Integrated Financial Management Information System Project Implementation in Ghana Government Ministries

Introduction

Although the aim of financial management among state institutions is to prevent wasteful spending, loss of resources through fraud, irregularities, and improper spending with the aim of reducing cost (Simon et al., 2012), the public institutions in the low-income countries are characterized with poor financial management systems design (Zeng et al., 2010). These systems lack critical functionalities, including automated bank reconciliation, audit trails, systems documentation, data checks, and internal controls (Diamond & Khemani, 2006). Poor financial management systems have poor response time, limited ability to generate reports, and weak access security controls, which can lead to low financial management performance (Zeng et al., 2010). But the use of integrated financial management information systems can improve processes (Zeng et al., 2011) and productivity (Sampaio et al., 2012) in public institutions.

Countries around the world are modernizing and enhancing public financial management (PFM) systems (Joshi, 2010). This comes as a result of the desire on the part of international donors and financial organizations to institutionalize financial transparency and auditability (Asif et al., 2010) with the goal of fostering responsible governance. Since 1984 the World Bank has promoted integrated financial management information system (IFMIS) as the core component of reforming PFM in low-income countries (Combaz, 2015). The Bank has financed 121 PFM projects, including 86 completed and 35 on-going projects, spending over 3.5 billion USD (World Bank, 2015). An integrated financial management information system is an integrated technical package that computerizes budget management and accounting system for governments (World Bank, 2015). Unlike non-integrated systems that are characterized with high levels of complexities, inconsistencies, and excessive bureaucracy in internal financial management (Sampaio et al., 2012; Zeng et al., 2010), a fully functioning IFMIS can improve public financial management. An integrated financial management information system can provide real-time financial information that managers can use to formulate budgets, manage resources, and administer programs effectively, comprehensively, transparently, and securely (Almeida et al., 2014; Combaz, 2015). IFMIS solutions can significantly improve the efficiency and equity of government operations. It offers a great potential for increasing participation, transparency and accountability (World Bank, 2015), which in turn leads to reducing corruption by increasing the risks of detection (Chêne, 2009).