INTERNAL CONTROL SYSTEM AND ORGANIZATIONAL CASH MANAGEMENT; A CASE OF MULAGO NATIONAL REFERRAL HOSPITAL KAMPALA UGANDA

ABSTRACT

The study sought to establish the role of internal control system on organizational cash

management and was driven by three objectives.

To achieve these objectives, the researcher sampled twenty respondents (20) from Mulago

National Referral Hospital. The study utilized qualitative and quantitative research methods;

four data collection instruments were used, structured interview guides and questionnaires and

the collected data was presented in tabular and analyzed statistically to decipher findings.

The research was guided by three research questions of the study. The first research question

sought to find out the relationship between internal control systems and organizational cash

management and the research revealed that there is a strong link between internal control

systems and organizational cash management in Uganda. Research question two sought to find

out the factors that contributed to inefficiency and ineffectiveness of internal control systems and

the findings revealed that; poor record keeping, improper accountability, falsification of financial

record were the answers given in this research question

The findings revealed that: physical control over cash included sale, cash boxes. Most of the

disbursements were made by cheques and the minor through petty cash fund.

The recommendations to Mulago Hospital were; Proper adoption of organization plan, Control

of transaction, Prevention of fraud, separation of accounting and custody of assets, prevention of

fraud among others.

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