Accountability and Financial Performance of Public Universities in Uganda: A Case Study of Busitema University.

ABSTRACT This study was conducted in Tororo with specific reference to Busitema University and the study topic was: "Accountability and Financial performance of public Universities in Uganda." The main objective of this study was to establish the relationship between accountability and financial performance of public Universities in Uganda, and how the government can ensure better, improved and effective performance of public Universities in Uganda. The justification of this study was that a number of public universities in Uganda experience accountability problems due to poor controls and governance and these impacts negatively on the general institutional performance. The study is therefore necessary today because there is need to improve accountability so as to improve upon the general performance of public universities in Uganda. There was therefore need for a study to fill this knowledge gap by coming up with findings and recommendations to improve the status quo. Analytical, explanatory and descriptive approaches were used together with randomization methods and purposive sampling as a non-randomization technique; as broad methodological approaches to this study's conceptualization and execution. Data was be obtained by use of self-administered questionnaires and key informant interviews from primary sources while secondary data was be captured. from various compendia with relevance to the study subject at hand. Triangulation of these approaches was aimed at yielding validity and reliability of data mass. Data was be analyzed and correlated using correlation coefficient will be used to establish the relationship between Accountability and the financial performance of Public Universities in Uganda. This study's findings entailed the following: from the perspective of the key informants that were purposively selected and the general respondent ship that were randomly selected, the effect of accountability on the financial performance of Busitema university was profiled and mapped as xi follows: from the viewpoint of key informants: Proper accountability ensures improved financial performance (84%), Financial statements are measures of the organizational performance in relation to its financial structure (98.2%) and internal control system provides management with reasonable assurance that proper accountability will be ensured (100%). Although these other occurrences and phenomena can't be wholly attributed to accountability, there is nevertheless other factors that affect financial performance such as ethical staff and budgeting.

TABLE OF CONTENTS

DECLARATION ................................................................................................................................ i

APPROVAL ...................................................................................................................................... ii

DEDICATION .................................................................................................................................. iii

ACKNOWLEDGEMENT ................................................................................................................ iv

TABLE OF CONTENTS ................................................................................................................... v

LIST OF TABLES ............................................................................................................................ ix

LIST OF FIGURES .......................................................................... · .................................................. x

ABSTRACT ..................................................................................................................................... xi

CIIAPTER ONE: .............................................................................................................................. 1

1.0 Introduction: ................................................................................................................................. 1

1. 1 Background to the study: .............................................................................................................. 1

1.1. l Historical Background: ............................................................................................................... 1

1. 1.2 Theoretical or Conceptual Background: .................................................................................... 2

1.1.3 Contextual Background ............................................................................................................. 3

1.2 Staten1ent of the proble111 .............................................................................................................. 4

1.3 Purpose of the study .................................................................... , ................................................. 5

1.4 Objectives of the study ................................................................................................................. 5

1.5 Objectives of the study ................................................................................................................. 5

1.6 Research hypothesis ...................................................................................................................... 5

1.7 Justification ofthe study ............................................................................................................... 6

1.8 Scope ofthe study ......................................................................................................................... 6

1.8. l Content/Subject Scope ............................................................................................................... 6

1.8.2 Geographical Scope ................................................................................................................... 6

1.8.3 Tin1e Scope ................................................................................................................................ 6

1. 9 Conceptual fra111ework ................................................................................................................ 7

1.9.1 Significance of the study ........................................................................................................... 8

V

ClIAPTER TWO .............................................................................................................................. 9

LITERATURE REVIEW ................................................................................................................ 9

2.0 Introduction ................................................................................................................................... 9

2.1 Accountability ............................................................................................................................... 9

2.2 Corporate governance ................................................................................................................. I 0

2.2.1 Policy and decision 1naking ..................................................................................................... 13

2.3 Financial perfonnance ................................................................................................................ 13

2.4 Control procedures and effectiveness of internal controls ......................................................... 14

2.5 Relationship between internal control and accountability .......................................................... 15

2.6 Relationship between Accountability and financial performance .............................................. 16

CIIAP1'ER TlIREE ........................................................................................................................ 17

METIIODOLOGY ......................................................................................................................... 17

3.0 Introduction ................................................................................................................................. 17

3.1 Research Design ......................................................................................................................... 17

3.2 Target Population ........................................................................................................................ 17

3.3 Sa1npling Procedure .................................................................................................................... 18

3.4 Data Collection ........................................................................................................................... 19

3.4. l Prin1ary Data ............................................................................................................................ 19

3.4.2 Secondary Data ........................................................................................................................ 19

3.5 Techniques of data collection ..................................................................................................... 19

3.5.1 Questionnaires ......................................................................................................................... 19

3.5.2 Face to face Interviews ............................................................................................................ 19

3.5.3Observation ............................................................................................................................... 20

3.6 Data Analysis .............................................................................................................................. 20

3.7 Lin1itations .................................................................................................................................. 20

vi

ClIAPTER FOUR .......................................................................................................................... 22

PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS .......................... 22

4.0 Introduction ................................................................................................................................. 22

4.1 Response rate .............................................................................................................................. 22

4.2 Demographic Information of Respondents ................................................................................. 22

4.2.1 Gender of Respondents ............................................................................................................ 23

4.2.2 Age group respondents ............................................................................................................ 24

4.2.3 Highest level of Education ....................................................................................................... 25

4.2.4 Current Position of Respondents ............................................. '. ............................................... 27

4.3 Objective One: ............................................................................................................................ 28

4.4 Objective Two: ........................................................................................................................... 29

4.5 Objective Three: ......................................................................................................................... 31

4.8 I--Iypothesis .................................................................................................................................. 34

CIIAPTER FIVE ............................................................................................................................ 35

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS ....................... 35

5.0 INTRODUCTION ...................................................................................................................... 35

5.1 SUl .MARY OF FINDINGS ...................................................................................................... 36

5.1.1 How accountability benefits public education institutions ...................................................... 36

5.1.2 Measures of financial performance in an institution ............................................................... 36

5.1.3 Relationship between Accountability and financial performance ........................................... 37

5.2 CONCLUSION .......................................................................................................................... 37

5.2.1 Benefits of accountability public institutions .......................................................................... 37

5.2.2 Measures of financial performance in an institution ............................................................... 38

5.2.3 Relationship between Accountability and financial performance ........................................... 38

5.3 RECOMMENDATIONS ............................................................................................................ 38

5.3.1 Benefits of accountability public institutions .......................................................................... 38

5.3.2 Measures of financial performance in an institution ............................................................... 39

5.2.3 Relationship beteen Accountability and financial performance ........................................... 39

5.4 AREAS FOR FURTHER RESEARCH .................................... .-................................................ 39