THE EFFECT OF INTERNAL CONTROL SYSTEM ON MANAGEMENT OF MICROFINANCE INSTITUTIONS A CASE STUDY OF WOMEN TRUST MICROFINANCE IN TORORO DISTRICT

ABSTRACT

The study intended to investigate the internal control system and cash

management in an organization case study: Women Trust microfinance limited

Entebbe road Kampala branch with the objectives of finding out the

relationship between internal control system and cash management in Women

Trust microfinance Limited and to suggest recommendations on the

improvement of internal controls on cash management.

The purpose of this study was to investigate the internal control systems and

cash management in an organization case study: Women Trust microfinance

limited Entebbe road Kampala branch.

In data collection process, the researcher used instruments such as

administered questionnaires and interviewing of primary data, and extensive

distribution and frequency distribution and frequency distribution.

Therefore, the study found out that, internal control systems and cash

management benefited the organization in terms of improved productivity,

profitability, and efficiency, however, the employees were not adequately

sensitized about the internal control systems and cash management process in

Women Trust microfinance Uganda limited in addition, the internal control

system and cash control management method applied in Women Trust

microfinance Uganda limited was not appropriate enough and the government

had attained the both the economic and fiscal objectives like the increase in

volume of goods and services and increase in tax revenue. It was therefore

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concluded that, internal control system seem to have brought good impact on

the cash management of the organization in term of improved performance,

efficiency and effectiveness in the economy in general in terms of improved

performance, efficiency and effectiveness in the economy in general in terms of

increased investments and improved productivity. Although the doubt is still

seem in terms of the method applied in Women Trust microfinance Uganda

limited. Hence this has left the government still in big influence of some

valuable decisions to the organization which could impact on its performance.

Thus recommendations to the government.

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