Authorisation Cycle as a Composite of Control Measures for the Effectiveness of an Internal Control System of a Primary Education Programme in Uganda

Abstract

Authorisation cycle is a composite of control measures which interplay to boost the effectiveness of the internal control system, to mitigate risks associated with implementing programme activities. The authorization cycle should be preceded by clear segregation of duties to avoid conflict of interest. Although segregation of duties has been lauded for supporting the effectiveness of the authorization cycle, it has some challenges embedded in its implementation. The study explored the authorization cycle to determine the effectiveness of the internal control system in the Universal Primary Education capitation grant in Uganda. Focus was on the practice of segregation of duties, documentation, verification, authorization, supervision and approval of transactions related to the utilization of the UPE capitation grant. Findings show that there is failure to provide oversight over the personnel responsible for the authorization process. The verification process is compromised when the head teachers take over the responsibility of formulating the budget from the School Finance Committee.   The verification process has been abused through the signing of cheques by officials without supporting documents. There are gaps in the documentation and verification of purchases which provide room for “supplying air” thus resulting into losses of the grant. The inadequate supervision over the activities of the head teacher has created impunity among them to blatantly violate the guidelines. It is recommended that oversight should be strengthened and effectively done throughout the process of authorisation to plug the loopholes identified in the system.