Relationship between budget information gathering and the financial performance of uganda communications commission. A cross-sectional study.

Abstract

Background:
Budgetary planning is essential for strengthening financial performance in public organizations. However, the Uganda Communications Commission (UCC) has recently experienced concerns regarding its financial performance. This study examined the relationship between budget information gathering and the financial performance of UCC.

Methodology:
A cross-sectional case study design using both quantitative and qualitative approaches was adopted. The target population comprised 136 UCC staff, from which a sample of 115 respondents was selected using simple random and purposive sampling. Data were collected through questionnaires, interviews, and documentary review. Descriptive statistics (frequencies and percentages) and inferential statistics (Spearman correlation, coefficient of determination, and regression analysis) were used to analyse quantitative data, while qualitative data were analysed through content analysis.

Results:
The study achieved a response rate of 77% (88 respondents). Findings revealed a moderate positive relationship between budget information gathering and financial performance of UCC (rho = .484, p < .05). Budget information gathering accounted for 23.5% of the variance in financial performance. Further regression analysis showed that analysis of internal and external environments explained 31.6% of the variance in income, with only external environment analysis significantly predicting income (p = .002). Budget information gathering had no significant effect on expenditure. Descriptive results indicated that internal financial environment analysis was satisfactory, while external environment analysis was inadequate. Overall, UCC’s financial performance was found to be poor, particularly due to increasing expenditure and inconsistent income trends.

Conclusion:
Effective and up-to-date budget information gathering significantly enhances financial performance. Weaknesses in external environment analysis limit UCC’s ability to make accurate financial decisions.

Recommendation:
UCC should strengthen its budget information gathering processes, especially by improving the relevance, accuracy, and timeliness of external financial environment analysis to enhance overall financial performance.