Internal control systems and financial performance of local governments in Uganda. A case of Kapchorwa District
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Date
2014-03
Authors
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Journal ISSN
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Publisher
Uganda Management Institute
Abstract
Despite the existence of regulations and control measures to guide Local Governments operations
in Uganda, mismanagement of funds and other resources persist. The study was aimed at
establishing the relationship between Internal Control Systems (ICS) and financial performance in
Kapchorwa District and specifically analysed the relationship between control environment,
control activities and financial performance in Kapchorwa District, and further assesses whether
management is committed to effective implementation of ICS. The study utilized both quantitative
and qualitative approaches. Primary data was gathered on a sample population of 182 individuals
comprising KLG staff at management level, district councillors, chairpersons of boards and
commissions, Finance and Administration and other staff. Data is analysed using SPSS and results
are presented in tables and figures. The study found that management of the institution is
committed to the control systems and actively participates in monitoring and supervision of the
activities of the District, It was further noted that there aren’t enough funds to meet intended
objectives. The study established a significant positive relationship between internal control
system and financial performance. The study concluded that internal control systems do function
although with hiccups and that there is a significant relationship between internal control systems
and financial performance in a Local Government. The investigation recommends that managers
of public institutions should establish internal control procedures in order to eliminate, mitigate,
or compensate for the risks and ensure regular performance reviews, appropriate separation of
duties, and periodic reconciliations.
Description
A dissertation submitted to the School of Business and Management in Partial Fulfillment of the Requirements for the Award of a Master’s Degree in Management Studies (Financial Management) of Uganda Management Institute
Keywords
Internal Control Systems, Financial Performance, Local Governments, Kapchorwa District, Uganda
Citation
Chepsikor, Simon Peter (2014) Internal Control Systems and Financial Performance of Local Governments in Uganda. A case of Kapchorwa District