The effectiveness of internal financial control on local government: a case study of Tanzania local government

This study was designed to assess the effectiveness of internal control on local government in Tanzania. Specific objectives of the study were to identify internal control procedures and policies currently in use at local government, to investigate attitude of employees towards internal control systems of local government, to assess contribution of internal control system towards fraud reduction and proper utilisation of resource in improving society’s welfare in Tanzania. The data were collected through documentary sources, and questionnaires, and it was analysed using SPSS using frequency distribution, descriptive statistics, Regression Analysis, and Analysis of Variance (ANOVA) as initial tools of analysis. The study identified a number of control procedure and policies available in the local government for ensuring monitoring and evaluation of the activities. From the findings such procedures and policies were rated as important by most of the respondents. However, such procedures were perceived as less important in leading the local governments towards achieving their main objectives. Thus internal control systems of the local governments in Tanzania are not effective in directing resources into proper utilisation and prevention of fraud to happen. The study recommends that local governments in Tanzania need to lean more of internal control procedures and policies for the purpose of reducing risk and misappropriation of resources.