The Effect of Internal Control on the Performance of NGOs Operating in Addis Ababa Arada Sub City
No Thumbnail Available
Date
2018-01
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Little is practically known about the effect of internal control system on organizational performance especially in the case of NGOs operating in Ethiopia .One of the objective of internal control as stated by COSO is to improve operational effectiveness and efficiency of any organization. Therefore, ,the main objective of this study is to determine the effect of internal control system on overall performance of NGOs operating in Arada subcity where efficient and effective fund utilization is consider as one of typical indicator of performance for NGOs . To achieve the objective of this study, the study used explanatory research design and Quantitative research approach .The study took all component of internal control namely Control Environment, Risk assessment ,Control Activties, Information and communication and monitoring internal control system as independent variables and effective and efficient utilization of resource as dependent variable. The population of this study was 50 NGOs operating in Arada subcity .10 NGOs were selected using convenient sampling technique .Again from 10 NGOs selected 69 respondent who were key personal for functionality of internal control were selected for responding self structure questionnaires. The study relied on primary data. Primary data was collected using structured questionnaires. Descriptive statistics, cross tabulation and optimal scaling categorical regression analyses were done to examine how each component of internal control namely current control environment, risk assessment procedure and practice, control activities ,Information and communication ,and monitoring IC affects the performance NGOs . The findings revealed that control environment ,risk assessment procedure and practice, control activities ,Information and communication ,and monitoring IC have significant positive relationship with performance of NGOs operating in Addis Abeba ,Arada Subcity except the current risk assessment practices have somehow weakness which require improvements in order to have more influence on performance.it is recommended that the current practice of control environment risk assessment, control activities, information and communication and monitoring ICS should be strengthened more than before in order to enhance the performance of NGOs operating in Addis abeba arada subcity.
Description
A thesis submitted to Addis Ababa University College of business and economics department of Accounting and finance in partial fulfillment of the requirements for degree of masters of Science in accounting and finance.
Keywords
Arada subcity, Control environment, NGOs, Organizational performance