Financial planning and accountability in manufacturing companies in Uganda
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Date
2019-10
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study focused on assessing the financial planning and accountability in manufacturing companies in Uganda, a case study of Mukwano Industries Ltd. The following hypotheses were tested Ho 1. There is no relationship between financial reporting mechanisms and financial accountability; Ho2. There is no relationship between budgeting and forecasting and financial accountability and Ho2. There is no relationship between internal controls and financial accountability. The study adopted a survey research design; this design was helpful in describing the relationship between financial planning and accountability in manufacturing companies. In addition, both qualitative and quantitative approaches to data collection and analysis were employed in order to get an in depth the understanding of the phenomenon under investigation and to confirm completeness for instruments. A sample size of 54 respondents was selected from the population of 63 people using Slovene’s formula. The study collected both primary and secondary data. Data were collected from both primary and secondary sources. The questionnaire was semi-structured with both open and closed ended questions. The closed ended questions were used for easy coding and analysis while the open ended questions were used to elicit more information from respondents to complete any missing links. Face to face interviews were held with managers who had not enough time to fill questionnaires. An interview guide was designed contained structured questions. The findings from this study revealed there were Pearson’s
Correlation Coefficient between financial decision and financial accountability whereby (r = 0.493, Sig. value = 0.000 < P value at 0.05); moreover, findings showed that there were Pearson’s Correlation Coefficient between budgeting and financial accountability whereby (r 0.298, Sig. value 0.005 <P value at 0.05). additionally, the study findings revealed that there were a Pearson’s Correlation Coefficient between Internal control and financial accountability at Mukwano Industries Ltd where (r = 0.493, Sig. value = 0.000 <P value at 0.05). The researcher concluded the financial decision was not effective since there were limited policies and procedures to ensure that management’s directives are carried out. There was a statistically significant positive but weak relationship between financial decision and financial accountability at Mukwano Industries Ltd; budgeting was not effectively carried out since the internal auditors could not even identify risks in terms of occurrence likelihood, impact or even how the risks based on the budget that would influence the achievement of Mukwano Industries Ltd target and internal control was not effectively carried out since the internal auditors were not adequately facilitated or even empowered to carry out their oversight role. This weakened the contribution of internal control towards desirable financial accountability. Based on these results, it was concluded that there is a statistically significant positive but weak relationship between internal control and financial accountability at Mukwano Industries Ltd. The researcher recommended that Mukwano Industries Ltd should embrace a comprehensive financial decision process that assesses and identifies risks in terms of occurrence likelihood, impact and how the risks would influence the achievement of the company’s objectives. There should be written job description for directors, officers and trustees, employees, volunteers and consultants. Management should also carry out periodic review of internal control unit to ensure that its performance and value to the institution is maximized and to ensure compliance with appropriate standards and guidance.
Description
A Research Report Submitted to the College of Economics and Management in Partial Fulfillment of the Requirements for the Award of Bachelor’s Degree in Business of Kampala International University
Keywords
Financial planning, Accountability, Manufacturing companies, Mukwano Industries Ltd, Uganda