Factors Negatively Affecting the Effective Implementation of Integrated Financial Management Information System (IFMIS) at Planning and Development Commission of Ethiopia

Abstract

The Planning and Development commission of the Federal Democratic Republic of Ethiopia has been implementing the Integrated Financial Management Information System (IFMIS) since May, 2017 as its public financial management system. The reason why the Planning and Development commission adopted the use of this system was as a result of the numerous advantages from its effective use. However, in the past, one and half year of implementation, this system has not been able to fully provide the expected uses of IFMIS. This research study has tried to identify the factors negatively affecting the effective implementation of IFMIS at Planning and Development Commission of Ethiopia. The study mainly covered 6 directorates/departments of Planning and Development commission, where 45 respondents were involved and data was collected using a questionnaire. In this study, four factors that affecting the effective implementation of IFMIS were examined,; Institutional commitment and change management factor , staff capacity and staffing factor, ICT facility set up, Software know-how and system complexity factor; and Staff resistance factor. To analyze the effects of the factors, descriptive statistics were used; frequency, mode and percentage were used to analyze the opinions of respondents on the selected factors. To identify the correlation of variables, a non-parametric Pearson's correlation was used. The study established that the effective implementation of IFMIS is affected largely by low institutional commitment and change management. The study has also determined low software know how of staffs, interrupted power supply and internet connectivity accounted for Poor ICT facility set up have also affected the effective implementation of IFMIS. The inadequate staff capacity and poor staffing process in the commission were also found to be contributing factors. Regarding system complexity, this study paper only determined that IFMIS is neither a complex nor a friendly system based on the computed data. Finally, the study also identified staff resistance is among the factors hindering the effective implementation of IFMIS. This research study recommends that the people, process and system readiness aspects of the institution should be re-build. A system of top management's proper and timely follow up has to be developed. The IFMIS system has to be mainstreamed as public financial management tool. On job training sessions has to be given for all end users of IFMIS on the IFMIS software and procedures; and basic financial management system principles as well. The staffing arrangement should be taken in to re-consideration and thorough staffing should be done. A reliable power supply back up system and uninterrupted internet connectivity facilities should be installed and developed in the commission. Finally, awareness creation session should be prepared in order to change the negative attitude of staffs on IFMIS.