Effects of accounting systems on the performance of Local Governments: case study of Kanungu District Local Government

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Kampala International University; College of Economics and management
The study aimed at establishing the effects of accounting systems on the performance of Kanungu District Local Government (KDLG). The study was guided by three objectives namely: to identifY the contribution of accounting system used towards the performance of KDLG, to assess the effects o accounting system on the performance of KDLG and to suggest measures aimed at reducing the negative effect of the accounting system in KDLG. The researcher employed a description research design in gathering information where little knowledge was known. A cross sectional study design was used to survey both planned and unplanned organizations' units of Kanungu District Local Government The researcher used both simple random and purposive sampling in acquiring thirty five (35) respondents for the study. Both quantitative and qualitative data was collected and this enabled the researcher to draw valid and dependable conclusion and recommendation. The researcher used questionnaires and interview guide to acquire data from respondents. ln order for the researcher to obtain clear relationship between the variables, literature review from different books from different libraries in Kabale and Kanungu Districts and the web was obtained and recorded in Chapter two of this report. Results revealed beyond doubt that KDLG used cash basis as the type of accounting system and that it had benefited/contributed greatly towards the performance of the local government. It was conclude that the majority of the respondents did not realize any negative contribution of the cash basis accounting system. 97% of the respondents had only realized positive contribution of the cash basis accounting system. However, respondents confirmed that there were several challenges facing the cash basis accounting system that affected the performance of Kanungu District Local Government as presented in Figure 7 (Chapter four). The study came out with recommendations like:- the need for a clear manipulation of accounting templates for easy tracking of financial records, need to provide up-to-date books of accounts to empower the working staff to update their line of thinking towards reporting, analysis, preparation and retrieval of financial records among others.
A research report submitted to the College of Open and Distance Learning in partial fulfillment for the requirements for the Award of a Degree of Bachelor of Commerce of Kampala International University
Accounting systems, Performance of Local Governments, Kanungu District Local Government