Determinants of Effective Public Financial Management in Agricultural Department of North Shoa Zone Administration, Amhara National Regional State

Abstract

The purpose of this study was to investigate determinants of effective public financial management in Agricultural Department of North Shoa Zone Administration, Amhara National Regional State, Ethiopia. The dependent variable of the study is effective public financial management. Five independent variables were identified including budgeting, accounting and reporting, internal control, external auditing, and leadership. The researcher used descriptive and explanatory research designs to accomplish the research objectives. A response rate of the study was 92.7 %. Cronbach’s alpha technique was used to test the reliability of the instrument. The data collected was analyzed using descriptive statistics and inferential statistics (correlation and regression) with the help of SPSS version 20. According to the regression results, all of the six independent variables are making 79.2% contributions for effective public financial management in Agricultural Department of North Shoa Zone Administration. The study found that Budgeting, accounting and reporting, internal control, external auditing, and leadership have significant effect on effective public financial management of Agricultural Department of North Shoa Zone Administration. Based on the results of the study the researcher concluded that leadership is the most influential variable of effective PFM in this department followed by internal control and budgeting. Then, the researcher recommended that the Agricultural Department of North Shoa Zone Administration should understand the contributions of these five variables collectively significant for the effectiveness of public financial management. Finally, the researcher recommended further research by the other researchers including other public organizations of North Shoa Zone Administration.

Keywords: Public Financial Management, Budgeting, Internal control, Leadership, Auditing