Juliet Report

MONITORING AND EVALUATION PRACTICES AND FINANCIAL PERFORMANCE
OF TOWN COUNCILS IN NAMUTUMBA DISTRICT: A CASE OF NAMUTUMBA

TOWN COUNCIL
BY
JULIET MUTESI
18/MBA/KLA/WKD/0031
A DISSERTATION SUBMITTED TO THE SCHOOL OF BUSINESS

AND MANAGEMENT IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE AWARD OF A MASTER’S
DEGREE IN BUSINESS ADMINISTRATION OF
UGANDA MANAGEMENT INSTITUTE
SEPTEMBER, 2021
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DECLARATION
I, Juliet Mutesi, hereby declare that this is my original work and it has never been published or
submitted for any other degree award to any other University or institution of higher learning
before.
Signed: ………………………………………………….
Date: …………………………………………………….
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APPROVAL
We hereby certify that thus study was conducted with our supervision and this dissertation has
been submitted with our approval.
Signed: ……………………………………………………….
Dr. David Ssekamate
Date:.........................................................................................
Signed:....................................................................................
Dr. Micheal Galukande Kiganda
Date:.........................................................................................
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DEDICATION
This dissertation is dedicated to my beloved parents, Mr. and Mrs. Menya who are my
inspiration and to my beloved sons, Oesetum Ethan Williams and Emokori Jesse Williams for
their unrelenting support and encouragement.
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ACKNOWLEDGEMENT
I acknowledge and appreciate the support of my supervisors, Dr. David Ssekamate and Dr.
Micheal Galukande Kiganda, I greatly appreciate all the respondents in Namutumba Town
Council who made data collection easy for me and provided information without hesitation. I
also extend my appreciation to the Town clerk, chairperson L.C.III, all political leaders and
technical staff of Namutumba Town Council whose contribution helped me to compile my
dissertation.
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TABLE OF CONTENTS
DECLARATION..................................................................................................................................I
APPROVAL......................................................................................................................................II
DEDICATION..................................................................................................................................III
ACKNOWLEDGEMENT..................................................................................................................IV
TABLE OF CONTENTS......................................................................................................................V
LIST OF FIGURES............................................................................................................................IX
ABBREVIATIONS/ ACRONYMS.....................................................................................................XI
ABSTRACT....................................................................................................................................XII
CHAPTER ONE..................................................................................................................................1
INTRODUCTION...............................................................................................................................1
1.0 Introduction...............................................................................................................................1
1.1 BACKGROUND TO THE STUDY.........................................................................................................1
1.1.1 Historical Background To The Study.......................................................................................1
1.1.2 The Theoretical Background To The Study.............................................................................2
1.1.3 The Conceptual Background To The Study.............................................................................2
1.1.4 The Contextual Background To The Study.............................................................................3
1.2 Statement Of The Problem........................................................................................................3
1.3 Purpose Of The Study................................................................................................................4
1.4 Objective Of The Study..............................................................................................................4
1.5 Research Questions...................................................................................................................4
1.6 Hypothesis.................................................................................................................................4
1.7 Conceptual Framework..............................................................................................................5
1.8 Significance Of The Study..........................................................................................................5
1.9 Justification................................................................................................................................6
1.10 Scope Of The Study..................................................................................................................6
1.10.1content Scope........................................................................................................................6
1.10.2 Geographical And Respondent Scope..................................................................................6
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1.10.3 Time Scope............................................................................................................................6
1.11 Operational Definitions............................................................................................................6
1.12 Limitations...............................................................................................................................7
CHAPTER TWO.................................................................................................................................9
LITERATURE REVIEW........................................................................................................................9
2.1 Introduction...............................................................................................................................9
2.2 Theoretical Review....................................................................................................................9
2.3 The Contribution Of Data Collection On The Performance Of Namutumba Town Council....10
2.4 The Effectiveness Of M&E Framework In Namutumba Town Council....................................13
2.5 How Participatory Budgeting Affect The Performance Of Namutumba Town Council..........14
2.6 Summary Of The Literature Review.........................................................................................16
CHAPTER THREE.............................................................................................................................17
METHODOLOGY.............................................................................................................................17
3.1 Introduction.............................................................................................................................17
3.2 Research Design.......................................................................................................................17
3.3 Study Population......................................................................................................................17
3.4 Sampling Size And Selection....................................................................................................18
3.5 Sampling Techniques And Procedure......................................................................................19
3.6 Data Collection Methods.........................................................................................................19
3.6.1 Questionnaire Survey Method.............................................................................................19
3.6.2 Interview Method.................................................................................................................19
3.6.3 Focus Group Discussion Method..........................................................................................19
3.7 Data Collection Instruments....................................................................................................20
3.7.1 Questionnaire.......................................................................................................................20
3.7.2 Interview Guide....................................................................................................................20
3.7.3 Focus Group Discussion Guide.............................................................................................21
3.8 Quality Management Of Study Instruments...........................................................................21
3.8.1 Validity Of The Questionnaire..............................................................................................21
3.8.2 Reliability Of The Questionnaires.........................................................................................22
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3.9 Procedure Of Data Collection..................................................................................................23
3.10 Data Analyses.........................................................................................................................23
3.10.1 Quantitative Data Analysis.................................................................................................23
3.10.2 Qualitative Data Analysis....................................................................................................24
3.11 Measurement Of Variables....................................................................................................24
3.12 Ethical Consideration.............................................................................................................25
CHAPTER FOUR..............................................................................................................................26
PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS..........................................................26
4.1 Introduction.............................................................................................................................26
4.2 Response Rate.........................................................................................................................26
4.3 Demographic Characteristics Of Respondents........................................................................27
4.4 Financial Performance Of Namutumba Town Council............................................................28
4.4.1 Data Collection And Financial Performance.........................................................................31
4.4.2 M&E Framework -Financial Performance Of Namutumba Town Council Relationship......36
4.4.3 Participatory Budgeting-Financial Performance Of Namutumba Town Council Relationship
.......................................................................................................................................................40
4.5. Multiple Linear Regression.....................................................................................................44
4.5.1 Determining How Well The Model Fits................................................................................44
4.5.2. Statistical Significance Of The Model..................................................................................45
4.6 Summary..................................................................................................................................47
CHAPTER FIVE................................................................................................................................48
SUMMARY, DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS..........................................48
5.1 Introduction.............................................................................................................................48
5.2 Summary Of The Results..........................................................................................................48
5.2.1 Data Collection And Financial Performance Of Namutumba Town Council........................48
5.2.2 M&E Framework And Financial Performance Of Namutumba Town Council.....................49
5.2.3 Participatory Budgeting And Financial Performance Of Namutumba Town Council...........49
5.3 Discussion................................................................................................................................50
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5.4 Conclusions..............................................................................................................................55
5.5 Recommendations...................................................................................................................55
5.6 Areas For Future Research.......................................................................................................56
5.7 Limitation Of The Study...........................................................................................................56
REFERENCES...................................................................................................................................57
APPENDICES.....................................................................................................................................I
APPENDIX I: QUESTIONNAIRE.........................................................................................................I
APPENDIX II: INTERVIEW GUIDE.....................................................................................................I
APPENDIX III: FOCUS GROUP DISCUSSION GUIDE.........................................................................I
APPENDIX I V : TABLE FOR DETERMINING SAMPLE SIZE FOR FINITE POPULATION.....................I
APPENDIX V: FIELD LETTER..............................................................................................................I
APPENDIX VI: INTRODUCTORY LETTER...........................................................................................I
APPENDIX VII: ACCEPTANCE LETTER...............................................................................................I
APPENDIX VIII: ANTI-PLAGIARISM REPORT....................................................................................I
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LIST OF TABLES
Table 3.1: Showing target population, sample size selection and techniques; data collection
methods and techniques.................................................................................................................17
Table 3.2: Content validity Index Results.....................................................................................21
Table 3.3: Cronbach Reliability Coefficient test...........................................................................21
Table 3.4: Cronbach Reliability.....................................................................................................22
Table 4.5: Response Rate..............................................................................................................25
Table 4.6: Demographic characteristics of respondents................................................................26
Table 4.7: Distribution of financial performance of Namutumba Town Council.........................28
Table 4.8: Distribution of respondents’ opinion on Data collection.............................................30
Table 4.9: Person correlation of Data collection and financial performance................................34
Table 4.10: Distribution of respondents’ opinion on M&E framework........................................35
Table 4.11: Person correlation of M&E framework and financial performance...........................38
Table 4.12: Distribution of respondents’ opinion on participatory budgeting..............................39
Table 4.13: Person correlation of Participatory budgeting and financial performance.................43
Table 3.14: Model Summary.........................................................................................................44
Table 4.15: ANOVA......................................................................................................................44
Table 4.16: Summary of Coefficientsa...........................................................................................44
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LIST OF FIGURES
Figure 1. 1: Conceptual frame work showing the relationship of M&E practices and financial
Performance of Namutumba Town Council....................................................................................6
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ABBREVIATIONS/ ACRONYMS
AFREA: African Evaluation Association
AG: Auditor General
CSO: Civil society organizations
DDEG : Discretionary Development Equalization Grant
DV: Dependent Variables
GoU: Government of Uganda
IPF: Indicative planning Figures
IV: Independent Variables
LG: Local Government
LGFAR: Local Government Financial and accounting regulations
LGPA: Local Government Performance assessment
LR: Local Revenue
M&E: Monitoring and Evaluation
NDP: National Development Plan
PDCs: Parish Development Committees
SDG: Sustainable Development Goals
TPC: Technical Planning Committee
URA: Uganda Revenue authority
UWEP: Uganda Women entrepreneurship Program
YLP: Youth Livelihood Program
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ABSTRACT
This study examined Monitoring and Evaluation practices and financial Performance of
Namutumba district taking a case of Namutumba Town council with specific focus on: data
collection, M&E framework and participatory budgeting. The study used a cross sectional design
and a sample size of 111 respondents. Data was collected using self-administered questionnaires,
Focus group discussion and interview guide. Quantitative data was analyzed using the Statistical
Package for Social Scientists (SPSS version 25). Qualitative data was conducted in themes and
organized statements and responses from different respondents to generate useful conclusions
and interpretations on the research objectives.
Results in Table 4.9 indicated that there is a strong positive relationship between Data collection
and financial performance. The Pearson’s r = 0.742 and statistical significance of p-value =
0.004. Furthermore, there is also a strong positive relationship between M&E framework and
financial performance. Table 4.11 revealed that there is a Pearson’s r = 0.821 and a statistical
significance of p-value = 0.001. Additionally, Table 4.13 revealed that there was a medium
positive relationship between participatory budgeting and financial performance as reflected by a
Pearson’s r = 0.685 and a statistical significance of p-value = 0.002.
Basing on the findings, it was concluded that; there was a great contribution of data collection on
financial performance of Namutumba Town council, there is need to have effective Monitoring
and evaluation frame work to guide the implementation of activities and allocation of financial
resources as a compliance with the accountability requirements, efficiency, effectiveness and
sustainable implementation of activities, and there is great positive effect of participatory
budgeting on financial performance of Namutumba Town Council.
The study recommended that; there was need for development of modern tax framework along
with adoption of technology solutions to improve efficiency, effectiveness, transparency and
accountability within the Town Council system, usage of electronic cash registers and record
every transaction to reduce corruption and fraud, streamlining the tax payments through the
banks which helps faster payments and accurate reconciliation with the revenue source database
this will increase tax compliance thereby higher tax revenue and reduction of corruption.
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CHAPTER ONE
INTRODUCTION
1.0 Introduction
The study was to establish the contribution of M&E practices to the financial performance of
Town Council in Namutumba District. Monitoring and Evaluation practices represented the
independent variable while financial performance was the dependent variable. This chapter
presented the background of the study, the statement of the problem, the purpose, the objectives
of the study, the research questions, the hypothesis, the scope of the study, the significance,
justification, operational definition of terms used in the study and concepts and the limitations of
the study.
1.1 Background to the study
The background consisted of the Historical, Theoretical, Conceptual, and Contextual background
of the study following the approach of Mugenda and Mugenda (1999).
1.1.1 Historical background to the study

Historically, performance under management theories assumed that organizations existed to
serve a purpose (Etzioni, 1964) and management role was to support gathering and applying
resources in an efficient manner. Lustuesat el, (2002) however, observe that in practice,
organizations goals were changing and easily displaced. Time changed people's perception of
goals, leaders altered goals, and organizational events caused a shift in priority. The only means
was to access progress, hence performance. Gradually, concepts such as effectiveness, efficiency
were considered major components of performance (Campbell, 1970).
In Uganda, efforts to improve efficiency and effectiveness of public sector institutions has been
made through the establishment of a new annual Local Government Performance Assessment
system in 2017 to encourage Town Councils to use the available resources more effectively.
In Namutumba District, staff performance appraisal system was in place and all heads of
department and sectors signed annual performance contract agreement as a strategy to monitor
the extent to which individuals meet performance measures as a means of ensuring
accountability and value for money.
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1.1.2 The Theoretical background to the study
The study adopted the New Public Management (NPM) Model by Rhodes (1997:180) as the
theoretical basis for analyzing and understanding Monitoring and evaluation (M&E) in public
sector. Namutumba District borrowed a leaf from New Public Management (NPM) model as the
theoretical basis for understanding the role of M&E in the financial performance of Town
Councils striving to enhance efficiency, productivity, improved service delivery and
accountability. The NPM as argued by Osborne and Gaebler (1992) has meant to make public
service management competitive, more economic, efficient, effective, value for money oriented,
transparency and accountable to the people.
Hauge (2003:13-16) in studying the development of M&E capacities to improve Government
performance in Uganda established that the quality of public service delivery is less than
desirable and M&E system has remained overly centered on compliance with Government
requirements and regulations rather than end-results of policy, program and project efforts.
Therefore, there is need for M&E practices to be embedded in all facets of project cycle.
1.1.3 The conceptual background to the study

