FINANCIAL MANAGEMENT AND SERVICE DELIVERY IN LOCAL GOVERNMENT SYSTEMS IN UGANDA: A CASE STUDY OF LIRA DISTRICT

Abstract

The purpose of the study was to establish the relationship between financial management and service delivery in Local governments of Uganda using Lira District as a case study. The study was aimed at achieving the following objectives: To examine the relationship between financial planning and service deliveries in Lira District. To assess the relationship between financial mobilization and service delivery in Lira District, to investigates the relationship between financial control and service delivery in Lira District. The study adopted a case study research design, where quantitative and qualitative approaches were employed. The District political leaders, RDC, CAO, Head of Departments, the Sub-county political leaders, and technical staff and parish development committee (PDCs) were part of the study population. Data were collected using questionnaires, interview guide and documentary checklist and analyzed using linear regression, financial planning had no significant relationship on service delivery; financial mobilization had significant relationship with service delivery and financial control had no significant relationship on service delivery. Hence, it was concluded that there was a significant relationship between financial management and service delivery in the sectors of health, education and water. Recommendations were made mainly focusing on the need to improve service delivery through efficient and effective financial managements. District council and sub county councils were recommended to ensure that there is regular monitoring of approved projects to avoid shoddy work and ensure value for money. Local government public accounts committee (LGPAC) should increase the number of sitting to examine audit reports and other report of commissions of inquiry. Besides, the Chief Administrative Officer (CAO) should ensure that financial advances given for activities are accounted for immediately after implementation.