Effect of Financial Control Mechanisms on Performance of Income Generating Units in Selected Public Universities in Kenya

2019 ◽  
Vol 3 (V) ◽  
pp. 286-304
Author(s):  
Shadrack Musunkui Towett ◽  
Isaac Naibei ◽  
Williter Rop
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Public Universities ◽  
Management Strategies ◽  
Internal Audit ◽  
Simple Random Sampling ◽  
Target Population ◽  
Control Measures ◽  
Financial Control ◽  
Control Mechanisms

In an attempt to bridge the gap between the budgetary allocations and actual expenditures most universities have started income generating units with the aim of boosting their operational expenses. Whereas there is the potential of the use of Income Generating Units (IGUs) to generate additional funds, most universities still experience challenges in full implementation and realization of the revenue goal. This study therefore sought to determine the financial control mechanisms affecting performance of income generating units among selected public universities. The study sought to determine the effect of internal controls, credit policies, financial risk management and internal audit on performance of income generating units in selected universities. Targeted population was all the 290 employees in the IGU departments of selected public universities. The respondents were sampled using simple random sampling so as to enable equal representation of the target population without any biasness. Data collection was done using the questionnaire to ensure sufficient data was collected from the respondents. Descriptive statistics assisted in the determination of respondent’s views and opinions on every variable. Qualitative data was analysed using content analysis into meaningful, precise and comprehensive statements and presented in quotations. Data analysis was done using SPSS version 21 and data presented in form of figures and tables. The study ensured that all ethical considerations were considered by the study. The findings were that most employed Income Generating Units in Public Universities were Collection of rental fees, Evening and executive programs and Trainings of both short and long courses while the least was established to be Sales of memorabilia and books. All the financial control mechanism investigated namely internal audit, internal control measures, risk management strategies and credit policies had large extents of adoption in the selected universities. The results of the regression analysis showed that the financial control mechanisms investigated had a significant positive relationship on performance of the IGUs. Specifically, 47% of the variation of the performance of IGUs was established to be explained by the studied factors. The study concluded that the performance of the IGUs among the selected public universities was largely accounted for by the implemented financial control measures. Therefore effective financial control mechanisms is concluded to lead to better IGU performance whereas shortcomings in the financial control mechanisms is concluded to lead to diminished returns in the IGUs. The study recommended that the management in charge of the IGU department in the public universities to prioritize the formulation, implementation and monitoring of financial control mechanisms in the IGUs. To facilitate effective financial controls, the study recommended that the management especially those in the audit section to conduct regular checks and inspections on the IGUs. Additionally, frequent reforms were recommended to address the shortcomings experienced in integrating financial control measures in IGUs.

scholarly journals OPERATIONAL RISK MANAGEMENT STRATEGIES AND THE GROWTH OF MICROFINANCE SECTOR IN KENYA

2017 ◽  
Vol 2 (2) ◽  
pp. 42
Author(s):  
Dr. James Rurigi Njuguna ◽  
Prof. Roselyn Gakure ◽  
Dr. Anthony Gichuhi Waititu ◽  
Dr. Paul Katuse
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Management Strategies ◽  
Internal Audit ◽  
Operational Risk ◽  
Operational Risk Management ◽  
Operational Risks ◽  
Use Of Resources ◽  
Policies And Procedures ◽  
Risk Management Strategies

