Effect Of Internal Controls Over Cash Management In Local Government Authorities: The Case Of Kinondoni Municipal Council.

Mpanju, Jesca Francis (2024) Effect Of Internal Controls Over Cash Management In Local Government Authorities: The Case Of Kinondoni Municipal Council. Masters thesis, The Open University of Tanzania.

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Abstract

The study assessed the effect of internal controls over cash management on local government authorities in Kinondoni Municipal Council. The study used internal controls such as the control environment, control activities, risk assessment, information and communication, and monitoring activities to study cash management. Also, the study used a positivist research paradigm and a correlational research design. The study used simple random sampling to select a sample size of 61 employees from a population of 72 employees. This research used a questionnaire with closed-ended questions to gather primary data. Descriptive and multiple regression analyses were used. Results showed that control environment, control activities, risk assessment, information and communication, and monitoring activities are statistically significant at (t=4.046, p(0.000)<0.05, n=61), (t=2.636, p(0.011)<0.05, n=61), (t=0.481, p(0.033)<0.05, n=61), p(t=1.366, p(0.047)<0.05, n=61), and p(t=0.631, p(0.031)<0.05, n=61), respectively. Therefore, the study concludes that the control environment, control activities, risk assessment, information and communication, and monitoring activities have a significant effect on cash management. The study suggests that to ensure effective cash management, local government should strengthen the control environment, control activities, risk assessment, information and communication, and monitoring activities by ensuring accurate and timely financial reporting, effective identification and mitigation of cash-related risks, and efficient management of cash inflows and outflows. Keywords: Effect of Internal Controls, Cash Management.

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