Department of Accounting

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Critical External Institutional Pressures towards Effective Implementation of IFRS in the Tanzanian Private Hospital Sector
(2020-01-20) Mbelwa, Latifa; Mahangila, Deogratius Ng‘winula
Critical External Institutional Pressures towards Effective Implementation of IFRS in the Tanzanian Private Hospital Sector Latifa Hamisi Mbelwa16 Deogratius Ng‘winula Mahangila17 Abstract This paper reports the findings of a study that investigated the critical external institutional pressures-related factors in emerging economies that influence the effective implementation of International Financial Reporting Standards in the private hospital sector. The study had employed an explanatory research design that entailed the collection of 72 questionnaires from ten major private hospitals in Tanzania. The data were then subjected to multiple linear regressions. The study established four critical external factors to influence the effective implementation of International Financial Reporting Standards. These factors are pressure from successful hospitals; pressure from lending and financial institutions; International Financial Reporting Standards requirements; and the National Board of Accountants and Auditors’ pronouncements. In the meantime, pressure from donors and the Tanzania Revenue Authority seemed to have moderate and weak influences, respectively. In a broad sense, the findings revealed the role of New Institutional Sociology in advocating for the influence of coercive pressures associated with financial resources dependence from lending institution; and normative institutional pressures associated with the role of local and international accounting boards in issuing pronouncements. However, the strong influence comes from memetic pressures associated with the modelling of successful organisations practices through employees transfer and turnover in such competitive and private natural environment, which result in the shaping of the private hospital sector towards effective implementation of International Financial Reporting Standards. On the whole, the paper highlights critical external institutional pressures for International Financial Reporting Standards effective implementation in an emerging economy using the case of Tanzania in which the private hospital sector is backing the public hospital sector. Keywords: International Financial Reporting Standards, Institutional Pressures, Private Hospital Sector and New Institutional Sociology
Investigation of the institutional and decision-usefulness factors in the implementation of accrual accounting reforms in the public sector of Tanzania
(Journal of Accounting in Emerging Economies, 2014-03-12) Mbelwa, Latifa; Adhikari, Pawan; Shahadat, Khandakar
Purpose The purpose of this paper is to investigate the factors that have resulted in the effective implementation of accrual accounting reforms in the Central Government of Tanzania. Design/methodology/approach The paper relies on the ideas of institutional theory and some aspects of decision-usefulness so as to delineate the external pressures enforcing the Government of Tanzania to embrace accrual accounting and the factors complicating its implementation at organisational level (within government entities). The authors draw on quantitative techniques and the explanatory and cross-sectional survey research strategies and methods for data analysis. Findings Our findings suggest that the coercive pressures from donors and auditors along with the normative pressures surfaced by the training of employees generate a significant impact on designing the effective administrative model of accrual accounting. In a lesser extent, pressures from the National Board of Accountants and Auditors and cultural factors are positively correlated to the implementation of accrual accounting in the Tanzanian context. Of the factors the authors examined, the management changes are proved to be least effective. Unawareness of the key stakeholders has caused weak political and regulatory commitments. Accrual accounting implementation is further exacerbated by inadequate technical and personnel competence. Ultimately, the implementation of the accrual accounting has increased significant managerial accountability though a major segment of such behaviour is unexplained by the factors the authors employed in the study. Practical implications The effective implementation of accrual accounting relies on improvements in cultural and human-related issues. What is important to understand is that accrual accounting is more of a management reform incorporating changes in broader aspects of institutional and accountability mechanisms, rather than just an adoption of particular accounting technologies. Without such broader changes, accrual accounting reforms can be detrimental providing the technocrats and government officials with a space for manipulating financial information, Tanzania serving as an example. Originality/value The study highlights the case of an emerging economy in which accrual accounting is actually in effect and has impacted on managerial accountability, but is struggling to engender intended results and outcomes at organisational level.
