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 →
31
The Impact Of Budgeting Practices On The Financial Performance Of Small And Medium Enterprises In Kikuubo, Kampala
Mwesigwa Tonny, Asiimwe Prisca
Budgeting practices financial performance SMEs Kikuubo
32
The impact of Constituency Development Funds on parliamentary accountability and independence
Asiimwe Isaac Kazaara1 , Akampulira Sarah2 , Dr. Mategeko Betty3
Constituency Development Funds parliamentary accountability legislative independence Uganda
33
The Influence Of Operation Wealth Creation (Owc) On Youth Farmers' Development In Unyama Sub- County, Gulu District
Kiwule Brian, Elweru Felix
Operation Wealth Creation Youth Farmers Agricultural Development Gulu District
35
The Relationship Between Legislators' Educational Qualifications And Legislative Oversight Effectiveness In Uganda
Dr. Arinaitwe Julius1 , Asiimwe Isaac Kazaara2 , Nabaasa Desire3
The Relationship Between Legislators' Educational Qualifications And Legislative Oversight Effectiveness In Uganda