ASSESSMENT OF THE EFFECT OF ACCOUNTING INFORMATION SYSTEMS ON THE PERFOMAMCE OF PUBLIC SECTOR

Abstract

This study assesses the impact of Accounting Information Systems (AIS) on the performance of the Ilemela Municipal Council, focusing on financial reporting, strategic planning, and user challenges. The main objective is to evaluate how AIS influences organizational effectiveness in a public sector context. Utilizing a positivism research philosophy, a quantitative approach was employed, involving structured surveys with a sample of 78 employees utilizing simple random sampling from various departments, including finance, accounting, IT, and management. The findings reveal a significant positive correlation between AIS and enhanced financial reporting, emphasizing the importanceof timely,accurate, andtransparentinformation for effective decision-making. While many respondents acknowledged improvements in financial reporting post-AIS implementation, variability in perceptions regarding timeliness and accuracy suggests areas requiring further attention. Additionally, the study highlights the crucial role of AIS in strategic planning, with a majority of respondents recognizing its effectiveness in aligning financial goals with organizational objectives. However, mixed perceptions indicate barriers to fully leveraging AIS for strategic purposes, necessitating targeted training and system enhancements. User challenges, including resistance to change and insufficient ongoing training, significantly hinder the effectiveness of AIS. Addressing these issues through comprehensive change management strategies and continuous skill development is essential for fostering a supportive organizational culture. The study concludeswithrecommendationsforimprovingfinancialreportingpracticesandfostering a data-driven decision-making culture. It also suggests avenues for future research, including comparative studies across different local government authorities and in-depth investigations into user satisfaction and system usability. Overall, this research underscores the critical role of AIS in enhancing public sector performance, with actionable insights for organizational improvement and stakeholder engagement