The effect of financial management on service delivery in Masindi Municipal Council, Uganda

Abstract

This study was undertaken with the aim of establishing the effect of financial management on service delivery in Masindi Municipal Council (MMC). The study was guided by three specific objectives aimed at examining the effect of financial planning, financial control and financial monitoring on service delivery. The study was guided by the principal agency theory and many literature and academic publications from different authors about financial management and service delivery were also presented. The study was conducted as a cross-sectional study design employing both qualitative and quantitative research methods. Questionnaires, interview guides and documentary checklists were used to collect data from a total of 54 respondents (Masindi Municipal Council Principal Personnel’s Office, 2013) majorly consisting of executives and administrators, financial officers and Municipal Councilors. At the end of the study, it was established that financial planning significantly affects service delivery in MMC. For the second objective, the study found that financial control significantly affects service delivery in MMC. For the last objective, the study found that financial monitoring also significantly affects service delivery in MMC. It was thus concluded that financial planning, financial control and financial monitoring as key practices that are undertaken by the Council had led to improved service delivery. Thus, one of the key recommendations was that MMC needs to continuously involve all stakeholders in the financial planning and strategic plan development, employ management systems in financial control and monitoring of finances.