Accounting choices and their determinants in Oil and Gas Activities of Global Major Companies
(Business Management Review, 2019-01) Chalu, Henry
One of the two objectives of this study was to determine whether there is significant variation in accounting treatment choice of oil and gas activities of major oil and gas companies, and the second objective was to identify critical factors for accounting choice. To achieve the objectives, the study collected data from 25 major oil and gas companies using a checklist of items (index) which was used to review accounting policies covered by the financial statements of these companies. The data collected was analysed using both descriptive and inferential statistics whereby non-parametric tests were used. The study findings show that in case of accounting treatment choices, there are significant variations in accounting treatment on oil and gas activities. In case of determinants, the study found that company size has influence on initial measuring decommissioning liability, using proved reserves as basis for unit of production, using fair value as well as recognition of both cash payments and value of future assets in case of unproven reserves. Company location was found to have influence on use of LIFO to value inventories, not recognising deferred taxes at initial recognition of decommissioning liability, use of proved reserves as a basis for unit of production, recognition cash payments received only in case of unproven reserves, as well as application of successful efforts method. Duration was found to influence the use of reducing balance method to depreciate its assets as well as not recognising deferred taxes at initial recognition of decommissioning liability. The study suggests that accounting standard setters have to strike a balance between harmonisation and accounting flexibility, to ensure that accounting data is both comparable and informative.
ANTECEDENTS OF PERCEIVED AUDITORS’ VIS-À-VIS PRESSURE GROUPS’ POWER IN PUBLIC SECTOR: A CASE STUDY OF DAR ES SALAAM
(University of Dar es Salaam Business School, 2017-06-30) Bahati, Victor
This paper examines the usefulness of auditors-versus-pressure groups’ power in enforcing accountability in the public sector. The paper demonstrates mobilisation and lobbying model and uses data, collected from Dar es Salaam, Tanzania, to test the significance of difference in the perception of accountants and nonaccountants of the pressure groups. Many-Whitney U-test was used to determine the similarity between the two groups, with the factor analysis being deployed to establish the underlying factors for pressure groups’ popularity over auditors. The study found three reasons that make pressure groups more popular in the eyes of the people. The first reason is the kind of evidence that auditors seek; the second is the execution outcome and types of actors involved; and third is the exposure of reports and ethical issues. The paper is based on the findings of a study that focused on a single case and, therefore, it may not be appropriate to generalize findings in different political and cultural settings without qualification.
SIGNIFICANCE OF MANAGERIAL MONITORING EFFICACY ON PRINCIPAL- AGENT MONITORING OUTCOMES IN TANZANIA DISTRICT COUNCILS
(Operations Research Society of East Africa (ORSEA) Journal, 2018-12-31) Bahati, Victor
The purpose of this study is to find out whether control and monitoring effectiveness in an entity has any significance on external audit reporting outcome. This study used 475 yearly observations from 95 district councils from 2011 to 2015. Data were analysed in a panel model that controls for time specific factors. This study found that when internal monitoring mechanisms are effective, they can predict the likelihood of an entity to receive a clean (qualified) audit opinion at 82 percent accuracy. Results further showed that effectiveness of control environment is very important if we take it alone or when it becomes effective in absence of an ineffective internal audit. However, there was no enough statistical significance on the direct effect of risk management or fraud prevention controls. Also, managers should plan and implement all controls to maximize possibility of getting a clean (unqualified) audit opinion in order to secure their positions. External auditors, on the other hand, should continue emphasizing on importance of internal monitoring and report any weakness if they find. They may encourage clients to at least strengthen control environment in case it happens that the internal audit is weak.
