Abstract:
This study examined the effect of internal control systems on financial management of PDLG. The study was guided by the following objectives notably, to examining the impact of control environment on financial management of PDLG, to establish the impact of control activities on financial management of PDLG and to establish the impact of monitoring and evaluation on financial management of PDLG. The study used a cross-sectional research design, and a quantitative approach. Data was collected from a target population of 60 employees of PDLG with accessible unit of 48 employees of PDLG, using simple random and purposive sampling techniques. Data were collected with the aid of closed ended questionnaire and Statistical Packages for Social Sciences was employed for analyzing data from which frequency tables, descriptive statistics (mean and standard deviation), reliability, validity, correlation, and regression results were obtained. The study findings revealed that there is a positive and a significant effect of control environment on financial management, control activities on financial management and monitoring and evaluation on financial management of PDLG. The study concludes that there is a strong predictive power that the dimensions of internal control systems contribute towards enhancing financial management of Local governments. Finally, the study recommends that efforts to improve on the financial management of local governments depends on internal control systems (control environment, control activities and monitoring and evaluation).
