The management of financial records for accountability in the ministry of finance – Tanzania

Abstract

Financial records play a great role in the development of any nation. Proper financial records management can aid efficient management of national resources, by providing foundation for auditing and accountability. Various initiatives have been taken by the Tanzania Government to ensure proper management of financial records, however, the initiatives seem not to be adequate in enhancing accountability. The aim of this study was therefore, to investigate the management of financial records in the Ministry of Finance in Tanzania with a view to establish their importance in fostering accountability. The specific objectives of the study were to: establish the policies, systems, standards and procedures for the managing of financial records in the Ministry of Finance, establish the extent to which financial records were used to support accountability, ascertain the effectiveness of the financial records management system in meeting the requirement of accountability, identify the challenges experienced in the management of financial records and propose appropriate strategies for addressing the challenges facing financial records management in the Ministry of Finance. This research was based on qualitative approach. The study used purposive method to select Departments, Head of Departments and Action Officers to be included in the sample. Data were collected through interview and observation; triangulation method was employed to ensure validity and reliability of data. The findings showed that, financial records are useful in demonstrating accountability; there is lack of policy to guide the management of financial records; lack of trained staff, inadequate space and dedicated budget to support financial records management. The study concludes that financial records are important in fostering accountability. But, systems used to manage financial records were to some extent not adequate in demonstrating accountability, thus, some improvement are needed to enhance their effectiveness. Based on the above findings, the study recommends RAMD to: develop policy and guideline to govern management of financial records, develop records management training programme for accountants, advice the government to allocate special funds to facilitate the management of financial records and ensure that appropriate strategies for addressing various challenges are implemented. The government should also establish strong mechanism to safeguard financial information created in personal computer and the Ministry of Finance should establish centralized financial records management system to monitor all financial transactions undertaken by government institutions. This would ultimately improve financial records management and enhance its effectiveness in fostering accountability.