The Effect of Internal Control Systems on Financial Performance in the Kassena Nankana Municipality, Upper East Region
Benard Nicodemos Ayamga *
Office of the Registrar, Bolgatanga Polytechnic, Upper East Region, Ghana.
Regina Wompakeah Bagina
Department of Accounts, Faculty of Mathematical Sciences, University for Development Studies, Tamale, Ghana.
*Author to whom correspondence should be addressed.
Abstract
The study aims at determining the effect of internal control systems on the financial performance of Kassena Nankana East Municipal Assembly, in the Upper East Region of Ghana. The study was cross sectional and adopted a case study approach. The data for the study was completely primary and was gathered through face- to -face interaction with respondents (the staff of the Kassena Nankana East Municipal Assembly). A purposive sampling technique was use to select sixty (60) respondents for the study, finally the data was analysed using central tendency, frequencies and percentages and the information represented with tables, charts and graphs. The findings of the study showed that, there is a strong relationship between internal control system and organizational financial performance of the Kassena Nankana East Municipal Assembly. It was concluded that organizations that had invested on effective internal control systems had more improved financial performance as compared to those organizations that had a weak internal control system. Base on the findings the study recommends that, the governing body, possibly supported by the audit committee, should ensure that the internal control system is periodically monitored and evaluated.
Keywords: Internal control systems, financial performance, management, Kessena Nankana municipal, Upper East.