Acknowledgement

Thanks to God who make up all things possible. I take this opportunity to show gratitude to
Almighty God who provided me a good time and life during my studies at Tumaini
University- Iringa. I thank God for all who have played part in one way or another for the
accomplishment of this research paper.

I wish to show my gratitude to The Ministry of Education and Vocational Training for
allowing me to join Tumaini University-Iringa to study a Degree in Business Administration
(Accounting); and Mr. Gaitan F. Mwatenga the Head Master of Chidya Secondary School for
his corporation throughout the whole period of my stay at the college.
My special thanks go to my supervisor M/s. Neema Mwakatobe who through her constructive
criticism brought me this far. She introduced many things to me; read my research paper in
different stages and due to her encouragement, helpful remarks and guidance, this research
has reached this final stage.

I acknowledge the patience of my family, through their material support and prayers, I came
to realise my dream. May God bless all who contributed to my final accomplishment of my
studies; Amen.

i
 Dedication
This research paper is dedicated to my beloved wife Alice Sylvester and our lovely children
Innocent and Lawrence and my nephew Barongo for their prayers, good advice, support and
patience during my studies. To them I dedicate this work.

ii
 Copyright
© 2011 Charles Sylvester
All rights are held in reserve. No part of this work may be copied, take on, condensed or
translated, stored in any retrieval system, computer system; photographic, photocopying,
recording or other system or broadcasted in any way without a permission of the author
owner and Tumaini University – Iringa University College.

iii
 Supervisor Certification
The undersigned certifies that she has read and hereby recommends for acceptance by the
Tumaini University-Iringa University College (IUCO) a research paper titled “the assessment
of computer knowledge in the use of Integrated Financial Management Information Systems
by Financial Managers in Government Sectors: A case of sub Treasury and TRA Iringa
Municipality” to be submitted to Tumaini University – Iringa University College in partial
fulfilment for the requirement for the award of Bachelor of Business Administration
(Accounting) of Tumaini University-Iringa.

______________________________________
M/s. Neema Mwakatobe

Supervisor

Date____________________________________

________________________________________
Internal Examiner

________________________________________
Date

iv
 Declaration
I Charles K.S. Sylvester declare that this research is the result of my original work and
findings. Nevertheless it is with the exception of anywhere acknowledged.

Furthermore I declare that this research has not been presented to any other University for a
degree award or any other similar award.

_____________________________
Charles K.S Sylvester

Date_____________________________

v
 Abbreviations

IFMIS- Integrated Financial Management Information Systems

TRA- Tanzania Revenue Authority

RTD- Radio Tanzania Dar-es- Salaam

URT- United Republic of Tanzania

ICT- Information and Computer Technology

IS- Information System

OAS- Office Automatic System

TPS- Transaction Processing Systems

MIS- Management Information Systems

DSS- Decision Support Systems

ESS- Executive Support Systems

ES- Expert Systems

AIS- Accounting Information Systems

FMIS- Financial Management Information Systems

List Of Tables

Table 1; Age of respondents………………………………………………………………17

vi
Table 2; Education Levels of respondents…………………………………………...........18

Table 3; Respondents’ Genders…………………………………………………………...19

Table 4; Availability and accessibility of computers in government sectors……………20

Table 5; computer knowledge is used in managing finance……………………………..22

Table 6; computer skills by financial manager are prior to acquisition of jobs…………23

Table 7; Financial managers understand the importance of computer knowledge……...24

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 List Of Figures

Figure 1; Age of respondents…………………………………………………………….18

Figure 2; Education Levels of respondents…………………………………………........19

Figure 3;Respondents’ Genders………………………………………………………....20

Figure 4; Availability and accessibility of computers in government sectors…………..21

Figure 5; computer knowledge is used in managing finance…………………………..22

Figure 6; computer skills by financial manager are prior to acquisition of jobs………23

Figure7; Financial managers understand the importance of computer knowledge…….25

Table of Contents
Acknowledgement......................................................................................................................i
Dedication..................................................................................................................................ii

viii
Copyright..................................................................................................................................iii
Supervisor Certification............................................................................................................iv
Declaration.................................................................................................................................v
Abbreviations............................................................................................................................vi
List Of Tables...........................................................................................................................vii
List Of Figures........................................................................................................................viii
Abstract.....................................................................................................................................xi
CHAPTER ONE........................................................................................................................1
1.1 Introduction......................................................................................................................1
1.2 Background to the Problem..............................................................................................1
1.2 Statement of the Research Problem................................................................................2
1.4 Objectives of the Study....................................................................................................3
1.4.1 Main Objective..............................................................................................................3
1.4.2 Specific Objectives........................................................................................................3
1.5 Research Questions:.........................................................................................................3
1.6. Scope of The Study.........................................................................................................3
1.8 Significance of the Study.................................................................................................4
The researcher....................................................................................................................4
The Treasury.......................................................................................................................4
Academicians and Future Researchers...............................................................................4
1.9. Operational Definition of Terms.....................................................................................5
CHAPTER TWO:......................................................................................................................6
Literature Review...................................................................................................................6
2.0. Intrioduction....................................................................................................................6
2.1.0. Theoretical Literature Review......................................................................................6
2.1.3 Information Systems (IS)..............................................................................................6
2.1.5. Elements of an Information System.............................................................................7
2.1.6. Common Types of Information Systems......................................................................7
1.6.3. Management Information Systems (MIS)....................................................................8
2.1.6.4. Decision Support Systems (DSS)..............................................................................8
2.4.6.9. The Role of Financial Management in an Organization...........................................8
2.1.6.10. Integrated Financial Management Information System (IFMIS)............................9
2.1.6.11. The Role of IFMIS in Decision Making.................................................................9
2.2. Empirical Literature Review.........................................................................................10
CHAPTER THREE:.................................................................................................................11
Research Methodology.........................................................................................................11
3.0. Introduction...................................................................................................................11
3.1. Research Design............................................................................................................11
3.2. Research Approach............................................................................................................12
3.4. Target Population..............................................................................................................12
3.5. Sample Frame................................................................................................................13
3.5.2 Sample Size.................................................................................................................13
3.5.3 Sampling Techniques..................................................................................................13
3.6 Research Instruments.....................................................................................................13
3.7 Data Collection Methods................................................................................................14
3.9. Validity and Reliability..................................................................................................14
3.9.1. Research validity........................................................................................................14
3.9.2. Research reliability.....................................................................................................15
3.10. Data Processing and Analysis.....................................................................................15
3.11. Ethical Issues...............................................................................................................16

