International control system and its effect on cash management at pride microfinance limited

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Kampala International University.College of Humanities and social science
The study looked at the effectiveness of internal control in the management of cash at pride micro finance limited. It was guided by the following objectives; to establish the effectiveness of internal controls at pride microfinance limited (mdi) in the management of cash; to find out whether there is a likelihood of a risk arising due to non strict observance of the internal controls in cash management; and to find out whether there may be certain changes that may be made to the available internal controls as regards cash management. The study used both questionnaires and an interview guide to collect data. The study established that that much as most internal controls are not very effective in pride micro finance limited, they all exist, meaning that pride microfinance has internal control and procedures for the handling of cash. He only problem is the degree to which these procedures are handled. It further established that many risks are likely to arise ci.ue to non strict observance of internal controls in cash management. And they include; cash to meet depositors' demands will be lacking, misappropriation of cash by falsifying records of subsequent transactions will happen and cash in vaults if not well recorded can disappear. The study concluded that effective internal control system in cash management plays a vital role in ensuring that the livelihood of cash disappearing and the correctness in its handling becomes improved. Despite this importance, some internal controls are still being neglected at pride microfinance and as such inefficiencies in cash management are recurrent.
Dissertation submitted in partial fulfilment of the requirements for the award of the degree of bachelor of Procurement and Supply Management of Kampala International University
International, Control system, Cash, Management, Pride microfinance