AN EMPIRICAL ANALYSIS FOR MEASURES OF FINANCIAL ACCOUNTABILITY IN TANZANIAN LOCAL GOVERNMENT AUTHORITIES

Abstract

Following the crucial roles played by the Local Government Authorities in ensuring citizens’ social well-being, the current study intends to identify the key measures of financial accountability as a pillar of a sound public expenditure management system. A sound public expenditure management system needs to consider key attributes of financial accountability to overcome misuse of public resources. To achieve this objective, the researcher collected primary data using structured questionnaires from selected twenty-eight local governments, comprising all types of councils, viz., city councils, municipal councils, town councils and district councils. Key respondents were council directors/heads of departments, accountants, internal auditors, planning officers, procurement officers and ward councillors. Using SPSS, the multinomial logistic regression model revealed that financial reporting, auditing, internal control mechanisms and participatory budgeting were the key measures of financial accountability. Moreover, the findings revealed that financial reporting and participatory budgeting significantly contributed positively to local governments’ improvement of financial accountability. To improve local government operations, local government officials were recommended to focus on the identified measures to ensure that provision of public social services is efficient and effective. This mechanism is significant in controlling mismanagement of financial resources, corruption and other misappropriations of public funds.