ANALYSIS OF INTERNAL CONTROL FACTORS THAT INFLUENCE IMPREST MANAGEMENT IN NGOs IN LUSAKA

Abstract

The study examined the relationship between internal controls (control environment, risk assessment and monitoring activites) and imprest management in Non-Governmental Organisations (NGOs) in Lusaka. If many NGOs have internal controls, why do we have cases of unretired imprest? From the literature reviewed, most of the studies suggested the relationship between internal controls and financial performance and effective operations of NGOs. However, none specifically considered the internal controls and its influence on imprest management in NGOs in Lusaka, hence discovering a Literature gap to research on. Hundred and fifty (150) questionnaires were used for data collection. Descriptive, correlation and multiple linear regression statistical analysis were performed using SPSS version 20 software. The sampling frame for this study was 150 participants from 33 NGOs who were randomly selected within Lusaka. The rationale upon which the study population and sample size were based: The study chose organizations that had financial manuals that speak to internal controls regarding imprest management, which had been audited consistently for the previous three years were targeted. Willingness from management of the organisation to allow their employees to participate in the survey was another criterion for selection. Most of the respondents agreed that organisations had internal control systems in place, yet they still had cases of unretired imprest. Therefore, the internal control components (combined) were tested for correlation with imprest management. The results showed both positive correlation and significant relationship between control environment, risk assessment, monitoring activities and imprest management. The value of R-Squared indicates that comparison of the three independent variables collectively showed significant predictions in the outcome. Furthermore, an examination of the t-values indicated that both control environment and monitoring components contributed more to the prediction of the outcome of Imprest Management. This entailed that the three independent variables considered under this study do contribute to imprest management in NGOs in Lusaka. There is a positive relationship between adequate and effective internal controls and imprest management in Non Governmental Organisations based in Lusaka.