Internal Controls and Financial Performance of Garissa County Government, Kenya
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Date
2023-11
Authors
Sheikh, Ibrahimweli Gabow
Avutswa, Nebart
Journal Title
Journal ISSN
Volume Title
Publisher
IAJEF
Abstract
The introduction of the Devolution
Government concept in Kenya in 2013 was
intended to enhance the effectiveness and
efficiency of service delivery by putting it
closer to the people. County Governments
play a crucial role in strategic planning;
however, they encounter challenges that
hinder the effective implementation of
strategies, resulting in subpar performance.
These challenges include misappropriation of
funds, corruption, service delays, and
inadequate service delivery. The overall goal
of this research is to examine the impact of
internal controls on the financial health of the
Garissa County Government in Kenya. The
precise objectives of this study are; to
investigate the impact of control environment
on the financial performance of the Garissa
County Government in Kenya. The research
was informed by agency theory, stakeholder
theory, and steward theory. Descriptive
research approach was utilized in this
research. The research focused on a sample of
75 employees affiliated with the County's
ministry of finance and economic planning in
Garissa County Government. A census
consisting of 75 participants was conducted.
The research used a questionnaire as a data
collection instrument for the investigation.
The analysis of quantitative data included the
use of descriptive statistics, namely the mean
and standard deviation. To examine the
association between variables and their
mutual effect, inferential statistical
procedures such as correlation analysis and
multiple linear regression analysis was
utilized. Prior to doing the actual analysis,
diagnostic tests were performed to assess any
violations of normality, multicollinearity, and
heteroscedasticity in the multiple regression
analysis. The study prioritized ethical
considerations and ensured adherence to
ethical guidelines. Tables, graphs, and
frequency tables were employed for
displaying the data. The study found that
control environment had a statistically
significant effect on financial performance
and therefore rejected. This study
recommends the application of integrity and
ethical values, assignment of authority and
responsibilities, organizational structure and
commitment to competence by employees to
help improve the financial performance.
Description
Article
Keywords
Control Environment, Internal Controls, Risk Assessment, Control Activities, Monitoring, Information and Communication and Financial Performance
Citation
Sheikh, I. G., Avutswa, N. (2023). Internal controls and financial performance of Garissa County Government, Kenya. International Academic Journal of Economics and Finance, 4(1), 99- 115.