Government accounting system and the quality of financial reporting: a case study of Ministry of Water and Environment.

Abstract

The study was carried out with the purpose of examining the relationship between government accounting system and quality of financial reporting in government ministries in Uganda. The study was correlational and cross – sectional. Analytical survey design combined with descriptive and analytical methods was carried out on a sample of 180 staff and stakeholders of ministry of water and environment. Purposive sampling method was used to select the sample for the study because they were the key respondents with reliable information. Self administered questionnaires were employed to collect data. The results show that government accounting system explains 71% of the variance in the quality of financial reporting in government ministries in Uganda. However, the significant contributors to quality financial reporting were budgeting, receipts, expenditures and recording as measures of government accounting system. Since government accounting system has significant impact on financial reporting, government accounting should enforce efficient budget, receipts, expenditures and a recording system in order to support production of sound and qualitative financial reports to the different stakeholders.