THE EFFECTS OF INTERNAL CONTROLS ON ORGANIZATIONAL FINANCIAL MANAGEMENT IN TELECOMMUNICATIONS SECTOR IN TANZANIA: A CASE STUDY OF TANZANIA TELECOMMUNICATIONS CORPORATION (TTCL)

Abstract

ABSTRACT This study investigated the effect of the internal controls on the organizational financial management of the Tanzania Telecommunications Corporation Ltd (TTCL). The target population comprised 60 and a sample size of 52 respondents were involved in the study. A descriptive research design was used. Purposive and simple random sampling techniques were used to collect data from respondents. Quantitative data was collected and analyzed using Statistical Packages for Social Science software (SPSS version 22). The findings revealed a positive and significant relationship between internal controls and financial management in the Tanzanian telecommunications sector. The TTCL Corporation has a robust information system in place, capable of capturing and processing data in a meaningful manner. Further, the restricted access to valuable information without proper authorization, and the availability of internal audit checks play a pivotal role in safeguarding the company's assets and preventing unauthorized acquisition. It was recommended the TTCL Corporation should invest, implement, and update continuously the internal control systems as a strategy to improve the efficiency of financial management. The policy makers should construct a financial policy that empowers top management to evaluate and assess the internal control systems to determine vulnerabilities and weaknesses in the efficiency of financial management. Top management should work closely with internal control sections to identify all risk areas regarding financial management operations and other projects. Finally, the Corporation developed a strategic plan aimed at generating additional finances to support the institution's operations. The study concludes that TTCL Corporation has an effective internal control system, which is supported by the presence of key communication of confidential information.