Financial control and organisational performance of local governments in central Uganda. a case of Katabi local government.

Abstract

This study assessed the influence of financial control on organisational performance of local governments in Uganda basing on a case study of Katabi Local Government. The objectives of this study were to examine: how financial transparency has influenced organisational performance of Katabi Local Government; how financial responsibility has influenced organisational performance of Katabi Local Government and how financial compliance has influenced Organisational performance of Katabi Local Government. A cross-sectional survey design with a quantitative approach in generating the required information was used. In this study, there were 94 individuals from which 76respondents were drawn. The purposive sampling technique was used to select RDCs, education department, water department, production and community-based services while census was used on CAO, health and sanitation, town clerk, finance and planning, audit, procurement, operations and opinion leaders. Data collection was done using survey questionnaires and the SPSS software package was used for data analysis. The findings revealed that financial control had a positive linear relationship with Organisational performance of KLG (r=0.776, p<0.05). The effect of financial control (B=0.776, P<0.05)giving statistically significant results. These findings show that positively altering the independent variables has a direct effect on the dependent variable accordingly. The study concludes that financial control was found to have a significant positive relationship with the organisational performance of Katabi Local Government, financial responsibility was also found to have a significant positive relationship with the Organisational performance of Katabi Local Government and financial compliance was found to have a significant positive relationship with the Organisational performance of Katabi Local Government. The study recommends that KLG should hire a consultant or expert in financial compliance to conduct a review of the financial regulations and policies applicable to the local government; the study also suggests that KLG should establish a compliance team responsible for ensuring that all financial transactions and activities are compliant with regulations and policies and the study also suggests that KLG should conduct an internal audit of the compliance measures currently in place to identify gaps and areas that need improvement.