FINANCIAL ACCOUNTABILITY AND FINANCIAL REPORTING IN A DECENTRALIZED ENVIRONMENT (A CASE STUDY OF TANZANIAN LOCAL GOVERNMENT AUTHORITIES)

The responsibility of public sectors undertakings in providing the basic amenities to the society requires strong financial management. Following the outcry on the proper management of public resources; the current study aims to assess the role of financial reporting in enhancing financial accountability in local governments. The study has been motivated by the efforts exerted by public sectors stakeholders worldwide to improve the proper use of public resources in local governments. To achieve this objective, the study employed both primary and secondary data. The secondary data were mainly compiled from the CAG general reports of Tanzanian local governments, while primary data were collected by using structured questionnaires distributed to 28 different councils. The key respondents were, accountants, internal auditors, planning officers, procurement officers, council directors and ward councilors. The study employed statistical techniques to address the subject matter of the research problem. Among other things, the study found that quality of financial reporting is very significant in enhancing financial accountability of Tanzanian local governments. Also, it was found that the adoption of IPSASs accrual basis of accounting of local government will improve decision making, transparency and accountability. The local government management is urged to continue improving the proper utilization of public financial resources to ensure quality provision of social services to the citizens.