Internal control system and financial management in selected local non-government organizations in Mogadisho, Somalia
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Date
2018-07
Authors
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Publisher
Kampala International University, College of economics and management
Abstract
This study aimed at aimed at aimed at aimed at aimed at aimed at aimed at assessing the impact of internal control systems on financial management in local NGOs in Mogadishu, Somalia, five specific objectives explained this study and these were; (i) to limit the impact of controlling environment on financial management in local NGOs in Mogadishu, Somalia, (ii) to set up the influence of risk assessment on financial management in local NGOs in Mogadishu, Somalia, (iii) to seek the relationship between operational control activities and financial management in local NGOs in Mogadishu, Somalia, (iv) to identify the effect of information & communication system on financial management in selected local NGOs in Mogadishu, Somalia and (v) examining the examine the impact of monitoring & evaluation system on financial management in selected local NGOs in Mogadishu, Somalia. This research employed descriptive survey research design to describe the relationship between variables. The study population was 156 and sample size was 114 respondents.Regression model and person’s linear correlation coefficients were used in the analysis. The findings revealed the following: controlling environment significantly affects financial management in selected local NGOs in Mogadishu, Somalia, risk assessment has a significant effect on financial management in selected local NGOs in Mogadishu, Somalia, operational control activities have a significant relationship on financial management in selected local NGOs in Mogadishu, Somalia, the findings indicated the effect of information & communication system on financial management in selected local NGOs in Mogadishu, Somalia, this implied that a improvement in internal control system improves financial management among in selected local NGOs in Mogadishu, Somalia and infective internal control system leads to poor financial management, the findings indicated a significant impact between monitoring & evaluation system and financial management in selected local NGOs in Mogadishu, Somalia, , the researcher concluded that effective controlling environment it increases financial management in selected local NGOs in Mogadishu, Somalia, an improvement in risk assessment highly increases financial management in selected local NGOs in Mogadishu, Somalia, an improvement in operational control activities increases financial management in selected local NGOs in Mogadishu, Somalia, improvement in internal control system improves financial management among in selected local NGOs in Mogadishu, Somalia and infective internal control system leads to poor financial management, and lastly, improving the monitoring & evaluation system increases financial management in selected local NGOs in Mogadishu, Somalia. The researcher recommended that; the selected local NGOs in Mogadishu Somalia to make sure that both management and employees are assigned appropriate levels of authority and responsibility to facilitate effective internal control, local NGOs in Mogadishu Somalia to should put in place an effective information system to capture and process data in a meaningful way, the local NGOs in Mogadishu, Somalia should make sure that human resource policies and practices are designed and implemented to facilitate effective internal control, the local NGOs in Mogadishu Somalia should make sure that all stakeholders have the right to know how their funds being used, and the local NGOs in Mogadishu, Somalia to make sure that all financial information are recorded accurately and presented clearly.
Description
A research report submitted to the college of economics and management in partial fulfillment of the requirements for the masters of business administration (Finance and accounting) in Kampala International University Kampala, Uganda
Keywords
Internal control system, Financial management, Local non-government, Organizations, Somalia