Internal control systems and financial accountability in local governments; a case of Butaleja district Local Government

Abstract

The main objective of this study was to investigate the effect of internal control systems on financial accountability in local governments, Uganda. The specific objectives were; to investigate the effect of control environment on financial accountability, to assess the effect of control activities on financial accountability in local governments. However, accountability was still deficient in local governments. The study was carried out in Butaleja DLG in Uganda. Crosssectional research design was used on a population of 140 consisting of several departments at the case study. Purposive was used to select the population to take part in the study. Primary data was collected by use of questionnaires, while secondary data was collected through audited financial statements and it was analyzed by use of statistical package for social sciences (SPSS) where frequency tables, reliability, regression and correlation results were gotten. The findings revealed that there is a positive and significant effect between internal control systems and financial accountability, Results also indicated that BDLG supports the policy of the Government to have audited books to avoid fraud and embezzlement of funds and there are good monitoring strategies at all times to check the internal control systems within the organization. Despite the achievements made by the district, it also faces some challenges such as lack of training opportunities hampering financial accountability. These challenges should be addressed. Recommendations were that BDLG should ensure the effective and strong internal control activities to support ethical values in managing finance, risk assessment should be done to all projects and programmes and the study also recommends that BDLG should monitor continuously the internal control systems of all departments and fight against absenteeism of staff, especially department heads