| dc.description.abstract | The study examined the effect of Internal Financial Controls on Financial Sustainability in Non
Governmental Organizations (NGOs) in Uganda, a Case of Infectious Diseases Institute Limited
(IDI) under four research objectives namely; i) to examine the effect of the control environment
on financial sustainability, ii) to examine the effect of risk assessment on financial sustainability;
iii) to examine the effect of monitoring and control activities on financial sustainability and iv) to
examine the effect of information and communication on financial sustainability. Using a cross
sectional design blended with both qualitative and quantitative research approaches on a sample
of 297 respondents. The study collected data using questionnaires and an interview guide which
was processed using SPSS and analyzed using Pearson’s two tail statistic and multiple regression
models.
The study registered a response rate of 84.8% and revealed that at a bivariate level of analysis,
all measures on internal financial controls were positively associated with financial sustainability
although they had differing degrees of association. Monitoring and control activities had a
moderate significant relationship with financial sustainability (r = 0.570; p = 0.000), Information
and communication was also moderate though significantly associated with financial
sustainability (r = 0.499; p = 0.000) while both control environment and risk assessment had
weak positive signification associations with financial sustainability indicated by correlation
values of r = 0.249; p = 0.000 and r = 0.177; p = 0.000 respectively. At a multivariate level,
results indicated that on the overall, internal financial controls explained 38.4% of the variation
in financial sustainability at IDI and that individually, control environment positively affect
financial sustainability (β = 0.215; p = 0.000), Monitoring and control activities positively affect
financial sustainability(β = 0.46; p = 0.000), Information and Communication positively affect
financial sustainability (β = 0.251; p = 0.000) while risk assessment negatively predicted
financial sustainability (β = - 0.266; p = 0.000). The researcher concludes that internal financial
controls are a weak predictor of financial sustainability and recommends that; since internal
financial controls can’t individually result into higher levels of financial sustainability;
management ought to define and implement other practices alongside such controls for
sustainable financial operations. | en_US |
