RELATIONSHIP BETWEEN ACCOUNTABILITY AND FINANCIAL PERFORMANCE OF SAVINGS AND CREDIT COOPERATIVES IN SOROTI CITY; A CROSS SECTIONAL, CORRELATIONAL AND DESCRIPTIVE SURVEY.
DOI:
https://doi.org/10.51168/sjbusiness.v1i1.19Keywords:
Accountability, Financial Performance, Savings, Credit CooperativesAbstract
Background
This study aims to establish the relationship between accountability and financial performance of savings and credit cooperatives in Soroti City.
Methodology
The researcher used a cross-sectional survey design to carry out this study. Sampling techniques were used to select 108 respondents from 150 participants. Data was collected from both primary and secondary sources. Primary data was obtained by use of a questionnaire and documents of target SACCOs and sector stakeholders. Data was analyzed using SPSS for descriptive, correlational, and regression analysis.
Results
The independent variable was accountability. The unstandardized coefficient (B) for accountability is 0.660, indicating that a one-unit increase in accountability is associated with a 0.660-unit increase in financial performance. This relationship is statistically significant (Sig. = 0.000), as indicated by the t-value of 3.045. The standardized coefficient (Beta) for accountability is 0.617, suggesting that accountability has a moderate positive effect on financial performance. The model accounts for 67.6% of the variance in financial performance of 7.953 is significant (Sig. = 0.001).
The findings of the study also indicate that SACCOs in Soroti City have strong financial management systems, being positively perceived by the respondents. Additionally, the presence of elected board members and regular external audits contribute to sound financial performance. However, there is room for improvement in terms of internal control mechanisms.
Conclusion
The study findings indicate that there is a strong positive correlation (0.764**) between financial performance and accountability in SACCOs in Soroti City. This suggests that SACCOs that have a higher level of accountability in their management tend to have better financial performance.
Recommendation
SACCOs should foster a culture of accountability at all levels of the organization. This includes holding board members, staff, and members accountable for their actions and decisions, and establishing mechanisms for reporting and addressing any issues of non-compliance or misconduct.
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Copyright (c) 2024 William Tukei , Edmand Bakashaba , Dr. Ssendagi Muhamad
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