.
REFERENCES
Government of Uganda, (1998).The Local Governments Financial and Accounting Regulations
Agaba, E & Shipman N. (2007).Public Procurement Reform in Developing Countries: The Ugandan
Experience, Kampala: fountain publishers Ltd
Ahuja, M.E (2005). Social Science and Research Conception, Methodology and Analysis. Kampala:
Makerere University.
Amin, A. E. (2004). Foundations of Statistical Inference for Social Science Research. Kampala: Makerere
University Press
Benjamin R Tukamuhabwa (2012) Antecedents and Consequences of Public Procurement Non-compliance
Behavior, Journal of Economics and Behavioral Studies. Kampala: fountain publishers Ltd
Busubya. R.N (2003), Mandates of Auditor General in value for money function, A journal Publication by
Ministry of Finance and Planning, Vol 2 Issue 14
Byekwaso .R (2008), A research entitled “Legal implications of the joint Capital Venture on entities” A
research published in fulfillment of the requirement for the award of an MBA of Uganda Christian University,
Nkozi, June, 2008. Creswell, J.W. (2005). Qualitative Inquiry and Design. Canada: Sage.
Eyaa, S. &Oluka, P. (2011). Explaining non- compliance in public procurement in Uganda. International
Journal of Business and Social Science, 2(11)
Government of Uganda, Local Governments Act (Amended) 2006. Kampala: Government of Uganda
Haruna, L, (2011), Government Implements Integrated Financial Management systems (IFMS), Ministry of
Finance and Economic Development, Kampala. 81
Hupkes, E., Quintyn, M., and Taylor, M.W., Accountability Arrangements for Financial Sector Regulators,
Washington: International Monetary Fund.
International Conference on the Global economy, IMF co-funded, Washington DC.
International Monitory Fund (IMF) (2012), Regional Economic Outlook, Washington DC.
John Okidi, Madina Guloba, 2006 Decentralization and Development: Emerging Issues from Uganda's
Experience Economic Policy Research Centre, Kampala: Macmillan.
Katumba .A (2012), Fundamental issues in the functionality of Financial and Accountability Laws in
Uganda. Decentralization secretariat, Kampala
Kelly D.T (2011), Africa must strive towards transparency and accountability, Journal of
African
Development Bank, Ethiopia.
Kothari, C.R. (2004). Research Methodology: Methods and Techniques. (2nded). New Delhi: New Age
International.
Krejcie, Robert V., Morgan, Daryle W.,(1970) “Determining Sample Size for Research Activities”,
Educational and Psychological Measurement, 1970
Leclerc, G., Moynogh, W.D., Boisclair, J-P, Hannson, HR. (2006) Accountability, Performance Reporting,
Comprehensive Audit – An Integrated Approach, Ottawa: Canadian Comprehensive Auditing Foundation.
Leedy, P.D &Ormorod, J.E (2001).Practical Research: Planning and Design. (7th Ed. Jersey: Prentice Hall.
Local Government Financial and accounting regulations (2007). Kampala: Government of Uganda.
Ministry of Local Government (2008) A report of Annual Assessment of Minimum condition and
Performance Measures for local Governments from 2005 to 2008. Kampala:
Mugenda, O.M &Muganda, A.G (1999).Research Methods Quantitative and Qualitative. 82
Neale, Ann & Anderson, Bruce. (2000). Performance Reporting for Accountability Purposes – Lessons,
Issues, Future, and Wellington: Office of the Auditor General. London: Common Wealth Secretariat.
Nick A.R, (2012), “African Growth, the Economic Perspective” A paper presentation at the
Oguchi. B (2006) “The Public Finance and Accountability Act” does its promulgation promote service
delivery in Uganda”? A paper presentation at the Finance Officers Association of Uganda (FOAU) retreat at
Rider Hotel, Jinja, Uganda.
The Local Government Act 1995 (the Act), and the associated regulations, continue to provide the
framework under which local governments in Western Australia operate. It should be noted that the Act was
amended in 2005, just prior to the former PAC’s investigation. While those amendments do not appear to
have been wholesale22, their impact could not have been effectively ascertained at the time of that report.