Monitoring has been defined by many authors in different ways. Organization for Economic
Cooperation and Development (OECD, 2002) defined monitoring as a continuous function that
uses systematic collection of data on specific indicators to provide management and main
stakeholders of an on-going development intervention with indicators of the extent of progress
and achievement of objectives. M&E practices was conceptualized as the independent variable
(IV) with the following elements; M&E framework which guides the implementation of projects
towards achieving its objectives Kolb (1984), Data collection to answer questions about whether
programs are relevant and achieving what they are supposed to and participatory budgeting to
ensure stake holders are involvement in planning and budgeting as a sign of transparence and
accountability.
Monitoring and Evaluation Practices is attributed to Linking M&E to strategic plans and work
plans, focuses on efficiency and cost-effectiveness; employing a participatory approach to
monitor progress, utilizing local expertise, use data from multiple sources; and facilitating data
use for program improvement.
Financial Performance was the dependent variable. It is the ability to manage and control a
company’s own resources (IAI, 2016). Financial performance was measured interns of;
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effectiveness, efficiency, and compliance to accountability requirements. According to Profiroiu
(2001), performance is the result of simultaneous exercise of efficiency, effectiveness and
adequate budgetary process ʺPerformance is also the extent to which relevance, effectiveness,
efficiency, economy, sustainability and impact (expected and unexpected) are achieved by an
initiative, program or policy.
1.1.4 The contextual background to the study

Namutumba Town Council is among the 580 Town Councils in Uganda and was established on
1st July, 2006. It is located in the Eastern part of Uganda with a total area of approximately two
(2) square kilometers. The Constitution of the Republic of Uganda (1995) Article 176 and the
Local Government Act 1997 empowered Local Governments with the responsibility of
allocation of public resources for budgeting and investment management. Namutumba one of
decentralized function was development planning, monitoring program and projects, timely
reporting of final accounts to Auditor General and ensuring that there is improved performance,
accessibility and sustainability of public goods and services. Monitoring and Evaluation frame
work was enshrined in the five-year development plan 2015- 2020 and Annual Action Plan
2018/2019 yet still there was poor performance as reflected in the ACODE public service
delivery and accountability report (series no.13, 2013). This calls for Town Council to carry out
regular M&E practices since it has a role to guide the overall performance in Local Government.
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1.2 Statement of the problem
Monitoring and evaluation practices are generally intended to guide the process within the
organization and subsequently support the overall performance of the organization. It is the same
pursuit that Namutumba Town Council developed and enhanced a deliberate and well thought
M&E practices that includes; linking M&E frame work to work plan, dissemination of findings,
stakeholder involvement and participatory budgeting. Despite Formulation of policies like the
National M&E policy that was passed by the cabinet in March,2013 to improve performance of
the public sector through strengthening of operational, coordinated and cost-effective production
and use of objective information on implementation and results of National strategies, policies,
programs and projects. The Auditor General’s report on the financial statements of Namutumba
Town Council for the year ended 30th June, 2016, out of the budgeted sum of 580,103,748 and
375,744,692 was collected resulting into a shortfall of 265,359,056 which represents 35% under
performance. The under collection of revenue affected the organization’s capacity to implement
all its programs which affected the performance.
If Namutumba Town Council does not improve on M&E practices, there will be low financial
performance that will lead to poor service delivery and lack of sustainability of government
projects and programs. Therefore, there was need to establish the contribution of M&E practices
and financial performance in Namutumba Town Council.
1.3 Purpose of the study

The purpose of this study was to establish the contribution of M&E practices to the financial
performance of Namutumba Town Council in Namutumba District.
1.4 Objective of the study

The specific objective of the study shall be;
1. To establish the contribution of data collection on the financial performance of Namutumba
Town Council.
2. To investigate the contribution of M&E framework on the financial performance of
Namutumba Town Council.
3. To investigate how participatory budgeting contributes to the financial performance of
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1.5 Research Questions
1. What is the contribution of data collection on financial performance of Namutumba Town
Council?
2. What is the effectiveness of M&E framework on the financial performance of Namutumba
Town Council?
3. How does participatory budgeting affect the financial performance of Namutumba Town
Council?
1.6 Hypothesis
1. There is no significant contribution of data collection on the financial performance of
2. There is no significant contribution of M&E framework on the financial performance of
3. Participatory budgeting has significant contribution on the financial performance of
1.7 Conceptual framework
M&E practices (IV) Financial Performance (DV)
Data collection H1
*Timeliness
*Validity
M&E plan (framework) H2 *Efficiency

* Indicator matrix *Effectiveness
*Dissemination plan *Sustainability
*Compliance to accountability
Participatory budgeting H3
*Mechanism
*Transparency
Source: Adopted from Scott (2004), Stimson et al (2003) and Winarso (2005)
Figure 1.1: Conceptual frame work showing the relationship of M&E practices and
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financial Performance of Namutumba Town Council.
The underlying assumption of the above conceptual framework was to indicate how the
independent variables interact with the dependent variables in order to produce the intended
outcome. The implementation of M&E practices can influence financial performance of Town
Councils.
1.8 Significance of the Study

The findings were to benefit Town Councils to integrate M&E practices in all programs from
inception to the end of program and also plan for the establishment of M&E unit for effective
and efficient use of resources and also make informed decisions regarding the ongoing programs
to improve financial performance.
1.9 Justification
The fact that there was no research held in area on M&E practices and financial performance,
Namutumba Town Council was to be appreciated unit of analysis.
1.10 Scope of the Study

The study scope was presented in three sub-sections: Content, Geographical, and Time scopes as
explained below.
1.10.1Content scope
Namutumba Town Council in Namutumba District in terms of effectiveness, efficiency, and
compliance to accountability requirements.
1.10.2 Geographical and Respondent scope

The study was conducted in Namutumba Town Council, Namutumba District as a representation
of Town Councils in Uganda. The target respondents shall comprise of members of the Town
council Technical Planning Committee (TPC); the Town Clerk; Members of the business
community; representatives of Civil Society Organizations (CSOs) operating from the town
council; and elected leaders.
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1.10.3 Time scope
The time scope of the study was to cover the period from 2018 to 2020. This is the period in
which the study area has experienced severe challenges that are hypnotized to be associated with
poor financial performance. Similarly, it is the period of time (Financial Year) that is planned to
be the baseline of establishing M&E practices in the Town Council.
1.11 Operational definitions

Evaluation
Evaluation is the assessment of an ongoing or completed project to determine its actual impact
against the planned impact (strategic goal or objectives for which it was implemented)
efficiency, sustainability, effectiveness (McCoy et al., 2005)
Monitoring
Monitoring is the routine continuous tracking of the key events of project implementation
performance that is inputs (resources, equipment) activities and out puts, through record keeping
and regular reporting (McCoy et al., 2005)
M&E Practices
Linking M&E to strategic plans and work plans, focusing on efficiency and cost-effectiveness;
employing a participatory approach to monitoring progress, utilizing both international and local
expertise, disseminative results widely; using data from multiple sources; and facilitating data
use for program improvement, Local ownership is fundamental to increased utilization and
sustainability; and leadership continuation and commitment is necessary.
Performance
According to Profiroiu (2001), performance is the result of simultaneous exercise of efficiency,
effectiveness and adequate budgetary process. Performance is also the extent to which relevance,
effectiveness, efficiency, economy, sustainability and impact (expected and unexpected) are
achieved by an initiative, program or policy.
Efficiency: describes how well organizations use their resources in producing services — that is,
the relationship between the actual and optimal combination of inputs used to produce a given
bundle of outputs.
Effectiveness: is the degree to which a system achieves its program and policy objectives. It
normally encompasses a number of different, desired aspects of a service linked to program
outcome objectives. These outcomes can be classified in terms of: · appropriateness (matching
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service delivery to client needs); · accessibility (aspects such as waiting times, affordability,
representation among users of priority groups, and physical accessibility); and · quality (meeting
required standards or incidence of service failures).
Relevance: The extent to which a program addresses a demonstrable need, is appropriate to the
Government of Uganda, and is responsive to the needs of the population.
Accountability: is an obligation for the organization to account for its activities, accept
responsibility and disclose the results in a transparent manner.
1.12 Limitations
M&E practices has so many elements but the study was limited to; data collection, M&E frame
work and participatory budgeting while financial Performance was limited to effectiveness,
efficiency, sustainability, and compliance to the accountability requirements.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
Town Council in Namutumba District. This chapter shows the reviewed literature from other
authors based on the topic of the study. The chapter was organized according to themes derived
from the study objectives. The chapter has theoretical review, Conceptual review, review of
literature on specific objectives and summary of the literature review.
2.2 Theoretical review

The study was guided by the New Public Management (NPM) Model by Rhodes (1997:180) as
the theoretical basis for analyzing and understanding how Monitoring and Evaluation practices
contribute to the financial performance of Town Councils. Namutumba Town Council borrowed
a leaf from New Public Management (NPM) model as the theoretical basis for understanding the
contributions of M&E in the financial performance of Town Councils striving to enhance
efficiency, productivity, improved service delivery and accountability.
The New public management model intends to improve the quality of public services, save
public expenditures, improves on efficiency of governmental operations and make M&E
implementation more effective (Aucoin, 1990 and Bouckaert, 2000).
The theory assumes that the citizens are the recipient of the services or customer to the public
sector. In NPM, citizens are viewed as “customers” and public servants are viewed as “public
managers’’ and are assessed by using performance evaluations (new public management
February 2, 2006).
The model however has critics from different researchers; (Research journal of business
management 2011: vol5:35-43) highlights that the NPM model has not been embraced and this
has led to the question of whether there is convergence towards one globally accepted model of
public management (Borins, 20000: Mongkol, 2010).
Kaboolian, (1998); Khademian (1998) and Maor (1999) points out that giving public managers
more authority to manage programs may result in concentrating decision making in them leaving
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out the decisions of the citizens which leads to centralized decision making by public managers
rather than encouraging decentralization in public organizations.
Hughes (2003) highlights the ethical issues in relation to the NPM model saying that the NPM
offers greater transparency so that unethical or corrupt behaviors can be detected more easily and
measurable performance. Even though NPM provides transparency for the public sector, it can
nonetheless lead to corrupt practices. NPM can undermine ethical standards and lead to
corruption (Barbers, 1998).
The New public management model has various critics but however, it was the best theory for
my study because it intends to improve the quality of public services, save public expenditures,
improves on efficiency of governmental operations and make M&E implementation more
effective and sustainable (Aucoin, 1990 and Bouckaert, 2000).
2.3 The contribution of data collection on the performance of Namutumba Town Council.
Data is the heart and soul of monitoring and evaluation (M&E). Valid, reliable and accurate data
can reveal and improve the financial performance and impact of the intervention and support
decision making and learning, while enhancing the credibility and accountability. According to
Sekamatte (2018), he posits that data collection involves gathering and measuring information on
targeted variables in an established system, which then enables one to answer relevant questions
and evaluate outcomes. Data collection is a research component in all study fields, including
physical and social sciences, humanities, and business. In this report, data collection was studied
under their constructs to include: primary data collection, secondary data collection.
Sekamatte (2018) has argued that all data are categorized as either ‘primary data’ or ‘secondary
data,’ based on how the researcher sources them. Primary data are those that the M&E team
collects directly from the main sources. A study by Ssekamate (2018) revealed that Data
collection empowers an M&E officer to answer relevant questions, evaluate outcomes and make
predictions about future probabilities and trends. Phocas (2021) concedes with the above
argument and highlights that data enables organizations to determine how well they are likely to
perform over time, evaluating historical data alongside forward -looking financial statements can
assemble a forecast that considers potential variations over time. Thus, data collected indicates
how effective the company is at extending credit and this helps to revise policies to ensure timely
collection.
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Therefore, accurate data collection is essential to maintaining the integrity of research, making
informed business decisions, financial performance forecasts and ensuring quality assurance. For
example, in retail sales, data might be collected from mobile applications, website visits, loyalty
programs and online surveys to learn more about customers. In Namutumba Town Council
Financial consolidation project, data collection includes not just a physical inventory of all
financial books, but also an exact description of what is embedded into the financial report books
and any other related software used for manning the financial systems.
The goal for all data collection is to capture quality evidence that then translates to rich data
analysis and allows the building of a convincing and credible answer to questions that have been
posed. Regardless of the field of study or preference for defining data (quantitative, qualitative),
accurate data collection is essential to maintaining the integrity of research. Both the selection of
appropriate data collection instruments (existing, modified, or newly developed) and clearly
delineated instructions for their correct use reduce the likelihood of errors occurring.
Qualitative data are mostly non-numerical and usually descriptive or nominal in nature. This
means the data collected are in the form of words and sentences. Often (not always), such data
captures feelings, emotions, or subjective perceptions of something. Qualitative approaches aim
to address the ‘how’ and ‘why’ of a program and tend to use unstructured methods of data
collection to fully explore the topic. Qualitative questions are open-ended. Qualitative methods
include focus groups, group discussions and interviews. Qualitative approaches are good for
further exploring the effects and unintended consequences of a program. They are, however,
expensive and time consuming to implement. Additionally, the findings cannot be generalized to
participants outside of the program and are only indicative of the group involved.
Qualitative data collection methods play an important role in impact evaluation by providing
information useful to understand the processes behind observed results and assess changes in
people’s perceptions of their well-being. Furthermore, qualitative methods can be used to
improve the quality of survey-based quantitative evaluations by helping generate evaluation
hypothesis; strengthening the design of survey questionnaires and expanding or clarifying
quantitative evaluation findings. These methods are characterized by the following attributes to
include: they tend to be open-ended and have less structured protocols (i.e., researchers may
change the data collection strategy by adding, refining, or dropping techniques or informants),
they rely more heavily on interactive interviews; respondents may be interviewed several times
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to follow up on a particular issue, clarify concepts or check the reliability of data, they use
triangulation to increase the credibility of their findings (i.e., researchers rely on multiple data
collection methods to check the authenticity of their results).
Regardless of the kinds of data involved, data collection in a qualitative study takes a great deal
of time. The researcher needs to record any potentially useful data thoroughly, accurately, and
systematically, using field notes, sketches, audiotapes, photographs and other suitable means.
The data collection methods must observe the ethical principles of research. The qualitative
methods most commonly used in evaluation can be classified in three broad categories: In-depth
interview, Observation methods and Document review.
Quantitative data is numerical in nature and can be mathematically computed. Quantitative data
measure uses different scales, which can be classified as nominal scale, ordinal scale, interval
scale and ratio scale. Often (not always), such data includes measurements of something.
Quantitative approaches address the ‘what’ of the program. They use a systematic standardized
approach and employ methods such as surveys and ask questions. Quantitative approaches have
the advantage that they are cheaper to implement, are standardized so comparisons can be easily
made and the size of the effect can usually be measured. Quantitative approaches however are
limited in their capacity for the investigation and explanation of similarities and unexpected
differences. It is important to note that for peer-based programs quantitative data collection
approaches often prove to be difficult to implement for agencies as lack of necessary resources to
ensure rigorous implementation of surveys and frequently experienced low participation and loss
to follow up rates are commonly experienced factors.
The Quantitative data collection methods rely on random sampling and structured data collection
instruments that fit diverse experiences into predetermined response categories. They produce
results that are easy to summarize, compare, and generalize. If the intent is to generalize from the
research participants to a larger population, the researcher will employ probability sampling to
select participants. Typical quantitative data gathering strategies include: Experiments/clinical
trials, Observing and recording well-defined events (e.g., counting the number of patients
waiting in emergency at specified times of the day), Obtaining relevant data from management
information systems, administering surveys with closed-ended questions (e.g., face-to face and
telephone interviews, questionnaires etc).
12
In quantitative research (survey research), interviews are more structured than in Qualitative
research. In a structured interview, the researcher asks a standard set of questions and nothing
more. Face -to -face interviews have a distinct advantage of enabling the researcher to establish
rapport with potential participants and therefore gain their cooperation. Paper-pencil-
questionnaires can be sent to a large number of people and saves the researcher time and money.
People are more truthful while responding to the questionnaires regarding controversial issues in
particular due to the fact that their responses are anonymous.
2.4 The effectiveness of M&E framework in Namutumba Town Council.

