The effect of internal control systems on Local Government performance in Northern Uganda: a case study of Abim District Local Government (District Headquarters) Uganda
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Date
2015-05
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Kampala International University (KIU)
Abstract
The purpose of the study was to establish the relationship between internal Audit system and financial performance of Local Governments in Uganda. It was guided by four objectives namely; to find out the nature of internal audit and performance of Abim Local Government, to find out the relationship between internal audit and performance of Abim Local Government and to identify the challenges faced by the internal audit and performance of Abim Local Government. The study used data collected using a questionnaire and interviews, and during data collection stratified sampling methods was used. Both qualitative and quantitative were used to analyze data as sample of 40 respondents was selected at Abim District. The study revealed that the nature of internal audit in Abim District Local Government involves carrying out of value for money audits through physical accountability, checking of financial expenditure, budget implementation and work plans to establish whether they conform to the rules and procedures in the Local
Government Act. The study also established that there is a relationship between internal audit and performance of Abim Local Government as indicated by the scores of roles of internal audit and financial performance. In addition, political interference, corruption, conflict of interest,
inadequate skills, inadequate information, inadequate funds, and improper communication flow are the major challenges faced by internal audit and performance of Abim Local Government. The study recommended use of strong internal control system in Local Governments, careful selection
of employees in Local Government and Local Governments' to employees to always follow the drafted work plan in the Departments if the auditing and performance is to be effective. Lastly that the influence of political structure and performance of Local Governments in Uganda and the relationship between employees experience and performance of Audit Department in Local Governments as areas for further studies.
Description
Research report submitted to the College of Applied Economics and Management Sciences in the partial fulfillment of the requirement for the Award of Degree in Business Administration of Kampala International University
Keywords
Internal control systems, Local Government performance, Abim District Local Government