Application of an Integrated financial Management system in Tanzania

The government of Tanzania, through the Treasury, introduced an Integrated Financial Management System (IFMS) since 1998. The aim was to improve management of the government expenditure and revenue as well as assisting the Treasury to consolidate financial transaction information. Despite having full computerized financial system the government is still facing some weaknesses which include unexplained paper works in most of government offices; bad audit certification; late production of audit reports; and non-incorporation of some donor funds in the government's consolidated reports. This study sought to investigate achievements of FMS' objectives and thereby suggest the best ways to improve the system. Samples were collected from ten MDAs. Whist primary data were analyzed in Statistical Package for Social Scientists (SPSS) secondary data were analyzed in spread sheets, and all hypotheses were thereafter tested in the linear regression model. Less achievement was found in donor funds management but great achievements were found quality of reporting, timely reporting; excess votes reduction as well as transparency in expenditure. IFMS was found to be the most effective tool in managing public finances. Recommendations included auditing through computers; intensive training to government staff; having reliable power supply as well as realistic budgeting.