Fiscal Accountability and Performance of Mbale District Local Government

Abstract

The research was undertaken to investigate on fiscal accountability and performance of local governments. It was guided by three objectives; to find out the effect of internal controls on performance of local governments, to analyze the effect of auditing on performance of local governments, to assess the effect of stakeholder engagement on performance of local governments. 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 shows that internal controls positively (Beta=0.153) predicts the performance of local governments and effect is significant at p-value < 0.05. by 9.9%, Results of the second objective reveals that auditing on positively (Beta=0.224) predicts the performance of local governments and effect is significant at p-value < 0.05 by 7.8% while results of the third objective show that engagement (Beta=0.091) predicts and affects their performance of local governments. However, its effect is insignificant at p-value > 0.05 by 3.5%. It can be concluded that internal controls have a significant effect on performance of local governments, auditing affects performance of local governments and lastly stakeholder engagement has a significant effect on performance of local governments. The district should involves a multi-faceted approach that includes regular risk assessments to identify vulnerabilities, establishing clear policies and procedures, and ensuring proper segregation of duties to prevent errors or fraud. Continuous training and development of staff on internal control practices are essential to maintain awareness and adherence.