Effectiveness of financial management practices at Nsiika Financial Services Limited

Abstract

The study evaluated the effectiveness of financial management practices at Nsiika Financial Services Limited. The study was based on three specific objectives; to evaluate the effectiveness of working capital management at Nsiika Financial Services Limited, to evaluate the effectiveness of cash budgeting and the effectiveness of capital budgeting. The study was designed as a cross sectional evaluative survey using information from a sample of employees of Nsiika Financial Service Ltd. The findings of this study to a large extent indicate that working capital, cash budgeting and capital budgeting were effectively managed. Secondly the findings also indicate that if a financial institution puts up good policies to manage the inflow and outflow of loans and liquid assets, then capital needed daily would readily be available. The study concludes that if controls are in place and working, then one would expect to find less internal control weaknesses. The study recommends that internal controls should be incorporated into policies, procedures and regulations to help Nsiika Financial Services Limited achieve it’s intended objectives. This is because internal controls are meant to help an organization like Nsiika Financial Service Limited have oversight of its management of the financial and physical resources for superior financial performance.