The Role of Information Technology in Public Sector Financial Management

Abstract

The use of information technology-based financial management systems has increased in the public sectors with the intended effects of enhancing management controls through the production of timely and accurate information for decision-making and accountability. This study therefore examines the role of Information Technology in public sector financial management in Ghana. Based on a case study of the Controller and Accountant General’s Department (CAGD), theoretical insights of the duality of information technologies was used to explore the micro processes involved in the social interactions with an information technology tool known as Ghana Integrated Financial Management Information System (GIFMIS). The evidence from this case study revealed that, despite the immense benefits associated with the technology, the use of the system has been influenced by socio-economic factors that included: power struggles; opportunism; insufficient information technology skills and knowledge; and other negative users’ attitudes. Thus, it is recommended among others that since, the benefits achieved so far are in line with the desired outcomes of the GIFMIS, the Government of Ghana (GoG) should fast track the implementation of GIFMIS in all the Ministries, Departments and Agencies (MDAs) and Metropolitan, Municipal and District Assemblies (MMDAs) in the country. In addition, the GoG should create proper awareness of the GIFMIS concepts that will reduce possible sabotage and resistance by the users. Also, there should be training and sensitization on the need and appropriateness of the system and on how to use it well.