Internal control systems and financial performance of Pallisa district local government.

Abstract

This study intended to examine the effect of Internal Control System (ICS) that affected financial performance (FP) in Uganda: a case of Pallisa district local government. The study population was 140 respondents and a sample size of 103 where Purposive sampling techniques was used to select administrative staff and political leaders and top-level administrators. Data was collected using a closed ended questionnaire and statistical package for social sciences was used for analyzing data from which frequency tables, descriptive statistics, reliability, validity, correlation and regression results were obtained. The study indicated that there was a positive relationship between control environment, risk assessment and information and communication on financial performance. The study recommended that management should put in place the control environment like integrity and risk assessment like fraud assessment in order to improve on the financial performance of PDLG. The study concluded that there is a strong predictive power that the dimensions of internal control system contributes towards enhancing financial performance of Pallisa District Local Government.