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Abstract
This study thought to answer a question whether control environment affects financial performance of SACCOs in BushenyiIshaka municipality. It was guided objective which to determine the relationship between control environment and financial performance of SACCOs in Ishaka division. The study adopted descriptive cross sectional and correlational designs with both quantitative and qualitative approaches. A total population of 130 was involved which included employees, supervisory committee, loan committee and board members from which a sample of 98 respondents were selected using Slovene’s formula. Out of 98 respondents, 90 respondents responded positively. Data was collected using questionnaire and interview guide and analyzed using descriptive statistics and chi-square for quantitative data and thematic analysis was used for analyzing qualitative data. Findings indicate that there is a significant relationship between control environment and financial performance of SACCOs and control environment contributes 69% to the financial performance of SACCOs in Bushenyi-Ishaka municipality. From the study findings, the study recommended that SACCOS in BushenyiIshaka municipality should create conducive control environment like putting place disciplinary committee to handle disciplinary issues and include communication as part of their internal control system. Key Words: Control Environment, Financial Performance and SACCOs