A Dissertation Submitted in Partial Fulfilment of the Requirements for Award
of the Degree of Master of Public Administration of Mzumbe University
The study aimed at assessing the role of internal audit department in managing
finances on Local Government Authority with a view of improving local governance
and financial reporting procedures in Tanzania. It was based on the field work which
was conducted in Kinondoni District of Dar es Salaam Region and it comprised a
total of 80 respondents, which included internal auditors, accountants, management
team members and external auditors. To conduct this study, several research methods
were used so as to achieve the set objectives. Such methods included interviews,
questionnaires and review of various literature and documents related to the theme of
this study.
As a whole, this study found out that internal audit department still faces a number of
challenges in managing finances within LGAs. For instance, it was established that
internal auditors receive little support from the management and their reports are not
given due importance as those of their counterparts, external auditors. Additionally,
the study found out that inadequate funding allocated to internal auditors is also a
hindering factor for internal auditors to perform their functions in an effective
manner.
The study recommends that there is a need to allocate sufficient resources to internal
audit department as well as setting a mechanism which will prevent top LGA
officials from interfering the internal audit functions. Furthermore, the study
proposes the need to improve internal auditors’ working conditions and to allocate
adequate funds for training and development of internal auditors within LGAs.
Lastly, the study also challenges internal auditors themselves to put more efforts on
developing their skills and knowledge to fit the organizational changes and needs.