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CHAPTER FOUR....................................................................................................................17
Data Presentation and Analysis............................................................................................17
4.1 Introduction....................................................................................................................17
4.1.1. Age of respondents.................................................................................................17
4.1.2. Education level.......................................................................................................18
4.1.3. Respondents’ Gender.............................................................................................19
4.2 Findings..........................................................................................................................20
4.2.1 The availability and accessibility of computers in government sectors..................20
4.2.2. The extent to which computer knowledge is being used in managing finance in
government sectors...........................................................................................................21
4.2.3 Computer knowledge and skills acquired by financial managers in government
sectors prior to the acquisition of the job.........................................................................23
4.2.4 How well financial managers understand the importance of computer knowledge
in using IFMIS.................................................................................................................24
CHAPTER 5.............................................................................................................................26
5.0. Conclusion and Recommendations...............................................................................26
5.1. Conclusion.....................................................................................................................26
5.2. Recommendations.........................................................................................................27
APPENDIX I........................................................................................................................28
References............................................................................................................................28
APPENDIX II......................................................................................................................30
Academic Research Questionnaire......................................................................................30

Abstract
Rapid technological advancement since the end of the 20 th century has led to multiple
convergences of computing, telecommunications, and broadcasting. Computer innovation has

x
been advancing in both developed and developing countries although at varying degrees and
levels of intensity. In developed countries computer technology has been applied in different
sectors for a longer time than in developing countries to enhance effectiveness and efficiency
in economic, political, social and cultural sectors. In light of the importance of proper
financial management, computer education has become mandatory to the financial managers
both in public and private sectors. The study was conducted in Iringa Municipality taking the
Sub Treasury and TRA offices as the case to this research. The study was quantitative aiming
at assessing computer knowledge in the use of IFMIS by financial managers in government
sectors. This research is divided into five chapters: the first chapter is mainly about the
background and the statement of the research problem; the second chapter presents the
literature survey about the study as well as the research questions as per specific objectives
raised, while the third chapter indicates the methods and procedures which the researcher
used in carrying out the research and the population sample, the sample size as well as the
techniques which the researcher utilized in collecting and analyzing the data. The sample size
consisted of 40 respondents from both Sub Treasury and TRA in Iringa Municipality.
Chapter four presents the research findings, substantiation and discussion of results.
Generally, the study uncovered that, among other things, computer knowledge by majority
financial managers is not sufficient. This was evident concerning the levels of their education
and their computer knowledge prior to the acquisition of the job. Chapter five draws
conclusions and recommendations regarding the research findings; of which the most
important recommendation suggests the government should employ computer skilled
personnel to match the changing trend of the technological era.

xi
 CHAPTER ONE

1.1 Introduction
This chapter presents introductory information about computer knowledge in the use of
financial management information systems (IFMIS) by government sectors. The areas
covered in this chapter include the background to the problem, the statement of the problem
and the objectives of the study. Other sections are the significance of the study, the conceptual
framework and the delimitation of the study, the limitations of the study and the definition of
terms.

1.2 Background to the Problem.

Rapid technological advancement since the end of the 20 th century has led to multiple
convergences of computing, telecommunications, and broadcasting (URT, 2003). Computer
innovation has been advancing in both developed and developing countries although at
varying degrees and levels of intensity. In developed countries computer technology has been
applied in different sectors for a longer time than in developing countries to enhance
effectiveness and efficiency in economic, political, social and cultural sectors. (Mulamula
1998)

Max (2001) supports the idea that ICT has brought changes in many ways, particularly in
knowledge management, knowledge creation, information processing, storage, dissemination
of information and human resources management.

Marti (2006) asserts that the profound shifts undergone in the financial field must be viewed
in terms of the new possibilities that new technologies offer.
The use of ICT in government sectors is not quite new. In the late 1960s and early1970s
primary and secondary schools were provided with radios to enable pupils to listen to
educational programmes designed by the Ministry of Education in collaboration with Radio
Tanzania Dar es Salam (RTD) the state-run radio. The objective was to give teachers and
pupils access to more sources of information in a bid to enhance the quality education
Trucano et al, (2007) (eds.).

1
Financial decision making is an important managerial effort in any organization. This effort
requires accurate, timely and relevant information. According to Aminu (1986:172),
information systems are one of the major issues and indices of successful financial planning.
Where appropriate information required for planning is not available at the appropriate time,
organizations have a potential threat to poorly made decisions.
The more multifaceted an organization’s arrangement is, the greater the coordination within
and between sections and departments. Nevertheless, central to the needed coordination is
information. This observation is reinforced by Murdick and Ross (1971:14), when they
opined that information is very essential to the survival of any organization. As organizations
grow, complexity and an increased rate of change make appropriate information processing
capacity unavoidable, hence the need of management information systems which in turn
requires computer knowledge to the users.

Sadker and Sadker (2005) add that computer knowledge in financial management represents
a powerful tool to achieve financial control though; technologies in themselves do not change
personalities in any meaningful sense. It is thoughtful, caring and capable people who change
personalities sometimes with or without the help of technologies.

2
1.2 Statement of the Research Problem
The Importance of information declines over time. This implies that speed in gathering and
communicating information is vital particularly in financial management where money is at
stake. Where the appropriate information required for planning is not available at the
appropriate time, there is a possibility to be poor priority of needs, hence poor decisions.
There is a wide agreement that IFMIS, with their rapid ability to manipulate and summarize
enormous quantities of data, give financial planners the flexibility to explore the financial
effects of alternate strategies, hence enhance financial management by providing real-time
financial information that financial managers can use to make informed decisions, such as to
formulate budgets, and manage financial resources. However, notwithstanding its wide
number of tools and high capability to collect, process and provide timely and accurate
financial information, the computer knowledge of financial managers efficiently make the
most use of IFMIS to carry out their tedious daily tasks to enhance their decision making is
relatively unknown, leading to the need for this study.

1.4 Objectives of the Study

1.4.1 Main Objective

The general purpose of the study is to assess the computer knowledge in the use of integrated
financial management systems in government sectors.

1.4.2 Specific Objectives

The study had the following specific objectives:
1) To explore the availability and accessibility of computers in government sectors.
2) To examine the extent to which computer knowledge is being used in managing
finance in government sectors.
3) To asses the computer knowledge and skills acquired by financial managers in
government sectors prior to the acquisition of the job.
4) To examine how well financial managers understand the importance of computer
knowledge in using IFMIS.

