External audit and effective utilization of financial resources in government institutions, a case of Uganda virus research institute

Abstract

According to Martin The study examined the effectiveness of external audit on effective utilization of financial resources in government institutions, a case of Uganda Virus Research Institute. The study objectives were; to examine the effect of audit coverage and standards on the effective utilization of financial resources at the Uganda Virus Research Institute (UVRI), to assess the effect of submission of audit reports on the effective utilization of financial resources at the Uganda Virus Research Institute (UVRI) and to ascertain the effect of external audit follow-up on the effective utilization of financial resources at the Uganda Virus Research Institute (UVRI). The study employed a cross-sectional survey design, combining both qualitative and quantitative approaches to examine external audit and the effective utilization of financial resources at UVRI. Data were collected from a population of 125 staff, with a sample of 96 selected using purposive and convenience sampling techniques to target key informants. Primary data were obtained through self-administered questionnaires and interview guides, while secondary data were collected via documentary reviews. Quantitative data were analyzed using descriptive statistics, and qualitative data were transcribed into themes and categories to provide in-depth insights, with findings presented objectively according to the study objectives. The study found out that audit coverage and standards have a very weak positive correlation with effective financial resource utilization (r = 0.099, p = 0.003), indicating minimal impact. Submission of audit reports exhibits a very weak and statistically insignificant negative correlation (r = –0.035, p = 0.750), suggesting report submission alone does not improve utilization. In contrast, external audit follow-up demonstrates a moderate, positive, and significant correlation (r = 0.384, p = 0.000), highlighting that systematic follow-up substantially enhances resource utilization. Based on these findings, the study recommends that management expand audit coverage, update standards, and build audit staff capacity; ensure timely and actionable report submission while strengthening coordination with finance teams; and institutionalize systematic follow-up of audit recommendations, with active engagement from internal audit units, external auditors, the board of directors, and oversight bodies to maximize effective financial resource utilization