Monitoring and Evaluation framework for continuing professional development (2012) views
M&E plan as a result framework approach that measures performance and ensure that the
intended results have been achieved. Result framework is used for planning, management,
monitoring, review and communication. An M&E framework presents the desired goals, results
and impact to be achieved and establishes realistic measures called indicators. It presents the
logical ordering of inputs, activities, indicators, target, outcomes and impacts. The framework is
being referred to as monitoring, evaluation and learning (MEL) framework (Monitoring and
Evaluation Foundation Level, 2018). The indicator matrix table provides an overview of the
project and creates a better understanding of the linkages of different activities of the project.
The indicator matrix should be developed in line with the set objectives of the project. In order to
operationalize the project, each objective will have a number of objectives formulated
(Monitoring and evaluation for continuing professional Development, 2012) M&E approach is
developed to provide an effective M&E framework, which is intended to measure progress
towards attainment of the overall goal and objectives of a project (Channa,2010).
Food and Agriculture Organization of the United Nations (2010) states that M&E plan is used to
systematically organize the collection of specific data to be assessed, indicating the roles and
responsibilities of project stakeholders. It ensures that relevant progress and performance
information is collected, processed and analyzed on a regular basis to allow for real-time,
evidence-based decision-making.
M&E framework becomes one part of the M&E plan which describes how the whole M&E
system for the program works, including things like who is responsible for it, what forms and
tools will be used, how the data will flow through the organization, and who will make decisions
using the data (Practical tools for international Development, 2021).
13
Results-based management is increasingly being adopted; it offers significant advantages,
although this has costs –both financial (which are easy to underestimate) and in terms of
engaging civil society. Most organizations recognize that the development of a results-based
management framework is crucial to ensure that they can deliver value for money and improve
their performance, and so that they can demonstrate as much to stakeholders, especially donors
(Monitoring and evaluation frameworks and the performance and governance of international
Funds (2011)
2.5 How participatory budgeting affect the performance of Namutumba Town Council.
Conceptually, a budget is the principal mechanism through which the policy intentions of any
organization are translated into concrete actions and results on the ground. In most town councils
a budget is an important policy document through which town councils establish their economic
and social priorities and set the direction of the economy. In the public sector, budgets are legal
instruments that authorize the levying of taxes and incurring of public expenditure. Based on the
above listed objectives for budgeting, Uddin (2005) concluded that budgets have an important
role in a management control system of both public and private sector organizations.
The concept of Participatory Budgeting is deeply rooted in the principles of democracy,
transparency and accountability (Monfardini, 2015). Anderson (2021) made similar observations
after the Porto Allegro experience in 1989 that involving citizens in the budgeting process
enhances democracy, transparency and accountability. Whereas Anderson (2021) argues that
involving citizens in the budgeting process enhances democracy, transparency and
accountability, Uddin and Tsamenyi (2017) stated that, budgets can either be participatory or
imposed. Thus, the concept of stakeholder participation is the underlying principle of
Participatory Budgeting. Based on this categorization, Participatory Budgeting is not a budgeting
technique or method but a description of a process mechanism through which a budget can be
developed and managed. Therefore, Participatory Budgeting is a budgeting method whereby all
stakeholders in the budget to be developed participate in the entire process of its preparation,
approval, management and evaluation (Wampler, 2017). Thus, unlike budgeting techniques,
Participatory Budgeting goes beyond the development phase and extends to involving
stakeholders in the management and evaluation stages of the budget. It is therefore possible for
the process of participatory budgeting to use any budgeting technique outlined above in
developing a budget. This supports the argument by various scholars that performance budgeting
14
requires a participative approach to performance measurement (Julnes&Holzer, 2017; Joyce,
2018). The whole process of budgeting works under uncertainty, as it is concerned with future
projection. Benefits associated with a participative approach include: 1) ability to access
knowledge and experience; (2) enhancing chances of integrating new ideas into organizational
procedures; (3) promoting unanimity among stakeholders; and (4) promoting a culture of
performance throughout the organization (Yang & Hsieh, 2021; Lu, 2018).
Abers (2020) identifies three problems of participation: a) Implementation - the powerful often
resist changes; b) Inequality - social-economic inequalities inhibit the effective participation of
certain groups of people; and c) Co-option - control of information and resources leads to
manipulation of participatory avenues by government officials. According to the World Bank
(2017), the principal goal of participation is empowering social groups that have been typically
ignored by social and economic development policies: participation means having an
opportunity to present views and influence decision on a given subject matter. The World Bank
also asserts that in participation, multilateral organizations seek transparency, accountability and
voice of local people particularly the poor (World Bank, 2017).
According to Miller and Monge (2018), three models of participation influence decision-making:
cognitive and contingency. The cognitive concept is premised on the thinking that participation
improves the flow of information from bottom to top, leading to quality decision-making. On the
other hand, the contingency model assumes that the level and effectiveness of participation
depend on circumstances. While the cognitive model expresses the logic behind participation, it
has been argued that the contingency model states that to be effective, certain conditions for
participation must be in place, including: participants’ attitudes, organizational context and the
kind of decisions to be made (Connor, 2019).
Participation is also viewed from the political point of view, whereby it is seen as part of
democracy, that is, looked at in the context of citizens’ rights to participate in matters that
concern them. It has also been argued that participation enhances democratic values that are
necessary for enhancing and improving service delivery in public organizations. Top-down
incremental budget formulation processes in the public sector are criticized for their inadequacy
in being able to lead to the optimal allocation of resources (Hope & Fraser, 2016). This leads to
the question: What does stakeholders’ participation mean? There have also been considerable
arguments in favor of participatory approaches to decision-making (Askim&Hanseen, 2018) in
15
particular, changes in budgetary control in the public sector, especially in local governments, are
intended to promote participatory approaches, involving various stakeholders in the management
of financial resources, which is believed to lead to effective and transparent resource utilization
(Askim & Hanseen, 2018).
Ssekamate (2020) analysis also revealed that civil society plays an important role in ensuring that
participatory budgeting achieves its intended outcomes, as in most cases non-government
organizations (NGOs) represent the citizen, especially the poor, in presenting and disseminating
their views to government. Songco (2018) states that “transparency of the budget process opens
up the government’s budget to public scrutiny and will certainly make it more efficient”. But
there is no convincing evidence that there is transparency in the budgeting process in the
developing countries where citizens have been involved in that process.
Involvement of all stakeholders (beneficiaries, implementing staff, donors, community and
politicians) in the M&E process of the project is very important. Participatory approach to M&E
is viewed as an empowerment tool for the beneficiaries and other stakeholders of the project. It is
also demonstration of down ward accountability to the beneficiaries. CORE (2006) argues that
the beneficiaries do not stand to benefit optimally from the M&E since M&E information is not
shared with them hence; they reduce the chances of learning and improving on performance.
2.6 Summary of the literature review

The literature identified the fact that most research study has been conducted in municipalities
yet my Study was in Town Council setting of a developing Country. There was no particular
study that had been conducted in Namutumba especially on monitoring and evaluation practices
and financial Performance. These gaps triggered and formed the justification to carry out this
study in Namutumba Town Council.
16
CHAPTER THREE
METHODOLOGY
3.1 Introduction
Town Council in Namutumba District. This chapter describes the Methodology that was
employed in the study. It includes the research design, study population, sample size and
selection, sampling techniques and procedures, data collect methods, data collection instruments,
pre-testing validity and reliability, procedures of data collection and data analysis.
3.2 Research design

A cross sectional survey design was selected to facilitate this research while adopting various
data collection tools and techniques to enable data collection from different sources for
triangulation. Triangulation is a method used to increase the credibility and validity of research
findings (Creswell, 2017). The benefits of triangulation to an investigator are: (i) it facilitates
validation of data through cross verification from more than two sources, (ii) it tests the
consistency of findings obtained through different instruments and increases the chance to
control, and or at least assess, some of the threats or multiple causes influencing the results.
Scholars such as Calson and Morris (2009); Kesmodel US (2018); and Amin (2005) have further
explained that in-depth study of any problem with limited time frame is actually perceived as a
holistic way of obtaining insights and a basic advantage of cross-sectional studies. This helped
the researcher to describe in detail Monitoring and Evaluation practices and financial
performance in the Town Council, which may make it easy, save time but also enable the end
user to digest the content. The study utilized a triangulation approach, which involved both
qualitative and quantitative methods of data collection.
3.3 Study population

The study targeted selected respondents in Namutumba Town Council and targeted 134
respondents in total. These comprised of members of the Town council Technical Planning
Committee (TPC); the Town Clerk; Members of the business community; representatives of
Civil Society Organizations (CSOs) operating from the Town council; and elected leaders.
17
3.4 Sampling size and selection
From the targeted population, the study sample size was obtained using Krejcie& Morgan (1970)
formula and table for determining sample size as cited by (Hashim 2018), a copy of which was
appended as Annexure IV. Both random sampling technique and purposive sampling technique
were used to select a sample from among the respondents. The unit of analysis was the
Namutumba Town Council in Namutumba District while the unit of inquiry was the respective
categories of respondents as illustrated in Table 3.1 below:
Table 3.1: showing target population, sample size selection and techniques; data collection
methods and techniques
Category of the Target Sample Sampling Data Data
Population Population techniques collection collection
method technique
Town clerk (Key 01 01 Purposive Interview Interview
informants) guide
TPC Members (Senior 09 09 Purposive Focus Group Focus Group
treasurer, Town Discussion Discussion
engineer, Senior CDO, Guide
Principal Health
Inspector, Senior
Auditor, Production
Officer, Physical
Planner, Law
Enforcement Officer)
Members of the 50 44 Random Questionnaire Questionnaire
Business community
Members of CSOs 50 44 Random Questionnaire Questionnaire
Political Leaders 13 13 Purposive Interview Interview
guide
Totals 123 111
Source: Krejcie& Morgan (1970)
18
3.5 Sampling techniques and procedure
The researcher used both random and purposive sampling technique for its ability to allow the
researcher to use judgment to select people who have relevant information for the study. Random
sampling shall target statistical data while purposive sampling shall target qualitative and
thematic analyses. The sampling techniques have been illustrated in Table 3.1 above.
3.6 Data collection methods

This section presents the various methods of data collection that will be used in this study. They
include the following; document review analysis, interview method, and questionnaire survey.
3.6.1 Questionnaire survey method

This was the principal method of investigation and targeted 88 respondents.
Questionnaires provided a relatively cheap, quick and efficient way of obtaining large amounts
of information from the largest number of respondents in the study (Creswell, 2017). Besides,
data was collected relatively quickly because the researcher would not need to be present when
the questionnaires are being completed and shall employ research assistants to administer them.
The questionnaire survey consisted of a five-point Likert scale which was used to analyze the
variables; where 1= strongly disagree, 2=Disagree, 3=Not sure, 4= Agree and 5= Strongly Agree.
3.6.2 Interview method

An interview guide was used to gather data from top staff like administrators and heads of
departments which allowed in depth analysis of the issue at hand. These interviews were face to
face and were used because they are flexible and permitted probing of respondents in order to get
in-depth detailed information (Malunda, 2021). The interview guide complemented the
questionnaires. The interview guide had both structured, as well as semi-structured questions to
ensure flexibility and attract high response rate. The interviewer asked and guided the
interviewees to allow them to give data relevant to the study objectives. The semi-structured
interview guides contained open-ended questions to obtain data required to meet specific
objectives of the study (Malunda, 2021). Interviews were face to face and were carried out once.
3.6.3 Focus group discussion method

As Morgan (2018) put it, the Focus Group Discussion is appropriate for qualitatively getting a
‘group story’ about the M&E practices and financial performance in the Town Council. There
19
reasons behind the FGDs is first of all is that since the researcher was targeting only one
interview with the Town Clerk, this method was to enable the researcher to save time of
conducting individual interviews with members of the TPC and opt for a conversation between
participants to provide relevant information about the study setting. In FGD, there was a range of
views, and the extent to which participants agreed or disagreed about something of interest to the
researcher. Also, the method enabled the researcher to assess the theoretical propositions based
on previous data collected and analyzed from both questionnaires and interview methods. Lastly,
the researcher wished to come to a consensus between participants about the ‘best way’ to do
something in improving financial performance. The individual interview and questionnaire
responses were further to inform a subsequent focus group.
3.7 Data collection instruments