3
1.5 Research Questions:

1) What is the level of computer knowledge acquired by the financial managers in

government sectors using IFMIS?
2) How do financial managers use computer knowledge in IFMIS?
3) How is the accessibility and reliability of computers in government sectors?
4) How important is computer knowledge to financial managers using IFMIS?

1.6. Scope of The Study

We cannot talk of everything at a time. Similarly, no research can cover every area of inquiry
at a go. Limits are needed to ensure a smooth movement in accomplishing assigned tasks.
Financial Management involves a number of tasks. However, because of time constraints, it
will be ineffective to explore how computer knowledge affects all financial management
tasks. For that reason, the study only focused on the computer knowledge of financial
managers in the use IFMIS, which enhances financial management decision-making as regard
to financial planning and capital budgeting. The researcher will choose this task among others
because it is paramount for any organization’s survival and success.

1.8 Significance of the Study

“All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to
inquiry, and inquiry leads to investigation.” This is Creswell (2003:96)’ famous maxim in
context of which the significance of research can well be understood. According to him,
research inculcates scientific and inductive thinking and it promotes the development of
logical habits of thinking and organization. Accordingly, these study findings are intended to
benefit the following categories of readers:

The researcher
The findings from the study have advanced the understanding of the researcher on the role of
computer knowledge in the use of IFMIS by government sectors in carrying out financial
management tasks. Moreover, the successful completion of this study is a partial requirement
for the award of the Degree in Business Administration of Tumaini University, Iringa
University College.

4
The Treasury
These findings from the study will assist the management of this sector to evaluate
themselves and seek how to improve on the computer knowledge in the use of IFMIS to
speed up financial functions and, hence, enhance the financial decision making.

Academicians and Future Researchers

These research findings will add to the knowledge of academicians and provide a foundation
for future researchers. They will serve as reference and guideline to those with intention to
push further on such an investigation.

iv. ICT Policy makers and Regulators

As far as Tanzania ICT environment is concerned, with in mind that Tanzania, in both public
and private sectors, is progressively investing in ICT by computerizing most of its services,
the findings from this study will serve as an indicator to the ICT policy makers and regulators
on how ICT is being adopted in government sectors, hence redesign ICT policies and
regulations accordingly.

1.9. Operational Definition of Terms

Confusion about the meaning of concepts can destroy a research study’s value without the

researcher’s or client’s knowledge. If words have different meanings to the parties involved,

then they are not communicating on the same wavelength. Definitions are one way of

reducing this danger as Cooper and Schindler (2003:45) argue. Therefore, for the purpose of

this study the following concepts mean the following:

The term ‘information system’ refers to a computer-based system, one that is designed to
support the operations, management, and decision functions of an organization, thus
providing information support for decision makers (O’Brien 2003:244).

Financial Management systems are computer-based systems that support financial managers
in decisions concerning (1) the financing of a business and (2) the allocation and control of
financial resources within a business. Major financial management system categories include

5
cash and investment management, capital budgeting, financial forecasting, and financial
planning, as O’Brien (Ibid) enlightens it.

A financial management information system or integrated financial management information

system (IFMIS) is an information system that tracks financial events and summarizes
financial information. In its basic form, an IFMIS is little more than an accounting system
configured to operate according to the needs and specifications of the environment in which it
is installed (Cartel, 1996)

Knowledge is defined by the Oxford English Dictionary as (i) expertise, and skills acquired
by a person through experience or education; the theoretical or practical understanding of a
subject; (ii) what is known in a particular field or in total; facts and information; or (iii) be
absolutely certain or sure about something.

CHAPTER TWO:

Literature Review

2.0. Intrioduction
While Bordens and Abbott (2002: 63) describe a literature review as the process of locating,

obtaining, reading, and evaluating the research literature in the researcher’s area of interest

Kombo and Tromp (2006:62) define the term ‘literature’ as the analysis of the textbooks or

manuscripts. Although many people rightly associate literature with novels and poetry, in

research the term is more specific. In terms of a literature review, “the literature” means the

works the researcher consulted to understand and investigate the research problem.

6
This chapter is divided into two main parts: theoretical literature review and empirical

literature review. With reference to Raymund (2001:54), while theoretical literature provides

scientific definitions of the major concepts describing the phenomenon being studied,

empirical literature describes what has been done to solve or address the illogical or

contradicting relationship in the phenomenon.

2.1.0. Theoretical Literature Review

Theoretical literature survey reviews several related and relevant literatures to the study in
hand. According to Goetz and Lecompte (1984:37), there are several important reasons for
conducting this literature review. The most important reason is to avoid needless duplication
of effort. No matter what topic, chances are that someone has already done research on it. By
becoming familiar with that area through a literature review, the researcher can avoid
‘reinventing the wheel.’

2.1.3 Information Systems (IS)

Davis (1985:33) describes a system as a set of components that operate together to achieve a
common purpose. Thus a management information system collects, transmits, processes, and
stores data on an organization's resources, programs, and accomplishments. Moor and
Richard (2000:47) went further by explicating that the system makes possible the conversion
of these data into management information for use by decision makers within the
organization. A management information system, therefore, produces information that
supports the management functions of an organization.

2.1.5. Elements of an Information System

Many people think of an information system as simply a computer and its associated
equipments. It is much more than that. In fact an information system does not really require a
computer. Burstein (1986:19) explains that long before computers were invented,
organizations devised systems to ensure the flow of information to those who needed it.
Today, computers greatly increase the speed and efficiency of that flow. At each stage –input,
processing, and output- a modern information system has five major elements: the people
who run or depend on the system; the organization’s rules and procedures; data or facts from

7
which information is drawn; software, or programs, that execute the organization’s rules and
procedures; and hardware, including a computer and peripheral equipments, that physically
handles and processes the data.

2.1.6. Common Types of Information Systems

There are two major ways to classify information systems. According to Thiel et al. (1999)
the first way is based on the use of the information systems at the different hierarchies of the
business and the other way focused on the different functions of the system. In the later case,
information systems are categorized according to three major types:
a. Systems for information retrieval. This system is concerned with database or
management information systems,
b. Systems for information processing. This system comprises of expert systems or
decision support systems,
c. Systems for information transfer, i.e. groupware, e-mail, and workflow systems.
On the other hand, with reference to Avison and Fitzgerlard (1995:66), information systems
can be classified into eight types. These include office automation systems (OAS),
transaction processing systems (TPS), management information systems (MIS), decision-
support systems (DSS), executive support system (ESS), expert systems (ES), Accounting
information systems (AIS), and financial management systems.

