Effectiveness of internal control systems in management of funds in public sector at national sub-county treasuries in Kenya

Abstract

The national sub county treasuries in Kenya are responsible for managing public funds at the sub county level. To translate this responsibility into concrete reality, the national sub county treasuries employ internal control systems. It is still not clear whether internal control systems have been effective in the management of public funds. This study therefore sought to examine the effectiveness of internal control systems in management of funds in the public sector at national sub county treasuries in Kenya. The study was guided by three objectives which include: to determine the effectiveness of control environment on management of funds; to establish the effectiveness of risk assessment on management of funds and to examine the effectiveness of control activities in management of funds. The study wasbased on the assumption that all independent variables would remain constant through the period of the study. The study employed a descriptive research design using qualitative and quantitative approach. The target population was620 accountants and internal auditors from 310national sub county treasuries. The study used cluster and purpose sampling techniques to select a representative sample of 184 respondents. Both primary and secondary sources of data were used:primary data was collected using questionnaires while secondary data was gathered from findings of previous studies on internal control systems and reports related to funds management at the sub county treasuries.