A Researcher Report Submitted to Mzumbe University – Mbeya Campus College in Partial Fulfillment of the Requirement for the Award of Degree of Bachelor of Account and Finance with Business Sector (BAF-BS) of Mzumbe University
ABSTRACT
The main purpose was to assess the effect of internal control on financial performance in public organization. The study carried out successful by examining the specific objective that is to determine the effect of internal control system in CBT, to examine factor that form poor financial performance in CBT and to find out if there is a relationship between internal control and financial performance. To reach the objectives, the case study conducted in CBT Mtwara linked with questionnaire, documentation, observation and interviews used to collect data, to archive those objectives a study uses sample size of 22 in the total of respondents. Case study design used a research design to allow comprehensive and intensive study of a unit over a range of variables. Data collected was computed and analyzed by using SPSS program. Study finding indicate that an organization have strong internal control and efficiency financial performance. Financial performance was tested by five independent variables include Control activities, Control environment, Monitoring, Internal control, Information and communication. Result obtained from finding shows that, relationship between internal control and financial performance exists. Moreover, finding shows that, internal control system implemented in organization facilitates efficiency in financial performance. In addition, there is factor that contributes to poor financial performance and good financial performance in CBT. The researcher recommend that an organization should implement internal and external auditor who may provide regular report that comply with law and regulation of quality report. Moreover, an organization should implement strong internal control to monitor internal environment to allow motivations of better result in the financial performance in organization. Furthermore, they should develop system that can help to get feedback from their customer to change and improve any system that is not efficient to their customer, this system can help the organization to be near and close to their customer need and satisfaction of national social security fund.