An Assessment of How Integrated Financial Management Information System Enhances Financial Decision Making at TANESCO and TTCL, Tanzania

Abstract

This study sought to find out the extent to which financial managers use IFMIS tools to generate financial information required to make informed financial decisions, especially in financial planning and capital budgeting. The study was conducted at TANESCO and TTCL, headquarters, Dar es Salaam. The study was quantitative aiming at describing the state of affairs as it existed in these organizations. The sample size consisted of 34 respondents drawn from 204 employees of the above mentioned organizations. The sampling unit consisted of all financial managers and IS officers of the above mentioned companies. To analyze data, the researcher used frequency counts, percentages, and correlation analysis. The findings indicated that 80.09% financial managers use IFMIS tools in generating financial planning information which contributes to the efficiency of their financial decision making while only 56.01% of them use IFMIS tools in capital budgeting, which shows that almost half of managers were making capital budgeting decisions without basing on the information generated through IFMIS. Recommendations are made to CFOs of both TANESCO and TTCL to improve the use of IFMIS in capital budgeting to be able to generate required, timely and adequate information for decision-making.

Keywords: Integrated Financial Management Information Systems, Financial information, Capital Budgeting, Financial Planning