INTERNAL CONTROLS AND FINANCIAL PERFORMANCE OF GARISSA COUNTY GOVERNMENT, KENYA
INTERNAL CONTROLS AND FINANCIAL PERFORMANCE OF GARISSA COUNTY GOVERNMENT, KENYA
Ibrahimweli Gabow Sheikh - Department of Accounting and Finance, Kenyatta University, Kenya
Dr. Nebart Avutswa - Department of Accounting and Finance, Kenyatta University, Kenya
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.
