A strong financial transaction is an important factor in the organizational triumph and sustainability. This study assessed the profile of the registered students and youth organization in terms of type, registration, years of establishment, functions and designations of student leaders and as well as advisers; the financial practices or internal control system in terms of managing their organizational finances and the problems encountered by the student and youth organizations and eventually proposed a manual of operation for organizational internal control system of students and youth organization. This study used the descriptive survey research design with the aid of questionnaire data were gathered through quota sampling from 57 student leaders and advisers of different student and youth organizations of NEUST. Findings revealed that most of the organizations have their own constitution and by-laws but kept only as file and requirements for renewal and some provisions were not known to the officers, mostly were registered more than 5 years in operation, however, in terms of functions of officers and advisers, the results showed that some functions were not done by the officers who supposed to do it like the Auditors who serve as Treasurers also, the PRO as the record keeper and the Presidents who handled finances and collections and as well as disbursements of funds. Generally, the financial practices of the organizations were considered as “good” specially budgeting and cash receipt due to implementation of “no collection and no tuition fee policy”, but there are still important aspect that needs improvement and emphasis for better financial management and internal control system operation. It was also found that the major concern of the student leaders and advisers in their organization were lack of idea in terms of internal control procedures such as the used of source documents for proper accounting system. The researcher concluded that the absence of the proper internal control systems and manual and lack of proper turn-over of financial documents from the previous sets of officers were the serious problem that needs to address. Moreover, the internal control system of the student and youth organizations could still be improved if proper training and supervision in accounting operation especially on the aspects of cash disbursement, collections, liquidation, schedules reconciliation and bookkeeping and record keeping of different source documents related to financial transaction operations.
Keywords: Accounting, Internal Control System, Financial Management, Source Documents, Disbursement, Student Organization.