The study examined the effect of internal controls on the management of public funds in Nebbi District Local Government, Uganda. The research was conducted between January and June 2024, utilizing a cross-sectional survey design with a sample of 156 respondents drawn from finance staff, accounting officers, internal auditors, and council members. Data was collected through structured questionnaires and analyzed using descriptive statistics and Pearson correlation analysis. The results revealed that internal control systems had a significant positive effect on public fund management (r=0.742, p<0.01). Specifically, control environment (r=0.689, p<0.01), risk assessment mechanisms (r=0.701, p<0.01), control activities (r=0.728, p<0.01), information and communication systems (r=0.665, p<0.01), and monitoring activities (r=0.712, p<0.01) all demonstrated strong positive correlations with effective public fund management. The study concluded that robust internal control systems were critical for ensuring accountability, transparency, and efficient utilization of public resources in local government settings. However, challenges such as inadequate staffing, limited training, and weak enforcement of control procedures undermined the effectiveness of these systems. The study recommended that Nebbi District Local Government should strengthen its internal control framework through regular staff training, recruitment of qualified personnel, implementation of automated financial management systems, and establishment of stringent monitoring mechanisms to enhance the safeguarding of public funds.