INTEGRATED FINANCIAL MANAGEMENT SYSTEM: ITS IMPORTANCE IN ADMINISTRATIVE MANAGEMENT IN LOCAL GOVERNMENTS IN PERU - 2023

Abstract

Purpose: This study delves into the pivotal role of the Integrated Financial Administration System (SIAF) within local governments in Peru, with a focus on its influence on administrative, budgetary, and financial management.   Theoretical Framework: The study is grounded in a theoretical framework that explores the essential functions and applications of the SIAF in the context of municipal affairs.   Design/Methodology/Approach: Employing a quantitative research approach with a descriptive correlational design, the study actively engaged 166 participants, including authorities, managers, and collaborators from municipalities. Random surveys and interviews were conducted to gather insights from advisors and experts.   Findings: The results revealed a significant consensus, with 72.29% strongly agreeing on the substantial role of the SIAF in municipal administration. An additional 70.48% endorsed strong agreement, underscoring tangible improvements in administrative management facilitated by the SIAF. Reliability analysis, as reflected in KR20 and KR21 values, further solidified the credibility of the study.   Research, Practical & Social Implications: The study recommends the establishment of continuous monitoring mechanisms for the SIAF, emphasizing regular updates to align with evolving administrative, budgetary, and financial requirements. Additionally, advocating for comprehensive capacity-building and training programs for municipal personnel is crucial to enhance proficiency in utilizing the SIAF effectively. Empowering stakeholders is expected to optimize system benefits and cultivate a culture of efficient financial administration within local governments.   Originality/Value: This study contributes to the existing body of knowledge by providing comprehensive insights into the indispensable role of the SIAF in local government administration, backed by rigorous quantitative analysis and reliability metrics.