Browsing by Author "NKWASIIBWE BRONIA"

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    THE IMPACT OF INTERNAL CONTROLS ON THE FINANCIAL PERFORMANCE OF SACCOS IN MUKONO MUNICIPALITY, UGANDA.
    (Uganda Christian University, 2025-09-22) NKWASIIBWE BRONIA
    This study investigates the impact of internal controls on the financial performance of Savings and Credit Cooperative Societies (SACCOS) in Mukono Municipality, Uganda. Specifically, it examines the effects of three key internal control components: control environment, control activities, and risk assessment, on SACCO profitability. Guided by Agency Theory, the research adopts a quantitative, cross-sectional descriptive design. Data were collected through structured questionnaires from a stratified sample of 203 employees across six SACCO branches. Descriptive and inferential statistics, including Spearman’s correlation and ordinal regression analysis, were employed to analyze relationships between internal controls and financial performance, measured primarily by profitability indicators. The findings reveal strong, statistically significant positive correlations between each internal control component and SACCO financial performance, with control activities showing the highest predictive effect. Regression results confirm that control environment (p=0.003), control activities (p=0.000), and risk assessment (p=0.000) all have significant positive impacts on profitability. These outcomes emphasize the critical role of ethical leadership, operational safeguards, and proactive risk management in enhancing financial sustainability. The study underscores the importance of strengthening internal control systems within SACCOs to improve financial outcomes. Recommendations include enhancing governance practices, institutionalizing rigorous control activities, and integrating risk assessment into strategic planning for sustainable SACCO growth.