PRELIMINARY STUDY ON THE FACTORS AFFECTING THE IMPLEMENTATION OF INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM IN ETHIOPIA: A CASE OF ADDIS ABABA UNIVERSITY.

Abstract

Integrated Financial Management Information System (IFMIS) plays great role in supporting financial management decisions, fiduciary responsibilities and preparation of auditable financial statements. Ethiopia, recognizing such benefits, has started the implementation of IFMIS in its public finance management since 2010, and currently, Ethiopia is piloting the implementation of IFMIS at selected government institutions including at the Addis Ababa University (AAU). However, the implementation of IFMIS at AAU may be challenging as different factors could affect its success. This study was, therefore, planned to identify factors that could affect the implementation of IFMIS at AAU. In order to achieve the set objective a cross-sectional study was conducted on 86 staff the Finance and Procurement departments of AAU using census sampling. Thereafter, structured questionnaire and focused group discussion were employed the collection of relevant data. Descriptive and inferential statistics were used for the analysis of the data using the Statistical Package for Social Sciences (SPSS).The response rate of the respondents of this study was 72% and was satisfactory to make conclusions for the study. The descriptive analysis indicated that respondents agreed (Mean ≈ 2) to the proposition that employees resist IFMIS for fear of making mistake and as there was no promotion for the fast learner. Thus, staff resistance was negatively associated (r = -0.249; p < 0.05) with the IFMIS implementation. The descriptive analysis revealed that the respondents agreed (mean ≈ 2) with the idea that the University lacks proper training program for the use of IFMIS. Moreover, the association between capacity and technical skills, and the implementation of IFIMIs was positive and statistically significant (r =0 .306; p < 0.01). The descriptive analysis showed that respondents agreed (Mean ≈ 2) to the suggestion that management lacks the drive to inspire the use of IFMIS. The commitment of management was positively associated (r =0 .320; p < 0.01) with the implementation of IFMIS. The descriptive analysis of the respondents on their views as to whether the system was complex was uncertain (mean ≈ 3). Moreover, the association between complexity of the system and IFMIS implementation was not statistically significant (r =0. 185; p = 0.089). In conclusion, this preliminary study indicated that staff resistance, capacity and technical skills, and commitment of management affected the implementation of IFMIS at the Addis Ababa University, suggesting for taking appropriate correction measures timely.