1.6.3. Management Information Systems (MIS)

A management information system is the dominant type of information system. O’Brien
(2003:297) stipulates that Management Information Systems or decision support systems
provide information in the form of reports. The reports can be produced in permanent form
by a printer or graphical output device, or displayed on a screen. Regardless of the medium,
the reports defer in terms of how often they are created, the degree of detail they show, and
the level of analysis they reflect.

2.1.6.4. Decision Support Systems (DSS)

Hammer (2001:7) describes Decision-Support Systems as systems intended to help individual
managers in their decision making capabilities. He argues that such systems need access to
the large information generated by office automation and transaction processing systems. He
further explains that such systems may use the whole range of facts about the organization, or

8
part of the organization, or sometimes relate to aspects external to the organization, that is, its
environment, to provide information to aid the decision maker. According to him, this system
is designed to enable managers to retrieve information, to use analytical decision modelling
tools and specialized database that help them to make decisions.

2.4.6.9. The Role of Financial Management in an Organization

According to Diamond (2005), financial management involves controlling, conserving,
allocating, and investing the organization's resources, including personnel, equipment,
supplies, and the non-monetary contributions of volunteers and donations. It goes beyond the
traditional accounting focus on recording and reporting of financial transactions, to focus on
analysis and decision making.

Financial management is about analyzing financial performance, identifying ways to use

resources efficiently, and finding creative ways to use resources to generate additional
resources. Ross, Westerfield and Jaffe (2002:74) outline financial activities as follows:
matching available resources to the activities planned by the organization; monitoring the
efficiency of current resources used; identifying ways to reduce and recover costs; finding
ways to finance new initiatives; identifying trends in past resource usage, in order to
determine future budget requirements, project cash needs, and forecast financial growth;
managing and investing current resources to make them profitable; developing long-term
financial plans to meet future resource requirements; controlling and attempting to prevent
major risks.

2.1.6.10. Integrated Financial Management Information System (IFMIS)

Cartel (1996:38) defines a financial management information system, or integrated financial
management information system (IFMIS), as an information system that tracks financial
events and summarizes financial information. In its basic form, an IFMIS is little more than
an accounting system configured to operate according to the needs and specifications of the
environment in which it is installed.
According to Diamond and Khemani (2005:62), the term “IFMIS” refers to the use of
information and communication technology in financial operations to support management
and budget decisions, and the preparation of financial reports and statements. The principal
element that “integrates” an IFMIS is a common, single, reliable platform database (or a
series of interconnected databases) to and from which all data in financial operations flow.

9
Integration is the key to any successful IFMIS. In a nutshell, integration implies that the
system has the following basic features: Standard data classification for recording financial
events; internal control over data entry, transactions processing, and reporting; and common
processes for similar transactions and a system design that eliminates unnecessary duplication
of data entry.
Casals (Ibid) explains that integration oftentimes applies only to the main financial
management functions that an IFMIS supports, but in an ideal world it would also cover other
information systems with which the core systems communicate, such as human resources,
payroll, and revenue (tax and customs). At a minimum, the IFMIS should be designed to
interface with these systems.

2.1.6.11. The Role of IFMIS in Decision Making

According to Ekwere (1990: 74), financial management information system is basically
concerned with the process of collecting, processing, storing and transmitting relevant
information to support the financial management operations in any organization. Thus, the
success of decision making, which is the heart of administrative, is highly dependent partly
on available information, and partly on the functions that are components of the process.
Adebayo (2007:228) stressed the need for FMIS in decision making as it provides timely and
accurate information that is needed for better decision making on the issues affecting the
organization regarding human and material resources

2.2. Empirical Literature Review

Despite the significant contribution of IFMIS in financial decision making as supported by a
number of authors above, the study which was conducted by Ajayi (2007:88) revealed that
computer knowledge was not adequate in the use of IFMIS to make decisions on long –term
planning in business organizations. It was found that less than 40% of the respondents
indicated that IFMIS was always used in making decisions on manpower projection, and staff
recruitment and not in financial management.
This shows that the level of utilization of MIS for decision making falls bellow expectation in
financial decision making.
It was also found out that information from MIS was not adequately used for administrative
decisions on short-term planning. On average, only 36% of the respondents indicated that
MIS was always used in making decisions on short-term planning.

10
The study also revealed that decisions on budgeting were to a little extent based on MIS.
Though, it is fairly better than other decision areas which were examined in that study. Based
on the findings of that study, computer knowledge was not adequate in the use of IFMIS for
decision making on financial planning and budgeting. The above findings bring about a
discrepancy between what is expected and the actual practice: scholars as learnt in the
theoretical literature survey, advocate for enough computer knowledge on the use o IFMIS, in
both public and private organizations enhances decision making for they provide timely and
accurate information that managers need to make informed decisions.

CHAPTER THREE:

Research Methodology

3.0. Introduction
This chapter gives an overview of the methods which were applied and procedures followed

in the whole process of the study. It stated not only the number of targeted respondents, but

also the criteria considered in selecting an appropriate sample and size of the population,

instruments which were used in collecting data.

3.1. Research Design

Research design is an important conceptual structure in any scientific inquiry. There are many

definitions of research design, but no one definition imparts the full range of important

aspects. It constitutes the blue print for the collection, measurement, and analysis of data. It

aids the scientist in the allocation of these limited resources by posing crucial choices: Is the

blueprint.

11
Kombo and Tromp (2006:70) define a research design as the structure of the research. It is

the “glue” that holds all of the elements in a research project together. There are a number of

types of research design. These include descriptive, experimental, case study, action research,

quasi-experimental design or explanatory, but to name few.

The research design that was used in this study is descriptive survey. Kerlinger (1973:111)

points out that descriptive studies are not only restricted to fact findings, but may often result

in the formulation of important principles of knowledge and solution to a significant problem.

The study aimed at collecting information from financial managers with the purpose to find

out and describe the extent of their computer knowledge in the use of IFMIS in financial

decision-making. The study population consisted of 20 employees of Sub-Treasury and 20

employees of Tanzania Revenue Authority (TRA) in Iringa. This sample consisted of all

financial managers for they are the right respondents in the sense that they are the only

employees in these organizations who have the computer knowledge and understanding of

the research problem in hand.

