Internal Controls and Financial Performance of Technical Training Institutions Case Study: Bbira Vocational Technical Institute

Abstract

The study was carried out at Bbira Vocational Institute and it purposed on examining the effect of internal controls on financial performance of technical institutions. The study objectives were to; examine the effect of control environment on financial performance of Bbira Vocational Technical Institute, assess the effect of control activities on financial performance of Bbira Vocational Technical Institute and establish the effect of monitoring activities on financial performance of Bbira Vocational Technical Institute. The study backed up its theoretical reference from the Agency Theory

A quantitative approach was used adopting a case study design to collect and interprete the data. A total of 60 participants were involved and these included teaching staff, non-teaching staff, head of departments, staff in finance and administration. Questionnaires were used to collect data. Data was analysed using Statistical package for social scientists (SPSS) and extracted from SPSS in form of frequencies, percentages, mean, standard deviation and correlations. Results are presented in graphs, figures, tables and descriptive statements.

Findings show that environment controls, control activities and control of monitoring activities dimensions of internal controls positively affect financial performance. Internal control affected liquidity by (r= 0.294), profitability by (r = 0.338) and reporting (r = 0.276). Control activities positively related with liquidity (r = 0.091), profitability (r = 0.447) and with reporting (r = 0.389) while monitoring activities also related with liquidity (r = 0.291), profitability (r = 0.094) and also with reporting (r = 0.299). Thus internal controls significantly affect financial performance of technical institutions in Uganda.

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