INTERNAL CONTROLS AND FINANCIAL MANAGEMENT AT UNITED BANK OF AFRICA (UBA) ,JINJA-ROAD BRANCH

TABLE OF CONTENTS

DECLARATION ............................................................................................................................ i

APPROVAL .................................................................................................................................. ii

DEDICATION ........................... ~ ................................................................................................. iii

ACKNOWLEDGEMENT ........................................................................................................... iv

TABLE OF CONTENTS .............................................................................................................. v

LIST OF TABLE .......................................................................................................................... ix

LIST OF ABBREVIATIONS ....................................................................................................... x

ABSTRACT .................................................................................................................................. xi

CHAPTER ONE ............................................................................................................................ !

INTRODUCTION ......................................................................................................................... !

1.0 Introduction ............................................................................................................................ 1

1.1 Background to the study ......................................................................................................... 1

1.1.1 Historical Perspective .......................................................................................................... 1

1.1.2 Theoretical Perspective ....................................................................................................... 3

1.1.3 Conceptual perspective ....................................................................................................... 4

1.1.4 Contextual Perspectives ...................................................................................................... 4

1.2 Statement of the prob1em ....................................................................................................... 4

1.3 General objective ................................................................................................................... 5

1.4 Specific obJectives ........................................................................ 5

1.5 Research questions ................................................................................................................. 5

1.6 Scope of the study ............................................................................. , .................................... 5

1.6.1 Subject scope ...................................................................................................................... 5

1.6.2 Time scope .......................................................................................................................... 5

1.6.3 Geographical scope ............................................................................................... 6

1.7 Significance ofthe study ........................................................................................................ 6

CHAPTER TW0 ..................... · ............................................................................................... 7

LITERATURE REVIEW ............................................................................................................. 7

2.0 Introduction ............................................................................................................................ 7

2.1 Conceptual framework ........................................................................................................... 7

2.2 Internal controls ..................................................................................................................... 7

2.3 Internal control methods on financial management organizational plan or chat.. ................. 8

2.4 Other specific internal controls in organizations in areas of financial management ............. 9

2.4.1 Internal controls over financial transactions ..................................................................... 1 0

2.4.2 Internal controls over pe!!y Financial Transactions .......................................................... 1 0

2.5 Financial management ......................................................................................................... 11

2.5 .1 Importance of Financial management.. ............................................. :· .............................. 12

2.5.2.1 Transaction motive ......................................................................................................... l2

2.5.2.2 Precautionary motive ..................................................................................................... 13

2.6 The relationship between internal controls and financial managemen!.. ............................. 13

CHAPTER THREE ..................................................................................................................... l4

METHODOLOGY ...................................................................................................................... 14

3 .0 Introduction .......................................................................................................................... 14

3.1 Research design ................................................................................................................... 14

3.2 Study population .................................................................................................................. l4

3.4 Sources of data ............................................................................................................ : ......... l5

3.5 Data collection instruments .................................................................................................. 15

3.6 Reliability of the instruments .............................................. , ................................................ 16

3.7 Validity of instruments ........................................................................................................ 16

3.8 Data analysis ., ...................................................................................................................... 16

3.9 Ethical consideration ..... : ......................................................................................... : ............ 16

CHAPTER FOUR ....................................................................................................................... 17

PRESENTATION OF FINDINGS & INTERPRETATION ................................................... 17

4.0 Introduction .......................................................................................................................... 17

4.1 Response rate ....................................................................................................................... 17

4.2 Background Information ...................................................................................................... 18

4.2.1 Gender of the respondents ................................................................................................ 18

4.2.2 Age composition of respondents ....................................................................................... 19

4.3 Highest Level of Education Auained by the Employees ..................................................... 20

4.4 The Internal Control methods used by United Bank of Africa ............................................ 21

4.5 To identify the importance of Financial management at United bank of Africa ................. 24

4.6 To control activities and risk assessment at United bank of Africa ..................................... 26

CHAPTER FIVE ......................................................................................................................... 30

SUMMARY, CONCLUSION AND RECOMMENDATIONS ............................................... 30

5.0 Introduction .......................................................................................................................... 30

5.1 Summmy offindings ............................................................................................................ 30

5.2 Conclusion ........................................................................................................................... 30

5.3 Recommendations ................................................................................................................ 31

5.4 Areas for Further Research .................................................................................................. 33

REFERENCES ............................................................................................................................ 34

APPENDICES .............................................................................................................................. 40

APPENDIX I: RESEARCH INSTRUMENT: QUESTIONNAIRE ...................................... .40

APPENDIX II: BUDGET ... : ....................................................................................................... 45

APPENDIX III: WORK PLAN AND TIMEFRAME ............................................................. 46 

ABSTRACT 

Internal control all over the world has taken different forms depending on the country's specific objectives. Most significantly, emphasis has been put forward by the Internal Control Standards Committee of the International Organization of Supreme Audit Institutions (INTOSAI, 1998) which issued Guidelines for Internal Control Standards. This has also attracted large investments by governments in the general academic, technical and financial institutions The study was based on three specific objectives: To establish the impact of the increase in human population on wildlife Conservation in protected areas in Uganda, to establish the challenges of human activities on wildlife conservation around protected areas in Uganda in Queen Elizabeth National Park and, to establish conservation measures by either government or local communities in wildlife conservation. The study was based on three objectives; To establish the internal control methods used by United Bank of Africa, to identify the importance of Financial management at United bank of Africa and to establish the relationship between internal controls and financial management at United bank of Africa. It was based on a descriptive research design basing on the use of qualitative and quantitative approaches that were being adopted to establish to establish the relationship between internal controls and financial management at United Bank of Africa. Data was collected from both primary and secondary sources. Data was processed and analyzed using formal tables, narrative text, to find out to establish the relationship between internal controls and financial management at United Bank of Africa. A total of 36 respondents were considered out of the entire population in the united bank of Africa. The findings reveal that effective internal controls enhances financial management of organizations whilst in conclusion, it was recommended that, Management should ensure that there are adequate organizational controls and that each staff knows his duties and equally ensures effective segregation of duties so as to reduce inte1jerence in terms of funds; and assets management and controls. The internal control system should be remoulded and strengthened to position the staff in carrying out their duties efficiently and effectively and at the same time evaluated periodically to strengthen its weaknesses in the organization so as to reduce the likelihood of perpetrating fraud and loss of organizations funds by the staff amongst others. It was found out that the two are related in way that concluded that if the organization does not put into consideration its size, nature and other factors in designing its internal controls on Financial, it is likely to lose all profits and objectives of growth because the internal controls will be inefficient. Internal controls by management on financial management face many limitations. Recommendation, in order to reduce the weak internal controls like staff colluding internally or with outsiders to avoid the controls, internal controls covering only routine transactions abuse of controls by those with authority. Internal controls need to be strong enough to manage finances (cash) ve1y well. The research is therefore centered at assessing the different means in which internal controls should lead to proper financial management.