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 human resource. 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.

Keywords: Fiscal devolution, Internal Control Systems, Decentralisation, Urban governance