The Effects Of Internal Control Systems And Efficiency Of Non Government Organisations: A Case Study Of Compassion International Assisted Projects In Kampala Uganda

ABSTRACT

The study investigated and sought to establish the effects of internal control system

on efficiency in Non-Government Organizations majoring on Compassion

International Assisted projects in Kampala district.

Internal controls were looked at from angles of control environment, control activities,

information and communication,· risk assessment, and monitoring and evaluation.

The research was conducted using both quantitative and qualitative approaches.

Data was collected using Questionnaires and interview guide as well as review of

available documents and records like audit reports and compassion financial

manuals.

The research found out that the compassior1 Assisted projects have the internal

control systems in place and in each of the projects there is a management

committee that oversees the running of the project. It also discovered that workers

are appropriated monitored, reports are prepared in time, and there is free

interaction amongst the different workers. However, though there is an active board

that runs the projects the board ·iacks independence from the management meaning

it's possible to manipulate the board. Also the study found out that valuable and

sensitive information could easily be accessed by one staff even without

authorization. Also there is a notable weakness in the area of giving feedback on

reports and auditing where by projects were not necessarily audited every financial

year.

In the area of efficiency much as many of the respondents said their organizations

were very efficient, when it came to costs and time many of them acknowledged that

their cost were not very low compared to output and also resources were not

necessarily utilized with little or no wastage.

Other than internal control, the study found out that other factors that affect efficiency

were number of staff employed and particularly it found out that the workload in

these projects was quite heavy. There was understaffing. The work to be done was

too much for the staffs who were either 4 in projects without CSP or 5 for projects

that had CSP.

The study recommends that the board that oversees the projects should be

independent of the management body for effectiveness in control.

It also recommends that all valuable and sensitive information, assets, documents should be kept safely and only accessed with permission or authorization.

There is need for more staff to. be recruited in each of the different projects for efficiency to be realized in a higher rate.

In conclusion there is a system of internal control in place though it needs strengthening and it affects efficiency. The system however needs to be strengthened for better results.