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VOL. 7, ISSUE 2 (2025)
Analyzing the effects of audit committees on financial accountability in local government: A case study of Chilanga Town Council
Authors
Chama Mwewa, Cheyo Sichali
Abstract
Financial accountability in Zambia’s local
governments is critical for effective service delivery and public trust, yet
persistent financial irregularities undermine governance, particularly in
peri-urban councils like Chilanga Town Council. Despite legislative reforms,
including the Public Finance Management Act (2018) [24] mandating
the establishment of audit committees, challenges like political interference
and resource constraints question their effectiveness in enhancing transparency
and internal controls. This study investigated the role of audit committees in
fostering financial accountability within Zambia’s decentralization framework,
addressing a gap in localized research on their impact in peri-urban settings.
A mixed-methods approach was employed, collecting data from 42 respondents,
including council management, finance, procurement staff, auditors, and audit
committee members at Chilanga Town Council, through questionnaires and
interviews. Quantitative analysis of financial records and secondary sources, such
as Auditor General’s Reports (2019–2022), complemented the primary data. This
methodology ensured a comprehensive examination of the audit committee’s
functions, challenges, and impacts on financial oversight and governance.
Findings indicated that the audit committee significantly enhances financial
accountability by improving compliance, transparency, and irregularity
detection through quarterly reviews and procurement oversight. However, its
effectiveness is curtailed by political interference, limited enforcement
powers, and resource shortages, which hinder corrective actions and
independence. The committee strengthens governance and service delivery by
optimizing resource use, though systemic barriers persist, limiting its
preventive capacity compared to regional benchmarks. This study contributes to
the literature by providing a Zambian peri-urban perspective on audit committee
efficacy, grounded in Agency and Administrative Theories. It offers actionable
recommendations, including legislative reforms for enforcement authority,
increased funding, and training, to enhance financial management in local
governments. These insights inform policymakers and stakeholders, supporting
Zambia’s decentralization goals and fostering public trust. Further research is
recommended to explore comparative impacts across diverse councils and
long-term outcomes.
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Pages:20-30
How to cite this article:
Chama Mwewa, Cheyo Sichali "Analyzing the effects of audit committees on financial accountability in local government: A case study of Chilanga Town Council". International Journal of Management and Economics, Vol 7, Issue 2, 2025, Pages 20-30
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