Evaluating the effectiveness of internal controls in Buwagga Senior Secondary School

Abstract

The study evaluates the effectiveness of internal controls in Buwagga Senior Secondary School (BSSS), Wakiso District, Uganda. Internal controls are established to achieve management objectives of safeguarding assets, segregation of duties, prevention and detection of fraud and operation efficiency. The study was guided by three objectives; to assess the effectiveness of internal controls at safeguarding assets at BSSS; to assess the effectiveness of internal controls at segregation of duties at BSSS and to evaluate the effectiveness of internal controls at ensuring operation efficiency at BSSS. The study used a cross-sectional survey design with quantitative approach. The unit of analysis was Buwagga S.S.S and units of inquiry were staff at school. Primary data was collected from 59 respondents using questionnaires and analysed with SPSS version 22 to generate graphs and frequency percentages. Results revealed that internal controls including; marking of assets with school details for easy tracking, locking of assets in safe custody by staff with authority, storing cash safely in bursar’s office, banking cash, insuring assets and assigning staff with unique identification particulars to safeguard assets at school. Segregation of duties is emphasised with the organisation structure, independent preparation of records from approval, allowing management and board of director to concentrate on their functions and independent verification of records with external audit at school. The school conducts regular staff appraisal, disseminates appraisal feedback to staff, prepares and communicates school program on time and maintains teachers’ attendance register to evaluate workload and eliminate duplication of tasks to achieve operation efficiency. The study recommends additional internal controls including ; the preparation of asset register and regular independent verification of the asset register to strengthen safeguarding of assets, clear organisation structure and flow charts to reflect line of authority, sensitization of staff and board members to perform only their duties, strengthening the policy of encouraging parents to pay school fees on bank account and school pay, and regular staff appraisal to eliminate duplication of tasks and redundancy time in order to ensure operation efficiency at school.