Effectiveness of internal audit function and the management of public funds in Uganda: A case study of Kaliro District Local Government

Abstract

The study determined the relationship between the effectiveness of Internal Audit function and management of public funds in Uganda by taking the case of Kaliro District Local Government. The specific objectives were to; To evaluate the relationship between Internal Control System Evaluation and the Management of public funds, to find out the relationship between the Applicability of Audit function and Auditor Independency and integrity, to establish the relationship between the Applicability of Audit function and the Management of public funds and to find out the Relationship between the Auditor Independency and integrity and the Management of public funds among others.

The study was conducted through a correlational and diagnostic study, data was collected in 2008 using questionnaire, observation and interview techniques from 116 employees selected from the population , analysed using Statistical package for social sciences and presented in tables and figures The study established that.; the Internal Control System Evaluation and the Applicability of Audit function positively complement each other. When the Internal Control System Evaluation systems are effective, the Auditor independency and integrity also improves. When the Internal Control System Evaluation is effective, it will lead to improved management of public funds. When the Audit function is effective, it complements the Auditor Independency and Integrity. When the Audit function is effective, it will lead to improved management of public funds. When there is Auditor Independency and integrity it will lead to improved management of public funds.

In view of these findings the study concludes that there is significant positive correlation between the effectiveness of internal audit function and management of public funds. It recommends that; To ensure proper management of public funds then the chief executive should ensure that there is internal control system evaluation, Applicability of audit function, auditor independence and integrity. The internal audit function should be applied to ensure that the internal control system is evaluated and the internal control system evaluation should be enhanced to ensure that there is an improvement in the management of public funds. The internal audit function should be given its due respect to ensure efficient management of public funds in Kaliro District local government. Management can implement this by responding positively to the various recommendations made in internal audit reports.