Internal control systems and cash management policies in nongovernmental organizations: a case study of institute for international co-operation and development (c&d) lugogo kampala- Uganda

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Kampala International University, College of Economics and Management
The study was about internal control systems and cash management policies in Non-Governmental Organizations. Institute for International Co-operation and Development (C&D) was taken for a case study and it was aimed at establishing the effect of internal control systems on cash management. The objectives of the study were; to assess the effectiveness of internal control systems used in Institute for international co-operation and development, establish cash management policies used in C&D, and to establish the relationship between internal control systems and cash management policies in C&D. The research designs employed were descriptive and analytical research designs. A sample of thirty (30) respondents was taken for a study form which the research was carried out. The main instrument for collecting primary data was questionnaire, while secondary data was collected by reviewing files, documents, published books, articles and journals. The findings from the study revealed that there are no internal auditors in C&D, C&D irregularly revises training programs in accordance with changes in operations and sophistication of risk management, there is no proper means of communication with entities operating payment systems and supervisory authorities. Also, that there is laxity ol' management in setting limits to the acceptable degree of risks inherent to the organization, and that those handling money collude to circumvent controls and misappropriate cash. Findings further revealed that there is a significant positive relationship between internal control systems and cash management policies. It was recommended that sample checks be instituted to ensure efficiency of cash management and overall financial performance of the organization, separate responsibilities/duties to avoid any conflict of choice or interest, employ internal auditors with experience, and monitoring employees closely to ensure that they do not circumvent certain controls, thereby weakening the established system.
A research report submitted to the College of Economics and Management in partial fulfillment of the requirement for the Award of Bachelors Degree in Business Administration of Kampala International University
Internal control systems, Cash management, lugogo kampala