Effectiveness of information technology controls on financial performance management: evidence from South African municipalities

This study assesses the effectiveness of information technology controls on financial management and performance in South African municipalities, as measured by their audit outcomes. This study adopts a positivist paradigm and quantitative technique. For data analysis, STATA Special Edition version 16 software was used to conduct a multinomial logistic regression analysis. The study found that 34.3% of municipalities in South Africa had ineffective internal controls for financial performance and management, contrasting with only 27% that had effective internal controls. The study concludes that municipalities with better IT controls tend to have more effective financial management and performance outcomes. This study recommends that municipalities continuously invest in improving their IT controls as this will improve effectiveness of financial performance and strengthen management oversight. This study provides insights into the relationship between IT controls on the one hand, and financial management and performance on the other, particularly in municipalities as these organisations face perennial challenges of unaddressed audit findings related to ineffective financial management and performance .