FINANCIAL REPORTING PRACTICES AND PERFORMANCE OF PUBLIC INSTITUTIONS IN RWANDA. THE CASE OF RWANDA SOCIAL SECURITY BOARD
Abstract
This research analyzed the financial reporting practices and their influence on the performance of public institutions in Rwanda using the case of Rwanda Social Security Board (RSSB). The research was guided by three specific objectives: to assess the effect of Quality of Financial Reports on the Performance of the RSSB, to investigate the influence of Timeliness of Financial Reports on the Performance of the RSSB. And to examine the effect of compliance with International Financial Reporting Standards (IFRS) within the RSSB and its influence on financial transparency and accountability. For this study, a combination descriptive and correlation research designs were employed, and data was collected through using both quantitative and qualitative methods, interview guides and questionnaires. A sample size of 108 individuals was selected from the broader staff population of 148 at RSSB’s headquarters, following Taro Yamane’s formula for sample size determination. The collected data revealed a significant positive correlation (Pearson Correlation = 0.903, p < 0.05) between improved financial reporting practices and enhanced performance of public institutions in Rwanda, specifically examining the Rwanda Social Security Board. The high correlation coefficient of 0.903 underscored a strong positive relationship between the two variables. These findings indicated that effective financial reporting practices played a pivotal role in optimizing the performance of public institutions. The observed significance level of 0.05 (2-tailed) reinforced the reliability of this correlation, highlighting the non-random nature of the relationship. Transparent and accurate financial reporting emerged as a crucial factor contributing to the success and efficacy of public institutions in Rwanda. This underscores the need for strategic efforts to enhance financial reporting practices, as emphasized by insights gleaned from meticulous questionnaire analysis, providing valuable guidance for policymakers, managers, and stakeholders in fostering improved overall performance within the Rwandan public sector. The study concludes that there is a significant positive relationship between financial reporting practices and performance of public institutions in Rwanda, it also concludes that there is still need for strategic attention and potential refinements in financial reporting mechanisms, particularly in the context of Rwanda and the specific case of the Rwanda Social Security Board. Based on the study of Rwanda Social Security Board (RSSB), recommendations were made which include Enhancing consistent financial reporting through staff training, improving communication to address reporting delays, maintaining adherence to International Financial Reporting Standards (IFRS), Strengthening internal controls based on stakeholder satisfaction, and finally Sustain transparency and accessibility in financial information with ongoing professional development and assessments. Also, the research provides suggestions. For future research, this research provided suggestions for further research including Exploring the nuances of internal controls and the effectiveness of communication channels for financial reporting at RSSB could provide insights into areas for improvement. And investigating the impact of changes in IFRS on financial transparency and accountability, and assessing the dynamic nature of IFRS adoption over time, would contribute to a more comprehensive understanding of its influence on organizational practices. This study on the financial reporting practices of Rwanda Social Security Board (RSSB) is significant as it enhances accountability, improves financial governance, informs policymaking, boosts investor confidence, sets benchmarks for other institutions, contributes to economic development, aligns with international standards, enriches academic research, and guides capacity-building initiatives. Overall, it shapes Rwanda's future financial governance, transparency, and efficiency.
Keywords: Financial reporting practices, Performance, Public institutions, Rwanda Social Security Board (RSSB), Quality of Financial Reports, Timeliness of Financial Reports.
CITATION: Bwimba, M., & Nkechi Irechukwu, E. (2024). Financial reporting practices and performance of public institutions in Rwanda. The case of Rwanda Social Security Board. The Strategic Journal of Business & Change Management, 11 (1), 662 – 673. http://dx.doi.org/10.61426/sjbcm.v11i1.2877
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i1.2877
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