3.2. Research Approach

Academicians such as White (2000:24) distinguish two main research approaches namely

quantitative approach and qualitative approach. Quantitative research sometimes referred to

as positivist, is scientific in approach. It aims to be objective. It collects and uses numerical

data. Qualitative research takes the view that is very difficult for researchers to stand back

and be objective, since they are really part of the process being researched. This type of

research is sometimes called relativist or phenomena list. Likewise, according to Keppel

(1973:70), qualitative research seeks to describe and analyse the culture and behaviour of

humans and their groups from the point of view of those being studied while quantitative

research relies on the principal of verifiability. That means confirmation, proof, or

12
substantiation. Thus, this study is quantitative for it is objective by collecting primary and

secondary data and using numerical data to reach the conclusion through statistical proof. The

researcher used questionnaires to collect primary data while, for the case of secondary data,

he reviewed related literature from books and journals. Furthermore, the researcher used

percentages, and correlation analysis, which are mathematical and statistical treatment, to

help evaluate the results.

3.4. Target Population

The target population consisted of the employees of Sub-Treasury and TRA Iringa Region.

The researcher intended to sample this population because these sectors have long time

experience in IT applications. Therefore, the findings from these sectors represent others

countrywide. The whole study population consisted of 40 employees from which the

researcher drew the sample.

3.5. Sample Frame

White (Ibid) defines a sampling frame (synonyms: "sample frame", "survey frame") as the
actual set of units from which a sample has been drawn: in the case of a simple random
sample, all units from the sampling frame have an equal chance to be drawn and to occur in
the sample. In the ideal case, the researcher got the sampling frame from personnel officers
of Sub-Treasury and TRA. In this study, the sampling frame consisted of financial managers
at all managerial levels, i.e., top, middle and low level as well as IT department officers from
the two targeted organizations.

3.5.2 Sample Size

The sample size for this study consisted of forty respondents (40) from Finance and IT
department staff, which consisted of more than 10% of all employees as suggested by
Chrishnaswami (1998:183). He stated that a sample should not be less than 10% of the
population (i.e.10% of 204 employees), a strategy he called 1/10th rule.

13
3.5.3 Sampling Techniques
According to Kothari (2000), sampling is the process of obtaining information about an entire
population by examining only a part of it. In this study, since the population is small and
finite, 40 respondents were taken from Finance departments, the researcher used a non-
probability sampling, specifically the purposive sampling. In this method, the researcher
purposively targeted a group of respondents believed to be reliable for the study. In this study,
the researcher believed that the financial managers are the appropriate respondents to provide
representative data for the research problem, which calls for both ICT and finance skills and
experience.

3.6 Research Instruments

According to White (2000:28), research instruments include the following: questionnaires,
interview schedules, observations and focus group discussions. To carry out this study the
researcher used the questionnaires as the research instrument.

3.7 Data Collection Methods

In research, the term “data collection” refers to gathering specific information aimed at

proving or refuting some facts (Kombo 2007). The researcher used both primary and

secondary data. According to White (2002:31), primary data is information gathered directly

from respondents. It involves creating new data, while secondary data is information neither

collected directly by the user nor specifically for the user. It involves the collection of data

that already has been collected by someone else. This involves the collection and analysis of

published material, and information from internal sources.

In conducting this study the researcher obtained primary data through the distribution and

collection of questionnaires from respondents from Finance and Information Systems

departments from the Sub-Treasury and TRA in Iringa Region. The use of questionnaires is a

convenient method of collecting primary data due to the nature of the research design. The

study is descriptive. Therefore, questionnaires are the best method compared to other types of

data collection methods such as interviews or observations for the researcher needs to collect

14
standardized data describing the same phenomenon from the practitioners of the area of the

study, i.e. finance and ICT departments.

3.9. Validity and Reliability

A scientific inquiry is usually characterized by two elements: validity and reliability. With
reference to School of Education, Training and Development, University of KwaZulu-Natal,
(2003:70) we get the following explanations concerning research validity and reliability:

3.9.1. Research validity

When we refer to something as ‘valid’ in our daily conversations we often mean that it is
sound or justifiable. Essentially, this is what we mean if we ask if the research is valid – is the
research sound or justifiable? Is it believable? Can we trust it? Validity of a test is the
measure of how well a test measures what it is supposed to measure.
Validity can be categorized into:

Internal validity: it is essentially a measure of how accurate the research is. To ensure internal
validity, i.e. the accuracy, correctness or exactness of the research, the researcher targeted
respondents who are direct users of IFMIS; these are financial managers.
External validity: it refers to the degree to which results can be generalized to the wider
population. Findings from this study can be generalized to the wider population because the
sample size consisted of all available respondents in the field of interest. Therefore, the
sample size was representative of the whole population.

3.9.2. Research reliability

According to Cohen Manion Morrison (117) as cited in School of Education, Training and
Development, University of KwaZulu-Natal (2003:700), for a research to be reliable, it must
demonstrate that if it was carried out on a similar group of respondents in a similar context,
then similar results will be found. Reliability is a measure of how consistent the results from
a test are. If you administer a test to a subject twice, do you get the same score on the second
administration as you did on the first? The reliability of the test is the answer to this question.
In order to ensure the reliability of the research findings, the researcher designed the
questionnaires in a simple short format, hence not boring with simple sentence language to

15
avoid respondents’ confusion. Additionally, the researcher conducted a pre-testing of
questionnaires. The researcher randomized questions, and set cross-checking questions.

3.10. Data Processing and Analysis

With reference to Phillips (1971:205) once the data begin to flow in, attention turns to data
analysis. If the project has been done correctly, the analysis planning is already done. The
first step in data analysis is data preparation. This step consists of data editing, coding, and
entry. The second step is preparing a descriptive statistical summary, which is a preliminary
step leading to an understanding of the collected data.
In analyzing the data for this study, after having collected the questionnaires, the researcher
started by editing them. This involved cleaning data, detecting errors, omissions and
correcting them when it is possible to make sure the data are accurate, consistent with the
intent of the questions, uniform, complete and well arranged for coding because the data was
entered into SPSS software for processing.
Next, the researcher prepared a code book for the variables so as to enter them into SPSS
spreadsheet. Coding involved abbreviating the variables so that they could fit into the SPSS
spreadsheet columns and assigning numbers to various variables to facilitate the data entry,
e.g. 1=female and 2=male for gender, specifying whether the variable is numeric or
alphanumeric.

