Abstract

In Uganda like many developing countries, financial management units are facing numerous performance challenges as a result of untold pressure, overwhelming deadlines, limited resources, political patronage and limited professional skills among the practioners. To unravel these impediments, drastic mechanisms need to be put in place to ensure a common balance among all stakeholders; financial resources must be used in a frugal but in a strategic manner to ensure effective and efficient allocation to all sectors of governance both in the urban and rural administrative units. Urban governance in Uganda like many developing countries has its own peculiarities ranging from provision of key social service delivery to mandatory urban infrastructural development, hence the reason for taking calculated steps to deliver effectively. The study advances the argument that capacity enhancement of staff and the strict observance of internal control mechanisms is the epitome of a vibrant financial management system in the administration of urban authorities.

Key words:  Fiscal devolution, internal control systems, decentralisation, urban governance.