ANTECEDENTS OF PERCEIVED AUDITORS’ VIS-À-VIS PRESSURE GROUPS’ POWER IN PUBLIC SECTOR: A CASE STUDY OF DAR ES SALAAM
(Business Management Review, 2017-06-30) Bahati, Victor
This paper examines the usefulness of auditors-versus-pressure groups’ power in enforcing accountability in the public sector. The paper demonstrates mobilisation and lobbying model and uses data, collected from Dar es Salaam, Tanzania, to test the significance of difference in the perception of accountants and nonaccountants of the pressure groups. Many-Whitney U-test was used to determine the similarity between the two groups, with the factor analysis being deployed to establish the underlying factors for pressure groups’ popularity over auditors. The study found three reasons that make pressure groups more popular in the eyes of the people. The first reason is the kind of evidence that auditors seek; the second is the execution outcome and types of actors involved; and third is the exposure of reports and ethical issues. The paper is based on the findings of a study that focused on a single case and, therefore, it may not be appropriate to generalize findings in different political and cultural settings without qualification.
Antecedents of Perceived Auditors’ Power Deterioration Vis-A-Vis Pressure Groups’: Dar-Es-Salaam Case Study
(World Business Conference, 2015-04-22) Bahati, Victor; Bahati, Victor
The purpose of this paper was to test the usefulness of auditors versus pressure groups power in enforcing accountability in public sector. It explored potential reasons that make pressure groups seemingly more powerful compared to auditors.It draws much knowledge from mobilization and lobbying model while using key literatures in the expectation gap. The paper demonstrates mobilization and lobbying model and uses data, collected from Dar es Salaam, to test significance of difference in perception between accountants and non-accountants towards pressure groups. Many-Whitney U-test has been used as a technique of testing similarity between the two groups and factor analysis as a method of finding underlying factors for pressure groups popularity over auditors. The outcomes of this study have verified that both accounting and non-accounting professionals have trust to auditors for power to influence accountability of public sector. Further, the study finds out three factors that make pressure groups more popular in the eyes of people. These factors have been identified as; first, kind of evidence that auditors seek, second, execution outcome and types of actors involved and third exposure of reports and ethical issues. Measures like educating the public on the expected role of auditors and provide for expanded audit reports by means of changing standards could best be used to reduce such perceptions. The study focuses on a single case and therefore it may not be appropriate to generalize findings in different political and cultural settings.
The Use of Accounting Information in Public Sector Budget Decision-making Processes
(https://wbiworldconpro.com/pages/paper/dubai-conference-2014/1174, 2014-01-06) Mbelwa, Latifa
The Use of Accounting Information in Public Sector Budget Decision-making Processes Latifa Mbelwa Since the 1980s, public sector entities have been exposed to accounting reforms under an umbrella of New Public Management (NPM). The main purpose behind the adoption of accounting reforms is to increase efficiency in decision-making by producing useful accounting information. However, it has been generally argued that the adoption of these accounting reforms by the public sector entities in developing countries is attributed to seeking to establish financial legitimacy rather than to increase organisational efficiency (Mzenzi, 2013; Mkasiwa, 2011; Adhikari and Mellemvik, 2011; Tambulasi, 2007; Sarker, 2006). Therefore, research on the use of accounting information by the public sector entities in the developing countries is vital. This study deployed an interpretative approach and an exploratory case study strategy involving twin cases of Local Government Authorities (LGAs). The institutional theory—and its three theoretical frameworks which are Old Institutional Economics (OIE), New Institutional Sociology (NIS) and New Institutional Economics (NIE)— has been used in the process of developing the model and in the overall interpretation of the study findings. This study establishes a model for determinants of the use of accounting information in the budgetary decision-making processes based on the study of LGAs in Tanzania. The model explains the linkage of cause-and-effect of variables influencing the use of accounting information in the budget decision-making processes for external financial legitimacy and organisation efficiency. The study findings have established instrumental-conceptual use and symbolic legitimating use as the main dimensions of the use of accounting information in the budgetary decision-making processes of the LGAs under study. It has further identified four categories of factors that influence instrumental-conceptual use and symbolic legitimating use of accounting information in the budget decision-making processes. These are (i) external institutional pressure, (ii) internal institutional and contingent, (iii) individual actors’ characteristics and (iv) processing of accounting information-related factors. The study also has also established that instrumental-conceptual use of accounting information increases both the organisation’s budget efficiency and external financial legitimacy in the LGAs under review. On the other hand, the symbolic legitimacy use of accounting information was found to decrease the organisation’s budget efficiency but increase the external financial legitimacy. This is mainly attributed to external institutional pressures that result in decoupling behaviour in the use of accounting information in budgetary decision-making processes. The model suggest that the external financial legitimacy should be an outcome of the internal organisation budget efficiency if there is a coupling of the actual instrumental use rather than symbolic use of accounting information and the use of accounting information designed to impress upon development partners or funders such as the CG and donors.
