Internal control system and financial performance of urban saccos in Kampala. a case study of nakasero iv urban sacco, luwum street, Kampala central division:
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Date
2019-05
Authors
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Publisher
Kampala International University, College of Economics and Management.
Abstract
The study sought to examine the effect of internal control system on financial performance of manufacturing companies in Kampala: A case study of Nakasero IV Urban Sacco. The study objectives were; to ascertain the relationship between Control Environment and financial performance of Nakasero IV Urban Sacco, to determine the relationship between internal audit and financial performance of Nakasero IV Urban Sacco and to assess the relationship of control activities and financial performance of Nakasero IV Urban Sacco. The study used cor relational research design. The qualitative approach was used to collect and analyze data
on the study topic. This design was used because it brought out clearly the relationship between the two variables. The study was specifically non-experimental because the researcher wanted
to describe and make observations of what the real results would be for purposes of making
decisions based on the facts to improve the situation. The target population was 105 and it
comprises of staff of Nakasero IV Urban Sacco drawn from different departments of accounting
and finance (‘I5~), internal audit (‘J0~), human resource (9~, procurement and logistic (10) and
field officers (50) and directors (11), The rational was that all the above were stakeholders.
The sample size of the study consists of 98 of target population and was determined through
purposive and random sampling methods. Data was collected from primary and secondary
sources using questionnaires and interviews. After collecting data, the researcher organized
well-answered questionnaire, data was edited and sorted for the next stage. The data was
presented in tabular form, pie charts and bar graphs with frequencies and percentages. The study found out that there is a weak relationship between control activities and financial performance at Nakasero IV Urban Sacco, Kampala (~98) =0.384, p<0. 05~). This is evidenced by a Pearson correlation of 0.384 which indicates a weak relationship between control
activities and financial performance. The study concludes that management of Nakasero IV
Urban Sacco should ensure that there are adequate organizational controls and that each staff
knows his duties and equally ensures effective segregation of duties. The study recommends
that the internal control system should be remolded and strengthened to position the staff in
carrying out their duties efficiently and effectively and at the same time evaluated periodically
to strengthen its weaknesses in the organization.
Description
a research report submitted to the college of economics and management in partial fulfillment of the requirements for the award of a degree of bachelor of business administration (accounting and finance) at Kampala international university.
Keywords
Internal control system, financial performance, urban saccos