Omondi Margaret Atieno, Evans Kiganda


The main objective of this study was to evaluate the effect of internal control systems on financial accountability in national public secondary school in Kenya. The specific objectives were; to evaluate the effect of control environment on financial accountability, to determine the effect of control activities on financial accountability, to ascertain the effect of risk assessment on financial accountability to examine the effect of information and communication on financial accountability and to assess the effect of monitoring on financial accountability in national public secondary schools in Kenya. However, accountability is still wanting in some public secondary schools. The study was carried out in 103 national public secondary schools in Kenya. Survey research design was used on a population of 309 consisting of; 103 principals, 103 bursars, 103 BOM chairs. Purposive and simple random sampling were used to select principals, bursars and BOM chair. Primary data was collected by use of questionnaires, while secondary data was collected through audited financial statements. Reliability of the research instruments was tested through Cronbach’s Alpha. Descriptive statistics comprised of frequencies; means, standard deviation and variance. Inferential statistics comprised of; Correlation analysis, ANOVA, regression analysis, testing for normality, autocorrelation and multicollinearity. The dimensions of internal control systems were found to have a significant joint effect on financial accountability. It was therefore recommended that the government should ensure that BOM have accounting knowledge and should be appointed based on integrity and ethical values. Segregation of duties should be strengthened with clear roles of the principal, bursar, other BOM members, storekeeper and other employees. Authorization of activities should be mandatory. Impromptu checks of ongoing projects and approved expenditure should be frequently done. The government should employ all principals and bursars on contract basis renewable only based on financial accountability. The government should interlink the schools bank accounts to a central accounting information system. The government should ensure through independent checks that the budgets and other financial statements are complete, reliable and correct. There should be frequent external audits by county auditors.

JEL: H52; H75; I10

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