Financial transparency practices and public trust in financial management in local governments of Uganda: a case study of Mityana Municipality in Mityana District local government

Abstract

This study aimed to investigate the effect of financial transparency practices on public trust in financial management in Mityana District Local Government. The study’s objectives were to assess the relationship between the quality and frequency of financial reporting and public trust in financial management; examine effect of access to financial information on public trust in financial management; assess the influence of the quality of the audit process on public trust in financial management and investigate the relationship between citizen participation in the budgeting process and public trust in financial management in Mityana District Local Government. A correlational research design was employed, using a mixed methods approach to gather both qualitative and quantitative data was collected using structured questionnaires and interviews and analyzed through content analysis for qualitative data and descriptive, correlation, and regression analysis for quantitative data. Findings revealed that Audit process (r = 0.82) is perceived as the strongest predictor in the study meaning when citizens perceive audits as independent and transparent, their trust rises most, while financial reporting (r = 0.61) as a construct for financial transparency practices in financial management has a substantial impact on Public trust in financial management and Budget participation (r = 0.54) was reported being important predictor but slightly less influential than reporting and audits. A regression analysis observed with Multiple R-squared = 0.7208 explains 72.1% of the variation in public trust meaning a strong relationship between financial transparency practices of financial reporting, access to information, audit process and budget participation process by local citizens and public trust in financial management while the adjusted R-squared presented by 0.7106 implies that all the tested analysed constructs of financial transparency practices have a strong relation on influence of public trust in financial management which is towards 1 and over 70%. The study indicated an F-statistic (70.98, p < 2.2e-16) implying the model is highly significant overall which is to the effect that the four predictors (Financial reporting, access to information, audit process and budget participation process by local citizens jointly have a statistically significant effect on trust. The study affirms that public trust in local government financial management is rooted not merely in formal compliance with transparency frameworks but in the lived experience of citizens in accessing, understanding, and influencing financial processes. Strengthening inclusivity, responsiveness, and ethical accountability in financial management will therefore remain central to consolidating trust in Uganda’s local governments.