THE EFFECTIVENESS OF INTERNAL CONTROL SYSTEMS IN ACHIEVING VALUE FOR MONEY IN SCHOOL FACILITIES GRANT THE CASE OF KAMULI DISTRICT LOCAL GOVERNMENT

Abstract

The purpose of this study was to examine the effectiveness of Internal Control Systems in achieving Value for Money in SFG projects in Local Governments. A cross sectional survey design was used. Data was gathered using a self administered structured questionnaire. Respondents who directly and indirectly incharge of implementing the SFG projects in Kamuli District Local Government filled the questionnaire. The respondents were drawn from the elected and appointed staff, staff from the Office of the Auditor General, members of the District Public Accounts Committee and the School Managers for the schools that received SFG project by the Financial Year (FY) 2007/08. The data was analyzed using SPSS. The findings revealed that Internal Control Systems have a significant positive effect in achieving Value for Money. The study further reveals that there a significant positive relationship between the Control Environment, Control Activities, Risk Assessment, 2 Information and Communication and Monitoring and Value for Money in Local Governments. The findings revealed that Internal Control Systems have a significant positive effect in achieving Value for Money. All the constructs of Internal Control Systems (Control Environment, Control Activities, Risk Assessment, Information and Communication and Monitoring) have a significant positive relationship with Value for Money in Local Governments. This implies that the more sound the ICS, the more the ICS are adhered too, the high the chances that LGs will achieve Value for Money. Having known the significance of Internal Controls, LGs need to ensure that they continuously review them and ensure that they are operational.