Examine the Efficacy of Internal Financial Control Practices on the Financial Performance of County Hospitals
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Download Full PDF Pages: 01-21 | Views: 130 | Downloads: 57 | DOI: 10.5281/zenodo.10500240
Volume 12 - December 2023 (12)
Abstract
Governments across the world have adopted a wide range of PFM reforms to make fiscal policies more consistent and effective over the medium-term and emphasize the impact of policies and spending. In Africa, weaknesses in PFM systems have long been regarded as impeding good governance, accountability and efficiency in government actions. Governments have been under pressure from the citizens and development partners to pursue austerity measures while simultaneously delivering government services .The general objects of devolution is to devolve economic resources closer to the people and for this to be felt by the citizens, effective public financial management practices are required. Despite the improved legislative process and institutional frameworks on public finance management in the last six years, Kenya continues to experience myriad challenges that are not in line with the expected global standard practices. Thus leading to impoverished service delivery. The general objective of this study was to Examine the Efficacy of Internal Financial Control Practices on the Financial Performance of County Hospitals in Kenya. Justification that Revenue and expenditure deviations, weak management of assets and liabilities, technical incapacities, gaps between policy making, planning and budgeting, lack of accountability and transparency and lack of oversight roles have been identified as constrains to effective implementation of the PFM system in the counties. That study intends to enhance policy frameworks that streamline prudent management of public resources. The research was anchored on Agency Theory. The study used mixed research design and a purposive sampling technique. Primary data was collected using a questionnaire whereas secondary data was obtained from Office of Controller of Budget, Office of the Auditor General and County Treasury Offices. The study used both qualitative and quantitative data. While content analysis was used to analyze the qualitative data, Statistical Package for Social Science (SPSS) Version 20 was used to analyze quantitative data that generated both descriptive and inferential statistics. The major finding was that internal control practices that include control activities, control environment and internal audits had the highest significance on performance of County Hospitals. From the findings of the study, it was evidence that those County Hospitals that had invested in effective internal control systems had more improved performance as compared to those County Hospitals that had a weak internal control system. It was also evidenced, that policy makers would obtain knowledge of the financial sector dynamics and the responses that are appropriate.
Keywords
Examine, Efficacy, Internal, Control, Practices, Financial, Performance, County Hospitals, Kenya
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