Challenges in The Implementation of The Integrated FinancialManagement System: An Approach Based on GovernanceAnd Institutional Capacity in Local Governments

The Integrated Financial Management System (IFMS) was created by the International Monetary Fund (IMF) and was designed for use by ‎government entities; however, over time, a lack of information for its effective management in local governments has been observed. The ‎objective of this study is to identify the challenges in implementing the IFMS, considering a governance and institutional capacity approach ‎in local governments. A systematic review of the scientific literature was conducted, following the PRISMA guidelines. The search process ‎identified 671 documents from Scopus, 229 from Refseek, and 294 from Google Scholar. Twenty-five articles were then selected for the ‎final analysis. The results show that the processes and practices carried out by local public institutions to make and regulate decisions, ‎automation, digitization, internal control, and staff training are seen as challenges for the implementation of an IFMIS. Likewise, the lack of ‎strategies, the use of analytical tools, regulations for financial management and collaborative work, corruption, territorial and psychosocial ‎factors also limit the implementation of the IFMS. Consequently, improvised staff training, poor internal control, a lack of effective ‎knowledge in the use of ICTs and electronic systems, and a lack of investment in digitalization become the main challenges for local ‎governments in implementing this system‎.