EFFECTIVENESS OF INTERNAL CONTROL SYSTEMS IN THE MANAGEMENT OF PUBLIC RESOURCES IN NAIROBI CITY COUNTY GOVERNMENT, KENYA

Joan Chelangat, Robert Mugo (Ph.D)

Abstract


There is a need to strengthen the internal control systems and mechanisms in the public sector in order for counties to maintain clean financial reports. This study focused on the effectiveness of internal control systems in the management of public resources in Nairobi City County government. The effectiveness of internal controls is characterized by the implementation of all the five components, namely Control Environment, Control Activities, Risk Assessment, Information and Communication, and Monitoring. The reports of the Auditor-General and the Financial Management Report were scrutinized to check the state of affairs on the effectiveness of internal control mechanisms. The study adopted a cross-sectional descriptive survey design employing both qualitative and quantitative methods of data analysis. The target population for the study was the 60 employees in accounting/finance, administration and operations departments in the Nairobi City County Government. A purposive sampling approach was used in the study. Descriptive and inferential statistics was employed to analyze the data using the Statistical Package for the Social Science (SPSS) version 24. Descriptive statistics comprised of frequencies which include means, standard deviation and variance. Inferential statistics comprised of ANOVA and regression analysis. The study found that internal controls (Control Environment, Control Activities, Risk Assessment, Information and Communication, and Monitoring) positively and negatively influenced management of public resources in Nairobi City County government. Based on the findings, the study recommends that organizations should enhance their internal control systems, ensure transparency and accountability in budget management, and hold officials responsible for resource use and investment outcomes in order to ensure financial success

Key Words: Internal Control Systems, Management, Public resources


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