Internal control and organizations’ performance in non governmental organizations :
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Date
2014-11
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study sought to establish a relationship between internal controls and organization’s performance in non-governmental organization a case study of Tadamun Social Society (TSS) Organization in Puntland state of Somalia. The study objectives were; to examine the effectiveness of internal controls used in Tadamun
Social Society (TSS), to establish the level of performance in Tadamun Social Society(TSS) and to establish a relationship between internal control and organization’s performance in Tadamun Social Society (TSS) organization. A cross sectional survey was used in the course of the study. Both qualitative and quantitative data was gathered in order to establish the relationship between the independent and dependent variables, so as to examine how internal controls are used in Tadamun (TSS) and therefore account for the performance levels. The study comprised of 250 as a target population where by 154 respondents were sampled and these were; 18 accounting and finance officials, 25 internal auditors, 37 human resource officers, 19 field officers, 30 procurement officers and 25 directors of (TSS) Organization. Simple random sampling approach was used during the study. Purposive sampling was also used to select respondents for interviews in order to attain the purpose of the study. Data was collected from primary and secondary sources using questionnaires and interviews. The researcher used Statistical Package for Social Sciences (SPSS) to analyze data. It was found out that the level of effectiveness of internal controls used in Tadamun Social Society (TSS) had an
average mean of 2.49 which was equivalent to low and the level of performance in Tadamun Social Society (TSS) is poor an average mean of 2.50 equivalent to agree on the Likert Scale. The study concludes that internal controls used in Tadamun Social Society (TSS) were ineffective and unsatisfactory, the level of organizational performance was found to be inadequate and a significant positive relationship between internal controls and organizational performance was established to exist. It also recommends that there is also need for the management has put in place as guidelines to control information and transaction procedure so as to achieve the organization’s objectives. This can be through employing effective internal control tools thus organizational performance.
Description
A thesis presented to the College of Higher Degrees and Research, of Kampala International University Kampala, Uganda in partial fulfillment of the requirements for the Award of Masters’ Degree in Business Administration ( Finance and Accounting)
Keywords
Internal control, Organization, Performance, Somalia