Effectiveness of internal auditing in Tanzania Social Security Funds.

The study aimed at determining the factors influencing effectiveness of internal audit function in Tanzania social security funds with the view of improving effectiveness. These funds are: National Social Security Fund (NHIF). Parastatal Pension Fund (PPF). National Health Insurance Fund (NHIF), Public service pension fund (PSPF), Local Authorities provident Fund (LAPF), Government Employees Provident Fund (GEPF) and Zanzibar Social security Fund (ZSSF). The study based on the field work that concentrated in Dar es Salaam, Dodoma and Zanzibar. Data were collected through questionnaires out of 60 questionnaires, 40 questionnaires were returned filled completely by 6 director/ chief internal auditors, 6 senior internal auditors, 7 internal auditors, 9 managers, 8 finance managers, 2 IT managers, and 10 accountants from all social security funds. The questionnaire was complemented with a face to face interview with two chief internal auditors from NSSF and PPF. The findings revealed that, majority of internal auditors are well educated by having master’s degree and CPSs. They have worked with their funds for a number of years while attending some related course. On the other hand top management does not provide required support to internal auditors. Likewise, other members of staff regard internal auditors as policemen hence provide little support. The finding further showed limited continuing professional development and inadequacy of funds allocated to internal auditors. To some extent, internal auditors themselves are contributing to inefficiency due to incompetence and conflict of interest. The researcher therefore recommends; social security fund administrations to grant strong and coordinated effort in supporting and working had in hand with internal auditors, to allocate sufficient resources to internal audit departments, and improvement of professional continuing capacity building. All these should be worked upon in order to minimize if possible to eliminate completely the problem of ineffectiveness of internal auditing in social security funds.