Internal control system: a managerial tool for financial accountability in public institution: a case of ministry of finance and economic planning

Abstract

Purpose of this research is to find out whether internal control is a managerial tool for financial accountability. The demographic information was Sex, rank, experience and department. The main objective is to find out whether public institutions were practicing internal control system to ensure financial accountability. To achieve objective of the study data were gathered through the distribution of one hundred forty three (143) copies of questionnaire to the Directors of Finance and Administrations, Directors of Audit, Budget officers, Accountants and Budget officers. A four Likert scale was used to measure respondent’s knowledge and perception on internal controls as a managerial tool for financial accountability. Statistical package for social sciences (SPSS) was used to analyze data and presented in form of mean and standard deviations for each question. Findings on two objectives were highly rated by respondents with average means (internal control operation in MINICOFIN 3.296) and (control procedures established by managers in ensuring financial accountability3.573) respectively. The study recommended that the Ministry of Finance and its agencies should not be complacent about the findings but should work hard to ensure that controls really exist and properly functioning for the better accountability of public resources. The findings however on the second objective is averagely 2.465which is an indication that the Internal control should continue to be built to help run the entity and achieve its aims on ongoing basis to ensure that organization is accountable for its finances and programs to its public. The findings of this study also show that that the financial accountability depends extensively on the strength of the installed system of internal control(r =.632**) and the understanding of it by the employees. People are what make internal control work and they play important roles in making accountability happen. It is along the line of these findings that the study concluded that there is a need for proper education of the employees on the intention of policy creation by the management to ensure value addition and better implementation of new financial guidelines.