Internal control practices and financial performance of selected non-profit organizations in South Sudan

The research question was whether the internal control practices had any influence on financial performance of the selected NPOs in the Eastern Equatoria state of South Sudan. It was steered by three objectives and the constructs supported like the main two theories that are the principal and the Agency theories. The study used a cross-sectional research design on a sample size of 237. Findings of the research reveal the impact of risk assessment measures; control environment; and monitoring on the financial performance. It was concluded that internal control measures like risk assessment control environment and monitoring are essential in the operation of NPOs as far as the financial performance is concerned. Thus, the risk assessment which has been applied was found significant affecting financial performance. This is true where application of risk assessment is significantly explained 80% of the financial performance. Secondly, control environment influences financial performance. Lastly, monitoring explained financial performance. Although the three internal control tools has influence on financial performance of the selected NPOs operating in South Sudan, monitoring which is a strong aspect of internal control has lower influence hence organizations are advised to employ monitoring frame work to strictly know how to measure objectives, who is responsible and how data should be processed, stored, and used. Monitoring has to be taken serious hand in hand with other elements of internal controls to achieve perfect financial performance. The NPOs are also encouraged to employ integrating risk management framework to continuously identify, assess, treat, and monitor risks to consistently achieve high financial performance.