EFFECT OF INTERNAL CONTROL SYSTEMS ON NON FINANCIAL PERFOMANCE OF PUBLIC ORGANIZATIONS IN TANZANIA

Abstract

The way public and private organizations examine risks through risk assessment, control environment and control activities has effect on its non-financial performance This study examined the effect of ICS on non-financial performance in public organizations in Tanzania; specifically, TANAPA. The study examined the effect of risk assessment, control environment, and control activities on the non- financial indicators of TANAPA. The study adopted descriptive research design incorporating qualitative and quantitative approaches. The study sample size was obtained via census sampling strategy to sample 38 respondents. Data were collected from 38 TANAPA staffs using questionnaires and interview methods. Quantitative data were analysed using the Statistical Package for the Social Sciences (SPSS) version 28, Analysis of Variance (ANOVA) and regression analysis; while the qualitative data were analysed separately using thematic analysis to strengthen the quantitative data. The study found that ICS components significantly influence non-financial performance, with beta coefficients of 0.297, 0.373, and 0.321 respectively, collectively explaining 92.8% of the variation (R² = 0.928, p < 0.001), and accountability emerging as the most influential factor. The study concluded that, although ICS practices are moderately implemented in public organizations, they provide a strong foundation for ethical governance, fiscal discipline, and sustainable outcomes. The study recommends on strengthening risk identification and response strategies, enhancing staff competence, and streamlining budget execution to improve efficiency, profitability, and organizational resilience. This implied that, effective ICS not only enhances non financial results but also promotes transparency, accountability, and long-term organizational resilience.