The Influence of Financial Reporting on Service Provision within Bushenyi-Ishaka Municipality, Uganda

Abstract

This research delved into the impact of financial reporting on service provision within Uganda's Bushenyi-Ishaka Municipality. Despite governmental efforts and legislation aimed at enhancing service delivery, the actual status remains notably deficient in this specific region. Consequently, the study sought to uncover the influence of fiscal, operational, and integrated financial reporting on service provision, areas that have largely lacked exploration. The research framework was rooted in Agency Theory and executed through a targeted population of 100, with a scientifically determined sample size of 80. Respondents were selected via simple random sampling, and data collection employed a questionnaire with robust reliability (0.89) and validity (0.76) measures. Analysis was conducted utilizing SPSS software, employing multiple regression analysis after validating all regression assumptions within acceptable limits. The findings revealed a robust regression model (R = .986) explaining 97.1% of the variability in service delivery (R2 = .971). Specifically, fiscal financial reporting (t = 8.479, P = .000, P < .05) and operational financial reporting (t = 3.288, P = .002, P < .05) significantly influenced service delivery, whereas integrated reporting exhibited insignificance (t = .075, P = .940, P > .05). As a result, the study concluded that fiscal and operational financial reporting wielded considerable impact on service provision, while integrated financial reporting demonstrated minimal effect. In light of these conclusions, the study recommended the implementation of an automated reporting system. These findings hold relevance for government bodies, researchers, and the Bushenyi-Ishaka Municipality, offering valuable insights for improving service delivery. Keywords: Fiscal financial reporting, operational financial reporting, Integrated financial reporting, Service delivery