The following data collection instruments were developed and applied:
3.7.1 Questionnaire
The researcher used a structured questionnaire in this study which contained closed-ended
questions to enable the collection of quantitative data. Primary data was collected using
questionnaires which was researcher administered questions because not all respondents could
read and write; hence researcher-administered questions saved both the time of the researcher
and the respondent. The questionnaire had a 5-point Likert scale ranging from 5 = strongly agree,
4 = Agree 3= Not sure, 2= Disagree and 1= strongly disagree giving consistent responses.
Questionnaires were administered to members of the business community and representatives of
Civil Society Organizations (CSOs).
3.7.2 Interview guide

The researcher developed the interview guide in order to collect qualitative data which was to
complement the quantitative data. This qualitative data helped in explaining some phenomenon
of the study variables, interviews were administered to the Town Clerk and political leaders who
are assumed to be experienced about M&E practices and financial performance in Namutumba
Town Council. Interviews enabled the researcher to probe further for clarification and be able to
get answers to the questions of what, how and why things happen as would have been pointed
out in the focus group discussions and questionnaires.
20
The interview guide was developed relying on the study objectives as explained in Chapter One
of this study and had three sections corresponding to the three objectives. The interview guide
was to probe with open ended questions.
3.7.3 Focus group discussion guide

The Focus Group Discussion (FGD) guide was used to collect qualitative data that gathers
community individuals together to discuss the study topic. The focus group was to be members
of the TPC. The FGDs guide had predetermined semi-structured questions that corresponded to
the study objectives and was led by the researcher. The aim of the FGDs guide was to enable the
researcher elicit responses and generate discussion among the participants at a deeper level that
would ordinarily not be possible to generate by the questionnaire instrument.
3.8 Quality management of study instruments

To ensure that developed data collection instruments generate accurate and reliable information,
the researcher was to conduct validity and reliability, conformability and transferability tests on
the data collection instruments. The processes involved testing for validity and reliability of the
questionnaire and ensure transferability and conformability of the interview and FGDs guides as
explained briefly below.
3.8.1 Validity of the questionnaire

Taherdoost (2016) explains that validity tests enabled the researcher to predict the accuracy of
the questionnaire in measuring the variables they are intended to measure. If a method measured
what it claims to measure, and the results closely corresponded to cotemporary values, then it
was to be considered valid. Validity of the questionnaire was to be tested by pre-testing of the
tool. The number of respondents for pre-testing was to be smaller, usually 1% to 10% of the
sample size Taherdoost (2016).
The researcher used therefore, 10% of the total number of respondents which was 9 out of 88
respondents while pre-testing the questionnaires in a nearby Town Council. The validity of the
instruments was tested using the Content Validity Index (CVI) using expert judgment, taking
only variables scoring above 0.7 accepted for social sciences (O’Gorman &Maclntosh. 2015).
The Content Validity Index was measured using the formula;
CVI = Number of items declared valid X100
21
Total number of items
Table 3.2: Content validity Index Results
Content validity Index Results for Questionnaires
Variables Number of items Valid items Content validity Index
Financial performance 7 7 .889
Data collection 10 10 .832
M&E framework 10 10 .868
Participatory budgeting 10 9 .879
Total 37 36
Source: Primary data (2021)
Results from the Table 3.2 above shows that all the studied variables (Financial performance,
data collection, M&E framework and participatory budgeting) were above 0.7 when the Content
Validity Index coefficient test was computed implying that all the items were valid. The CVI was
found to be =83
3.8.2 Reliability of the questionnaires

Reliability is a measure of the stability or consistency of test scores. This is the ability for a test
or research findings to be repeatable. A reliability coefficient is a measure of how well a test
measures achievement. It is the proportion of variance in observed scores (i.e. scores on the test)
attributable to true scores (the theoretical “real” score that a person would get if a perfect test
existed). Validity of this study’s questionnaire was tested using Cronbach’s Alpha Co-efficiency.
The study questionnaire was piloted, tested on a sample of 10% of the total sample size. The
internal reliability or consistence of the instrument was measured using the Cronbach’s alpha
coefficient taking only variables with an alpha coefficient value more than 0.7, accepted for
social research (O’Gorman & Maclntosh. 2015).
Table 3.3: Cronbach Reliability Coefficient test
Cronbach Reliability Coefficient Results test for Questionnaires
Variables Number of items Valid items Cronbach test results

Financial performance 7 7 .889
Data collection 10 10 .832
22
M&E framework 10 10 .868
Participatory budgeting 10 9 .879
Total 37 36
The Table 3.3 above illustrates that all the items on each variable (Financial performance, data
collection, M&E framework and participatory budgeting) were above 0.7 when the Cronbach
Reliability Coefficient test was generated suggesting that all the items were consistent.
Table 3.4: Cronbach Reliability
Cronbach’ Cronbach’s Alpha based on standardized items Number of items

Alpha
.840 .830 40
Table 3.4 demonstrates the Reliability Statistics Table, which conveys the value for Cronbach
alpha, which in this case is 83showing high reliability of the measuring instrument. Furthermore,
it illustrates high level of internal consistency with respect to the specific sample.
3.9 Procedure of data collection

The researcher got a letter of introduction from Faculty of Graduate Studies and Research,
Uganda Management Institute to go and collect data from Namutumba Town Council. This letter
was presented together with the researcher’s identification card to the various respondents who
were collaborating with the researcher in the process of data collection.
3.10 Data Analyses

Statistical data was analyzed using the Statistical Package for Social Scientists (SPSS 25 th
Version) to generate descriptive statistics in form of frequencies, means, standard deviations that
was used in interpreting and explaining the phenomenon. Qualitative analysis was conducted in
themes and deductions of opinions as further explained below.
3.10.1 Quantitative data analysis

Quantitative was presented in form of descriptive statistics which included mean, variance and
standard deviation among others for each variable that was used in the study, data was also
23
analyzed using Pearson correlation and regression analysis. Pearson’s coefficient r and
significance P was tested at 95% and 99% confidence limits to test if there was any significant
relationship between the independent and dependent variable (O’Gorman &Maclntosh. 2015)
In that case, a positive value of the correlation coefficient r implied a direct positive relationship
between the variables while a negative correlation indicated an inverse or negative relationship
between the two variables. The regression analysis as earlier stated was used to test the extent to
which the independent variables predict the variance in the dependent variable mainly using
ANOVA (Analysis of variance) statistic of adjusted R 2 values, beta, t-values and significance
values (MSHS. 2018).
3.10.2 Qualitative data analysis

As Chenail (2012) advised, conducting qualitative data analysis was done in narrative form on
the different interview questions; the researcher organized statements and responses from
different respondents to generate useful conclusions and interpretations on the research
objectives but was to report in a narrative form. This was to help in strengthening the gaps
identified in the quantitative analysis or to help in affirming what the other researchers hard
earlier found out. The process shall involve of turning written data such as interview and field
notes into findings. There are no formulas, recipes or rules for this process, for which you will
need skills, knowledge, experience, insight and a willingness to keep learning and working at it.
3.11 Measurement of variables

The variables were measured by their exact meaning operational definitions of concepts. They
were channeled into observable and measurable elements to enable the development of an index
of the concept using a five Likert scale ranging from 5=strongly agree, 4=Agree, 3= Not sure,
2=Disagree and I strongly disagree to measure both the Monitoring and Evaluation practices and
financial Performance of Namutumba Town Council in Namutumba District in the study. This
helped the respondents to rate their responses against given items on the various measures. The
measures included the following:
Monitoring and Evaluation was measured in terms of data correction, M&E framework,
participatory budgeting, and stakeholder involvement. (Sholihin, et al., 2011).
Financial Performance was measured in terms of, compliance to accountability requirements,
sustainability, efficiency and effectiveness. (Mihaiu, Opreana, &Cristescu, 2010).
24
3.12 Ethical consideration
The researcher observed the social sciences research ethics through the period of field and off
field investigations. In order to promote ethics in the study respondent’s names were withheld to
ensure anonymity and confidentiality in terms of any future prospects and in-order to avoid bias.
The researcher interviewed the respondents one after the other and ensured that she informs them
about the nature and extent of the study. The researcher gave respondents reasons as to why she
was interviewing them and definitely encouraged voluntary participation of the respondent. Most
important is that the research guaranteed privacy of the respondents throughout and after the
study. The research was to protect the entire research against any form of plagiarism.
Barugahare; Nakwagala and Sewankambo (2020) have elaborately explained the ethical and
human rights considerations in public health in responses to COVID-19 pandemic in Uganda.
Following their study, the researcher adopted their recommendations and in line with the
Ministry of Health Standard Operating Procedures (SOPs) while conducting this study. Briefly,
the following procedures were followed by the researcher in the field to avert the spread of
COVID 19.
 In line with personal safety, the researcher procured disposable face masks for self and
respondents use during field interactions.
 The researcher observed social distancing of at least 1.5 meters with the respondents and
at all times avoided being in close conduct with the subjects.
 The researcher ensured proper hand washing with soap at all places of entry in the field.
 The researcher procured a temperature testing gun and traveled with it in the field, and
tested respondents before going into a FGDs meeting.
25
CHAPTER FOUR
PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Introduction
This chapter presents analyses and interprets the study results on the contribution of M&E
practices and the financial performance of Namutumba Town Council in Namutumba District.
The first section presents the response rate. This is followed by the profile of respondents, level
of the financial performance and a presentation of empirical findings on the relationship between
data collection, M&E framework and participatory budgeting on financial performance of
Namutumba Town Council. The last section presents the multiple regression results and the
position on the study hypotheses.
4.2 Response Rate

The response rate of the study is presented in Table 4.1 below
Table 4.5: Response Rate
Category Target Response Actual Response Response Rate (%)
Interview guide 14 13 98
Focused discussion group 09 09 100
Questionnaires 88 88 100
TOTAL 111 111 100
Table 4.5 above shows that 88 questionnaires for members of the business community and
members of CSOs were returned out of 88 distributed, which denoted a response rate of 100% of
the original sample. The questionnaires returned were used for further data analysis and
management. Then out of 14 interviews which were planned to be conducted; only 13 were
conducted successfully and one was missed. On average, the response rate for the study stood at
91%. Then out of 9 focus discussions targeted, all of them were conducted give a 100% response
26
rate. The response rate was deemed good enough since it was over and above the 70%
recommended by Malunda (2016).
4.3 Demographic characteristics of respondents

The demographic information collected from the respondents included the age (years), gender
and highest level of education among others as presented in table 4.6.
Table 4.6: Demographic characteristics of respondents
Features Category (Code) Frequency Percentage (%)
18-24 10 11
25-31 29 33
Age (years) 32-38 27 31
39-45 14 16
46-52 6 7
Above 52yrs 2 2
Male 57 65
Gender Female 31 35
Marital status Single 23 26
Married 61 69
Widow 4 5
Certificate 46 53
Ordinary Diploma 15 17
Highest level of education Bachelor’s Degree 18 20
Post Graduate Diploma 4 5
Master’s Degree 3 3
PhD 2 2
Duration at organization Less than 1 year 3 3
1-3 years 23 26
4-7 years 27 31
Over 8years 35 40
The results in Table 4.6 show that the majority (33%) of the respondents of Namutumba Town
Council were aged between 25 and 31 years, meaning that the majority were young and energetic
to effectively execute tasks associated financial performance in Namutumba Town Council. The
result also implies that the views of all respondents according to their age groups were listened to
and captured in this port. Results also suggest a gender disparity in employment of employees in
27
Namutumba Town Council with more males (65%) employed compared to their female
counterparts (35%).
There is significant evidence that Namutumba Town Council has more married respondents by
marital status (69%). The results also show that the majority (53%) of the respondents in
Namutumba Town Council had the requisite qualification (at Certificate) to establish the
contribution of M&E practices on the financial performance of Namutumba Town Council in
Namutumba District, demonstrating that the respondents in Namutumba Town Council have the
necessary qualifications and knowledge to assess the financial performance of Namutumba
Town Council.
Lastly, results from Table 4.6 also show that the majority (40%) of the respondents in
Namutumba Town Council had worked in Namutumba Town Council for a period of over 8
years meaning that they had reasonable years of experience probably through observing the
trends on the problem that was being investigated (contribution of M&E practices on the
financial performance of Namutumba Town Council in Namutumba District). Generally, the
views of the respondents in terms of duration of working with Namutumba Town Council were
heard and captured.
4.4 Financial performance of Namutumba Town Council

