Influence of Control Environment Strategy on Financial Performance of Rushere Savings and Credit Cooperative Organization in Kiruhura District, Western Uganda

Savings and Credit Cooperative Societies (SACCOs) play a crucial role in improving the standards of living of people globally, particularly in communities and regions where they are established. By offering savings and credit facilities, SACCOs empower people to manage their finances effectively and access capital for income-generating activities. They provide loans for housing and asset acquisition. This helps individuals and families improve their living conditions and build assets, contributing to long-term wealth creation. Despite the significant role they play, SACCOs face various challenges, which impact the effectiveness of their operations. In Uganda, as in other countries, some common challenges faced by SACCOs are in terms of internal audit. The purpose of this study was to establish the influence of the control environment strategy on the financial performance of Rushere SACCO in Kiruhura District in Uganda. This research was carried out solely to determine the extent to which control environment strategy influences the financial performance of Rushere SACCO. The research questions were based on risk assessment, communication and information sharing, organizational policies and practices, organization structure, workers’ competence as well as ethics and integrity. The study was underpinned by the Stewardship Theory. This study was based on a quantitative research approach. The study used a descriptive research design whereby the attitudes, perceptions, and opinions of the respondents were statistically described in figurative terms. The target population of the study was 160 from which a sample size of 127 respondents was selected using the Yamane formula. Thereafter, respondents were selected by using both stratified and simple random sampling techniques. Self-administered questionnaires were used to collect primary data from the research sites. They contained closed-ended questions framed on a Likert scale of 5. Collected data was analyzed by the use of inferential statistics with the aid of Statistical Package for Social Scientists (SPSS) version 24.0. The study established a significant positive relationship between internal control strategy and financial performance (p=0.000<0.05). This study concluded that there is a strong positive relationship between the control environment strategy and the financial performance of Rushere SACCO. Keywords: Control Environment, Strategy, Microfinance, Financial Performance