Adoption and Implementation of New Public Management Accounting Reforms in the Public Sector Organisations of Developing Countries (Motive, Nature and Theoretical Philosophy)
(The Addis Ababa International Conference on Business and Economics (AAICBE), 2017-12-17) Mbelwa, Latifa
The paper reviews motives, nature and theoretical philosophy along the adoption and implementation stages of New Public Management (NPM) - accounting reforms in the Public sector of developing countries. The paper finds the main motive along the stage of adoption and implementation of NPM accounting reforms is characterized with an aspect of gain legitimacy of accessing the financial support from donors of different levels who create coercive and normative pressure of increasing efficiency in public sector operations. Among others the nature of NPM reforms which undertaken by public sector of developing countries is mostly focused to the accounting and at most accrual accounting systems. The theoretical philosophy pertains the adoption and implementation of NPM reforms in the sector is focused on New institutional theory which argues that adoption and implementation is contributing more by external environment pressures with coercive, normative and mimeticmechanisms; in which public sector of developing country organizations tend to respond them in order to gain financial resources. This resulted intoo little internal efficiency due to manipulation and loose coupling practices by the public sector actors in daily operations. Therefore, in order to effectuate implementation and success of the practices of NPM accounting reforms in the developing country public sectors, the adoption motive should be developed from internal structure and demand for efficiency with political will and coexisting of pressure from both internal and external institutionalized environments.
ASSESSMENT OF FACTORS THAT INFLUENCE MANAGEMENT RELIANCE ON INTERNAL AUDIT FUNCTION: EVIDENCE FROM OIL AND GAS COMPANIES OPERATING IN TANZANIA
(Business Review Management Journal, 2019-03) Mbelwa, Latifa; Munyangabi, Lenatusi
The study investigated factors that influence reliance by senior management over internal audit function in the Tanzanian oil and gas companies. The research applied positivism paradigm, and it involved 17 oil and gas companies operating in Tanzania Mainland. Forty-two (42) questionnaires were returned out of fifty one (51) which had been administered to Chief Executive Officers (15), Chief Finance Officers (10) and Members of Audit Committee (17). Data analysis was performed specifically to identify the modelling and relationships of both dependent variable (reliance of internal audit function) and independent variables (communication, independence, objectivity, competence, work performance). The study found that the senior management personnel (CEOs, CFOs and Members of the Audit Committee) were seen to have overall reliance on works of their internal audit functions whereas some differences were revealed between propositions on competence requirements in the oil and gas sector and non-oil sectors. The study further revealed lack of significant independence of internal auditor’s function and interference of senior management in day-to-day operations of the internal audit department. The study generally recommends re-examination of the position of internal audit function in the studied oil and gas companies.