The study sought views on the financial performance of Namutumba Town Council. This sub-
section presents the analysis of descriptive results of the respondents’ views on the financial
performance of Namutumba Town Council using frequencies and percentages and results of
qualitative data. Table 4.7 below presents the frequency and percentage distribution of the
financial performance of Namutumba Town Council.
28
Table 4.7: Distribution of financial performance of Namutumba Town Council
Cost of ICT SA A N D SD Mea Std.
n D
Namutumba financial 20 41 12 5 10 3.593 .8225
management system is (23%) (46%) (14%) (6%) (11%
transparent )
There is accountability of 30 36 16 6 10 3.475 .7642
finances in Namutumba Town (34%) (41%) (42%) (7%) (42%
Council )
Council produces its financial 50 17 5 7 7 3.468 .6841
statement periodically. (57%) (19%) (6%) (8%) (8%)
Council has clear financial 29 40 3 6 10 3.456 .6741
reporting system. (33%) (45%) (7%) (7%) (11%
)
Council financial statements are 13 50 6 8 11 3.436 .6652
frequently audited. (14%) (56%) (7%) (9%) (28%
)
Council finances meet the 45 27 8 8 00 3.514 .6861
service deliveries need as (51%) (30%) (9%) (9%) (00%
planned )
Council has identified many 30 47 7 4 00 3.713 .773
areas for investments (34%) (53%) (8%) (5%) (00%
)
The Table 4.7 above shows that on the question Namutumba financial management system is
transparent, majority of respondent 69%(23%+46%) agreed with the statement, 14% were not
sure, and 17% (6%+11%) strongly disagreed with the statement. These results are supported by a
mean of 3.593 and standard deviation (Std D) of .8225 which indicates moderate level of
agreement to the statement.
On the statement there is accountability of finances in Namutumba Town Council, majority of
respondents 75% (34%+41) agreed with the statement, 42% of the respondents were not sure
29
whereas 49% (7%+42%) of the respondents strongly disagreed with the statement. These results
are supported by a mean of 3.475and standard deviation (Std D) of .7642 which indicates
moderate level of agreement that there is accountability of finances in Namutumba Town
Council, probably because they value their work. In lieu of this statement, an analysis of Focus
Group Discussion data revealed that some respondents were satisfactory. When one member
from the Focus Group Discussion was asked to comment on the financial performance of
Namutumba Town Council, she had this to say:
“…the financial performance of Namutumba Town Council is not appeasing to
stakeholders…” “Although there are some indicators of improvement in the
performance, but still more is needed from government”. For instance, there was under
funding in the financial year 2018/2019 and equally in 2020/2021. This has greatly
affected the normal operations of the Town Council in terms of the budgets that had been
drawn leading to budget deficits”. [Date: 26-05-2021, Source: Focus Group Discussion]
The above statement seems to reveal that some respondents conceded that although there is
accountability of finances in Namutumba Town Council, but the challenge of underfunding by
government greatly affects accountability matters for the Namutumba Town Council.
As to whether council produces its financial statement periodically, 76% (57%+19%) of the
respondents strongly agreed with the statement, 6% were not sure with the statement, 16% (8%
+8%) of the respondents disagreed with the statement. These results are supported by a mean of
3.468 and standard deviation (Std D) of .6841 which indicates of agreement.
On the statement, council has clear financial reporting system, 78% (33%+45%) of the
respondents agreed with the statement, 7% of the respondents were not sure whereas 18% (7%
+11%) of the respondents strongly disagreed with the statement. These results are supported by a
mean of 3.456 and standard deviation (Std D) of .6741 which indicates of agreement. An
analysis of interview data revealed that some respondents were satisfactory. When one key
informant Code named NTC-03 at Na mutumba Town Council was asked to comment on the
clear financial reporting system of Namutumba Town Council, she had this to say:
“There is pressure to perform emanating from both Ministry of Local government and
the district authorities”. The pressure causes almost every civil servant in Namutumba
Town Council to ensure that systems are almost to perfection” [Date: 26-05-2021,
Source: Primary information from key informant]
30
The above declaration discloses that some respondents indeed agreed that Namutumba Town
Council has clear financial reporting system.
On sub component council financial statements are frequently audited, 70% (14%+56%) of the
respondents agreed with the statement, 7% were not sure and 37% (9%+28%) of the respondents
strongly disagreed with the statement. These results are supported by a mean of 3.436 and
standard deviation (Std D) of .6651 which indicates of agreement
On the sub component council finances meet the service deliveries need as planned, 81% (51%
+30) of the respondents strongly agreed with the statement, 9% of the respondents were not sure
and 9% of the respondents disagreed with the statement respectively. These results are supported
by a mean of 3.436 and standard deviation (Std D) of .6651 which indicates of agreement
perhaps this is done to improve and strengthen Namutumba Town Council’s internal controls
and systems.
Lastly, as whether the council has identified many areas for investments, 87% (34%+53%) of the
respondents agreed with the statement, 8% of the respondents were not sure of the statement and
only 5% of the respondents disagreed with the statement. These results are supported by a mean
of 3.713 and standard deviation (Std D) of .773 which indicates of agreement that Namutumba
Town Council has identified many areas for investments, probably to Council does the
investments to ensure they generating revenue for the Town Council and the stakeholders. An
analysis of interview data revealed that some respondents were satisfactory. When one key
informant Code named NTC-05 at Namutumba Town Council was asked to comment on the
matter of investments, he had this to say:
“It is the one perilous route through which profit is created out of ideal lying resources
by deploying them into financial assets, thus generating some income for the Council”
[Date: 26-05-2021, Source: Primary information from key informant]
The above declaration reveals that some respondents indeed agreed that Namutumba Town
Council has identified many areas for investments specifically to support the Town Council in
generating some income.
4.4.1 Data collection and financial performance

Research objective one sought to establish the contribution of data collection on the financial
performance of Namutumba Town Council. In this sub-section, the analysis of descriptive results
31
of the respondents’ views on Data collection using frequencies and percentages and results of
qualitative data are presented.
Table 4.8: Distribution of respondents’ opinion on Data collection

Statements SA A N D SD Mea Std
n D
Data collection contributes to 15 40 6 10 9 3.867 .984
transparency and accountability (39%) (45%) (7%) (11% (10%
) )
The officers use revenue register 30 34 14 13 00 3.887 .898
while collecting data (34%) (38%) (15) (15% (00%
) )
The officers assess the business 40 21 4 5 8 3.884 1.178
(51%) (23%) (4%) (6%) (9%)
The data collected is used to reveal 50 16 10 6 12 3.852 .853
tax payment compliance (56%) (18%) (11%) (7%) (13%
)
Data collected reveals revenue 27 47 6 7 10 4.175 1.153
defaulters (30%) (53%) (6%) (8%) (11%
)
Data collection is about identifying 19 50 4 6 10 3.820 .851
needs of the community (21%) (56%) (4%) (7%) (11%
Information collected is used for 20 33 10 8 13 3.624 1.129
planning and financial resource (22%) (37%) (11%) (9%) (14%
allocation )
Data collected is used to review tax 12 45 17 8 5 3.77 1.52
rates to improve on financial (13%) (51%) (19%) (9%) (5%)
32
performance
Data collected adds value to 30 26 8 4 20 3.42 1.8
revenue collection (34%) (29%) (9%) (5%) (22%
)
Data collected helps in decision 39 25 7 10 7 3.70 1.6
making to improve financial (44%) (28%) (8%) (11% (7%)
performance )
As to whether data collection contributes to transparency and accountability, 84% (39%+45%) of
the respondents agreed with the statement, 7% of the respondents were not sure of the statement,
21% (11%+10%) of the respondents strongly disagreed with the statement. These results are
supported by a mean of 3.867 and standard deviation (Std D) of .984 which indicates of
agreement probably because collecting data allows the council to store and analyze important
information about the existing financial performance. An analysis of interview data revealed that
some respondents were satisfactory. When one key informant Code named NTC-02 at
Namutumba Town Council was asked to comment on Data collection contributing to
transparency and accountability, she had this to say:
“…Yes. Data is collected partly for transparency and accountability purposes.
Namutumba Town Council believes in evidence-based reporting hence the need for data
collection” [Date: 27-05-2021, Source: Primary information from key informant]
The above declaration reveals that some respondents indeed agreed that Data collection
contributes to transparency and accountability, because collecting data allows the council to store
and analyze important information for purposes of evidence-based reporting.
On sub component the officers use revenue register while collecting data, 72% (34%+38%) of
the respondents agreed with the statement, 15% of the respondents were not sure, 15% of the
respondents disagreed with the statement respectively. These results are supported by a mean of
3.887 and standard deviation (Std D) of .898 which indicates of agreement perhaps this is done
to improve and strengthen Namutumba Town Council’s internal controls and systems.
On the statement officers assess the business, 74% (51%+23%) of the respondents strongly
agreed with the statement, 4% were not sure of the statement whereas 15% (6%+9%) of the
respondents strongly disagreed with the statement. These results are supported by a mean of
33
3.887 and standard deviation (Std D) of 1.178 which indicates of agreement perhaps to identify
areas that need to be improved before they become major issues, as well as giving the council the
opportunity to consider how to respond to any performance challenges.
Related, on the statement the data collected is used to reveal tax payment compliance, 74% (56%
+18%) of the respondents strongly agreed with the statement, 11% were not sure, 20% of the
respondents strongly disagreed with the statement. These results are supported by a mean of
3.852 and standard deviation (Std D) of .853 which indicates of agreement perhaps this is done
to improve and strengthen Namutumba Town Council’s internal controls and systems.
As to whether data collected reveals revenue defaulters, 83% of the respondents agreed with the
statement, 6% were not sure, 19% of the respondents strongly disagreed with the statement.
These results are supported by a mean of 4.175 and standard deviation (Std D) of 1.153 which
indicates of agreement perhaps this is done to improve and strengthen Namutumba Town
Council’s internal controls and systems.
On the statement data collection is about identifying needs of the community, 77% (21%+56%)
of the respondents strongly agreed with the statement, 45 of the respondents were not sure and
18% of the respondents strongly disagreed with the statement. These results are supported by a
mean of 3.820 and standard deviation (Std D) of .851which indicates of agreement of the
statement because data collection in Namutumba Town Council is concerned with ensuring
stakeholders’ satisfaction and loyalty. In agreement with the above findings, an analysis of
interview data revealed that some respondents were satisfactory. When one key informant Code
named NC-03 at Namutumba Town Council was requested to comment on service managers
always carrying out assessment in relation to goals and objectives as stipulated in the agreement,
she had this to say:
“As an urban district, we have a team of monitoring and quality control”. “This team
always carries out assessment in relation to goals and objectives as stipulated in the
agreement” [Date: 27-05-2021, Source: Primary information from key informant]
The above assertion reveals that some respondents indeed conceded that service managers
always carry out assessment in relation to goals and objectives as stipulated in the agreement.
On the statement information collected is used for planning and financial resource allocation,
59% (22%+37%) of the respondents agreed with the statement, 11% were not sure of the
statement, 23% of the respondents strongly disagreed with the statement. These results are
34
supported by a mean of 3.624 and standard deviation (Std D) of 1.129 which indicates of
agreement perhaps this is done to improve and strengthen Namutumba Town Council’s internal
controls and systems
As to whether data collected adds value to revenue collection, 53% (43%+19%) of the
respondents strongly agreed with the statement, 9% 0f the respondents were not sure of the
statement and 27% (5%+22%) of the respondents strongly agreed with the statement. These
results are supported by a mean of 3.42 and standard deviation (Std D) of 1.8 which indicates of
agreement perhaps this is done to improve and strengthen Namutumba Town Council’s internal
controls and systems
On the statement data collected helps in decision making to improve financial performance, 72%
(44%+28%) of the respondents agreed with the statement, 8% of the respondents were not sure
of the statement, 18% (11%+7%) of the respondents strongly disagreed with the statement.
These results are supported by a mean 3.80 and standard deviation (Std D) of 1.6 which indicates
of agreement of the statement because data collection in Namutumba Town Council is partly
done to facilitate Council to decide on many matters as what goals the Council will pursue, what
resources they will use, and who will perform each required task. An analysis of interview data
revealed that some respondents were in harmony. When one key informant Code named NTC-01
at Namutumba Town Council was requested to comment on Data collected serving in decision
making, he had this to say:
“I agree, to the fact that data collected stands to facilitate council to decide on many
matters as what goals the Council will pursue and what resources they will use” [Date:
27-05-2021, Source: Primary information from key informant]
The above declaration reveals that some respondents indeed conceded that Data collected helps
in decision making to facilitate council to decide on many matters as what goals the Council will
pursue and what resources they will use to improve on the financial performance of the Council.
Testing hypothesis one
H1: There is no contribution of data collection and financial performance of Namutumba Town
Council.
Table 4.9: Person correlation of Data collection and financial performance
Correlation Coefficient Data collection Financial performance
35
Data collection Pearson’s Correlation 1.000 .742 **
Sig. (2-tailed) 0.004
N 88 88
Financial Pearson Correlation .742 ** 1.000
performance Sig. (2-tailed) 0.004
N 88 88
**. Correlation is significant at the 0.05 level (2-tailed).
Source: Primary Data (2021)
Results in Table 4.9 show that all the 88 observations were used in the analysis. According to
table 4.9, there is a strong positive relationship between Data collection and financial
performance. The table shows a Pearson’s r = 0.742 and statistical significance of p-value =
0.004. This implies that when there is an increase in Data collection, there is a 0.742 positive
change in the financial performance. This also means that Data collection accounts for 74.2% of
financial performance. From this analysis, the hypothesis that there is no contribution of data
collection and financial performance of Namutumba Town Council was rejected.
4.4.2 M&E framework -financial performance of Namutumba Town Council relationship

