Assessment of Internal Control System in NGOS: a case study of Future Hopes Integrated Development Organization (FHIDO)

Abstract

This paper sought to assess the functionality of internal control system of Non-Government Organizations (NGOs) a case study of FHIDO. The main objective of the study is to assess the internal control system of local NGOs in Ethiopia by taking FHIDO as a case. The researcher used descriptive quantitative design. A simple random sampling technique was used. A case study of 54 employees was the total population then 35 respondents are selected based on the activity near to internal control. Questionnaires were distributed to the respondents out of these 32 returned. The main instrument for collecting primary data was self-administered questionnaire and interview that was subjected to expert evaluation for content validity, while secondary data was collected by reviewing files, documents, published books, articles, journals and organization manuals. Data was analyzed using frequency table, Microsoft excel and word. The findings of the study were that FHIDO has a strong internal control system overall in terms of the Effective payment, Financial recording and control, Budgetary control and personnel control. FHIDO was operating under well constituted qualified and experienced management. The study recommends keeping the system strong.