INVESTIGATION OF STAKEHOLDER MANAGEMENT IN THE OIL AND GAS INDUSTRY IN TANZANIA
(University of Dar es Salaam Business School, 2018-06) Mbelwa, Latifa
The purpose of this paper is to advance knowledge of stakeholders’ identification, stakeholders’ Salience, and Companies’ Stakeholders Management Strategies in Oil and Gas Industry in Tanzania. The paper employed exploratory case study strategy. The data were obtained from two Oil and Gas companies’ websites and were analyzed using content analysis. Stakeholder theory was used to interpret the data. The principal research findings reveal the role of the sustainability reporting, good governance, stakeholder engagement, risk management and corporate Social Responsibility (CSR) practices and strategies in stakeholder management by both local and international oil and gas companies in Tanzania. Moreover, the findings indicated the existence of nine key stakeholders in the oil and gas companies in which local community scored the highest. Their stakeholder salience falls from definitive to expectant and few latent who likely to turn to expectant. This is due to the fact that the nature of the industry, that it is much regulated, has a long time span and more riskier; in a way it gives the stakeholders the latent chance to gain another stakeholders’ attributes, that is either power, urgency or legitimacy. This justifyies why Oil and Gas companies are managing their stakeholders using CSR practices and strategies that touch both stakeholders and non-stakeholders. The nature of the industry allows a non-stakeholder at first place to gain stakeholder’ attribute and becomes a stakeholder. Generally, the study revealed the effort of international oil and gas companies to strongly manage and communicate with a wide range of stakeholders through their websites compared to local companies. Moreover, both companies are managing their stakeholders to create shareholder’s long term value, risk management, engagement and dialogue that shape regulative framework and for sustainable oil and gas operations. The study is recommending that the national oil and gas local content should be constructed after understanding the nature, demand and interest of stakeholders and their inter-relations for proper management of the industry and to control resources curse. Moreover, the local and international oil and gas companies and local management should understand the nature and demand of their stakeholders and set a clear stakeholder management strategies that can result to attractive local content and firms’ longterm value. The future research can broaden the findings by conducting the survey to get a conclusive understanding of stakeholder management in Oil and Gas Industry in Emerging Economies.
Adoption and Implementation of Epicor Accounting System in the Two Tanzanian Local Government Authorities: A New Institutional Sociology Perspective
(2015) Mzenzi, Siasa I
This is one of the series of papers emanating from the study of accounting practices in the Tanzanian Local Government Authorities (LGAs). In particular, it traces the adoption and implementation of EPICOR accounting system in the two Tanzanian LGAs. The paper theorises the adoption process and subsequent implementation of the system to the studied organizations using data from multiple sources, including interviews, observations, and documents. The paper finds that the adoption and implementation of EPICOR accounting system was mainly influenced by the Government and donors. This was mainly motivated by an attempt to integrate public financial management systems and to enhance budgetary and financial controls at the LGAs. However, lack of supporting environment and limited functions of the system had forced LGAs’ officials to maintain it in a loosely coupling state. In the light of New Institutional Sociology (NIS), the findings support Oliver’s (1991) assertion that actors are not passive adopters of the institutional pressure. Therefore, in order to ensure effective implementation of the adopted structures and systems in the institutionalized organizations like the studied LGAs, contextual factors and their related consequences need to be considered and modeled accordingly.
Accounting Practices in Tanzanian Local Government Authorities: Towards a Grounded Theory of Manipulating Legitimacy
(Emerald Group Publishing Limited, 2015) Goddard, Andrew; Mzenzi, Siasa I
Purpose-This paper examines accounting practices and legitimacy in Tanzanian Local Government Authorities (LGAs). Methodology/approach-It uses data from multiple sources, including interviews, observations and documents, to provide theoretical and practical understanding on how accounting has been practiced and the conditions which sustain its undertaking. It applies a grounded theory method to develop a theory systematically from the raw data. Findings-The principal research ﬁndings from the data concern the central phenomenon of ‘manipulating legitimacy’. This involved the purposeful and deliberate use of accounting techniques to inﬂuence and control (and sometimes even to falsify) the perceived reasonableness of the Councils’ operations. The paper revealed that the effective operations of the Tanzanian LGAs were highly constrained by their context. This had forced the LGAs’ ofﬁcials to use important accounting practices such as budgeting, ﬁnancial reporting, auditing and performance measurement, to manipulate the organisational legitimacy, a process which ensured the availability of resources to both LGAs and the individual ofﬁcials. Research limitations/implications-The main limitation of the research is that the data was collected from a limited number of local authorities in just one developing country. It is hoped that future research in other developing countries will be undertaken to broaden and deepen our understanding.
