Internal controls and performance of Post bank Ug Ltd

Abstract

This study was about the relationship between internal controls and performance of Post bank using a case study of Kanungu and Ntungamo branches. The study was guided by the following research objectives; to assess the relationship between control environment and performance of Post Bank Kanungu and Ntungamo, to examine the relationship between control activities and performance on Post Bank Kanungu and Ntungamo and to ascertain the relationship between risk management and performance of Post Bank Kanungu and Ntungamo. A population of 50 personnel was chosen from which a sample of 44 respondents was selected. All respondents were reached but 37 of 38 distributed questionnaires were collected and only 35 were usable. A correlation case study design was used. The respondents were selected randomly and purposively. Primary data was collected using the Questionnaires with support from an interview guide and documentary review. Data was analyzed using SPSS package and descriptive, correlation and regression analysis were carried to establish relationships between the variables. Findings revealed that there was a significant positive relationship between the entire study variables control environment, control activities, risk assessment and performance of Post bank Control environment explaining forty one percent, control activities fifty nine percent and risk management sixty five percent. The study concluded that there is both moderate and high positive relationship between control environment, control activities and risk management. Based on the findings it is recommended that Post Bank Kanungu and Ntungamo should upgrade their internal control design and pay attention during recruitment of staff as this could be a red flag to indentifying fraud, strengthen the approved ethical code of conduct, ICT-department to give authorization rights to the right people and management should seek staff opinion in designing the risk management policy.