Purpose: The purpose of this study was to establish how operational risk management strategies lead to growth of MFI sector in Kenya.Methodology: The study adopted a correlation survey research design. The population of this study was fifty seven (57) MFIs. The sampling frame was the list of MFIs provided in the AMFI website www.amfikenya.com. A sample of thirteen (17) MFIs was selected using the random sampling approach. A questionnaire and an interview schedule were the main data collection tools. Qualitative data was analyzed using content analysis whereas the quantitative data was analysed using Statistical Package for Social Sciences (SPSS) where descriptive and regression analysis were conducted to determine the relationship between enterprise risk management strategies and growth of MFIs.Findings: Findings revealed that the MFI had adequate policies and procedures to manage its operational risks and the MFI had an operations manual. The findings also indicated that the MFIs have adhered to written policies and procedures to manage operational risks in the financial operations area, procurement area, treasury area, and financial management area. Results further indicated that the MFI had effective internal control systems for detecting fraud or other significant operational risks. Finally the study findings indicated that MFI’s internal audit functions ensured effective use of resources, accurate financial reporting, and ample random spot checks of MFI branches, clients, and staff. The regression results indicated that there was a positive relationship between operational risk management strategies and MFI growth.Unique contribution to theory, practice and policy: The study recommends that the MFIs to continue practicing effective operational risk management practices such as internal control framework comprising of policies and procedures. MFIs need to uphold the existence and accessibility of operational manuals. It is suggested that adherence to written policies and procedures is positive strategy and it should be emphasized.  The internal audit functions for effective use of resources and accurate financial reporting needs to be emphasized as it had a positive effect on growth. The MFIs should also benchmark their technology with that of banks to reduce human error, to produce timely and relevant data. It is recommended that implementation of know your client (KYC) requirements should be enhanced as it has an effect on growth.

scholarly journals Features of Risk Management and Organization of Internal Audit at Industrial Enterprises

2020 ◽  
Vol 9 (512) ◽  
pp. 128-135
Author(s):  
P. O. Gavrys ◽  
◽  
M. O. Gavrys ◽  
O. M. Gavrys ◽  
◽  
...  
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
New Technologies ◽  
Internal Audit ◽  
Control Mechanisms ◽  
Insurance Company ◽  
Macroeconomic Factors ◽  
Industrial Enterprises ◽  
It Systems ◽  
Cyber Crimes

This article is aimed at studying the problem of risk management at industrial corporations. It examines the nature of risk and its impact on the way the modern corporations operate. The main types of risks are analyzed on the example of their classification, developed and applied by the leading German insurance company Allianz. It among them are 10 main types of risks, including risks associated with IT systems in enterprises (in particular, cyber-crimes, failures of IT systems, leakage and loss of data), production and supply chain risks, risks of changes in legislation and regulatory policy (in particular, duties, trade wars, sanctions, protectionism), force majeure and natural disasters, changes in markets (increased competition, new competitors, fluctuations, stagnation and fall of markets), fires and explosions, climate changes, reputational risks, risks of new technologies and macroeconomic factors such as monetary policy, government austerity programs, inflation, changes in resource prices, etc. The examples of occurrence of such risks in real enterprises are given. The role and the importance of risk management at industrial corporations is determined. The model of three "lines of defense" in risk management of industrial enterprises is described, where the "first line" includes operational management and internal control mechanisms, the "second line" – the services of enterprises, responsible for management and control of risks on the ground, in particular, financial control, security service, services of quality control, compliance with standards and others, and the "third line" is internal audit. The practical aspects of its application are defined. The role and function of internal audit in risk management of companies is determined. The differences in scope and goals of internal audit as compared to other corporate compliance and governance functions are highlighted.

scholarly journals EXTENT TO WHICH RISK TRANSFER STRATEGIES AFFECT TRIPLE BOTTOM LINE OF FOOTBALL EVENTS IN NAIROBI COUNTY, KENYA

2021 ◽  
pp. 124-132
Author(s):  
Peruce Atingo
Keyword(s):  
Management Strategies ◽  
Triple Bottom Line ◽  
Simple Random Sampling ◽  
Target Population ◽  
Control Measures ◽  
Sports Management ◽  
Bottom Line ◽  
Risk Transfer ◽  
Premier League ◽  
Transfer Strategies

Football organizations have been facing various challenges in Kenya ranging from management problems and event security threats which have been addressed in various continents. However limited has been done to address these challenges in Kenya. Triple bottom line (TBL) measures are critical to any organization and paramount for successful planning and organizing of sports events in today’s world. The link between risk management strategies and TBL measures of football events seems to be unclear in Kenya. The study therefore sought to investigate the risk transfer strategies employed by the Footbal events in Kenya. The study hypothesized that the risk transfer strategies do not significantly affect TBL of football events in Nairobi, Kenya. The target population was 882 football stakeholders that comprised Federation of Kenya Football (FKF) organizers, Kenya Premier League (KPL) organizers, officiators, footballers and cheer leaders/fans out of which 268 formed the sample size. Instruments for collecting data included self-administered questionnaires, interview schedules and observation check list. Ten (10) managers of sports management bodies and administrative bodies were interviewed. The study employed both descriptive and explanatory research designs. Simple random sampling and stratified sampling techniques were used to select respondents to participate in the study. Data was analyzed using both descriptive statistics (frequencies, mean and standard deviation) and inferential statistics (linear multiple regression). The study, therefore, recommends the need for football organizations to invest in risk control measures such as providing security in entry and exit points as well as insurance covers for both participants and spectators in order to transfer risks and attain TBL of football events. In addition sports management bodies need to sensitize football stakeholders on various risks that arise in football events. The findings from this study may benefit the Ministry of Sports, Culture and Arts, Football organizing bodies such as Federation of Kenya Football, Kenya Premier League and other football stakeholders in formulation of policies aimed at managing and minimizing risks of football events.

