Internal Audit Function And Accountability Of Public Funds In Local Government; A Case Study Of Mbarara District Local Government

ABSTRACT

The study investigated the role of internal audit in the accountability ofpublic funds in local

governments, case ofMbarara district local government. The study was guided by the fbllowing

objectives; to study the nature ofInternal Audit System in the accountability ofpublic funds in

local government to investigate the nature ofaccountahili~ ofpublicf~nds in local governments

and to examine the relationshz~ between the Internal Audit and accountability ofpuhlic funds in

local governments, Various methods were used to collect data from the respondents. The main

primary data collection methods used were questionnaires Key iF!formant interviews and Focus

Group Discussion ~FGD~ guides. Documenta,~ sources were used as secondaiy data collection

method Data analysis was done thematically with the use of computer package known as excel

andSF55Jbr tabulation andgeneration oftabies, graphs andFie Charts. From the studyfindings,

it was concluded that internalAudit has a great stake in the accountability ofFuhiicfimdc, in this

regard in local Govermnents because internal Audit is described as a consulting activity. The

implied situation being that all the stakeholders in the use oJ~ublicfiinds~ have to he aware ofthe

nature of internal Audit. Internal Audit and accountability ofpublic funds in local governments

were realized faced by a number of challenges such as Limited skills, Political interference,

Limited number of employees, Low involvement, Limited independent, Low payments to

employees, Low level ofAudit reports implementation, Limited colporation, No/less development

internal Audit Gommittee, However, these above challenges were established to have thejbllowing

remedies/ solution Improved skills through training, Political focused interaction, Increased

number of employees, Adequate independence, finproved invoiven2ent Improved reward9,

Increased level ofAudit reports, Improved corporation, Installation of developed internal Audit committee.