Internal Control System On Management Of Cash In Road Transport Service Providers A Case Of Gaaga Bus Company Kampala Uganda

ABSTRACT

The research was concluded at Gaaga Bus Company Kampala branch in Kampala city

located at Arua Park Wilson road, under the topic the impact of internal control systems

on the management of cash in transport service providers.

However, it is evident that there existed the problem of fraudulent transactions and

frequent mismanagement and misappropriation of cash .since it is difficult for the

company owners to know when bills came in and payments were received.

The main objectives of the research were to determine the whether the company has

strategies for management of cash, investigate the effects of internal control systems on

the management of cash at Gaaga Bus Company, to determine the relationship

between internal control systems and cash management and finally to find out problems

faced in management of cash at Gaaga Bus Company.

Censoring was the method used in selecting the research data that was needed. The

total population under the study was 150 where 30 were booking clerks, 3 were parcels,

65 were cargo charging clerks, 50 conductors, and 2 accountants. However out of 150

respondents only 109 actively participated and helped to answer the questionnaires

where reliable and relevant information was obtained. The age group, marital status,

gender, educational background, and occupation of the respondents were also taken

into consideration in order to come up with clear and classical information.

Result of the study showed that Gaaga Bus Company has strategies such as

computerized accounting systems, disciplinary, fraud control and prevention committee,

proper recording f transactions, and committee for planning and organizing for training.

It was also discovered that effects of internal control systems like better systems of

accounting, safety of cash, increased returns, restricted access to cash, and reduced

risk of theft and risk of loss were evident in the company.

The study also revealed that the two variables of the study (internal control systems and

management of cash) have positive relationship with high significant relation 0.01 and

Pearson correlation 0.326.