Internal Controls And Cash Management Of Manufacturing Companies In Uganda: A Case Study Of Uganda Clays Limited.

ABSTRACT The purpose of this study investigate how effective internal controls on cash management can help expansion of Uganda Clays Limited. The study was based on the following 3 objectives; (i) to determine the effect of control activities on cash management and expansion of Uganda Clays Limited; (ii) to establish the effect of control environment on cash management and expansion of Uganda Clays Limited; and (iii) to establish the effect of corporate governance on cash management and expansion of Uganda Clays Limited. The study employed a cross-sectional research design and a sample size of 73 respondents were used for this study. The findings revealed that; control activities positively (~=0.625) and significantly (pvalue=0.001) affect cash management of Uganda Clays Limited; control environment positively (~=0.805) and significantly (p-value=0.000) affect cash management of Uganda Clays Limited; and corporate governance positively (~=1.299) and significantly (p-value=0.000) affect cash management of Uganda Clays Limited. The study concluded that; control activities have a positive significant effect on cash management of Uganda Clays Limited; control environment have a positive significant effect on cash management of Uganda Clays Limited; and corporate governance have a positive significant effect on cash management of Uganda Clays Limited. The study recommended that; UCL should have a wellestablished and effective Board by following the rules and procedures that govern their firm; Shareholders should by the principles and procedures of the firm approve recruitment and appointment of Board members during Annual General Meetings; UCL should have well established corporate governance policies and procedures that guide its affairs; and UCL should ensure that cash is regularly receipted and deposited in the bank after being collected from its debtors.