The study sought the respondents’ perceptions on M&E framework as an M&E practice pathway
in Namutumba Town Council. Furthermore, evidence of the M&E framework was sought from
documents, analyzed and presented in this sub-section.
Table 4.10: Distribution of respondents’ opinion on M&E framework
Statement SA A N D SD Mean Std D
M&E framework guides in the 25 45 10 3 5 3.768 .879
implementation of programs (28%) (51%) (11%) (3%) (5%)
M&E framework viewed as 18 38 5 5 22 3.985 .894
important tool (20%) (43%) (6%) (6%) (25%
Activities are monitored and 52 16 4 4 12 3.638 .786
evaluated to track their (59%) (18%) (4%) (5%) (13%)
progress and impact
Political leaders participate in 28 24 6 13 17 3.762 .772
monitoring and evaluation of (31%) (27%) (6%) (15%) (19%)
36
projects to ensure effective
service delivery
Staff always monitor and 19 20 14 14 21 3.758 .868
supervise the business (21%) (22%) (16%) (16%) (23%)
Monitoring improves the 38 35 10 1 5 3.721 .767
financial performance (43%) (39%) (11%) (1%) (5%)
Town Council ensure that 16 26 11 15 20 3.605 .764
stakeholders are engaged in (18% (29%) (12%) (17%) (22%)
formulating M&E framework
M&E framework assist in 25 31 12 3(3%) 17 3.00 .99
understanding the programs (28%) (35%) (14%) (19%)
and desired outcome.
M&E framework helps to 44 32 8(9%) 8(9%) 00 4.33 1.23
allocate financial resources (50%) (36%) (00%
and frequency of data
collection
M&E framework helps to 18 58 12 0% 00% 4.42 1.66
make sound plans and (20%) (65%) (14%)
implementing M&E activities
On sub component M&E framework guides in the implementation of programs, 79% (28%
+51%) of the respondents agreed with the statement, 11% of the respondent were not sure, 8%
(3%+5%) strongly disagreed with the statement. These results are supported by a mean 3.768
and standard deviation (Std D) of .879 which indicates of agreement of the statement
As to whether M&E framework viewed as important tool, 63% (20%+43%) of the respondents
strongly agreed with the statement, and 6% of the respondents were not sure of the statement,
31% (6%+25%) of the respondent strongly disagreed with the statement. These results are
supported by a mean 3.985 and standard deviation (Std D) of .894 which indicates of agreement
of the statement probably for enhancing the quality of financial planning and management in
Namutumba Town Council. An analysis of interview data revealed that some respondents were
37
satisfactory. When one key informant Code named WD-08 at Namutumba Town Council was
asked to comment on complying with the service quality level, he had this to say:
“As local government body, we have set policies”. “Contractors by law are indebted to
always comply with the service quality level which has been specified in the bidding
document, though it’s sometimes compromised” [Date: 29-05-2021, Source: Primary
information from key informant]
The above statement reveals that some respondents indeed agreed that the contractors always
comply with the service quality level which has been specified in the bidding document.
On the statement activities are monitored and evaluated to track their progress and impact, (59%
+18%) strongly agreed with the statement, 4% of the respondents were not sure of the statement
and 18% (5%+13%) of the respondents strongly disagreed with the statement. These results are
of the statement.
On the statement political leaders participate in monitoring and evaluation of projects to ensure
effective service delivery, 58% (31%+27%) of the respondents strongly agreed with the
statement, 6% were not sure with the statement and 34% (15%+19%) of the respondents strongly
disagreed with the statement. These results are supported by a mean 3.638 and standard deviation
(Std D) of .786 which indicates of agreement of the statement. An analysis of interview data
revealed that some respondents were in harmony. When one key informant Code named NTC-01
at Namutumba Town Council was requested to comment on Data collected serving in decision
making, he had this to say:
“I agree, to the fact that data collected stands to facilitate council to decide on many
matters as what goals the Council will pursue and what resources they will use” [Date:
29-05-2021, Source: Primary information from key informant]
The above declaration reveals that some respondents indeed conceded that Data collected helps
in decision making to facilitate council to decide on many matters as what goals the Council will
pursue and what resources they will use to improve on the financial performance of the Council.
Furthermore, on the statement staff always monitor and supervise the business, 43% (21%+22)
of the respondents strongly agreed with the statement, 16% of the respondents were not sure,
39% (16%+23%) of the respondents strongly disagreed with the statement. These results are
38
of the statement.
On sub component monitoring improves the financial performance, 82% (43%+39%) of the
respondents strongly agreed with the statement, 11% were not sure of the statement and 6% of
the respondents disagreed with the statement. These results are supported by a mean 3.758 and
standard deviation (Std D) of .868 which indicates of agreement of the statement.
As whether Town Council ensure that stakeholders are engaged in formulating M&E framework,
47% (18%+29%) of the respondents strongly agreed with the statement, 12% were not sure, 39%
(17%+22) of the respondents strongly disagreed with the statement. These results are supported
by a mean 3.758 and standard deviation (Std D) of .868 which indicates of agreement of the
statement.
On sub component M&E framework assist in understanding the programs and desired outcome,
63% (28%+35%) of the respondents agreed with the statement, 14% of the respondents were not
sure and 22% (3%+19%) of the respondents strongly disagreed with the statement. These results
are supported by a mean 3.758 and standard deviation (Std D) of .868 which indicates of
agreement of the statement.
On the statement as to whether M&E framework helps to allocate financial resources and
frequency of data collection, 86% (50%+36%) of the respondents strongly agreed with the
statement, 9% of respondents were not sure of the statement and no respondent disagreed with
the statement. These results are supported by a mean 3.758 and standard deviation (Std D)
of .868 which indicates of agreement of the statement.
Lastly, on sub component M&E framework helps to make sound plans and implementing M&E
activities, 85% (20+65%) of the respondents agreed with the statement, 14% of the respondents
were not sure of the statement and none of the respondent disagreed with the statement. These
results are supported by a mean 4.42 and standard deviation (Std D) of 1.66 which indicates of
Testing hypothesis two
H2: There is relevance of M&E frame work on financial performance of Namutumba Town
Council.
Table 4.11: Person correlation of M&E framework and financial performance
39
Correlation Coefficient M&E Framework Financial
performance
M&E framework Pearson’s Correlation 1.000 .821**
N 88 88
Financial performance Pearson Correlation .821 ** 1.000
N 88 88
Source: Primary Data (2021)
Furthermore, there is also a strong positive relationship between M&E framework and financial
performance. Table 4.11 revealed that there is a Pearson’s r = 0.821 and a statistical significance
of p-value = 0.001. This implies that when M&E framework of the M&E practices increases by
1-unit, financial performance shall increase by 0.863 units. This also means that M&E
framework accounts for 82.1% of financial performance. Therefore, the hypothesis that there is
no effectiveness of M&E framework on financial performance can be rejected.
4.4.3 Participatory budgeting-financial performance of Namutumba Town Council

relationship
The study objective three sought the respondents’ perceptions on participatory budgeting as an
M&E practice pathway in Namutumba Town Council. As in the predecessor objectives of the
study, the evidence of the participatory budgeting was sought from documents, analyzed and
presented in this sub-section.
Table 4.12: Distribution of respondents’ opinion on participatory budgeting
Statement SA A N D SD Mean Std
D
Participatory budgeting is 18 44 9 7 10 3.484 .978
implemented in Namutumba (20%) (50% (10%) (8%) (11%
Town Council
Citizens understand the 22 40 5 17 20 3.747 .992
need for participatory (25%) (45%) (5%) (19%) (22%)
40
budgeting in the Town
Council.
Business community and 27 18 7 11 25 3.253 .996
CSOs are involved in (30% (20%) (7%) (13%) (28%)
Participatory budgeting
Participatory budgeting 19 25 7 0% 8 3.754 .879
adds value to the financial (21%) (28%) (8%) (9%)
performance of Town
Council.
Citizen’s participation in the 50 31 12 2(2%) 00 3.765 .765
budgeting process addresses (56% (35%) (13%) (00%
local priorities
Citizens benefit in 38 30 17 4 6 3.754 .753
participatory budgeting (43%) (34%) (19%) (5%) (6%)
Participatory budgeting 43 24 18 8 23 3.775 .784
discusses on revenue from (48%) (27%) (20%) (9%) (26%)
Town Council’s own source
and other revenues from
Donors, and funds from
Central Government
Stakeholders’ ideas are 20 39 5(5%) 11 00 3.53 .882
considered during (22% (44%) (13%) (00%
participatory budgeting.
Participatory budgeting 16 22 11(13 4 14 3.60 .773
ensures effective and (18% (25%) %) (15%)
efficient use of public funds (5%)
Stakeholder involvement 18 30 10 4 25 3.50 .552
has an effect on financial (20%) (34%) (11%) (5%) (28%)
performance
41
From Table 4.12 results indicate that on sub component participatory budgeting is implemented
in Namutumba Town Council, 70% (20%+50%) of the respondents agreed with the statement,
10% were not sure of the statement and 19% of the respondents strongly disagreed with the
statement. These results are supported by a mean 3.484 and standard deviation (Std D) of .978
which indicates of agreement of the statement.
On the statement citizens understand the need for participatory budgeting in the Town Council,
sure of the statement and 41% (19%+22) of the respondents disagreed with the statement. These
results are supported by a mean 3.747 and standard deviation (Std D) of .992 which indicates of
On the statement business community and CSOs are involved in Participatory budgeting, 50%
(30%+20%) strongly agreed with the statement, 7% of the respondents were not sure of the
statement and 41% of the respondents disagreed with the statement. These results are supported
by a mean 3.484 and standard deviation (Std D) of .978 which indicates of agreement of the
statement. This result could perhaps mean that Namutumba Town Council has not fully engaged
the Business community and CSOs in Participatory budgeting. An analysis of Focus Group
Discussion data revealed that some respondents were unsatisfactory. When one member was
requested to share on Business community and CSOs being involved in Participatory budgeting,
she had this to say:
“…to be honest, the business community and CSOs are rarely invited to attend
participatory budgeting” [Date: 29-05-2021, Source: Focus Group Discussion]
The above statement reveals that some respondents indeed refuted business community and
CSOs are involved in participatory budgeting.
As to whether participatory budgeting adds value to the financial performance of Town Council,
sure of the statement and 9% of the respondent disagreed with the statement respectively. These
results are supported by a mean 3.484 and standard deviation (Std D) of .978 which indicates of
On sub component citizen’s participation in the budgeting process addresses local priorities, 91%
(56%+35%) of the respondent strongly agreed with the statement, 13% of the respondents were
not sure of the statement and 2% of the respondents disagreed with the respondents respectively.
42
These results are supported by a mean 3.484 and standard deviation (Std D) of .978 which
indicates of agreement of the statement.
As to whether citizens benefit in participatory budgeting, 77% (43%+34%) strongly agreed with
the statement, 19% of the respondent were not sure of the statement and 11% of the respondents
disagreed with the statement. These results are supported by a mean 3.754 and standard deviation
(Std D) of .753 which indicates of agreement of the statement.
Further still, on the statement participatory budgeting discusses on revenue from Town Council’s
own source and other revenues from Donors, and funds from Central Government, 75% (48%
+27%) of the respondents strongly agreed with the statement, 20% of the were not of the
statement and 35% of the respondents strongly disagreed with the statement. These results are
of the statement.
On the statement of Stakeholders’ ideas are considered during participatory budgeting, 66%
(22%+44%) of the respondents agreed with the statement, 5% of the respondents were not sure
and 13% of the respondents disagreed with the statement respectably. These results are supported
by a mean 3.53 and standard deviation (Std D) of .7.882 which indicates of agreement of the
statement.
On sub component participatory budgeting ensures effective and efficient use of public funds,
sure of the statement and 15% of the respondents disagreed with the statement. These results are
supported by a mean 3.60 and standard deviation (Std D) of .773 which indicates of agreement of
the statement. This result could perhaps mean that Participatory budgeting at Namutumba Town
Council rarely discusses on revenue from Town Council’s own source and other revenues from
Donors. An analysis of interview data revealed that some respondents were satisfactory. When
one key informant Code named NTC-06 at Namutumba Town Council was requested to
comment on involvement of stakeholders on Participatory budgeting involving revenue from
Town Council’s own source and other revenues from Donors, she had this to say:
“Oh Nooooh! There is a red line on this matter, let’s just leave it” [Date: 29-05-2021,
Source: Primary information from key informant]
43
The above statement reveals that some respondents indeed refuted that Participatory budgeting at
Namutumba Town Council discusses on revenue from Town Council’s own source and other
revenues from Donors.
Lastly, as to whether Stakeholder involvement has an effect on financial performance, 64% (20%
+34%) of the respondents agreed with the statement, 11% were not sure and 33% of the
respondents disagreed with the statement. These results are supported by a mean 3.50 and
standard deviation (Std D) of .552 which indicates of agreement of the statement.
Testing hypothesis three
H3: Participatory budgeting has effect on the financial performance of Namutumba Town
Council.
Table 4.13: Person correlation of Participatory budgeting and financial performance
Correlation Coefficient Participatory Financial

Budgeting Performance
Participatory budgeting Pearson’s Correlation 1.000 . .685 **
N 88 88
Financial performance Pearson Correlation .685** 1.000
N 88 88
Source: Primary Data (2021).
Additionally, Table 4.13 revealed that there was a medium positive relationship between
participatory budgeting and financial performance as reflected by a Pearson’s r = 0.685 and a
statistical significance of p-value = 0.002. This implies that when participatory budgeting of the
M&E practices increases by 1-unit, financial performance shall increase by 0.685 units. This also
means that participatory budgeting accounts for 68.2% of financial performance at Namutumba
Town Council. Therefore, the hypothesis that there is no significant effect between participatory
budgeting and financial performance of Namutumba Town Council was rejected.
44
4.5. Multiple Linear Regression
The multiple regression analysis of key constructs of M&E practices (Data collection, M&E
framework and participatory budgeting) was executed and the results tabulated as shown in the
table 4.8. The results were further used to verify the study hypotheses and to discuss the
statistical significance of the constructs.
4.5.1 Determining how well the model fits

Table 3.14: Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate

1 .789a .607 .595 .33132
a. Predictors: (Constant), Data collection, M&E framework, Participatory budgeting

The R-squared value measures the extent at which the independent variables measures variations
in the dependent variable. From the results in Table 4.8, the two variables (M&E practices and
financial performance) that were being studied are positively correlated, and the correlation is
significant with correlation coefficient value of 0.789 at p-value of 0.05. A value of 0.789 in this
report indicates a good level of prediction. The value of R Square, 0.607 reveals that the
independent variables explain 60.7% of the variability of the financial performance. And 39.3%
(100%-60.7%) of the variation is caused by factors other than the predictors included in this
model. The standard error (in this report 0.331) implies that on average, the estimates of financial
performance with this model will be wrong by 0.33 or (33.1%) which is not an ignorable amount
given the scale of financial performance a. Hence the model is good fit of measure.
4.5.2. Statistical significance of the model

Table 4.15: ANOVA
Model Sum of Squares Df Mean Square F Sig.
1 Regression 8.827 4 2.942 26.804 .002b
45
Residual 5.708 84 .110
Total 14.535 88
a. Dependent Variable: Financial performance
b. Predictors: (Constant), Data collection, M&E framework, Participatory budgeting
The F-ratio in the ANOVA (Table 4.9) implies that the overall regression model is a good fit for
the data. The table shows that the independent variables (Data collection, M&E framework and
Participatory budgeting) significantly predict the financial performance, F (4, 84) =26.804, p
(.002) <0.05 (i.e., the regression model is a good fit of the data).
Table 4.16: Summary of Coefficientsa
Model Variables Unstandardized Standardized T Sig.
Coefficients Coefficients
Beta Std. Beta
Error
(Constant) 81.607 6.326 2.516 3.551 .004
Data collection .224 .074 .742 11.301 .001
M&E framework .065 .142 .821 16.506 .002
Participatory .-260 .075 .685 8.516 .002

