The effects of internal control systems and efficiency of non-government organizations:
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Date
2013-08
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
he study investigated and sought to establish the effects of internal control system
on efficiency in Non-Government Organizations majoring on Compassion
International Assisted projects in Kampala district.
Internal controls were looked at from angles of control environment, control activities,
information and communication,· risk assessment, and monitoring and evaluation.
The research was conducted using both quantitative and qualitative approaches.
Data was collected using Questionnaires and interview guide as well as review of
available documents and records like audit reports and compassion financial
manuals.
The research found out that the compassior1 Assisted projects have the internal
control systems in place and in each of the projects there is a management
committee that oversees the running of the project. It also discovered that workers
are appropriated monitored, reports are prepared in time, and there is free
interaction amongst the different workers. However, though there is an active board
that runs the projects the board ·iacks independence from the management meaning
it's possible to manipulate the board. Also the study found out that valuable and
sensitive information could easily be accessed by one staff even without
authorization. Also there is a notable weakness in the area of giving feedback on
reports and auditing where by projects were not necessarily audited every financial
year.
In the area of efficiency much as many of the respondents said their organizations
were very efficient, when it came to costs and time many of them acknowledged that
their cost were not very low compared to output and also resources were not
necessarily utilized with little or no wastage.
Other than internal control, the study found out that other factors that affect efficiency
were number of staff employed and particularly it found out that the workload in
these projects was quite heavy. There was understaffing. The work to be done was
too much for the staffs who were either 4 in projects without CSP or 5 for projects
that had CSP.
The study recommends that the board that oversees the projects should be
independent of the management body for effectiveness in control.
It also recommends that all valuable and sensitive information, assets, documents
should be kept safely and only accessed with permission or authorization.
There is need for more staff to. be recruited in each of the different projects for
efficiency to be realized in a higher rate.
In conclusion there is a system of internal control in place though it needs
strengthening and it affects efficiency. The system however needs to be
strengthened for better results.
Description
A research report submitted to the college of Economics and Management Sciences in partial fulfillment of the requirements for the Award of Bachelor’s Degree in Business Administration of Kampala International University .
Keywords
Internal control systems, Non-government organizations, Uganda