INTERNAL CONTROL SYSTEMS AND FINANCIAL PERFORMANCE OF UGANDA TECHNICAL COLLEGES A CASE OF UGANDA TECHNICAL COLLEGE LIRA
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2024-10-28
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Abstract
The study investigated and sought to establish the relationship between internal control systems and financial performance in Uganda Technical Colleges in Uganda. A case of Uganda Technical College Lira. Internal controls were looked at from the perspective of Control Environment, information and communication and Control Activities whereas financial performance focused on Profitability, Increase in Assets and Growth as measures of financial performance. The Researcher set out to establish the causes of persistent poor financial performance from the perspective of internal controls. The research was conducted using both quantitative and qualitative approaches using Survey, Correlation and Case study as Research Designs. Data was collected using Questionnaires and Interview guide as well as review of available documents and records targeting basically Heads of Departments, College Management, Governing council members and Finance and Accounts staff as respondents from a sample size of 42 College staff. Data was analyzed using the Statistical Package for Social Scientists where conclusions were drawn from tables, figures from the Package. The study found that management of the College is committed to the control systems, actively participates in monitoring and supervision of the activities of the College, all the activities of the College are initiated by the top-level management. It was further revealed that there is a clear separation of roles, weaknesses in the system are addressed, and there is a training program for capacity building in the in college. However, the study also found out that there is lack of information sharing and inadequate security measures to safeguard the assets of the College, it was also noted that there isn’t enough cash to meet intended College goals, that the fees charged to students are not appropriate to cover College costs, that all fees meant to be remitted to the College are not collected. It was however, revealed that all revenues and expenditures are properly classified, and that assets of the College have generally increased. The study established a significant relationship between internal control system and financial performance. The investigation recommends competence profiling in the Internal Audit department which should be based on what the College expects the internal audit to do and what appropriate number staff would be required to do this job. It also recommends that the College establishes and manages information management system to enable all parties within the College to freely access and utilize the official information. There should be a strategy to improve the generation of additional finances for the College. The Study therefore concludes that internal control systems do function although with hiccups and that there is a significant relationship between internal control systems and financial performance in Uganda Technical Colleges.