Internal audit and cash management in non-governmental organizations:
Loading...
Date
2012-10
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
The study was about the relationship between internal audit and cash management in NGOs a case
of Compassion International Rwanda. Cash management is the one of important areas that a project
should focus on, if it has to achieve its goals and objectives. In the problem statement, it was found
out that Compassion International Rwanda Office assists 196 projects and some of them are faced
with difficulties in meeting required professional standards in cash management. They have poor
performance. Consequently some of them are suspended or completely closed.
Therefore, the main objective of this research was to find out how internal audit should be carried
out to impact positively the cash management in order to improve the project performance.
In this study, the research design used was descriptive survey and cross sectional register with
correlational design target population was the staff of projects located in Northern Province plus
sta!T from head office who are involved in Compassion Project cash management. The sample size
was been 86 employees. Purposive sampling method was been applied whereby questionnaire and
unstructured interviews were used to collect data from the selected persons.
The study concluded that internal audit plays a vital role in the prevention of errors and frauds as it
instigates internal control measures and internal checks to be followed in a project so that errors and
frauds can be mitigated. Internal audit has an impact on effective cash management in NonGovernmental
Organizations.
The researcher recommends that to overcome the constraints facing by the internal auditors, the
purchases policies, cash disbursement procedures and accounting system must be in written
document manual, be uniform and be available for all projects. The results from internal audit
should be trusted and respected and their recommendations have to be implemented without delay.
The internal auditors should organize professional courses related to cash management for
Compassion projects managers. And, the accounting operations have to be computerized.
Description
A dissertation submitted in partial fulfillment of the requirements for the Award of the Degree of Master of Business Administration of Kampala International University
Keywords
Internal audit, Cash management, Non-governmental organizations, Rwanda