Effects of Internal controls on the Financial performance of public water Companies in Central Kenya. (original) (raw)
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With water being an essential element for sustenance of life its scarcity is one aspect that should not feature, if a must then at the most minimal levels. The constitution of Kenya (article 43 (1)), places provision of water and sanitation services as a basic right that should be attained. Yet most parts of the country both arid, semi-arid, highlands and urban areas suffer the same fate. Management of public funds is the biggest obstacle to achieving the millennium development goals in developing countries if not handled with extreme caution, discipline and integrity. The general objective of this study to determine how internal control systems of public funds management affected service delivery at Nairobi city water and Sewerage Company. Specifically; the study focused on; examining how internal control systems, resource mobilization, budgeting, existing regulatory framework and auditing affected service delivered by the Nairobi city water and Sewerage Company employees. On theoretical review, the resource based theory, systems theory management plus 7 gap service quality delivery theories were focused. Studies were conducted on internal control systems, revenue mobilization, budgeting practices, and auditing featured in empirical review. The conceptual framework highlighted on the objectives. This research project adopted survey descriptive research design. The researcher targeted 180 workers organized in strata's to achieve the researcher's goal. The study adopted stratified probability-sampling procedure whereby out of the total number of the targeted population units, the study identified 30% of the target population to have a total sample of 54 staff respondents. The study used primary data that obtained by use of a self-made questionnaire. The validity and reliability tested in the study. Statistical package for social sciences (SPSS version 22) used to draw inferences from the coded data. These included descriptive, relational and inferential statistics. The descriptive statistics included frequency distribution tables; pie charts and percentages relational statistics that encompassed the regression analysis while the inferential statistics included the chi square test. The research indicated that water shortage in Nairobi is a resultant of inadequate internal controls of public funds due to poor planning, lack of infrastructure, and inadequate water harvesting techniques in catchment areas, illegal connections and limited technological innovations. The research concluded that an ineffective internal control system affects public funds in terms of service delivery at Nairobi city water and Sewerage Company significantly. Thereby the institution should work towards enhancing the policies that exist. The research recommended that the organization should invest in technology to reduce loopholes for funds pilferages. Funds raised should be geared more towards infrastructural developments and expansion plans while recurrent expenditure be reduced. The organization is encouraged to venture into other business areas that generate income like water bottling. The study suggested further research to be done on how system automations on public funds affect service delivery in the organization.
Integrated computerized accounting systems (ICAS) faces the challenges of unauthorized access, alterations and destruction of data thus compromising the confidentiality, integrity and availability of financial information. The research evaluated the effectiveness of integrated computerized accounting systems (ICAS) on internal controls (IC) of supermarkets in Kisii County, Kenya. The objectives of the study were; to determine the effect of integrated financial operations on the internal controls of supermarkets in Kisii County, to determine the effect of segments information on the internal controls of supermarkets in Kisii County. The findings of the study are helpful to managers of supermarkets in acquiring the ICAS to strengthen the internal controls, developers of accounting softwares in programming software that meets the needs of the supermarkets and future researchers as it forms the basis of future researches. The study used descriptive survey designs that were conducted among 21 out of the 24 targeted branch managers, supervisors and accountants of the supermarkets in Kisii County a cosmopolitan transit county with branches of all major supermarkets in Kenya. The targets population was the eight supermarkets in Kisii County. A census method was used comprising of all the 24 branch managers, supervisors and accountants. Closed ended questionnaire were used to collect data from the supermarkets in Kisii County where only seven supermarkets responded. The reliability of the questionnaire was measured using Cronbach alpha resulting to a value of 0.866 and the fitness for model tested using analysis of variance (ANOVA) and was found to be significant at 0.003. The data was analyzed through Likert scale, descriptive and inferential statistics with the aid of Statistical Package for Social Sciences (SPSS) version 22.0 and presented using tables & figures. Descriptive methods used were mean and standard deviation. The inferential statistics used include multivariate regression analysis to test the model fit and correlation analysis. The hypothesis was tested using t-test for a significance level of ±5 at a degree of confidence of 95%. The findings of the study showed that integrated financial operations and computerized integrated accounting are positively significant on strengthening the internal controls while segment information and consolidated financial reporting transactions are negatively significant on strengthening the internal control system