English

Davis Ndanyi Malowa

doi:10.5897/jpapr2020.0497

Abstract

In Uganda like many developing countries, financial management units are facing numerous performance challenges as a result of untold pressure, overwhelming deadlines, limited resources, political patronage and limited professional skills among the practioners. To unravel these impediments, drastic mechanisms need to be put in place to ensure a common balance among all stakeholders; financial resources must be used in a frugal but in a strategic manner to ensure effective and efficient allocation to all sectors of governance both in the urban and rural administrative units. Urban governance in Uganda like many developing countries has its own peculiarities ranging from provision of key social service delivery to mandatory urban infrastructural development, hence the reason for taking calculated steps to deliver effectively. The study advances the argument that capacity enhancement of staff and the strict observance of internal control mechanisms is the epitome of a vibrant financial management system in the administration of urban authorities.   Key words:  Fiscal devolution, internal control systems, decentralisation, urban governance.

Highlights

Internal control systems is a strategic mirror of hierarchical strategies, sanctions and internal procedures created by institutions to provide management with essential targets of guaranteeing that the organisation delivers her mandate effectively (Puttick, 2001)
The argument here is that in order to create sound financial management practices in the Ugandan public institutions both financial and nonfinancial internal control systems must be in place
The findings revealed the following factors in support of non-financial internal control systems (ICS); biometric system of checking in and out (16.0%), segregation of duties by schedules (20.4%), utilisation of CCTV cameras in strategic sites (14.2%), use of alarm systems (12.2%), utilisation of bullet proof money safes in offices (10.2%), and installation of security lights in strategic places (2.0%)

Summary

Introduction

Internal control systems is a strategic mirror of hierarchical strategies, sanctions and internal procedures created by institutions to provide management with essential targets of guaranteeing that the organisation delivers her mandate effectively (Puttick, 2001). In Baringo County Administration in Kenya, for instance the Auditor General‟s Report (2018), revealed that a number of anomalies were observed in the accounting and audit systems as noted below; (i) no financial statements/records were available, (ii) No internal financial and non-financial control systems in place, (iii) Un clear financial management procedures, (iv) the utilisation of the new integrated financial management and IT systems were very lean on the ground throughout the county administration to remedy the collapsing systems (Bird 2015). Yang et al, (2012) compares internal control systems in an institution as a human sensory system, which controls the operation or functionality of the company/body where demands to and fro management are tendered in and responded to by management for the rationale of maintaining the set out standard operating procedures set out as protocols meant to ensure the smooth running and working of the company business

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Conclusion