CURRENT STATE OF REGULATION OF INTERNAL FINANCIAL CONTROL AND INTERNAL FINANCIAL AUDIT IN THE BUDGET SECTOR

2020 ◽  
Vol 1 (9) ◽  
pp. 119-124
Author(s):  
D. R. GINIYATULLINA ◽  
◽  
◽  
Keyword(s):  
Internal Control ◽  
Internal Audit ◽  
Regulatory Framework ◽  
International Standards ◽  
Financial Control ◽  
Budget Process ◽  
Federal Law ◽  
Government Sector ◽  
General Government ◽  
Financial Audit

Since 2013, there has been an active transformation of the regulatory framework related to the implementation of international standards of internal audit in Russian practice, which regulates the organization and implementation of internal financial control and internal financial audit in the general government sector. However, the regulatory framework is constantly undergoing changes that are associated with the need to take into account the specifics of the functioning of these organizations. Particular attention is paid to the development of the methodological foundations of internal financial control and audit on the basis of amendments made by the Federal Law of July 26.07.2019, 199-FZ to the Budget Code of the Russian Federation. In particular, internal financial control was removed from the budgetary powers of participants in the budget process. When these changes were implemented, a lot of questions arose, such as the exclusion of internal financial control as a separate budgetary authority means that this type of control can be omitted, journals and internal control cards are not kept.

scholarly journals The Effect of Credit Risk and Capital Adequacy on the Profitability of Rural Banks in the Philippines

2017 ◽  
Vol 64 (1) ◽  
pp. 83-96 ◽  
Author(s):  
Rufo Mendoza ◽  
John Paolo R. Rivera
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Internal Control ◽  
Management Practices ◽  
The Philippines ◽  
Capital Adequacy ◽  
Control Measures ◽  
Credit Risk Management ◽  
Bank Profitability ◽  
Regulatory Bodies

Abstract This paper examines the credit risk and capital adequacy of the 567 rural banks in the Philippines to investigate how both variables affect bank profitability. Using the Arellano-Bond estimator, we found out that credit risk has a negative and statistically significant relationship with profitability. However, empirical analysis showed that capital adequacy has no significant impact on the profitability of rural banks in the Philippines. It is therefore necessary for the rural banks to examine more deeply if capital infusion would result in higher profitability than increasing debts. The study also implies that it is imperative for the banks to understand which risk factors have greater impact on their financial performance and use better risk-adjusted performance measurement to support their strategies. Rural banks should establish credit risk management that defines the process from initiation to approval of loans, taking into consideration the sound credit risk management practices issued by regulatory bodies. Moreover, rural banks need to enhance internal control measures to ensure the strict implementation of internal processes on lending operations.

scholarly journals Faktor-Faktor Yang Mempengaruhi Kualitas Prosedur Pengendalian Internal Dan Perannya Dalam Memoderasi Hubungan Persepsi Keadilan Organisasi Terhadap Employee Fraud

MAKSIMUM ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 85
Author(s):  
Ika Hariyanti
Keyword(s):  
Risk Management ◽  
Organizational Justice ◽  
Internal Control ◽  
Internal Audit ◽  
Sampling Technique ◽  
Management Training ◽  
Management Level ◽  
Control Procedures ◽  
Employee Fraud

