Internal controls and cash management in mercy corps cash projects in North Eastern Uganda

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Kampala International University, College of Economics and Management
This study explored whether cash management in Mercy Corps cash projects in Uganda have effective internal controls. The study employed descriptive comparative, correlation, and cross-sectional survey methods. Frequencies and percentages, means, standard deviations, one way analysis of variance (ANOVA) and Pearson’s linear correlation coefficient (PLCC) were used to analyse data. The study sought to: (I) identify the demographic characteristics of respondents; (ii) determine the level of internal controls in selected field offices; (iii) determine the level of cash management in Mercy Corps Project, Uganda; (iv) establish if there is a significant difference between internal control and cash management; and (v) establish if there is a significant relationship between internal control and the level of cash management. The findings revealed that the majority of the respondents were male, in the age bracket of 20 — 39 years, diploma holders, with an experience of 1 -2 years both in the organization and programme. Further, it revealed that the level of internal control was very high; the level of cash management was high; there was a significant difference in the level of internal controls and cash management; and that there was a significant and positive relationship between internal controls and cash management through a comparison of the correlative aspects of corrective, detective and preventive internal control procedures. Corrective regression analysis results indicated that internal control was responsible for over 33% variation towards cash management. In conclusion, the null hypotheses are rejected because there is significant difference and significant relationship. The researcher recommends that the organization (a) use local financial institutions to deliver cash payments to minimize security threats; (b) phase out direct cash payment practice to staff to reduce the risk of corruption; and (c) utilize a money transfer system to minimize the risk of cash delivery.
A thesis presented to the College of Higher Degrees and Research Kampala International University Kampala, Uganda in partial fulfillment of the requirements for the Degree Master of Business Administration in Finance and Accounting
Internal controls, Cash, Management, Mercy corps, Eastern Uganda