3.11. Ethical Issues

As in other aspects of business, all parties in research should exhibit ethical behaviour.
According to Crano and Berdie (1975:60), ethics are norms or standards of behaviour that
guide moral choices about our behaviour and our relationships with others. The goal of ethics
in research is to ensure that no one is harmed or suffers adverse consequences from research
activities. In due course of collecting data, the researcher adhered to the following ethical
standards: He designed anonymous questionnaires to ensure confidentiality and no part of the
collected data was used otherwise apart from academic purpose. The researcher respected
respondents and respected their freedom as to when to complete the administered
questionnaire.

16
 CHAPTER FOUR

Data Presentation and Analysis

4.1 Introduction
In this chapter, findings and analysis are presented according to the research objectives. The
general purpose of the study was to assess the computer knowledge in the use of integrated
financial management systems in government sectors. Specific the study had the following
objectives:
1) To explore the availability and accessibility of computers in government sectors.
2) To examine the extent to which computer knowledge is being used in managing
finance in government sectors.
3) To asses the computer knowledge and skills acquired by financial managers in
government sectors prior to the acquisition of the job.
4) To examine how well financial managers understand the importance of computer
knowledge in using IFMIS.
The information presents general description of the respondents, data analysis and findings.
General description of respondents is presented in order to help the reader to get the general
picture of respondents. The result from this study provides the general picture of the
computer knowledge in financial management in public sectors using IFMIS in Tanzania.

4.1.1. Age of respondents

Table1: The age of respondents
Age Frequency Percentage

17
 25-35 20 50
35-45 9 22.5
35-55 11 27.5
Total 40 100
Source: Field Data 2011

FIGURE 1: The age of respondents

50
45
40
35
30
25 Frequency

20 Percentage

15
10
5
0
25-35 35-45 35-55

The data collected shows that 50% are from the age of 25-35; this was the age range of many
employees in finance management of the studied sectors. Another group ranged from the age
of 35-45 which comprised of 9 respondents making up 22.5% and the last group comprised of
the age group of 45-55 which comprised of 11 respondents making up 27.5%.

4.1.2. Education level

Table 2: Education level of the respondents
Education level Frequency Percentage
Certificate 10 25

18
 Diploma 11 27.5
Advanced Diploma 8 20
Bachelor Degree 6 15
Post Graduate Diploma 5 12.5
Master Degree 0 0
PhD 0 0

Total 40 100

FIGURE 2: Education Level of respondents

30
25
20
Frequency
15
Percentage
10
5
0
te a a e a e
m om gre om gr e PhD
ii ca p lo
f pl e l e
rt Di Di ip
Ce d or D e D er D
e el t t
nc ch ua as
va a ad M
B r
Ad tG
s
Po

Source: Field Data 2011

Here is education level of respondents which shows 11 (27.5%) of the respondents were
Diploma holders, 10 (25%) of respondents were certificate holders, 8 (20%) were Advanced
Diploma holders; 6 (15%) were Bachelor Degree holders, 5 (12.5%) were Post Graduate
Diploma holders and there were no Master Degree or PhD holders in both sectors that were
studied. The researcher therefore found it helpful regarding the education of financial
mangers and the level of the responsibilities accorded to them in regard to the use of IFMIS.

4.1.3. Respondents’ Gender

Table 3: Gender of respondents
Gender Frequency Percentage

19
 Male 25 62.5
Female 15 37.5
Total 40 100

Figure 3: Gender of Respondent

70

60

50

40 Male

30 Female

20

10

0
Frequency Percentage

Source: Field Data 2011

The above table and figure present the gender of respondents, males and females. 62.5
respondents were men of different ages consisting of junior and senior financial managers;
the same to 37.5% of women, they also held different positions of decision making in the
studied sectors.

20
4.2 Findings

4.2.1 The availability and accessibility of computers in government sectors

Below is the table that presents the findings obtained from the questions about availability
and accessibility of computers in government sectors. The questions were asked in form of
statements and respondents were asked to show their responses in form of agreeing or
disagreeing with the statement, and being indifferent as well; when one was not sure of the
answer.
Table 4: Availability and accessibility of computers in government sectors
Option Frequency Percentage
Agree 13 35
Indifferent 20 50
Disagree 7 17.5
Total 40 100

Figure 3: Availability and accessibility of computers in government sectors

50
45
40
35
30
25 Frequency

20 Percentage

15
10
5
0
Agree Indifferent Disagree

Source: Field Data 2011

According to the table and figure above, 50% of the respondents were indifferent as regards
to the availability and accessibility of computers in the government sector meaning they
neither agreed nor disagreed that all government sectors have good and efficient computer

21
systems aimed at easing the work ahead of them, 13 (35%) of the respondents agreed that
there are enough computers and are accessible in the sectors studied, while 7 (17.5%) of the
respondents disagreed that there were no computers and if there were some, they were not
accessible to all financial mangers. This shows that the computers in government sectors are
not enough, and the few that are there are not accessible to every one. This implicates thus,
that, the government should make sure all the sectors dealing with finance are facilitated with
enough and good computer to help them in the execution of their jobs and in particular the
use of IFMIS

4.2.2. The extent to which computer knowledge is being used in managing finance in
government sectors
The table shows the responses obtained from questions that sought to know the extent to
which computer knowledge is being used in managing finance in government sectors.

Table 5: Computer knowledge is used in managing finance in government sectors

Option Frequency Percentage
Agree 30 75
Indifferent 4 10
Disagree 6 15
Total 40 100

Figure 5: : Computer knowledge is used in managing finance in government sectors

22
 80

70

60

50

40 Frequency
percentage
30

20

10

0
Agree Indifferent Disagree

Source: Field Data 2011

The table number 5 above points out the extent to which computer knowledge is put to use in
managing finance in government sectors. 30 (75%) of the respondents agreed that computer
knowledge prays a big role in managing finance in public sectors through the use of IFMIS.
This section was intended to measure the computer knowledge of financial mangers and how
essential is it to proper use of IFMIS. This however is contradictory to the computer
knowledge acquired by employees as indicated in the education background of respondents
as some were certificate holders having no computer training, and the third section which
asked to know the skills and knowledge they had attained before being employed in their
respective positions. There were some who did not have any computer training before joining
the institutions. This was solved by the sectors internal arrangements of having their workers
trained on the use of computers and in particular the use of IFMIS in managing finances. This
was the response to the section whether the sectors have any training programmes aimed at
equipping their workers with the necessary computer knowledge and skills in the use of
IFMIS.

