Abstract:
The success and survival of an organization depends on effective utilization of
resources. Every organization needs to adopt effectiveness of financial control system
In order to get optimum utilization from their resources. Financial control is at the
core of every organizations fulfilling its mission and achieving its goals while
providing safeguards to protect organizational resources. The objectives are to
evaluate on the prevailing effectiveness of financial control system, to identify which
factors are mostly influencing the effectiveness of the financial control system and to
recommend a crackdown action and suitable structured changes. Conceptualization
model includes control environment, internal control, financial planning, budgetary
control and auditing to evaluate the effectiveness of financial control system in
Ampara and Batticaloa DS divisions. To analyze the effectiveness of financial control
system, 124 employees were taken as sample from the seven DS division for each
district. Data were collected from 109 employees of Accounting Department related
with accounting works by questionnaires. Method of analysis specifically considered
univariate analysis and independent sample t test. The study reveals that there are high
level of implemented financial control system in both districts. But, implemented
financial control system in Batticaloa is higher than Ampara and there is a significant
difference between both districts. Further, some recommendations are given to
government and policy makers to achieve the perfect level of financial control system.
