Factors Affecting Financial Management Practices in Public Institutions in Zambia

Abstract

This study investigated the factors influencing financial management practices in public institutions in Zambia, with the goal of addressing challenges such as persistent audit queries and inefficiencies. Utilizing a mixed-methods approach, data were collected from 118 respondents across various key institutions. The findings indicated that strong governance and leadership significantly enhanced adherence to financial management guidelines, while increased knowledge among staff about these guidelines correlated positively with better compliance. To improve financial management in Zambia, the study highlighted several actionable strategies. Key recommendations included the establishment of comprehensive governance frameworks to enhance accountability and transparency, the implementation of targeted training programs to elevate the financial management knowledge of personnel, and the development of robust internal controls to reduce vulnerabilities to mismanagement. Additionally, fostering a culture of continuous professional development and leveraging technology for efficient financial reporting were emphasized as critical steps. By adopting these recommendations, Zambian public institutions can bolster their financial management practices, leading to greater fiscal responsibility and improved service delivery to the public. This research not only sheds light on the current state of financial management in Zambia but also provides practical solutions tailored to enhance overall governance and public trust.