4.2.3 Computer knowledge and skills acquired by financial managers in government

sectors prior to the acquisition of the job.
Table 6: Computer skills by financial managers is prior to the acquisition of job

Option Frequency Percentage

23
 Agree 34 85
Indifferent 0 0
Disagree 6 15
Total 40 100

Figure 6: Computer skills by financial managers is prior to the acquisition of job

90
80
70
60
50
Frequency
40 percentage
30
20
10
0
Agree Indifferent Disagree

Source: Researcher’s Findings

Under this section, the researcher asked questions that sough to know whether financial
mangers had acquired any computer knowledge and skills prior to the acquisition of the job.
As indicated in the above table, almost all respondents, 34 (85%) of the respondents agreed to
have acquired computer knowledge and skills before being employed. 6 (15%) of the
respondents however, said they did had not attained any computer training and had no skills
as per the use of computer is concerned. There were no respondents who were not decided on
this section, meaning they either had acquired the knowledge and skills or had not as the
response shows. This was a big challenge to them as they needed to be acquainted with the
demands of the job that required computer knowledge. They had to go through internal
training programme on how to use computers.

24
4.2.4 How well financial managers understand the importance of computer knowledge
in using IFMIS.
Under this section, the researcher put statements to respondents that required them to agree or
disagree with the functions of IFMIS though the use of computers they used and how useful
was the computer knowledge to them in executing their duties. The statements comprised
accounting, preparation of budgets, balance sheet preparation, cash payment controls, and
cash receipt management and revenue administration. The responses were summarised in the
table below. Under this section, almost all the respondents knew the importance of computer
knowledge and skills in the use of IFMIS. This is shown by the response rate of respondents
where 36 (90%) of the respondents agreed to the statements that were directed at the
functions of IFMIS that require computer knowledge. Only 10% were not sure of the
responses but the picture is clear here that the effective use of IFMIS depends on the
knowledge and skills one has as computer use and knowledge is concerned.

Table 7: Financial managers understand the importance of computer knowledge in using IFMIS.
Option Frequency Percentage
Agree 36 90
Indifferent 4 10
Disagree 0 0
Total 40 100

Figure 7: Financial managers understand the importance of computer knowledge in using IFMIS.

25
 90
80
70
60
50
Frequency
40 percentage
30
20
10
0
Agree Indifferent Disagree

Source : Researcher’s Findings

The responses to the above statements, showed almost all the respondents agreeing to them
that they understood the importance of computer knowledge in effective the use of IFMIS.
This is shown as 36 (90%) agreed with t he statements showing the use of IFMIS that require
computer knowledge, however, there were 4 (10%) who were not sure of the response to the
statements and did not choose either response. There were no any respondent who disagreed
with the statements on the importance of computer knowledge in the use of IFMIS as in the
above table.

26
 CHAPTER 5

5.0. Conclusion and Recommendations

5.1. Conclusion
The aim of this study was to assess computer knowledge in the use of integrated financial
management information systems in government sectors. Specifically the research sought, to
explore the availability and accessibility of computers in government sectors, to examine the
extent to which computer knowledge is being used in managing finance in government
sectors and to asses the computer knowledge and skills acquired by financial managers in
government sectors prior to the acquisition of the job, to examine how well financial
managers understand the importance of computer knowledge in using IFMIS.
The questionnaires, was used as the only method of data collection.

In the first objective, the research revealed that even if there are computers in the government
sectors, still there is a deficiency in numbers as there were people who were not sure whether
there are computers or not in government sectors. In the second objective, the research
examined the extent to which computer knowledge is being used in managing finance in
government sectors and the results were clear that the need of computer knowledge in the use
of IFMIS is of great importance as depicted by the response rate of 75% of the respondents.
However, as shown above, there were some contradictory and mixed feelings mostly
concerning the levels of education attained by respondents by the time of their employment.
The other objective sought to asses the computer knowledge and skills acquired by financial
managers in government sectors prior to the acquisition of the job: most respondents did say
that they joined their respective jobs with some knowledge of computer however internal
training was more influential in regard to the use of IFMIS. The research in examining how
well financial managers understand the importance of computer knowledge in using IFMIS,
found it to be important as IFMIS is computer dominated. The knowledge of computer plays
a big role in implementing financial decisions and management.

27
5.2. Recommendations
The research has revealed that, computer knowledge is very important as is essential in the
effective use of IFMIS in government sectors. As it has been seen through the obtained data, I
recommend that, the government should endeavour to equip all its sectors with enough
computers to be accessible to all the employees handling finances.
The internal training of the sectors should focus on providing enough training for the
employees handling finances in the sectors to implement the use of IFMIS in handling
government coffers.
The government through its recruiting policies should make sure the employed financial
mangers have the appropriate knowledge of computer and are trained particularly on the use
of IFMIS as the benefits have been highlighted in the literature review.
Other studies should be done on the effectiveness of using IFMIS in public sectors in
handling public funds mostly with the technological advances of today’s world.

28
 APPENDIX I

References
White, B. (2000:24) Dissertation Skills: For Business and Management Students,
London
O’Brien J.A. (2003:244), Introduction to Information Systems, 11th Edition
Murdick, G.V.and Ross, F.A. (1971:14), Information Systems for Modern
Management.
Systems as Institutional Reform: The Case of Guatemala’s SIAF, World Bank

Case Study.

