Investigation of financial management practices in local governments in Uganda: case of Wakiso district local government

Abstract

The study investigated financial management in Local Governments in Uganda, focusing specifically on Wakiso District Local Government. It was guided by three objectives: to examine the effectiveness of financial management practices, to evaluate the challenges in budget execution and resource allocation, and to analyze the strategies for improving financial management within the district. A descriptive, cross-sectional research design was employed using a quantitative approach. Data were collected from 78 staff members through structured questionnaires. The findings indicated moderate effectiveness in financial management practices, with strengths in timely budget execution (mean = 3.55, SD = 1.219), adequate staff training (mean = 3.51, SD = 1.133), and limited political interference (mean = 3.59, SD = 1.174). However, significant weaknesses were observed in financial reporting (mean = 2.59, SD = 1.074) and audit procedures (mean = 2.15, SD = 1.009), highlighting concerns over accountability. Budget execution faced challenges such as procurement delays (mean = 3.57), coordination inefficiencies (mean = 3.59), and delayed fund disbursement (mean = 3.46), compounded by poor community engagement (mean = 2.35) and staffing shortages (mean = 2.45). Recommended strategies included regular staff training (mean = 3.85, SD = 1.213), enhanced auditing functions (mean = 3.83, SD = 1.184), and adoption of performance-based budgeting systems (mean = 3.83, SD = 0.914). Strengthening monitoring systems received low support (mean = 2.23, SD = 1.184), indicating skepticism about their current effectiveness. Consequently, the study recommends comprehensive reforms aimed at improving financial management in Wakiso District Local Government. These include strengthening internal audit and financial reporting mechanisms through regular, integrated audits with feedback loops to enhance accountability and public trust. The study further advocates for standardized financial procedures, performance-based budgeting aligned with community priorities, regular staff training, timely and consistent fund disbursement from central authorities, and the integration of digital technologies for real-time financial transparency. Enhanced interdepartmental coordination, ethical governance to reduce political interference, and increased citizen participation in budgeting processes are also recommended to ensure fiscal decisions reflect grassroots needs and foster civic ownership. Subject keywords; Financial management practices, Local governments, Uganda, Wakiso district local government.