Cooperatives are economic as well as social organizations. To follow their principles they need effective management. They have to assess their organizational strength continuously. They should be managed in a more business-like manner – these are not social clubs or charity organizations. The board should take strong measures when misappropriations are observed and keep its assets safe. When approving loans, sufficient studies and guarantees should be considered beyond trust, and its utilization need supervision. The multi-purpose cooperatives of the woreda under the study are weak in their approach to assign authority and responsibility, detailed preparation of objectives and budget, access to Information which is selected as most influencing factors to internal control in this study. The most influencing factors for strength of internal control of a cooperative are the human resource policies and practices, Assignment of Authority and Responsibility, Access to Information, Integrity and Ethical Values, Organizational Structure and Organizational Goals and Objectives were identified.