Moore, T and Richard. J. (2000:47), Implementing Integrated Financial Management

Kothari, C.R. (2000; 68), Research Methodology, Methods and Techniques, 2nd New
Delhi Introduction.. Pauline Publishers.
Kombo, D.K and Tromp, D.L.A (2006:70) Proposal and Thesis Writing: An
Kerlinger, F. (1973:111), Foundations of Behavioral research. New York: Basic
Cliffs, N.J, Prentice Hall
Keppel, G. (1973:70), Design and Analysis: A researcher’s handbook. Englewood
Unpublished Ph.D. Thesis, University of Ibadan, Ibadan.
Universities. The Case Study of Cross River State, University of Uyo.
Ekwere, C.E. (1990: 74), Evaluation of Management Information Systems in
Information Systems in Developing Countries, International Monetary Fund.
Diamond, J, and Khemani, P. (2005:62), Introducing Financial Management
and Research Design, 5th Ed, Sage Publisher.
Crano, W.D. and Berdie, D.R. (1975:60), Creswell, J. (2003:96), Quantitative Inquiry
Bustein, J.S. (1986: 393), Computers and Information Systems, New York
Burstein, J.S (1986:17), Computers and Information Systems, New York
Approach, 5th Ed. Indiana University
Bordens, K.S. and Abbott B.B. (2002: 63), Research Design and Methods, A Process
Ekiti:
Adebayo, F.A. (2007:228) Management Information System for Managers. Ado-
Cooper D.R. and Schindler, P.S., (2003:45), Business Research Methods, 8th Ed.
McGraw-Hill Higher Education

29
Hammer, M. (ibid), the Agenda: What Every Business Must Do to Dominate the Decade.
Crown Business.

Chrishnaswami (1998:183), Methodology of Research in Social Sciences, Himalaya

Publishing House, Bombay

Casals, A. (2004: 409) Integrated Financial Management Systems Best Practices:

Bolivia and Chile, USAID

30
 APPENDIX II

Academic Research Questionnaire

Dear Respondent,

I am Mr. CHARLES SYLIVESTER a BBA (Accounting) student, at Tumaini University

College, Iringa. The completion of the programme requires undertaking a research in the area
of interest. Therefore, this questionnaire is a research instrument intended to capture the
research data from you as you are experienced in this field. The questionnaire consists of 13
questions divided into two sections, A and B and it can take you hardly 2 minutes to finish
answering them.

My study is about assessment of computer knowledge in the use of integrated financial

management information systems (IFMIs) by government sectors. It specifically targets
Finance and Information Systems (IS) staff at managerial levels. The research is purely an
academic undertaking thus; no part of information sought will be used for non-academic
purpose. I guarantee anonymity and confidentiality.

For an inquiry, please, contact me at: Mobile: 0767 494589 or, 0655 494589

Thank you.

Section A: Personal Information

a) Gender: □ Male □ Female

b) Level of Education: □ Certificate □ Diploma □ Advanced Diploma □Bachelor
Degree
□ Post Graduate Diploma □Masters □PhD
c) Department/Section:…………………………………………………
d) Level of Management (Top, middle, low level)…………………………………………
e) Designation:……………………………………………………………………………..

31
f) Duration of employment with this organization (please, tick the appropriate box):

Less than 1 year Between 1 – 3 years

Between 4 – 6 years More than 6 years

Section B: The following part seeks to understand the access to and type of financial
information accessed, assistance of IFMIS to financial Management in decision making,
and general understanding of IFMIS functions by financial managers.

1. Which type of Financial Management Information Systems (IFMIS software) do you use
in carrying out your financial tasks? (E.g. Epicor…):
……………………………………………….

Please, circle the number that applies: 1=I strongly agree 2=I agree 3= I am indifferent 4=
I disagree 5 = I strongly disagree

Qn Statement Options
2 Financial managers have access to financial information database through 1 2 3 4 5
their office computer terminals at any time they wish to do so.
3 My office computer is connected to the financial database through the 1 2 3 4 5
local network
4 I can access financial information in the financial database directly from 1 2 3 4 5
my computer while I am in my office.
5 The Chief Financial Officer is able to access data of any Finance 1 2 3 4 5
Department/section over the network from his/her office computer.
6 The type of information from the financial database which is accessed by 1 2 3 4 5
financial managers differs according to their different managerial levels.
7 Data entered into the system from different sections data entry terminals 1 2 3 4 5
are compiled and stored in the central financial database.
8 The IFMIS users get trainings so as to know how to use this software (i.e. 1 2 3 4 5
IFMIS)
9 All users of the IFMIS in this organization are provided user’s manuals 1 2 3 4 5
for reference in case of need so as to learn more how to use this IFMIS.

32
10. Among the tasks listed below, which tasks do you perform most? Please, tick all that
apply):

Accounts payable management Inventory levels management

Balance sheet preparation Income statement preparation
Bank reconciliation preparation Cash flow statement preparation
Comparative financial statements Revenue administration
preparation
Forecasted Balance sheet Capital expenditure budgeting
preparation
Forecasted Income statement Preparation of Forecasted Statement
preparation of cash flows
Cash receipts management Cash payments control
Ratio analysis of forecasted financial Cash budget preparation
statements
Ratio analysis of the financial Accounts receivable management
statements
What-if analysis modeling Sensitivity analysis
Other(s) (Please, mention):
……………………………………………………………………………………

11. Among the tasks listed below, for which task(s) do you use the IFMIS tools to
prepare them? (Please, tick all
that apply):
Accounts payable management Inventory levels management
Balance sheet preparation Income statement preparation
Bank reconciliation preparation Cash flow statement preparation
Comparative financial statements Revenue administration
preparation
Forecasted Balance sheet Capital expenditure budgeting
preparation

33
 Forecasted Income statement Preparation of Forecasted Statement
preparation of cash flows
Cash receipts management Cash payments control
Ratio analysis of forecasted financial Cash budget preparation
statements
Ratio analysis of the financial Accounts receivable management
statements
What-if analysis modeling Sensitivity analysis
Other(s) (Please, mention):
……………………………………………………………………………………

12. The IFMIS of this organization has the following features:

The IFMIS of this organization has tools for budget preparation
The IFMIS in this organization has tools to generate projected (forecasted)
cash flows.
It generates timely and current information to users
It generates relevant information as required by different managers as per
their managerial levels
It generates accurate and adequate information
It offers complete information to users
Other(s) (Please, mention other features which are not mentioned here):
………………………………………………………………………………
………………
………………………………………………………………………………
………………

13. Please, circle the number that applies: 1=I strongly agree 2=I agree 3= I am indifferent
4= I disagree 5 = I strongly disagree
Qn Statement Options
I Financial managers have enough computer knowledge to handle the use 1 2 3 4 5
of IFMIS.
2 There are internal computer training programmes for all financial mangers 1 2 3 4 5
to familiarize them with the use of IFMIS.

34
3 The organization has education schemes directed at the use of IFMIS. 1 2 3 4 5
4 Employees employed in the finance department are computer illiterate. 1 2 3 4 5

35