The Impacts of Internal Control Systems on the Performance of District Local Governments of Uganda: A Case Study of Adjumani District Local Government

TABLE OF CONTENTS

DECLARATION ......................................................................................... ii

APPROVAL .............................................................................................. iii

DEDICATION ........................................................................................... iv

ACKNOWLEDGEMENT .............................................................................. v

LIST OF TABLES AND FIGURES ............................................................... vi

LIST OF ACRONYMS ............................................................................... vii

ABSTRACT ............................................................................................ viii

TABLE OF CONTENTS ............................................................................. ix

CHAPTER ONE ......................................................................................... 1

INTRODUCTION ........................................................................................ 1

1.0. Background of the study ........................................................................... l

1.2. Objectives of the study .............................................................................. 5

1.3. Research questions ................................................................................... 5

1 .4. Significance of the study ........................................................................... 6

1.5. Scope of the study .................................................................................... 6

1.7. Conceptual frame work. ............................................................................ 9

CHAPTER TWO ....................................................................................... 11

LITERATURE REVIEW ............................................................................ 11

2.0. Introduction ........................................................................................... 11

2.1. Definition of concepts ............................................................................. 11

2.2. Relationship between internal control systems and performance ............. 12

2.3.1. Types of internal control systems ......................................................... 13

CHAPTER THREE ................................................................................... 21

METHODOLOGY ..................................................................................... 21

3.0. Introduction ........................................................................................... 21

IX

3.3. The sampling techniques ........................................................................ 22

3.4. Sampling procedures .............................................................................. 23

3.5. Area of study .......................................................................................... 23

3.5.1. Data collection ..................................................................................... 24

3.5.2. Sources of data .................................................................................... 25

3.6. Data processing ...................................................................................... 26

3.7. Data analysis .......................................................................................... 26

CHAPTER FOUR ..................................................................................... 28

INTERPRETATION, ANALYSIS AND DISICUSSION OF THE FINDINGS ...... 28

4. 0 Introduction ........................................................................................... 28

4.1 Background Information of the respondents ............................................ 28

4.1.1 Age of Respondents ............................................................................... 28

4.1.2 Sex of the Respondents ......................................................................... 29

4.1.3 Respondent's marital status ................................................................. 30

4.1.4 Level of Education of the respondents ................................................... 30

4.2 To find the comments of the respondents on the internal control

systems used by Adjumani district local ....................................................... 31

4.3 To find out the relationships between internal control systems and

performance of Adjumani District local government ....................................... 32

4.4 How to determine the efficiency of the internal control systems

used in Adjumani district local government headquarters .............................. 34

4.5 To find out if internal control systems affects performance ....................... 35

4.6 To find out if the employees easily cope up with the use of the internal

control systems well ...................................................................................... 36

4.7 To find out the forms of internal control systems used by

Adjumani district local government ................................................................ 37

4.8 To find out how the various forms of the internal control systems

work in Adjumani district local government. .................................................. 38

4.9 To find out the principles used by Adjumani district local government

that governs the proper functioning of the internal control systems ............... 39

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4.10 To find out the limitations encountered by Adjumani district local

government as a result of the implementation of the internal control

systems ......................................................................................................... 39

4.11 To find out if management has come up with solutions to solve the

problems it encountered as a result of implementation of internal control

systems ......................................................................................................... 40

4.12 To find out the view of the respondents not employed at Adjumani district

local government headquarters ...................................................................... 41

4.12.1 To find out the opinions of the respondents on the services delivery and

performance of Adjumani district local government ........................................ 41

4.12.2 To find out views of the respondents to the contribution of internal

control systems to the above given comment (4.12.1) ..................................... 42

4.12.3 To find out from the respondents how internal control systems can be

used to improve efficiency and effectiveness of service delivery by Adjumani

district local government to the people ........................................................... 4 2

CHAPTER FIVE ....................................................................................... 44

SUMMARY OF THE FINDINGS, CONCLUSION AND RECOMMENDATIONS.44

5.0 Introduction ............................................................................................ 44

5.1 Summary of the Findings ......................................................................... 44

5.1.1 To find out the relationship between internal control systems and

performance of Adjumani district local government. ....................................... 45

5.1.2 To investigate the impact of internal control systems on the performance

of Adjumani district local government ............................................................ 45

5.1.3 To identify the different forms (types) of internal control systems used in

Adjumani district local government ................................................................ 46

5.2 Conclusions ......... : ................................................................................... 46

5.3 Recommendations ................................................................................... 47

Xl

REFERENCES ..•......•.........•....•.............•.••.........•..........•....••.................... 50

APPENDINCES ..•.............•......•..............•••..........•................•.•.........•....... 52

APPENDIX I: TIME FRAME •..•..•................•.........................••.................. 52

APPENDIX II: BUDGET FRAME .••..•...•......••.....•.....•...•.•......•...••.•............• 53

APPENDIX III ••.............•...•............•...•........•.....•.......•.•........................... 54

QUESTIONNAIRE ..••••....•.•.•....•............•..•.........••..........•....•...........•.•....... 54

APPENDIX IV: MAP OF UGANDA SHOWING THE WCATION OF ADJUMANI

DISTRICT ..•.•....••••.•........••...•..•.•.....•.....•••............•....••••.••..•......•..•..... 71

ABSTRACT

The study focused on Internal Control Systems and its impacts on the performance of local governments of Uganda. It was conducted in Adjumani District, located in West Nile region of Northern Uganda. The study aimed at investigating the Impacts of Internal control systems on the performance of Adjumani District local government. The researcher employed both quantitative and descriptive approaches and the population included departmental staffs and a few people who are employees at the District Headquarters were also chosen to prove the validity of the information given by the civil servants, and altogether a sample of seventy (70) respondents has been selected. The researcher used basically two methods to collect data. This included interviews and questionnaires which made the researcher to complete his study in the most convenient time possible. Findings of the study indicated that there is still a lot to be done to fully implement efficient and effective internal control systems at Adjumani district local government headquarters. This was reflected basically in 2009 when a controversy aroused between the District chairman and the chief finance officer on the source and accountability for the fund used for the purchase of the official vehicle for the District LC5 chairman, up-to-date people are ignorant on whether the vehicle is a donation from the central government as stated by the District chairman or acquired by the District as according to the chief finance officer and accountability. The study concluded that the District needs to still do a lot, for example stopping the politicization of government development programme