Factors Influencing Transparency In Preparation And Presentation Of Financial Statements In Local Government Authority: A Case Of Dodoma Muniparity

ABSTRACT

This study examined the influence of transparency in preparation and presentation of financial statements in local government authorities. Particularly, the study wished to establish whether participation of the public in local government finance decisions enhanced transparency. Further, the study explored both the advantages of transparency and challenges facing finance departments of local government authorities in the course of preparing and presenting financial information. The study employed an explanatory case study research design, cross-sectional survey design and applied a triangulation of methods to collect both qualitative and quantitative data. The study setting as well as participants were all selected based on the opportunity to learn and the typicality of Dodoma municipality. A total of 90 respondents were involved in responding to both quesionnaires and questionnaire interviews. Data analysis was done through SPSS and microsoft excel, particularly for quantitative analysis. Figures, tables, pattern matching, comparison and strong explanation building all aided in simplifying the analyses of findings. Key findings of the study unveiled that participation of the public in finance affairs of local governments heightened transparency in the preparation and presentation of financial statements. Furthermore, the finding reveal that International Finnancial Report Standards (IFRS) was rarely applicable during the preparation of financial statement. It was also found out that tansparency in financial matters reduced fraudulent behaviours in the allocation and expenditure of local government funds. Further, it was obseved that finance departments of local governments sustained many challenges including political pressures, corruption and lack of professional qualified staff. The study winds up recommending stern measures that will ensure political pressures do not influence financial decisions. Important also, is that the central government in collaboration with local governments should take well informed but prompt measures to stop the earning of dirty documments by the latter.