The Act and regulations have also been subject to regular amendments since the 2006 PAC Report,
including the introduction of numerous changes to
APPENDIX I: QUESTIONNAIRE
Dear Participant,
The purpose of this questionnaire is to provide the researcher with data for the study on “Public Finance
Compliance, Accountability Management and Service delivery in Nwoya District Local
Government”. The idea is to study how issues of public finance compliance and accountability
management affect service delivery in Nwoya District Local Government. The view is to provide
recommendations to improve compliance and accountability process and hence improved service delivery.
Because of your technical competence in this field, you have been identified as a resourceful person to
participate in this research. The information you are going to give will be treated with maximum
confidentiality it deserves and will be used strictly for the purpose of this research study.
Instructions:
Tick the right choice in the box provided
SECTION (A):
RESPONDENT’S BIO-DATA
Tick in the box the right choice:
Q 1. Sex:
Male
Female
Q 2. Number of years taken at the district (yrs):
Less than 5 years
5-10
10- 15
15 and above
Q 3.Present Department:
Finance
Administration
Community
Council
Production
Health
Natural resources
Works
Q 4. The level of Education obtained:
O’ Level
Diploma
A’ Level
Degree
Others (Specify)……………………………………………….......................................
Q5. Marital status:
Married
Single
Widowed
Divorced
Others (Specify)…………………………………………………………………………
Tick the right choice: in the Column provided (SD-Strongly Disagree, D- Disagree, DK- Do not
Know, A- Agree and SA-Strongly Agree)
SN
SECTION (B): COMPLIANCE IN PUBLIC FINANCE
SD
D
DK
A SA
SD
D
DK
A SA
Public finance laws
1
2
3
4
5
6
7
8
9
10
Public Finance Regulations
1
2
3
4
5
6
7
8
Public finance policies
SD
D
DK
A SA
Public finance procedures
SD
D
DK
A SA
SD
D
DK
A SA
1
2
3
4
5
6
1.
2
3
4
5
SECTION (C): ACCOUNTABILITY MANAGEMENT
Change in attitude
SD
D
DK
A SA
Competency of staff
SD
D
DK
A SA
Leadership
SD
D
DK
A SA
Training and Education
SD
D
DK
A SA
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
6
7
SECTION D: SERVICE DELIVERY
Timely delivery of services
SD
1
2
3
4
5
Quality of services
1
2
3
4
5
6
7
8
9
Thank you
D
DK
A SA
APPENDIX III: INTERVIEW GUIDE
I am a student of Gulu University pursuing a Masters Degree in Business Administration (MBA) and
conducting a study to investigate issues of Public Finance Compliance, Accountability Management and
Service delivery in Nwoya District Local Government. You are kindly requested to answer the following
questions according to your own perception of the subjects being investigated. All the information you will
provide will be treated with the highest level of confidentiality. So please spare some few minutes and
answer some few questions given below:
1. According to your observation do you think there is compliance in public finance management in Nwoya
District Local Government?
2. Which areas or departments are worst affected in terms of lack of compliance to public finance?
3. What do you think are the causes of lack of compliance in public finance laws, regulations and policies
among others?
4. What effects has this lack of adherence on public finance accountability management and service
delivery?
5. What are the steps being taken to address these problems of lack of compliance in public finance and
accountability management?
6. What has central government done in solving this problem in the district?
7. What recommendations can you give to address the problem above?
APPENDIX IV: RESEARCH TIME FRAME
Aug
Sep
Oct
Nov
Dec
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
2016
2016
2016
2016
2016
2017
2017
2017
2017
2017
2017
2017
2017
KEY
Proposal
writing
Data
collection
Data
analysis
Submission
of report
APPENDIX V: RESEARCH BUDGET
NO.
ITEMS
1.
DETAILS OF ITEMS
AMOUNT IN UGX
Stationary for data collection and 1. 3 reams papers each 10,000
60,000
recording
2. 1 flash disks
80,000
3. Writing Materials (Pens &
40,000
Books)
2.
Hired of Personal
1. 2 Research Assistants
400,000
each 50,000/= ,4 days
2. 1 Data Manager for 3
240,000
days each day 80,000/=
3.
Transport
Movement to and from the
600,000
research field
4.
Services
5.
Miscellaneous
Total
Printing @ 500
200,000
100,000
UGX 1,750,000