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

Abstract

This study focused on assessing the impact of internal control systems on financial management of Pallisa District Local Government. The study was guided by specific objectives like: to determine the effect of control environment on financial management, effect of control activities on financial management, and the effect of monitoring & evaluation systems on financial management of Pallisa District Local Government. The study based on the sample size of 32 respondents and a target population of 35 respondents. The study employed descriptive survey research design to describe the relationship between variables, Regression model and pea son’s linear correlation coefficients were used in the analysis. The findings revealed that control environment significantly affects financial management of Pallisa District Local Government; control activities have a significant relationship on financial management in Pallisa District Local Government and a positive relation between monitoring and evaluation systems on financial management of Pallisa District Local Government. Additionally, findings indicated that an improvement in internal control system improves financial Management of Pallisa District Local Government and infective internal control system leads to poor financial management. The researcher concluded that effective control environment increases financial management in Pallisa District Local Government, an improvement in control activities increases financial management in Pallisa District Local Government, improvement in internal control system improves financial management Pallisa District Local Government. Improving the monitoring & evaluation system increases financial management in Pallisa District Local Government. The researcher recommended that Pallisa District Local Government should make sure that both management and employees are assigned appropriate levels of authority and responsibility to facilitate effective internal control.