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

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.