Role Of Internal Control Systems In Management Of Revenue By Nyeri County Government

ABSTRACT

Revenue management is one of the most important functions of governments, but is one of the least written about subjects in the field of public financial management. Good internal controls will help align the performance of the organization with the overall objectives through continuous monitoring of the performance and activities carried out by the organizations. According to a report from the office of the auditor general, Nyeri County experienced several challenges in revenue management in the 2012-2013 fiscal year. The purpose of this was to evaluate the role of internal control systems in revenue management of Nyeri County, Kenya. Specifically, the objective of the study was to investigate the role internal control environment on revenue management; examine the role of risk management on revenue management; investigate the role of information and communication on revenue management and assess the role of monitoring on revenue management in Nyeri County. The study adopted a survey design and targeted accounting personnel, audit and revenue collection departments in the Nyeri county government. The researcher used census method to include all personnel in the study. In the study questionnaires were used to collect data. Data analysis involved descriptive statistics, that is, frequencies, percentages, means and standard deviation and inferential statistics, linear regression analysis. Statistical Package for Social Sciences (SPSS) was used to analyze data. Research findings were presented in form of figures and tables. The study found that control environment and monitoring were statistically significant in revenue management. The researcher concluded that revenue management was promoted by a well-structured control environment and efficient monitoring of control activities and hampered by poor risk management and poor information and communication. The researcher recommended that the general public including the staff at the County government should be made aware of revenue management information. Appropriate and sufficient reports should be produced for the proper management and control of the County government. Financial reports should be made easily accessible to all staff.