Despite the tireless effort by the government to achieve the objectives of IFMS, corruption in local government has remained reasonably high, frequent load shadings and network break down have retarded work progress, inadequate skills by the staff have slowed down the success, transparency in Public Finance Management has not been fully achieved. The purpose of this study was to determine the effect of integrated financial management system on financial reported of local government in Uganda in Mukono district. The study used a descriptive research design. Purposive and stratified sampling techniques were employed so as to realize results with ease. This involved identifying different departments of Mukono District Head Quarters as the strata, thereafter random sampling techniques was employed to minimize bias in the study. The summary of the key findings indicated that 42.8% of the respondents used IFMS daily whereas 28.7% of the respondents used the software weekly. The table also shows 14.5% of the respondents used IFMS monthly while 10.1% of the respondents used the software quarterly. Lastly, 3.9% of the respondents used IFMS annually. Therefore, the majority of the respondents used IFMIS daily. Findings as well indicated that there was a strong positive significant relationship between auditing information system and performance of Mukono local government which was statistically significant at 99% level of significance as indicted by the P – Value (0.00). The researcher therefore recommends that public sector organizations such as the Local Government should leverage on the efficiency and effectiveness gains of the system to consolidate stakeholder confidence through more awareness and publicity of the achievements.