Wise in Policy-Making and Fragile in Practice: Financial Management and the Challenges of Value for Money in Uganda

Over decades there has been a growing concern on internal control systems in promoting the wise use of public funds in Uganda, with emphasis on resource allocation, budgeting processes, and efficient utilization of national resources within local governments. It addresses the persistent gap between public financial management policies and their practical implementation in achieving Value for Money. The study was guided by a positivist paradigm; the study adopted a descriptive mixed-methods approach and a case study design. Data were collected from 658 respondents, including district local government officials and civil society representatives, using surveys, interviews, and focus group discussions. Findings indicate that effective internal control systems—comprising budgeting controls, procurement procedures, audit functions and monitoring and evaluation mechanisms significantly enhance resource utilization efficiency and VFM outcomes. However, persistent challenges remain, including weak enforcement of financial regulations, limited institutional capacity, inadequate compliance mechanisms, and underutilization of monitoring and evaluation systems. These weaknesses undermine optimal allocation and use of public resources despite existing policy and regulatory frameworks. The study concludes that although Uganda has established strong financial management policies, their effectiveness is constrained by governance and capacity gaps at implementation level. It recommends strengthening budgeting discipline, enhancing procurement and audit independence, improving monitoring and evaluation systems, and building institutional capacity. Strict adherence to segregation of duties, authorization procedures, and financial regulations is essential for improving prudent public fund management and achieving Value for Money.