Internal Control Systems and Financial Performance of Private Secondary Schools in Kamuli District Uganda: Case Study Of Kamuli Progressive College.
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Date
2019-09
Authors
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Journal ISSN
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Publisher
Kampala International University. College of Economics & Management
Abstract
The study investigated and sought to establish the effect on internal control systems on financial
performance in private secondary schools in Kamuli, Uganda. Internal controls were looked at
from the perspective of Control Environment, and Control Activities and risk management
whereas Financial performance focused on Liquidity, Quality, Efficiency, Satisfaction, Survival,
Liquidity and Reporting as the measures of,financial performance. The research was conducted
using both quantitative and qualitative approaches using Survey, Case study as Research
Designs. Data was collected using Questionnaires as well as review of available documents and
records targeting basically Finance Officers, Heads of Departments, Management Committee
members and Finance and Accounts staff as respondents from a population of 40 in Kamuli
progressive college. Data was analyzed using the Statistical Package for Social Scientists where
conclusions were drawn from tables, figures from the Package. The study found that
management of the institutions is committed to the control systems, actively participates in
monitoring and supervision of the activities of the school, all the activities of the Institution are
initiated by the top level management, that the internal audit department is not efficient, is
understaffed does n ‘t conduct regular audit activities and does n ‘t produce regular audit reports
although the few reports produced by the internal audit department address weaknesses in the
system. It was further revealed that there is a clear separation of roles, weaknesses in the system
are addressed, and there is a training program for capacity building in the institutions.
However, the study also found out that there is lack of information sharing and inadequate
security measures to safeguard the assets of the school. The study established a significant effect
qf internal control system and financial performance. The investigation recommends competence
profiling in the Internal Audit department which should be based on what the Institutions in
Kamuli expects the internal audit department to do and what appropriate number staff would be
required to do this job. It also recommends that the institutions establishes and manages
knowledge/information management system to enable all parties within the institution to freely
access and utilize the official information. There should be a strategy to improve the generation
of additional finances for the Institutions in Kamuli. The Study therefore concludes that internal
control systems do function although with hiccups and that there is a sign flcant effect of internal
control systems on financial performance of private secondary schools in Kamuli, Uganda.
Description
A Research Report Submitted To the College Of Economics And
Management in Partial Fulfillment of the Requirements For
The Award of a Bachelor’s Degree in Business Administration
(Finance and Accounting) Of Kampala International University.
Keywords
Control Systems, Financial Performance, Private Secondary Schools, Kamuli Progressive College