Influence of internal controls on performance of county governments in Kenya

Abstract

The study sought to investigate the influence of internal controls on performance of County Governments in Kenya. The drive behind the study was to establish internal control practices help County Governments in Kenya to perform efficiently and effectively for the benefit of the general interest. The objectives of the study were to establish; the relationship between internal audit, reporting, control of activities, information communication and risk assessment and performance of County Governments in Kenya. Descriptive research design was used to determine the influence of internal controls on the performance of County Governments in Kenya. The descriptive study method was appropriate because it explored and described the relationship between variables in their natural setting without manipulating them. Data collected was analyzed and measure quantitatively. The target population for this study included the 47 County Governments in Kenya. County Governments employees working in the finance department were the respondents in the study. Questionnaires were administered to respondents by the researcher during working hours. Drop and pick later method was applied where respondents had no time to respond immediately. Secondary data was gathered from library materials, County Government reports, media publications and various Internet search engines covering the business process management of County Government in Kenya. Descriptive statistics was used to analyze data where mean, standard deviation and standard error used to summarize and relate variables which were attained from the study. The study adopted regression analysis. Regression analysis was used to come up with the model expressing the hypothesized relationship between the independent variables The study established that County Governments did not implement internal audits recommended by the Auditor General to improve management of financial resources. The study established that employee did not submit weekly reports neither held meetings to discuss the progress of activities. The study established that there was no clear separation of roles among workers and employee work was not checked by others. The study established that majority of the County Government employees were ICT illiterate and did not manage to submit reports online to their supervisors due to inadequate trainings. The study established that majority of the County Governments were not conversant with the global environment including the political, economic, social and technological due to inadequate trainings. The study recommends that an external body to be established by the National Government to audit County Governments regularly for accountability. Therefore, this study recommends that top management should carry out periodical employee evaluation to promote motivation and positive contribution towards goals of the organization. The study recommends that top management should allocate enough resources to empower employees with necessary skills to perform. This study recommends that that all County Governments should invest in modern ICT systems to improve service delivery to key stakeholders. Tthis study recommends that County Government leaders should be exposed to international forums and conferences to learn more experiences.