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This article explores internal controls and financial performance of selected savings and credit cooperative societies in Moyo district, Uganda. Utilizing both qualitative and quantitative methodologies, a descriptive cross-sectional research design was employed. The population consists of 56 participants. Data was collected with surveys and interviews. Findings revealed that internal controls are the pillar of any financial institution and SACCOs are not excluded and good financial performance is the motive for having good internal controls implemented in the SACCOs. In spite of the role played by internal controls, SACCOs have continued to face challenges relating to liquidity, profitability, efficiency; in terms of cost per borrower, and alleged malpractices. The above challenges could be attributed to weak internal control system, as this sets a base for misappropriation of organization’s resources. It is on this note that the study calls for the implementation of a systematic risk assessment process that identifies, assesses, and mitigates risks. Regularly update risk assessments to adapt to changing circumstances. More so, there is need to maintain effective internal control communication and proper flow of information down, across, and up within all sections of the organization. This includes clear communication of roles and responsibilities. Invest in continuous training and education for SACCO staff and members to ensure they have a strong understanding of internal controls, ethics, and risk management. Develop and regularly update comprehensive policies and procedures that clearly outline internal control processes, responsibilities, and expectations. This can serve as a guide for staff and members and ensure consistency in control activities. Keywords: Credits, Cooperative societies, Financial performance, Internal controls, Savings.
Anguyo et al. (Sun,) studied this question.