The two publics and institutional theory – A study of public sector accounting in Tanzania
(Elsevier, 2016) Goddard, Andrew; Assad, Mussa Juma; Mzenzi, Siasa I; Malagila, John; Mkasiwa, Tausi A
This paper summarises, and attempts to theorise, the ﬁndings of a series of research projects investigating accounting practices across the public sector in Tanzania. Data was collected principally by interviewing participants in central and local government and in a number of NGO’s. Analysis was undertaken using grounded theory methods, alongside a theoretical framework. This framework comprised the work of the post-colonial theorist Ekeh (1975, 1992, 1994a, 1994b) and the concepts of legitimacy, loose coupling and isomorphism from institutional theory. Legitimacy and loose coupling were central concerns in all the institutions and played a signiﬁcant role in understanding their accounting practices. However, there were signiﬁcant differences between the settings’ responses. These can be partly explained as responses to different isomorphistic pressures. Differences between institutions can be further explained using Ekeh’s concepts of the primordial and the civic publics. Gaming and corruption were evident in central government, associated more with the civic public. Accountability and a sense of moral responsibility appeared to be stronger in NGOs, which were more closely associated with the primordial public. In contrast to the central government, which was associated more with the civic public, accounting was extremely problematic resulting in many dysfunctional practices. However gaming and corruption were most evident in local government where participants were subject to a conﬂict between the two publics’ moralities.
External Auditing and Accountability in the Tanzanian Local Government Authorities
(Managerial Auditing Journal, Volume 30, Issue 6/7, 2015, pp. 681-702, 2015) Mzenzi, Siasa I; Gaspar, Abeid F
Purpose – The purpose of this paper is to explore the contribution of external auditing to accountability in the Tanzanian local government authorities (LGAs). Design/methodology/approach – This paper uses content analysis of the external audit reports of the LGAs for the past ten years. Corroborative evidence was gathered through interviews with external auditors, councillors, Parliamentary Committee members and selected internal auditors of the LGAs. Findings – The study finds that external auditing had marginally contributed to the enhancement of accountability within the LGAs. This is mainly attributed to the limited scope and failure of the responsible officials to address audit recommendations. In the light of agency theory, the findings suggest that external auditing has not sufficiently enabled the stakeholders to hold LGAs’ officials accountable. Practical implications – The findings indicate that external auditing can enhance accountability when the scope is widened to provide relevant information and also when audit recommendations are implemented by responsible officials. Originality/value – Most studies of external auditing and accountability have focussed on thedeveloped countries; this is one of the few papers which explores the phenomenon in the context of emerging economies. Keywords Tanzania, Accountability, Agency theory, Audit, Local governments Paper type Research paper
Appeal for Pragmatic Research in Emerging Economies: Findings from an Analysis of the Business Management Review (BMR) Journal Articles, 1993-2014
(University of Dar es Salaam Business School, 2015-01) Mzenzi, Siasa I
This paper reports the findings stemming from a review of 97 articles published in the Business Management Review (BMR), a journal hosted by the University of Dar es Salaam Business School (UDBS) of the University of Dar es Salaam (UDSM), Tanzania. The overall aim of the review is to present the status of the published papers and their research implications in the context of emerging economies. The papers were classified and analysed according to research discipline, research settings, theoretical approach, nature of research, methodological approach, research methods, research location, residency (institutional affiliation), and number of authors. As part of corroborative evidence, semi-structured interviews with the chief editors, members of the editorial board, the journal administrator, and selected authors were conducted. The findings show that papers from three disciplines—economics finance, and entrepreneurship have higher representation in the journal than other disciplines. Also, a sizeable number of the papers reviewed focus on Small and Medium Enterprises (SMEs). Furthermore, very few papers extensively discuss theoretical issues underpinning a study under consideration. The review further shows that most of the reviewed papers are quantitative in nature and used questionnaires as the main data collection method. On the basis of these findings, the paper suggests embracing and fostering paradigmatic research in the context of emerging economies, using a broad set of theories, methodologies, methods, and research topics. In terms of resource dependency theory, the findings partly suggest that research and its dissemination in the emerging economies is dependent upon the influence of international research funding agencies. Thus, to enhance paradigmatic research in the emerging economies it is equally important for local institutions to spearhead research initiatives.
