A Dissertation submitted in Partial/fulfillment of the Requirement for the Award of
Masters of Business Administration-Corporate Management (MBA-CM) Degree of
Mzumbe University
This research is all about the problems associated with internal control systems over
cash management in five compassion centres which are Anglican Holly Trinity Students
Centre (Tz-319), Anglican Railways Students Centre (Tz-320), KMT Mennonite
Students Centre (Tz-702), AICT Mtoni students Centre (Tz-952), and Moravian
Kiwanja Cha Ndege Students Centre (Tz-552). The main reason for this research to be
undertaken is due to the fact that some compassion centres were closed due to funds
vandalism. The funds were also directed to other activities which were against the
budgeted activities and contrary to the financial manuals and Program Field Manual
(PFM 2.02). ). The specific objectives were four starting with assessing the systems of
operation effectiveness of internal control, identify and assess challenges encountered in
internal control systems over cash management, identify and assess the challenges
encountered over cash management, determine steps to readdress challenges over cash
management operate in compassion centres, and assess to which the compassion centres
comply with the financial standards provided in the Program field manual. Primary and
secondary data has been used on this study to qualify the evaluation of the systems of
internal control over cash. Data was collected through questionnaires, interviews and
observations and documentary review. This research was conducted at five Compassion
centres located in Morogoro region.
The study found that internal control systems over cash management are moderately
exercised thus more efforts is needed so that at the end newly established centers which
will be launched this year at Lindi, Mtwara and Other centres which are expected to be
established in other parts like Mbeya, Tanga and seven centres in Morogoro will
minimize greatly funds embezzlement to compassion centres. Not only that but also to
ensure that the auditing reports are unqualified to increase trust to sponsors who are the
source of funds and that increases stewardship and transparency. Through this research
there are some areas which need more efforts in the internal control systems over cash
particularly in professional abilities and capabilities of accountants and internal auditors.