Evaluating the Effectiveness of Integrated Financial Management Information Systems in Enhancing Financial Reporting Quality in Public Institutions

Abstract

Digital transformation has become a critical driver of efficiency and transparency in public sector accounting worldwide. In Ghana, the introduction of the Ghana Integrated Financial Management Information System (GIFMIS) represents a key step toward improving financial reporting accuracy, accountability, and resource management. However, financial discrepancies persist post-implementation. This study, therefore, examines the level of adoption of GIFMIS in public institutions and also investigates the relationship between digital accounting and the accuracy of financial reporting in Ghana. The study adopted a mixed-method design. Data were collected from forty-four (44) accounting and finance professionals, purposively selected from twenty (20) ministries, departments, and agencies in Ghana. A structured questionnaire was used to collect data, employing five-point Likert scales to measure constructs such as GIFMIS implementation quality, perceived usefulness, perceived ease of use, actual system usage, contextual factors, and financial reporting accuracy. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) and thematic methods to test hypothesised relationships among the study variables.

The findings revealed a fragmented and constrained adoption of GIFMIS, with an implementation friction paradox indicating a complex, mediated relationship between GIFMIS and Financial Reporting Accuracy. The quality of GIFMIS implementation significantly influences financial reporting accuracy, with perceived usefulness, ease of use, and actual system usage mediating this effect. Contextual factors such as staff competence and infrastructure were found to moderate these relationships. The results suggest that effective adoption of digital accounting systems enhances financial reporting accuracy only when supported by adequate training, user acceptance, and institutional capacity.