Challenges in the Financial Management of the Municipality of Sablan

Abstract ―​

This study examines the challenges and proposed solutions in the financial management of the Municipality of Sablan, with a particular focus on local development initiatives. Using a quantitative approach, the study gathered data through a Likert-scale survey distributed to relevant stakeholders, including local government officials and staff. The results reveal that the most critical challenges include the lack of accurate and reliable data, which impedes effective decision-making in budget allocation (mean: 4.62, SD: 0.64), and the absence of transparent processes, which complicates the fair and efficient distribution of funds (mean: 4.44, SD: 0.74). Conversely, the least agreed-upon challenges were the sufficiency of financial resources to support local initiatives (mean: 2.91, SD: 0.95) and inadequate monitoring and evaluation mechanisms (mean: 3.44, SD: 0.85). In terms of solutions, the findings emphasize the importance of mitigating political interference through strong policy frameworks (mean: 4.50, SD: 0.65) and fostering transparency via the regular publication of financial reports (mean: 4.44, SD: 0.77). However, less emphasis was placed on contingency planning and capacity-building programs. These results highlight the need for structural reforms to enhance transparency, accountability, and resource optimization. The study concludes that addressing these key areas will significantly improve financial management practices and contribute to the effective implementation of local development initiatives in the municipality.