Audit Controls and Performance of Constituency Development Fund Projects in Embakasi East Constituency, Kenya
Muriithi, Margaret W.
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Through audit controls, organizations accomplish execution and organizational objectives, avoid misfortune of assets, empower generation of solid reports and guarantee compliance with laws and controls. As a fund misuse, misappropriations of funds, stalled projects, are some of the challenges affecting performance of Constituency development fund projects. This study therefore sought to investigate the effects of audit controls to the projects performance of constituency development fund in Embakasi East Constituency. The study was guided by the following specific objectives; to establish the effects of detective controls on projects performance of constituency development fund in Embakasi Constituency; to determine the effects of preventive controls on projects performance of constituency development fund in Embakasi East constituency; to establish the effects of monitoring and evaluation measures on projects performance of constituency development fund in Embakasi East Constituency and to determine the effects of risk assessment on projects performance of constituency development fund in Embakasi East Constituency. The study was guided by three theories which included; The Agency Theory, Reliability and Accounting Theory and The Fraud Triangle Theory. This study adopted a descriptive survey research design. The population for this study was Constituency development fund committees (CDFCs), project committee members and community leaders. The targeted population will be representing different projects being implemented in the constituency. Some of the projects included education, health and sanitation, security among others. This study used a questionnaire to collect data. The questionnaire was designed in this study comprised of two sections. Before processing the responses, the completed questionnaires were edited for completeness and consistency. The data was then coded to enable grouping of responses in various categories. The data collected was both quantitative and qualitative and analysed via descriptive analysis and content analysis. The descriptive statistical tools helped in describing the data and determining the extent used. Data analysis used SPSS and Microsoft excels to generate quantitative reports in tabulations, percentages, and measures of central tendency. Tables were used to present responses and facilitate comparison. The research analyst also conducted a multiple regression analysis so as to determine the strength of the relationship amongst the variables. On detective control, the study revealed that to a great extent areas pointed by the external auditor’s report help in detecting frauds and that CDF offices are not frequently audited. Regarding effects of preventive controls on projects performance of constituency development fund in Embakasi East constituency the study revealed that accounting records are limited to employees with designated responsibility for such records and also that procedures exist to prevent the interception or alteration by unauthorized persons of billings or statements before posting. It was further revealed that the monitoring and evaluation committees assigns responsibilities for the timely review of audit reports and resolution of any non-compliance items noted in those audit reports. Thus the study recommends the management of CDF should have clear level of authorities and that CDF office should be frequently audited and report made to the top management for implementation. Further, the CDF management should develop objectives for the CDF fund in each of the area and put strategies to ensure that the objectives are achieved in an efficient manner identifying risks that affect achievement of the objectives. Legislators should ensure that there are independent process checks and evaluations of controls activities on ongoing basis for CDF.