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.