Internal control and financial performance of private computer training institutions in Kampala :

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Kampala International University, College of Economics and Management
The study was about internal control and financial performance of computer training institutions in Kampala, a case study of Humuza Company Ltd. The study was guided by three objectives i.e. to identify the existing internal controls in Humuza Company limited, to examine the functionality of internal controls in Humuza Company Limited and to examine the relationship between internal controls and performance Humuza Company limited. The study employed a descriptive research design using a combination of qualitative and quantitative approaches. The design helped the respondents to describe their beliefs, attitudes and behaviors regarding acceptability of internal audit and control system, cash flow management, staff commitment and support to internal audit and control function, independence of internal audit and cash flow management in their organizations, that is, Humuza computer training institutions. The survey population consisted of 60 members, including (20) respondents in the top management positions, (30) academic staff and 10 Nonacademic staff of Humuza computer training institutions and thus out of the target population of 60 employees, a sample size of 52 respondents was attained. Simple random sampling was used to select respondents from those workers to avoid biased information. This ensures that respondents selected and civil servants will be represented in the study whereas all had equal chances of being respondents. Data will be collected, coded and entered using computer programs like Microsoft word and excel. The findings on the existing internal controls in Humuza Company limited where most of the respondents revealed that Control environment sets the tone of Humuza Company by influencing the control consciousness of people as noted by Whittington and Pany (2001) that the control environment sets the tone of the organization by influencing the control consciousness of people. They further assert that control environment is viewed as the foundation for all the other components of internal control. The findings on the functionality of internal controls in Humuza Company limited. The study found out that the respondents strongly agreed that Internal Control Systems ensure Provision of more timely & accurate financial data of Humuza Company Ltd for effective decision making, implying that if the facts and circumstances can be accurately presented in real time, this alone will help improve the success rate on key decisions that can ultimately lead to a company’s success or demise. The findings on the relationship between internal audit and organizational performance revealed that the relationship between two variables was strong and positive correlated. As effective internal control measures can directly lead to good financial performance Humuza Company limited through enhancing innovation, Increases corporate managers’ needs, ensuring completeness of all transactions undertaken by an entity, that the entity’s assets are safeguarded from theft and misuse, that transactions in the financial statements are stated at the appropriate amounts, that all assets in the organization’s financial statements do exist, that all the assets presented in the organization’s financial statements are recoverable and that the entity’s transactions are presented in the appropriate manner according to the applicable reporting framework. The concluded that there is a positive relationship between the internal controls and financial performance in private institution like Humuza Company Ltd and; therefore management and stakeholders including the government should encourage the use of these cash management practices to improve on the operations of these banks purposely to provide banking services to the general public in the most effective and efficient way. The study Recommends that there is need for the internal auditors to continuously update themselves with the changing times and technologies and sharpen their skills, the management of Humuza Company Ltd should keep organizing seminars and workshops whereby these internal auditors would be trained frequently by experts either internally or externally.
A dissertation submitted to the college of economics and management in partial fulfillment of the requirements for the award of Bachelors’ Degree in Business Administration of Kampala International University
Internal control, financial performance, computer training, Humuza company