Examining the Internal Controls and Financial Performance of Selected Savings and Credit Co-operative Societies in Moyo District, Uganda
Nasser Wawa Anguyo, Omweno N. Enock and Mabonga Eric
ABSTRACT
This research study examined the effect of internal controls on financial performance Savings and Credit Co-operative Societies (SACCOs) in Moyo district of Uganda. Utilizing both qualitative and quantitative methodologies, a descriptive cross-sectional research design was employed. The population consists of 56 participants. Data was collected with surveys and interviews. The study’s findings demonstrated that the control environment in the chosen SACCOs in Moyo district had a beneficial impact on financial performance. This is corroborated by the favourable internal control ratings and the highly satisfying view of the accounting and financial system of the chosen SACCOs. And well-constructed control environment has the potential to strengthen the entire governance and administration of SACCOs, resulting in enhanced financial performance. Based on these findings, the study calls for SACCOs to prioritize ethical values in their organizational culture. This includes promoting honesty, integrity, and accountability among staff and management. Ensure that the board of directors maintain their independence from management. This can be achieved by implementing governance structures that prevent conflicts of interest. Continuously adhere to audit standards and best practices to maintain high-quality financial reporting and internal controls. It is equally recommended that SACCOs should conduct periodic internal reviews of control activities to identify weaknesses and areas for improvement. It is recommended that management be tasked with the responsibility of promptly reviewing audit reports and resolving any non-compliance issues identified within them.
Keywords: Stewardship, Internal controls, Savings, Cooperative societies, Financial performance.
CITE AS: Nasser Wawa Anguyo, Omweno N. Enock and Mabonga Eric (2024). Examining the Internal Controls and Financial Performance of Selected Savings and Credit Co-operative Societies in Moyo District, Uganda. IAA Journal of Management 11(2):15-27. https://doi.org/10.59298/IAAJAM/2024/112.15270.00