The Effect Of Internal Control Systems On Financial Performance Of Federal Polytechnic Ekowei
ABSTRACT
The objective of this study was to examine the effect of internal controls on finan cial performance of Federal Polytechnic Ekowei. The study is necessitated on the fact that Despite the fact that internal control systems are very useful, many organizations still do not see the need to install an effective and efficient internal control system in their establishments. Even in organizations where there are internal control systems, there seems to be no proper monitoring to ensure optimum results. Using Federal Polytechnic Ekowei as a focal point, this study intended to investigate how the major elements of internal control systems, namely: control activities, risk assessment, control environment and information and communication can affect financial performance. Descriptive design was relevant for this study since it focuses at one point in time and does not require several rounds of monitoring. From a population size of 50 staff members, including top management and heads of all functional units, sections and departments, as well as deans of the schools, the study adopted census type of sampling, hence the sample size was equally the same as the population size. Using questionnaire design as the major form of data collection, the study found that the internal control has significant and positive effect on financial performance of Federal Polytechnic Ekowei. On the basis of this finding, it was recommended, among others, that The management should put up policies, procedures and mechanisms to ensure management directives are properly carried out. The officers entitled with the authority to incur and approve expenditure need also to be accountable for every resource utilized and the organization gets value for its investments. The polytechnic also needs to improve its capital expenditure to generate income for them and improve their liquidity.