Effects of Business Process Re-engineering on Implementation of Financial Management Systems: A Case of Masinde Muliro University of Science and Technology

Abstract

Universities are under pressures from every direction, from reduced government funding to expectations by students and parents to deliver ever-higher quality services in their financial management for accountability purposes. Universities have therefore embarked on implementing Financial Management Systems (FMS) that tracks financial events, summarises financial information and supports adequate management reporting, policy decisions, fiduciary responsibilities and the preparation of auditable financial statements.  The purpose of this study was to find out the effects of Business Process Re-engineering (BPR) on implementation of FMS in Kenyan public Universities.   A conceptual framework was developed having independent variables as Business Process Re-engineering factor, depended variable as the successfully implemented FMS and moderating variable as compatibility of the financial management modules forming the FMS (fig.1).  The research design used was descriptive survey design.    The target population was, 115 staff drawn from five functional areas (within finance department) of Masinde Muliro University of Science and Technology.  The sample consisted of 60 staff members drawn from five areas with each stratum of 12 members randomly selected. Questionnaires and interview schedules were used as research instruments. Analysis and discussion of data collected was done using correlation and descriptive statistics leading to drawings of summaries and conclusions.  The study findings revealed 85% of implementation of FMS is accounted for by integration of general ledger module, budgetary accounting, accounts payable, accounts receivable and payroll systems.

Keywords:Business Process Reengineering (BPR), Financial Management Systems, Masinde Muliro University of Science and Technology (MMUST)