MJAAR

Financial Performance And Internal Controls Of Saccos In Wakiso District

Jjingo Timothy, Irumba Alex


Abstract

This study examined the relationship between internal controls and the financial performance of Savings and Credit Cooperative Organisations (SACCOs) in Wakiso District, Uganda. SACCOs play an increasingly important role in Uganda's financial inclusion agenda, yet many face financial distress attributable in part to weak governance and inadequate internal control systems. A cross-sectional survey design was employed, with data collected from 157 respondents including SACCO managers, board members, loan officers, and finance officers drawn from 32 SACCOs in Wakiso District. The Committee of Sponsoring Organisations of the Treadway Commission (COSO) framework guided the conceptualization of internal controls across five components: control environment, risk assessment, control activities, information and communication, and monitoring. Financial performance was measured through portfolio quality (Portfolio at Risk > 30 days), operational self-sufficiency, return on assets, and loan repayment rates. Pearson correlation revealed strong positive relationships between all COSO components and financial performance. The regression model explained 67.2% of the variance in SACCO financial performance (R² = 0.672, F = 53.41, p < 0.001), with control activities (Beta = 0.298) and monitoring (Beta = 0.271) emerging as the strongest predictors. The study concludes that strong internal controls are a critical determinant of SACCO financial performance and recommends capacity building for SACCO boards, adoption of standardised accounting systems, and strengthened external oversight by the Uganda Cooperative Alliance.

Keywords

Internal Controls Financial Performance SACCOs COSO Framework Wakiso District Cooperative Finance Uganda Portfolio Quality
Metropolitan Journal of Academic and Applied Research

Cite This Article

Jjingo Timothy & Irumba Alex (2026). Financial Performance And Internal Controls Of Saccos In Wakiso District. Metropolitan Journal of Academic and Applied Research, 5(6). https://journals.miu.ac.ug/pages/article.php?article_id=478

More in This Issue

View full issue →
21
Institutional 'gaming practices' and learner exclusion before Primary Leaving Examinations
Dr. Arinaitwe Julius1 , Musiimenta Nancy2 , Akampurira Sarah3
Gaming practices Learner exclusion Primary Leaving Examinations Uganda
22
Inventory Management Practices And Business Profitability: A Case Study Of Supermarkets In Kampala
Akampurira Sarah, Agaba Devis
Inventory management Business profitability Demand forecasting Inventory control
23
Mapping primary-to-tertiary attrition rates and their structural determinants in Uganda's education system
Dr. Arinaitwe Julius1 , Musiimenta Nancy2 , Akampurira Sarah3
Attrition Education Pipeline Uganda Household Socioeconomic Capital
24
Multi-sectoral coordination challenges in Ugandan social policy implementation
Dr. Arinaitwe Julius1 , Akampurira Sarah2 , Nabaasa Desire3
Multi-sectoral coordination social policy Uganda structural equation modelling
25
Reassessing the 'Skills Gap' Narrative: A Critique of Conceptual Displacement in Ugandan Education Policy
Dr. Arinaitwe Julius1 , Ahumuza Audrey2 , Asiimwe Isaac Kazaara3
Ugandan Education Policy