INTERNAL CONTROL AND FINANCIAL EFFECTIVENESS IN TERTIARY INSTITUTIONS IN OGUN STATE
Authors:
Adekola, Omotayo Ajibike & Olayinka, Segun Wale
Abstract:
This study examines the impact of internal control system on the financial effectiveness of tertiary institutions in Nigeria. This is with the view of ascertaining whether strengthening of internal control system in tertiary institutions can have any effect on financial effectiveness. The study used a survey research design. Data were collected using structured questionnaire administered to bursary staff of selected tertiary institutions. This study employed quantitative method of data analysis using the regression analysis with the aid of the Statistical Package for Social Science (SPSS). The Ordinary Least Square Method was used to examine the impact of internal control on financial effectiveness. The findings showed that tertiary institutions with effective internal control unit make proper use of their finances. Based on this, it was observed that internal control significantly affects usage of capital grants, accumulated surplus, recurrent subvention, revenue from fees and investment policy. Hence, it was recommended that proper check and balance of all financial transactions should be encouraged and that disbursement of funds to tertiary institutions should be implemented as stipulated in the National Policy on Education.