Internal Control System and Financial Performance of Cooperatives in Rwanda: A Case of Zigama Credit and Saving Society

This paper examined the contribution of internal control system on financial performance of cooperative banks in Rwanda with reference to Zigama Credit and Saving Society. Specifically, the study assessed effect of control environment on control activities and risk assessment on financial performance of Zigama Credit and Saving Society. The significance of research will be on practitioners, decision makers and researchers to get the knowledge about internal control system. The researcher used descriptive and correlation study design with a mixed approach on a sample of 167 participants drawn from 287 population using Yamane formula. Simple random technique was employed to obtain respondents and purposive sampling techniques are employed to choose participants and information were collected using questionnaire administered to respondents. Data entry, response code, edit and tabulation were used for data analysis. Data were analysed descriptively and regression analysis helped to general association between independent and dependent variables. Qualitative information analysis used content analysis. Data from the first objective felt that a unity of variation in control environment may stimulate a change in financial success by 0.482. The research established that financial cooperatives had conducive environment. To the second objective, the study show that a unit of adjustment in control activities stimulate variation on financial success by