Abstract:
This study aimed at determining the effect of Internal Control System on Financial performance
of Pallisa District Local Government with the study objectives; (i) to determine the effect of control
environment on financial performance; (ii) to determine the effect of risk assessment on financial
performance; and (iii) to determine the effect of information and communication on financial
performance of PDLG. The study applied a cross sectional research design and quantitative
approach. Data was collected from a target population of 55 with accessible unit of inquiry being
48 respondents consisting of employees from finance department, administration, and planning
and audit department. Data was collected using close ended questionnaires and analyzed using
statistical package for social sciences from which frequency tables, descriptive statistics,
reliability, validity, correlation and regression results were obtained. The study findings showed
that control environment, risk assessment and, information and communication have a positive
and significant effect on financial performance. The study therefore, recommends improvement
and diligent implementation of control environment, risk assessment and, information and
communication to ensure proper financial performance.
