The Effect of Internal Control Activities On Cash Management Case Study: Ugafode Microfinance Limited (Mdi)

ABSTRACT The study sought to find the effect of internal control activities on cash management case study: Ugafode microfinance limited (MDI), with the following objectives the stud~ will basically aim at finding out the effects of internal control activities on cash management, To establish the relationship between internal auditing and cash budgeting, To establish the relationship between segregation of duties and internal control activities The study used both quantitative and qualitative aspects of data collection and analysis. The quantitative method will adopt descriptive and inferential statistics using exploratory stud~ From the findings, the social economic characteristics of the respondents included: sex of the respondent, age of the respondent, education level, duration of years worked in the organization and department in the organization. About the sex of the respondent, 40% were boys and 60% were females. The majority of the respondents were between 25and30 vents representing 50%Of the total respondents followed by respondents and respondents above 35 years marked the lowest number of respondents with 3.3%of the respondents Furthermore from the conclusions, After analyzing the data and testing the h) pothesis ii was found that: Majority of the respondents were females with 60 per cent of the total respondents at the university and most of the respondents were between 25 and 30 vents of age. This implies that majority of the respondents were youths. However majority of the respondents were diploma graduates with 40% of the respondents and the minority of the respondents were A’ level graduates with 3.3% of the respondents. There is no signifleant mean difference between duration of years worked in the organization and respondents perception on cash management before the introduction of internal controls since the ~ value 0.361>0.05. Finally the study recommended that in order to better understand the systerns~ theory input output model, there is need to investigate the role management and staff play in the disbursement of internal control activities. The government through its Ministry of Finance and the central bank should regularly organize workshops. This will educate the microfinance Institutions and other Financial Institutions on the importance of internal control activities within the Organizations.