1
budgeting
a. Dependent Variable: Financial performance
b. Predictors: (Constant), Data collection, M&E framework and Participatory budgeting.
Source: Primary data, 2021
The results indicate that a unit increase in the M&E practices-financial performance relationship
results in a 2.516-unit increase in financial performance. This means that good M&E practices-
financial performance relationship enhances Namutumba Town Council Financial Performance.
Similarly, the results indicate that a unit increase in Data collection leads to a 0.821-unit increase
in the Financial Performance. This implies that the increased Data collection by Namutumba
Town Council leads to improved Financial Performance. The results also show that that a unit
increase in M&E framework leads to a 0.742-unit increase in the Financial Performance. This
46
means that the increased M&E framework by Namutumba Town Council leads to improved
Financial Performance.
Lastly, the results reveal that a unit increase in the Participatory budgeting results in a 0.658-unit
increase in the Financial Performance, meaning that Participatory budgeting is correlated
positively with Financial Performance.
In the model, Data collection, M&E framework and Participatory budgeting used in Namutumba
Town Council used as M&E practices were found to be statistically significant at 5% level of
significance. The null hypotheses that there is no contribution of data collection and financial
performance of Namutumba Town Council, there is no contribution of M&E frame work on
financial performance of Namutumba Town Council and that there is no contribution of
Participatory budgeting on the financial performance of Namutumba Town Council do not in any
way explain financial performance are rejected.
The results mean that with the other explanatory variables held constant in the model, the
financial performance of Namutumba Town Council would significantly improve with increased
Data collection and M&E framework. M&E framework with the highest coefficient of 0.821
significantly explained variation in the financial performance of Namutumba Town Council.
4.6 Summary
The Chapter focused on establishing the contribution of M&E practices to the financial
performance of Namutumba Town Council in Namutumba District. The study established that
the Data collection -financial performance of Namutumba Town Council, M&E framework -
financial performance of Namutumba Town Council and Participatory budgeting-financial
performance of Namutumba Town Council are significant antecedents of the financial
performance of Namutumba Town Council. However, the findings of this study suggest that the
relationship between M&E practices and the financial performance of Namutumba Town
Council is relatively good, that activities are monitored and evaluated to track their progress and
impact and that Staff always monitor and supervise the businesses are some of the key pathways
upheld by the Namutumba Town Council in a bid to sustain financial performance of the Town
council. It is important therefore for matters related to M&E practices and financial performance
of Namutumba Town Council, that M&E framework are upheld by the Town Council to ensure
sound plans and implementation of M&E activities in the Council.
47
48
CHAPTER FIVE
SUMMARY, DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
The study aimed at establishing the contribution of M&E practices to the financial performance
of Namutumba Town Council in Namutumba District. Consequently, this chapter presents the
summary of the report findings, discussions, conclusions, recommendations, limitations of the
study, contributions of the study and areas recommended for future research.
5.2 Summary of the Results
5.2.1 Data collection and financial performance of Namutumba Town Council

The first research objective of the study sought to establish the contribution of data collection on
the financial performance of Namutumba Town Council. The findings of the study revealed that;
data collection has a positive significant contribution to the financial performance of Namutumba
Town Council in terms of efficiency, effectiveness, sustainability and compliance to
accountability requirements as revealed by the correlation coefficient (r); 0. 742, p < 0.001. The
correlation coefficient (r) reveals that Data collection accounts 72.2% change in the financial
performance of Namutumba Town Council, leaving the rest of the percentage to other exogenous
factors not included in this report and need extra studies to expose them.
Additionally, findings from some of the key qualitative findings on the construct of Data
collection and the financial performance of Namutumba Town Council equally showed
analogous trends towards the quantitative analysis. For instance, as regards to whether Data
collection is about identifying needs of the community, it was discovered that Data collected is
further processed by the Namutumba Town Council Data analysts into information which is used
to provide the Council good decision-making insights into the following key areas: (i) predicting
financial trends and behaviors of town council stakeholders and (ii) driving effective decision-
making for the Namutumba town council management. This qualitative discovery was analogous
with the quantitative findings as stated above.
49
5.2.2 M&E framework and financial performance of Namutumba Town Council
Research study objective two sought to investigate the effectiveness of M&E framework in
Namutumba Town Council. The study discovered that M&E framework has a significant
positive contribution on the financial performance of Namutumba Town Council in terms of the
following studied parameters: efficiency, effectiveness, sustainability and compliance to
accountability requirements as shown by the correlation coefficient (r); 0.821, p < 0.002). The
correlation coefficient (r) shows that M&E framework accounts for 82.1% change in the
financial performance of Namutumba Town Council.
In the same way, some of the qualitative findings of M&E framework also showed analogous
behavior towards the quantitative findings. For instance, the findings showed that activities that
are carried out in Namutumba Town Council are monitored and evaluated to track their progress
and impact on the community. This finding confirmed that Council considers Monitoring and
Supervision as an important chain of Financial Performance and Management without which the
activities will take a direction where there will be no cross-cutting edge with the bigger goals of
Namutumba Town Council. This qualitative discovery was analogous with the quantitative
findings as stated above.
5.2.3 Participatory budgeting and financial performance of Namutumba Town Council

The third objective of the study sought to investigate how participatory budgeting affects the
financial performance of Namutumba Town Council. The study discovered that participatory
budgeting has positive significant contribution to the financial performance of Namutumba
Town Council in terms of efficiency, effectiveness, sustainability and compliance to
accountability requirements as presented by the correlation coefficient (r); 0.685, p < 0.002).
This shows that a positive improvement in participatory budgeting will lead to improved and
better financial performance of Namutumba Town Council. The correlation coefficient (r) above
shows that participatory budgeting accounts for 68.5% change in financial performance of
Similarly, on thorough analysis of some of the qualitative findings of participatory budgeting
also showed comparable behavior towards the quantitative findings. For instance, the study
findings showed that Monitoring improves the financial performance of Namutumba Town
Council. This discovery confirmed that Council considers Monitoring as an important chain of
Financial Performance and Management without which the activities will take a direction where
50
there will be no cross-cutting edge with the bigger goals of Namutumba Town Council. This
qualitative discovery was analogous with the quantitative findings as stated above.
5.3 Discussion
The aim of this segment is to discuss the importance of the findings in light of what was already
known about the research problem being investigated, and to explain any new understanding or
fresh insights about the problem after considering the findings. The exploration of the responses
will be discussed in the scheduled sections following the study objectives.

The research findings indicate that Data collection significantly explain variations in the
financial performance of Namutumba Town Council. The study discovered that Data collection
has a positive significant contribution on the financial performance of Namutumba Town
Council in relationship with the following dimensions of efficiency, effectiveness, sustainability
and compliance to accountability requirements. The findings are consistent with earlier studies
(Ssekamate, 2018) who opined that data collection involves gathering and measuring information
on targeted variables in an established system, which then enables one to answer relevant
questions and evaluate outcomes. Phocas (2021) concedes with the above argument and
highlights that data enables organizations to determine how well they are likely to perform over
time, evaluating historical data alongside forward -looking financial statements can assemble a
forecast that considers potential variations over time. Thus, data collected indicates how effective
the company is at extending credit and this helps to revise policies to ensure timely collection.
The study findings also revealed that in Namutumba Town Council, Data collection contributes
to transparency and accountability. Accountability and transparency are treated as major building
pillars for governing town councils as it signifies the concern and duty of government
institutional workers to perform their activities in the best interests of the public and that
institutional officials should take responsibility for their activities performed. The mechanisms
by which Namutumba Town Council officials can be held responsible for activities against
formed principles and rules is called legal accountability in M&E. The finding is consistent with
earlier studies by Ssekamate (2018) who argued that Data collection empowers an M&E officer
to answer relevant questions, evaluate outcomes and make predictions about future probabilities
and trends that makes officials accountable and transparent to the stakeholders.
51
Phocas (2021) concedes with the above argument and highlights that data accurate data
collection is essential to maintaining the integrity of research, making informed business
decisions, financial performance forecasts and ensuring quality assurance that easily results into
accountability and transparency. In Namutumba Town Council Financial consolidation project,
data collection includes not just a physical inventory of all financial books, but also an exact
description of what is embedded into the financial report books and any other related software
used for manning the financial systems with an aim of ensuring accountability and transparency.
As regards to data collected being used to reveal tax payment compliance, the findings showed
that indeed the data collected is used to reveal tax payment compliance. This finding is consistent
with studies by Ssekamatte (2020) who argued that the goal for all data collection is to capture
quality evidence that then translates to rich data analysis and allows the building of a convincing
and credible answer to questions that have been posed by government and stakeholders. The
purpose of data collected is normally to answer stakeholders’ grievances as well as helping
government to know whether the participants are complying to financial regulations
(Channa,2010). Regardless of the field of study or preference for defining data (quantitative,
qualitative), accurate data collection is essential to maintaining the integrity of research
especially in Town councils. Both the selection of appropriate data collection instruments
(existing, modified, or newly developed) and clearly delineated instructions for their correct use
reduce the likelihood of errors occurring.

Research objective two sought to investigate the effectiveness of M&E framework in
Namutumba Town Council. The research findings to the above objective indicate that M&E
framework significantly explains variations in the financial performance of Namutumba Town
Council. The study discovered that M&E framework has a positive significant contribution on
the financial performance of Namutumba Town Council in relationship with the following
dimensions of efficiency, effectiveness, sustainability and compliance to accountability
requirements. The findings are consistent with earlier studies (Ssekamate, 2016) who opined that
Monitoring and Evaluation framework for continuing professional development views M&E
plan as a result framework approach that measures performance and ensure that the intended
results have been achieved.
52
Result framework is used for planning, management, monitoring, review and communication.
An M&E framework presents the desired goals, results and impact to be achieved and establishes
realistic measures called indicators. It presents the logical ordering of inputs, activities,
indicators, target, outcomes and impacts. The framework is being referred to as monitoring,
evaluation and learning (MEL) framework (Monitoring and Evaluation Foundation Level, 2018).
The indicator matrix table provides an overview of the project and creates a better understanding
of the linkages of different activities of the project. The indicator matrix should be developed in
line with the set objectives of the project. In order to operationalize the project, each objective
will have a number of objectives formulated (Monitoring and evaluation for continuing
professional Development, 2012).
The study findings also revealed that in Namutumba Town Council, M&E framework guides in
the implementation of programs. It also follows that Namutumba Town Council activities are
monitored and evaluated to track their progress and impact. This reveals that Monitoring and
evaluation (M&E) can be effective tools to enhance the quality the financial performance of
Namutumba Town Council. Monitoring helps Namutumba Town Council officials to understand
whether the government projects are progressing in schedule and to ensure that they are
financially performing in terms of inputs, activities, outputs and external factors are proceeding
as planned. The above findings are consistent with earlier studies by Ssekamate and Okello
(2016) who argued that Monitoring and evaluation (M&E) framework can be an effective tool to
enhance the quality of project planning and management especially in government institutions. It
has been observed that M&E framework helps project managers to understand whether the
projects are progressing in schedule and to ensure that project inputs, activities, outputs and
external factors are proceeding as planned (Ssekamatte, 2020).
Similarly, Alinda, Ssekamatte, and Kisambira (2020) concede with the above analogue and
highlight that M&E approach is developed to provide an effective M&E framework, which is
intended to measure progress towards attainment of the overall goal and objectives of a project.
M&E framework becomes one part of the M&E plan which describes how the whole M&E
system for the program works, including things like who is responsible for it, what forms and
tools will be used, how the data will flow through the organization, and who will make decisions
using the data (Practical tools for international Development, 2021).
53
The study also discovered that Namutumba Town Council officials do carry out Monitoring of
government projects with an aim of improving on the financial performance of the town council.
The study was able to discover that a clear framework is essential in providing consolidated
source of information on how the financial performance of the town council is progressing. The
above finding is in agreement with earlier studies by Ssekamatte and Okello (2016) who argued
that Monitoring and evaluation (M&E) framework can be an effective tool to enhance on the
financial performance especially in government institutions. Ssekamatte (2020) argues that M&E
framework helps managers to appreciate whether the projects are progressing in schedule and to
ensure that project inputs, activities, outputs and external factors are proceeding as planned

In this report, study objective three sought to investigate how participatory budgeting affects the
financial performance of Namutumba Town Council. The findings indicated that Participatory
budgeting significantly explains variations in the financial performance of Namutumba Town
Council. The study revealed that participatory budgeting has a positive significant contribution
on the financial performance of Namutumba Town Council in relation with the following
dimensions of efficiency, effectiveness, sustainability and compliance to accountability
requirements. The findings are reliable with earlier studies (Ssekamatte, 2016) who opined that
participatory budgeting for continuing project performance is a powerful tool in measuring
performance of government parastatals. Conceptually, in public sector, a participatory budget is
one of the principal mechanisms through which the policy intention of any government
institution is translated into concrete actions and results on the ground (Monfardini, 2018). In
most town councils a participatory budget is an important document through which town
councils establish their economic and social priorities and set the direction of the economy.
The study discovered that in Namutumba Town Council, Participatory budgeting adds value to
the financial performance of the Town Council. It is probably because the concept of
Participatory budgeting is deeply rooted in the principles of democracy, transparency and
accountability which has been preached overtime by government. The above findings are
consistent with earlier studies by Ssekamatte (2020) who made similar observes that involving
citizens in the budgeting process enhances democracy, transparency and accountability. Uddin
and Tsamenyi (2015) stated that, budgets can either be participatory or imposed.
54
Ssekamatte (2020) is authoritative on the centrality of the Monitoring and Evaluation and
performance of projects in both private and public institutions. He posits that the concept of
stakeholder participation is the underlying principle of Participatory budgeting that may result
into financial performance of government institutions. Based on this categorization, Participatory
budgeting is not a budgeting technique or method but a description of a process mechanism
through which a budget can be developed and managed. Therefore, Participatory budgeting is a
budgeting method whereby all stakeholders in the budget to be developed participate in the entire
process of its preparation, approval, management and evaluation (Wampler, 2007).
The study also discovered that Participatory budgeting ensures effective and efficient use of
public funds. Participatory budgeting addresses challenges in fostering citizen participation in the
government. Effective and efficient use of public funds calls for Fiscal transparency that has long
been regarded as an important component to curtailing corruption and building equitable and fair
democratic systems in the public finance management (PFM) of Uganda. Participatory budgeting
can give citizens direct influence and power. It can mitigate feelings of being powerless to
influence or change government, and it works as a tool to center democracy on the needs and
priorities of individual citizens, rather than special interests. The above findings conceded with
studies by Ssekamatte (2020) on Factors Affecting Development of Gender-Sensitive Monitoring
and Evaluation Systems who revealed the benefits associated with a participative approach in
budgeting to include: ability to access knowledge and experience; enhancing chances of
integrating new ideas into organizational procedures; promoting unanimity among stakeholders;
and promoting a culture of performance throughout the organization; showing the strong
relationship associated with financial performance.
5.4 Conclusions
In view of the results of this research study the researcher made the conclusions. The conclusions
were drawn following the key research objectives as hereunder.

