Internal Control System And Financial Performance Of Institutions Of Higher Learning In Uganda: A Case Study Of Monaco Business Institute

ABSTRACT

The study sought to establish a relationship between internal control and organizational performance of Monaco Business Institute. The study objectives were; to examine the effectiveness of internal controls used in Monaco Business Institute, to establish the level of performance in Monaco Business Institute and to establish a relationship between internal control and performance in Monaco Business Institute. A cross sectional survey was used in the course of the study. Both qualitative and quantitative data was gathered in order to establish the relationship between the independent and dependent variables, so as to examine how internal controls are used in Monaco Business Institute and therefore account for the performance levels. The study comprised of 30 employees and 20 management of Monaco Business Institute. Simple random approach was used during the study. Purposive sampling was also used to select only respondents for the researcher to attain the purpose of the study. Data was collected using both primary and secondary sources. After collecting data, the researcher organized well-answered questionnaire, data was edited and sorted for the next stage. The data was presented in tabular form, pie charts and bar graphs with frequencies and percentages. The researcher used Statistical Package for Social Sciences (SPSS) to analyze the relationship between the variables under study. It was concluded; the study findings indicated that the internal controls used in Monaco Business Institute were ineffective and unsatisfactory, the level of organizational performance was found to be inadequate and a significant positive relationship between internal controls and organizational performance was established to exist. It was recommended that; management of Monaco Business Institute should design effective internal control systems through ensuring that adequate asset listings is done by management, capital assets purchased are approved by appropriate level of management and asset numbering is done to show location and protection of the assets; management ensures that it strengthens strategies aimed at improving organizational performance in all categories of staff; management should appreciate the findings in the relationship between internal controls and organizational performance to ensure its continued production in a competitive industry in Uganda.