ABSTRACT

In this research, the focus was on the impact of the internal controls on accountability in Uganda Red Cross Society. It was prompted by the continued audited financial reports of 2006 - 2009 which show gaps in URCS internal controls as adequacy and effectiveness of ICS implementation is concerned. This was attributed due to failure of URCS to effectively account for funds sent by its donors (about 200million shilling was refunded due to misappropriation of funds). It involved identifying the controls found in the society, determining their effectiveness, constraints affecting them and their impact on accountability. Both primary and secondary data were used in the research and these were obtained through questionnaires, interviews and observation techniques. The findings of the study indicated that the controls found in URCS were not effective and this was found to be a major cause of loss of the society funds in the organization. The study also identified some problems which included, poor management, obsolete equipments for processing accounting records, assets, and unmotivated staff. It was also established that most staff move with society lap tops to their homes which are always stolen and no proper follow up is made, thus making the society to spend more money on buying new lap tops almost every quarter. Also the security at URCS entry is inadequate giving room to increased theft. Based on these findings, a number of recommendations were made to improve the effectiveness of internal controls, these included, intensification of internal auditing and supervision, motivation of staff, training and simplification of accounting policies and procedures, provision of branch accountants, extension of internet and accounting system in branches/regions, to mention but a few.