Value for Money Audit and Financial Reporting in Local Governments: A Case of Mbale District

Abstract

This research report was undertaken to examine the value for money audit and financial reporting in local governments; the study was carried out using three objectives namely; to analyze the effect of accountability on financial reporting of Mbale district, to determine the effect of risk management on financial reporting of Mbale district, to assess the effect of economy on financial reporting of Mbale district. The researcher used a sample size of 36 respondents and used questionnaires to collect data and later the data was analyzed using the statistical package for social sciences (SPSS). Results of the first objective showed that accountability has a significant effect on financial reporting of Mbale district. Supported by the following responses; 44% strongly agreed, 22% agreed to the statement that respondents ensure that actions and decisions of management team are transparent; 25% strongly agreed, 19% agreed to the statement that employees help in reducing corrupt practices within the organization. Results of the second objective revealed that risk management affects financial reporting of Mbale district. Supported by the following responses; 14% strongly agreed, 28% agreed to the statement respondents identifying potential risks early enough, 44% strongly agreed, 11% agreed to the statement that employees ensures adherence to regulations and standards, avoiding legal and financial penalties , it can be observed that 14% strongly agreed, 42 agreed to the statement that respondents build confidence among stakeholders by demonstrating a proactive approach to managing risks, Results of the third objective showed that economy affects financial reporting of Mbale district. 14% strongly agreed, 47% agreed to the statement that respondents gain from job creation, 14% strongly agreed, 33% agreed to the statement that respondents enjoy higher living standards. Mbale district should establish clear policies and procedures that align with regulatory standards and best practices to ensure transparency and accuracy in their financial statements. Regular internal and external audits can help identify discrepancies, enforce compliance, and deter fraudulent activities. Implementing strong internal controls, such as segregation of duties and proper documentation, minimizes the risk of errors and misconduct.