Internal Control System and Public Funds Management in Uganda: A Case of Local Governments in the Busoga Sub-Region

Abstract

This article examines the association of the Internal Control System with Public Funds Management in the Busoga sub-region of Uganda. The study adopted a cross-sectional design, where data were obtained through both a closed-ended questionnaire and an interview guide. The authors employ hierarchical models such as structural equation modeling (AMOS version 21) and NVivo version 9, and thematic analysis to analyze qualitative data. The study revealed that control activities, control environment, monitoring, risk assessment, and information and communication as dimensions of internal control systems have a positive and significant association with public funds management. The study provides relevant insights for policymakers and implementers to apply these findings as a guideline for improving public funds management using internal control systems for the enhancement of local governments. In this paper, the authors offer empirical evidence on the association between the Internal Control System and Public Funds Management of Local Governments in the Busoga sub-region of Uganda. Moreover, the study offers evidence on how the different Internal Control Systems impact the management of public funds. The study further extends both theoretical and practical implications to public funds management in local governments.