Effectiveness of internal control practices in local governments of Uganda, a case study of Kiruhura district

Abstract

The general objective of this study was to investigate the effectiveness of internal control practices in local governments of Uganda, a case study of Kiruhura district. The study therefore aimed at analyzing the internal control activities, establishing stakeholders’ perception of internal control activities in assessing the problems faced while implementing internal control practices and finding out recommendations on strategies that can be employed to successfully implement internal controls. The study was carried out in Kiruhura District, located in Nyabushozi sub-region, western Uganda with a population of 321,300 (UBOS 2008-2012). The study adopted both quantitative and qualitative approaches will be used so as to achieve a high degree of validity and reliability of results. In the study, 5 health centers with a target a target population of 140 people comprising of individuals who implement internal control practices at the district level such as the CAO, CFO, Chairperson LCV, Heads of departments in the district, district Councilors, LC. I, II and III, health staff, health beneficiary’s community leaders will be randomly selected. Data was collected through questionnaire survey and interview method. The data was also processed and analyzed using three main processes of editing, coding and classification and presentation in form of tables and graphs so that data is liable for analysis. The data collected through questionnaires was analyzed using Statistical Package for Social Sciences version 20 (SPSS), because this was the most recommendable package for analyzing social sciences researcher data (Sekaran, 2003). The statistics was on the measures of central tendencies (mean, mode and median) and measures of dispersion (standard deviation and range), that will be provided by SPSS. Most of the respondents were in agreement with our district has effective health internal control policies and procedures in place”, This was supported by Moses,O.et al(2016), that there should have effective internal control policies and procedures in place. The study found out that few respondents with the district to provide good quality health care services to the people. This was affirmed by Cornelius, B.et al (2014) that there was no value for money for the new health facilities constructed and the delivery of health services in the district. Majority of the respondents stated that; Inadequate training in financial accountability, failure to realize all the revenues as approved in the budget estimates, no streamlined financial reporting system, failure to manage public funds, inefficiency of service delivery, and non-independency of the accounting system. The findings agree with (Frazer, 2016) who advanced that effectiveness of internal control is challenged with limitations such as costs, few employees and other constraints. The study also indicated the collected revenue often fall short of the approved estimates. The findings agree with (Aramide & Bashir, 2015). In a related view, financial accountability lacks effectiveness due to the influence of inappropriate and unaccommodating cultural, political and constitutional environment (Hedger & Blick, 2008). The study also suggested the following recommendation, there is to institute quality standards in the health sector and ensure they are followed. A well-functioning complaints management system should be could be considered for continuous improvement, there is need to ensure value for money and through close supervision and monitoring of health facilities, consideration to institute standard service time should be made and included in staff performance appraisal process/systems. There should be monitoring to ensure that services standards are adhered to, there may be need to consider timesheets for health centre staff in the district and there is need to increase provision of resources to the health sector and ensure they are put to the intended use.