Effect of Financial Internal Controls on Operational Performance: Case of GALZ

Abstract

This study examines how financial internal controls influence operational performance in non-governmental organisations, using GALZ as a focused case. GALZ operates in a politically sensitive environment in Zimbabwe, where accountability demands and resource pressures make financial governance particularly critical. The research is grounded in the COSO Internal Control Framework and draws conceptually from agency, stewardship, institutional and resource-based theories. A mixed-methods design was used. Structured questionnaires captured staff perceptions of internal control effectiveness, while indepth interviews with managers, auditors and donor representatives provided contextual insight into how these controls function in practice. The findings show that monitoring, risk assessment and information flow are the most influential control components, with clear links to improvements in service delivery, donor trust and timely execution of activities. Quantitative analysis of mean scores identifies two dominant themes: Strong Structural Compliance and Challenged Timeliness. While the foundational elements of the COSO framework, specifically governance and segregation of duties, received "Very High" ratings, a significant operational weakness was identified in the timely recording of financial records. This "Moderate-High" score highlights a critical bottleneck in reporting speed, despite the system being fundamentally sound and robust in its oversight and risk mitigation capabilities. However, gaps were observed between having control systems in place and ensuring their consistent enforcement, particularly where resource limitations and compliance pressures intersect. By focusing on a single organisation, the study offers a grounded perspective that connects theory with practical realities in a fragile NGO environment. It recommends context-sensitive adaptations to control systems, investment in staff capacity and closer alignment between donor requirements and on-the-ground operational conditions. These measures are presented as essential not only for strengthening control effectiveness at GALZ but also for enhancing accountability and sustainability within Zimbabwe’s wider NGO sector.