Data collection is significantly anchored on the financial performance of Namutumba Town
Council, yet Data collected have not been fully utilized to reveal revenue defaulters.
Conclusively, this means that improvements in Data collection such as: timeliness and validity
55
have a significant positive contribution on the financial performance of Namutumba Town
Council in terms of efficiency, effectiveness, sustainability and compliance to accountability

M&E framework is significantly anchored on financial performance of Namutumba Town
Council, yet political leaders have not fully participated in monitoring and evaluation of projects
to ensure effective service delivery. Conclusively, this means that improvements in M&E
framework such as: applicability of indicator matrix and dissemination plans have a significant
positive contribution on the financial performance of Namutumba Town Council in terms of
efficiency, effectiveness, sustainability and compliance to accountability

Participatory budgeting is significantly anchored on financial performance of Namutumba Town
Council, yet Participatory budgeting rarely discusses on revenue from Town Council’s own
source and other revenues from Donors, and funds from Central Government. Irrefutably, this
means that if Namutumba Town Council improvements on Participatory budgeting dimensions
such as: Mechanism and Transparency will have a significant positive contribution on the
financial performance of Namutumba Town Council in terms of efficiency, effectiveness,
sustainability and compliance to accountability
5.5 Recommendations
On the foundation of the findings collected and the conclusions drawn, the following
recommendations are provided.

This study recommends that Data collection should further be enhanced in Namutumba Town
Council because of its relevancy on contributing to transparency and accountability. This could
be done by further engaging more research assistants in the M&E department.

This study recommends that Namutumba Town Council further engages political leaders to
participate in monitoring and evaluation of projects to ensure effective service delivery to the
56
stakeholders. This can be achieved through invitation letters drafted to them earlier so that they
can schedule themselves for Council programs.

This study recommends that Namutumba Town Council involves the Business community and
CSOs are in Participatory budgeting. The Business community and CSOs play a vital role in
enabling people to claim their rights, in promoting rights ‐ based approaches, in shaping
development policies and partnerships, and in overseeing their implementation.
5.6 Areas for future research

This study was purportedly centered on M&E practices (Data collection, M&E framework and
participatory budgeting) as potential variables relating to the financial performance of
Namutumba Town Council in Namutumba District. Correspondingly, the researcher proposes
that a similar research study be undertaken to investigate the impact of M&E practices on the
performance of rural based NGOs in Namutumba.
5.7 Limitation of the Study

Reliable information on financial performance in Namutumba Town Council is still limited. The
researcher tried as much as possible to collect primary data from the field in order to make a
valuable contribution to filling this literature gap.
The study adopted a cross sectional survey design, which is done once, which means there is no
follow up survey in future which could help establish the sustainability of the research findings
from the respondents which the researcher thinks would have been good as it could facilitate the
comparison of the research findings and have objective understanding of the trends.
Thirdly, some of the respondents were too busy to attend to the research needs of the study given
the nature of their work. The researcher managed some of these challenges by making use of the
support from Namutumba Town Council mobilization officer who in one occasion was willing to
introduce the researcher in person to the respondents through a sensitization of the respondents
on the importance and significance of the study.
57
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APPENDICES
APPENDIX I: QUESTIONNAIRE
UGANDA MANAGEMENT INSTITUTE
QUESTIONNAIRE ON MONITORING AND EVALUATION PRACTICES AND
FINANCIAL PERFORMANCE OF TOWN COUNCILS IN NAMUTUMBA DISTRICT:
A CASE OF NAMUTUMBA TOWN COUNCIL.
Dear Respondent,
I am Mutesi Juliet, a student of Uganda Management Institute (UMI) pursuing a Master Degree
in Business Administration. I am seeking your assistance to filling this questionnaire to enable
me complete this research. The information you provide will be purely used for academic
purposes and all data provided shall be treated with confidentiality.
Kindly spare some minutes to answer the questions and provide the valuable information
following the directions in the questionnaire.
SECTION A: RESPONDENT’S BIO DATA (Tick on the most appropriate)
1. Gender: Male Female
2. Marital status: Single Married Widow
Widower
3. Age bracket in years
18-24yrs 25-31yrs 32-38yrs 39-45yrs 46-52yrs Above 52yrs
4. What is your highest education level?

Certificate Ordinary Bachelor’s Post Graduate Master’s PhD
Diploma Degree Diploma Degree
5. Category of Respondent
Business Community Civil Society Organization (CSO)
Non-Government Organizations (NGO)
6. How long have you been getting services in Namutumba Town Council?
i
Less than 1 yrs 1-3 yrs 4-7 yrs 0ver 8years
FOR SECTION B: DATA COLLECTION AND FINANCIAL PERFORMANCE

Indicate the extent to which you agree and disagree with the statements on the items in each of
the section by ticking (√) the appropriate number listed in the tables.
Strongly Disagree Disagree (D) Not Sure (NS) Agree (A) Strongly Agree
(SD) (SA)
1 2 3 4 5
ITEMS SCORES
SD D NS A SA
1 Data collection contributes to transparency and
accountability
2 The officers use revenue register while collecting data
3 The officers assess the business
4 The data collected is used to reveal tax payment compliance
5 Data collected reveals revenue defaulters
6 Data collection is about identifying needs of the community
7 Information collected is used for planning and financial
resource allocation
8 Data collected is used to review tax rates to improve on
financial performance
9 Data collected adds value to revenue collection
10 Data collected helps in decision making to improve
financial performance
SECTION C: EFFECTIVENESS OF M&E FRAMEWORK AND FINANCIAL

PERFORMANCE
1 = Strongly Disagree, 2 = Disagree, 3 = Not Sure, 4 = Agree, 5 = Strongly Agree
ii
ITEMS SCORES
SD D NS A SA
1 M&E framework guides in the implementation of programs
2 M&E framework viewed as important tool
3 Activities are monitored and evaluated to track their progress
and impact
4 Political leaders participate in monitoring and evaluation of
projects to ensure effective service delivery
5 Staff always monitor and supervise the business
6 Monitoring improves the financial performance
7 Town Council ensure that stakeholders are engaged in
formulating M&E framework
8 M&E framework assist in understanding the programs and
desired outcome.
9 M&E framework helps to allocate financial resources and
frequency of data collection
10 M&E framework helps to make sound plans and
implementing M&E activities
SECTION D: PARTICIPATORY BUDGETING AND FINANCIAL PERFORMANCE

ITEMS SCORES
SD D NS A S
A
1. Participatory budgeting is implemented in Namutumba
Town Council
2. Citizens understand the need for participatory budgeting
in the Town Council.
3 Business community and CSOs are involved in
Participatory budgeting
iii
4 Participatory budgeting adds value to the financial
performance of Town Council.
5 Citizen’s participation in the budgeting process addresses
local priorities
6 Citizens benefit in participatory budgeting
7 Participatory budgeting discusses on revenue from Town
Council’s own source and other revenues from Donors,
and funds from Central Government
8 Stakeholders’ ideas are considered during participatory
budgeting.
9 Participatory budgeting ensures effective and efficient use
of public funds
10 Stakeholder involvement has an effect on financial
performance
SECTION E: FINANCIAL PERFORMANCE

Data collection-Financial performance SD D NS A SA
Namutumba financial management system is transparent
There is accountability of finances in Namutumba Town
Council
Council produces its financial statement periodically.
Council has clear financial reporting system.
Council financial statements are frequently audited.
iv
Council finances meet the service deliveries need as planned
Council has identified many areas for investments
THANKS FOR YOUR PARTICIPATION AND SUPPORT
v
Appendix ii: Interview Guide
Dear respondents,
I am Mutesi Juliet a student of Uganda Management Institute (UMI) pursuing a Master Degree
in Business Administration. This is to politely request you for an interview, which will enable
me, examine the relationship between Monitoring and Evaluation practices and Financial
Performance of Namutumba Town Council. Be assured beyond reasonable doubt that the
information you are going to provide will be treated confidentially and strictly used for academic
purpose. Please kindly respond diligently and with honest as your responses will be analyzed for
compiling the final report.
1. What do you have to say about M&E practice in Town Councils?
2. How much is allocated for M&E activities in Namutumba Town Councils?
3. How does Participatory Budgeting affect the financial performance of Namutumba Town
Council?
4. Who are the stakeholders involved in the participatory Budgeting?
5. Does data collected used effectively and can contribute to financial performance of
Namutumba Town Council?
6. Are you satisfied with the financial performance of Namutumba Town Council?
7. What do you find most effective ways to improve financial performance of Namutumba
Town Council?
8. Do you think Namutumba Town council has strong leadership that can improve on
financial performance?
i
Appendix iii: Focus Group Discussion Guide
1. What’s your opinion on M&E practices in Namutumba Town Council?
2. Who are the stake holders in participatory budgeting process?
3. How often do you monitor projects and collect data?
4. Are you satisfied with the financial performance of Namutumba Town Council?
5. Do you think Namutumba Town Council account for the finances utilized and have clear
financial reporting system?
6. To your knowledge, do you think Council financial statements are frequently audited?
i
Appendix I V : Table for determining sample size for finite population
N* S† N S N S N S N S
10 10 100 80 280 162 800 260 2800 338
15 14 110 86 290 165 850 265 3000 341
20 19 120 92 300 169 900 269 3500 346
25 24 130 97 320 175 950 274 4000 351
30 28 140 103 340 181 1000 278 4500 354
35 32 150 108 360 186 1100 285 5000 357
40 36 160 113 380 191 1200 291 6000 361
45 40 170 118 400 196 1300 297 7000 364
50 44 180 123 420 201 1400 302 8000 367
55 48 190 127 440 205 1500 306 9000 368
60 52 200 132 460 210 1600 310 10000 370
65 56 210 136 480 214 1700 313 15000 375
70 59 220 140 500 217 1800 317 20000 377
75 63 230 144 550 226 1900 320 30000 379
80 66 240 148 600 234 2000 322 40000 380
85 70 250 152 650 242 2200 327 50000 381
90 73 260 155 700 248 2400 331 75000 382
95 76 270 159 750 254 2600 335 1000000 384
SOURCE: Hashim (2018).

*N is the population
†
S is the sample size
i
Appendix v: Field Letter
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ii
Appendix vi: Introductory Letter
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Appendix vii: Acceptance Letter
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Appendix viii: Anti-Plagiarism Report

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MONITORING AND EVALUATION PRACTICES AND FINANCIAL PERFORMANCE

OF TOWN COUNCILS IN NAMUTUMBA DISTRICT: A CASE OF NAMUTUMBA

A DISSERTATION SUBMITTED TO THE SCHOOL OF BUSINESS

APPENDIX VIII: ANTI-PLAGIARISM REPORT....................................................................................I

1.1.1 Historical background to the study

1.1.3 The conceptual background to the study

1.1.4 The contextual background to the study

1.3 Purpose of the study

1.4 Objective of the study

1.7 Conceptual framework

M&E practices (IV) Financial Performance (DV)

M&E plan (framework) H2 *Efficiency

1.8 Significance of the Study

1.10 Scope of the Study

1.10.2 Geographical and Respondent scope

1.11 Operational definitions

2.2 Theoretical review

2.4 The effectiveness of M&E framework in Namutumba Town Council.

2.6 Summary of the literature review

3.2 Research design

3.3 Study population

3.6 Data collection methods

3.6.1 Questionnaire survey method

3.6.2 Interview method

3.6.3 Focus group discussion method

3.7 Data collection instruments

3.7.2 Interview guide

3.7.3 Focus group discussion guide

3.8 Quality management of study instruments

3.8.1 Validity of the questionnaire

3.8.2 Reliability of the questionnaires

Cronbach Reliability Coefficient Results test for Questionnaires

Variables Number of items Valid items Cronbach test results

Cronbach’ Cronbach’s Alpha based on standardized items Number of items

3.9 Procedure of data collection

3.10 Data Analyses

3.10.1 Quantitative data analysis

3.10.2 Qualitative data analysis

3.11 Measurement of variables

PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

4.2 Response Rate

4.3 Demographic characteristics of respondents

4.4 Financial performance of Namutumba Town Council

4.4.1 Data collection and financial performance

Table 4.8: Distribution of respondents’ opinion on Data collection

Correlation Coefficient Data collection Financial performance

4.4.2 M&E framework -financial performance of Namutumba Town Council relationship

4.4.3 Participatory budgeting-financial performance of Namutumba Town Council

Correlation Coefficient Participatory Financial

4.5.1 Determining how well the model fits

Model R R Square Adjusted R Square Std. Error of the Estimate

Source: Primary data (2021)

4.5.2. Statistical significance of the model

Data collection .224 .074 .742 11.301 .001

M&E framework .065 .142 .821 16.506 .002

Participatory .-260 .075 .685 8.516 .002

SUMMARY, DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

5.2 Summary of the Results

5.2.1 Data collection and financial performance of Namutumba Town Council

5.2.3 Participatory budgeting and financial performance of Namutumba Town Council

5.3.1 Data collection and financial performance of Namutumba Town Council

5.3.2 M&E framework and financial performance of Namutumba Town Council

5.3.3 Participatory budgeting and financial performance of Namutumba Town Council

5.4.1 Data collection and financial performance of Namutumba Town Council