Determining the Relationship between Financial Reporting and Financial Accountability in Bushenyi District Local Government, Uganda

Abstract

In recent years, the implementation of Integrated Financial Management Information Systems in terms of financial reporting has become critical for promoting transparency, enhancing financial oversight, and improving resource management in government sectors worldwide. Recognizing its potential, this study investigated the impact of financial reporting on financial accountability in Bushenyi District Local Government, Uganda. Employing a quantitative approach, a sample of 124 respondents from a population of 185 completed self-administered questionnaires, and statistical analysis revealed a significant positive relationship between financial reporting and financial accountability (r= 0.557, p = .000). The study concludes that financial reporting positively influences financial accountability, enabling the government to assess the efficiency and effectiveness of financial reporting and compliance with financial policies, facilitating informed decision-making, and highlighting the role of financial reporting in preventing and detecting fraudulent practices in government sectors. The study recommends simplifying financial planning, streamlining financial reporting systems, strengthening internal control mechanisms, and providing targeted training programs for staff to ensure effective management of public funds, thereby enhancing financial accountability and improving the management of public resources in Bushenyi District Local Government.