Assessment of the effectiveness of internal controls in public sector organizations

Abstract

The study was carried out to assess the effectiveness of internal control in Ghana‘s public sector. The design for the study was a case study. Twenty-five staff of selected public hospitals and a polyclinic were purposively sampled for the study. Data were collected using a questionnaire and the same was analyzed using descriptive statistics. The outcome of the study was that the hospitals had a systematic, comprehensive approach to internal control, which is consistently documented, understood at the management level, and communicated to personnel. However, there were still some inconsistencies concerning how internal controls were implemented and enforced and also all responsibilities were not clearly defined. It was also found out that it was easier to develop a good internal control system in smaller hospitals due to less personnel, more personal contacts, and less administrative bureaucracy. Following the outcome of the study, it was recommended among other things that policies and procedures must be observed consistently throughout the hospitals. Also, irregularities revealed by the internal financial controls system must attract prompt and effective corrective action. To assure continued effectiveness, the hospital's internal financial controls system must be reassessed frequently.