This research aims to analyze the perception of organizational justice on employeefraud moderated by the quality of the internal control procedures of manufacturecompany in Semarang. The factors which affect the quality of internal controlprocedures is ethical corporate environment, risk management training, internalaudit activities, suitability compensation and power leadership. The population ofthis research is the top management level at the manufacture company in Semarang.The sampling technique is random sampling. 32 samples used in this research andOLS regression analysis with SPSS 19 version program. The results of this researchverify that quality of internal control procedures positively moderate the relationbetween perception of organizational justice and employee fraud. Ethical corporateenvironment and risk management training has a positive and not significant to thequality of internal control procedures. Internal audit activities has positive andsignificant to the quality of internal control procedures. Suitability compensationand power leadership has a negative and significant to the quality of interna controlprocedures.

scholarly journals CYBERCRIME: THEORETICAL DETERMINANTS, CRIMINAL POLICIES, PREVENTION & CONTROL MECHANISMS

2020 ◽  
Vol 5 (1) ◽  
pp. 34
Author(s):  
Nasser AL-Dosari Khalifa
Keyword(s):  
Police Officers ◽  
Mixed Method ◽  
Target Population ◽  
Online Banking ◽  
International Standards ◽  
Control Measures ◽  
Control Mechanisms ◽  
Unique Contribution ◽  
Mixed Method Research ◽  
Expert Interview

Purpose: The research aimed to explore the theoretical determinants of cybercrime in Qatar and assess how it can be prevented and minimised. Methodology: This was done using the mixed method research design through the survey strategy and semi-structured interviews with experts in the field of cybercrime in Qatar. Having adopted a mixed-method research methodology, the study had a target population of 200 participants for questionnaire survey, while expert interview had a target population of 11 experts. All these participants were purposively sampled in pursuit of engaging respondents who had knowledge, experience and expertise in cybercrime, such as IT experts and professionals working on cyber security solutions, Lawyers, police officers working in cybercrime department in Qatar, and lawyers who had dealt with cybercrime. The results of the survey were quantified using the Likert scale and analysed quantitatively by the factor analysis, and frequency tables. The results of the interviews were analysed qualitatively. Findings: The results of the survey revealed that the most typical types of cybercrime in Qatar include website hacking, email cyberattacks, and online banking cyberattacks. The predominant motive for cybercrime in the country is monetary gains. However, the findings from the logistic regression analysis reveal that different types of cybercrime are associated with different determinants, and online banking crimes are predominantly driven by monetary gains. Moreover, the findings from IT experts interviewed revealed various measures can be adopted as control measures of cybercrime activities and hazards, such as development of stronger networks by commercial companies to protect their cyber assets and use of up-to-date protective software that detect and ensures complete data security. Unique contribution to theory, practice and policy: Further, the findings, in relation to the effective methods and mechanisms for preventing cybercrime, suggest that it can be reduced through the spread of awareness among people and companies and through the adoption of preventive control mechanisms. Further, the study recommends that governments should formulate and implement legislations aimed at enhancing stringent measures of combating and dealing with cybercrime in convergence with international standards and practices. Besides, companies should adopt technological cybersecurity solutions to enhance effective protection of intellectual property, intrusion, and malicious damage of data as well as other cyber-related crimes.

scholarly journals The Role of Internal Audit in Risk Management from the Perspective of Risk Managers in the Banking Sector

2021 ◽  
Vol 15 (2) ◽  
pp. 114-129
Author(s):  
Oday Tamimi
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Banking Sector ◽  
Internal Audit ◽  
Target Population ◽  
Internal Auditing ◽  
The Board Of Directors ◽  
Risk Managers ◽  
Main Factor

The present paper aims to identify the role of internal audit function in risk management from the perspective of risk managers in banks operating in Palestine, with a review of the concept, importance, objectives, and principles of internal audit and its role in risk management for banks. The target population is the risk managers in the banks operating in Palestine. The major findings in the presented paper. First, the main factor in risk management is the risk manager's efficiency, and the internal auditing focuses on evaluating the risk management department and ensuring the efficiency of risk management practices in dealing with these risks. Second, the internal audit departments in the banks operating in Palestine participate in providing advice, suggestions and recommendations for the risk management department. Based on the results, the board of directors and senior management in these banks should continue to pay attention to the risk management department, and the need for coordination between these departments to achieve the best results at the banking and economic levels.

Sign in / Sign up

Export Citation Format

Share Document