INVESTIGATION OF BUDGETARY PERFORMANCE MEASUREMENT PRACTICES AND USE OF ACCOUNTING INFORMATION IN TANZANIAN LOCAL GOVERNMENT AUTHORITIES (LGAS) DECISION MAKING PROCESS
(Business Management Review, 2016-12) Mbelwa, Latifa
The main objective of this paper is to examine the relationship between budgetary performance measurement assessment practices and the use of accounting information in the Local Government budgetary decision making processes. The paper specifically seeks to establish relationship between the assessment of Local Government Capital Development Grant (LCDG) and symbolic and instrumental use of accounting information in LGAs’ budgetary decision making process. The motivation of the research objective is based on the peculiar role of performance measurement as New Public Management techniques for achieving efficiency and ensures financial legitimacy in LGAs of developing countries. The paper is informed by New Institutional Theory in which, assessment of LCDG is perceived to have coercive and normative pressures that have direct relationships with symbolic and instrumental use of accounting information in budgetary decision making. Moreover, the assessment of LCDG is expected to have indirect relationship with organizational budgetary performance in term of efficiency and legitimacy. The studies in public sector are dominated with case study strategy whose findings lack generalisability even within the studied context. The paper employed survey strategy and it administered 208 questionnaires to Tanzanian LGAs, political actors and public officials that included executive directors and heads of departments. The selection of such units of analysis is based on the role of Councillors and public officials in the LGAs budgetary decision making and their role in adoption and implementation of NPM techniques that include performance measurement practices. The data were analyzed by using structural equation modelling (SEM) in order to test six hypotheses in which four attested direct relationships and two attested indirect relationships. The analysis through SEM revealed the role of performance measurement techniques in enhancing the budgetary performance by coercing and professionalizing instrumental use of accounting information in budgetary decision making by both political actors and public officials. At large, this paper informs stakeholders such as Central Government who adopt, coordinate, control and implement the assessment of LCDG to ensure that the assessment is conducted efficiently and effectively manner because it leads to positive change in the LGAs’ decision making processes through the use of accounting information.
Exploring Contingent Variables of Accounting Information Systems Effectiveness in Tanzania's Local Government Authorities
(2006) Shayo-Temu, S.; Chalu, Henry
Why SMEs are not Utilizing Lease Finance in Tanzania
(2012) Chalu, Henry; Abdul, Amina
Analysis of Stakeholder Factors Influencing the Effectiveness of Accounting Information Systems in Tanzania's Local Authorities
(University of Dar es Salaam Business School, 2012) Chalu, Henry
This paper assesses the stakeholder-related factors which influence Accounting Information Systems (AIS) effectiveness in Tanzania’s Local Authorities (LAs). Using data collected from 19 LAs in Tanzania, we tested six factors: management support, qualification of accounting staff, education of councilors, and availability of AIS consultants, external auditor specialization and councilors’ involvement in AIS matters using canonical correlation analysis (CCA). The results from CCA show that management support, external auditors’ specialization and councilors’ involvement are the most critical factors in ensuring AIS effectiveness in the country’s local authorities. Next were the qualifications of accounting staff and the education level of councilors, which were established as strong factors for AIS effectiveness in LAs. The study, therefore, concludes that for LAs to have effective AIS they need to take measures such as recognizing the importance of AIS effectiveness in organizational operations, allocate sufficient resources and time for the development and implementation of AIS, provide training on computerized AIS, attract qualified personnel as well as raise the mandatory minimum education level requirement for LA councilors.

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