ABSTRACT The study focused on assessing the financial planning and accountability in manufacturing companies in Uganda, a case study of Mukwano Industries Ltd. The following hypotheses were tested Ho 1. There is no relationship between financial reporting mechanisms and financial accountability; Ho2. There is no relationship between budgeting and forecasting and financial accountability and Ho3. There is no relationship between internal controls and financial accountability. The study adopted a survey research design; this design was helpful in describing the relationship between financial planning and accountability in manufacturing companies. In addition, both qualitative and quantitative approaches to data collection and analysis were employed in order to get an in depth the understanding of the phenomenon under investigation and to confirm completeness for instruments. A sample size of 54 respondents was selected from the population of 63 people using Slovene’s formula. The study collected both primary and secondary data. Data were collected from both primary and secondary sources. The questionnaire was semi-structured with both open and closed ended questions. The closed ended questions were used for easy coding and analysis while the open ended questions were used to elicit more information from respondents to complete any missing links. Face to face interviews were held with managers who had not enough time to fill questionnaires. An interview guide was designed contained structured questions. The findings from this study revealed there were Pearson’s Correlation Coefficient between financial decision and financial accountability whereby (r = 0.493, Sig. value = 0.000 < P value at 0.05); moreover, findings showed that there were Pearson’s Correlation Coefficient between budgeting and financial accountability whereby (r 0.298, Sig. value 0.005
TABLE OF CONTENTS
ACKNOWLEDGEMENT
DEDICATION
APPROVAL
DECLARATION .
iv
LIST OF ABBREVIATION/ACRONyMS v
LIST OF TABLES
LIST OF FIGURES
ABSTRACT
CHAPTER ONE 1
INTRODUCTION
1.0 Introduction 1
1.1 Background to the Study 1
1.1.1 Historical perspective i
1.1.2 Theoretical perspective 3
1.1.3 Conceptual perspective 4
1.1.4 Contextual perspective 5
1 .2 Research Problem 6
1.3 Purpose of the study 7
1.4 Objectives of the study 7
1.5 Researcher questions 7
1.6 Scope of the study 8
1.6.1 Subject scope 8
1.6.2 Geographical scope 8
1,6.3 Time scope 8
1.7 Research hypothesis 8
1.8 Significance of the Study 8
Viii
CHAPTER TWO .10
LITERATURE RF~~J~7 10
2.0 Introduction 10
2.1 Theoretical review 10
2.2 Conceptual frame work 11
2.3 Related literature reviews 12
2.3.1 Relationship between financial decision and financial accountability 12
2.3.2 Relationship between budgeting and financial accountability 13
2.3.3 Relationship between internal controls and financial accountability 15
2.4 Related studies 17
2.5 Research gap 19
CHAPTER THREE 20
RESEARCH METHODOLOGy 20
3.0 Introduction 20
3.1 Research design 20
3.2 Study Population 20
3.3 Sample Size 20
3.4 Sampling Techniques 22
3.5 Data type and sources 22
3.5.1 Data types 22
3.5.2 Data sources 23
3.6 Data collection instruments 23
3.6A Questionnaires 23
3.6.2 Interviews 23
3.7 Data presentation and analysis 23
3.8 Data collection procedure 24
3.9 Reliability and validity of instruments 24
3.10 Limitations to the study 24
ix
CHAPTER FOUR .25
DATA PRESENTATION ANALYSIS AND INTERPRETATION OF FINDINGS 25
4.0 Introduction 25
4.1 Response rate 25
4.2 Characteristics of the respondents 26
4.2.1 Gender of the respondents 26
4.2.2 Age of the respondents 26
4.2.3 Education level 27
4.2.4 Positions of respondents 27
4.2.5 Duration in the organization 28
4.3 Descriptive statistics 29
4.3.1 Relationship between financial decision and financial accountability in Mukwano
Industries Ltd 29
4.3.2 Relationship between budgeting and financial accountability in Mukwano Industries Ltd.30
4.3.3 Relationship between internal controls and financial accountability in Mukwano Industries
Ltd 31
4.3.4 The different components of Financial Accountability 32
4.3.5 Regression Analysis 32
CHAPTER FIVE
DISCUSSION, CONCLUSION AND RECOMMENDATIONS 33
5.0 Introduction 33
5.1 Discussion of the findings 33
5.1.1 Relationship between financial decision and financial accountability in Mukwano
Industries Ltd 33
5.1.2 Relationship between budgeting and financial accountability in Mukwano Industries Ltd. 34
5.1.3 Relationship between internal controls and financial accountability in Mukwano Industries
Ltd
5.2 Conclusion 35
5.2.1 Relationship between financial decision and financial accountability in Mukwano
Industries Ltd 35
