Government Controls and Performance of Decentralized Governments in Uganda: A case Study of Gulu Municipality

Abstract

The study was carried out in Gulu Municipality. The study focused on investigating the relationship between government controls and performance of decentralized governments in Uganda with Gulu Municipality as a case study. The study was based on the following research objectives; to find out the relationship between accountability and performance in local governments; to examine the relationship between internal auditing and performance in local governments; & to establish the challenges of internal audit function in local governments. The study employed a case study research design and both quantitative and qualitative approaches. In total, a sample of 73 respondents were chosen who included Town Clerk and his deputies, Accounts officers and Chief Finance Officer, Internal auditor, other Municipality employees and support staff. In collecting the data, the researcher used both secondary and primary sources. Data collection methods used were; questionnaires and interviews, and was analyzed using Pearson correlation coefficient and regressions.The findings revealed that: there is a positive significant relationship between accountability; and performance in Gulu municipality, internal auditing and performance of Gulu municipality are significantly positively related. The employees of the Municipality are always held accountable for their action. When they fail to perform their duties diligently, they are brought to book. In conclusion therefore; a) the role of an internal audit department is to help the municipality achieve its strategic objectives. It does this by helping administrators to identify and control the factors that can threaten their ability to achieve their goals. b) The findings revealed that internal audit unit lacks valuable resources to enable it accomplish all the tasks it is supposed to accomplish. The independence of the internal audit unit has been interfered with by a section of the stakeholders. It was recommended that; i) the audit process needs to be governed in a more effective manner so that risks of substandard audits can be minimized and/or their effectiveness enhanced. The two key measures in this regard are the reporting structure of the internal audit to ensure their independence and the performance of audits according to some audit standards, preferably the standards of internal audit.