East Publication

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Browsing East Publication by Author "Kisanyanya Govedi Andrew"

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    Internal Control Systems and Financial Performance of Public Institutions of Higher Learining in Vihiga County, Kenya
    (IOSR Journal of Business and Management (IOSR-JBM), 2018-04-23) Kisanyanya Govedi Andrew
    Most public institutions of higher learning across the world have reported suboptimal financial performance compared to private institutions of higher learning. The poor financial performance can be attributed to financial management practice. The sound financial management practices require the institutions of robust internal control systems. However, there are limited empirical research findings regarding the relationship between the internal control system and financial performance. The specific objectives of the study were: to determine the effect of control activities, risk assessment, control environment, information and communication and monitoring on financial performance of institutions of higher learning in Vihiga County, Kenya. The study was anchored on agency theory, stewardship theory, positive accounting theory and attribution theory. The study used a descriptive research design. The target population of respondents was 140 employees in the four institutions studied whereas the sample size was 96 employees. Primary data was collected from sample population using semi-structured questionnaires. Descriptive and multiple regression analysis were used to analyze data. The study found that the institutions had adequate and effective control activities which included regular internal audit reports, adequate segregation of duties in the finance and accounts departments and physical controls to prevent excess allocated funds. Control activities were found to have a positive significant effect on the financial performance of the institutions under study. The study found that the institutions under study had proper risk assessment tools and risk assessment management system because they carried out continuous financial assessment of their organizations coupled with regular, timely and profound audits. Risk assessment was found to have a positive significant effect on the financial performance of the institutions under study. The study established that the institutions had effective control environment. The number of staff in finance and audit departments was adequate and well trained on accounting and financial management system. Control environment was found to have a positive and significant effect on the financial performance of the institutions under study. The study found that the institutions had effective flow of information and communication channels. In addition, the study found that effective flow of information and communication enhanced financial accountability and financial performance of the institutions. The expenditure of the institutions was properly monitored and audit departments were independent. Financial monitoring was found to have a positive and significant effect on the financial performance of the institutions under study. To the management of the public institutions of higher learning, the study recommends regular and timely financial audit to help them identify any loop holes in their financial systems as well as financial performance
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    Role of Internal Audit as a tool for Public Financial Management in County Governments in Kenya: A case of Vihiga County Government
    (KAG EAST UNIVERSITY, 2020-05-25) Kisanyanya Govedi Andrew
    In attempting to sufficiently discharge their responsibilities, internal auditors often find themselves in a deviating position. For instance, they appeal to senior management within the organization, but they are anticipated to evaluate the conducts and effectiveness of the management in objective manner. While internal audit can be used in order to assist management in order to instill a strong ethical tone in the entire organization, a poor attitude by the management can make it hard for the internal auditor to support ethical behavior. Disagreements in different internal auditing roles in promoting public financial management have not gone away with contradicting opinions on how internal audit is expected to perform some activities, with some citing a positive effect and some saying it has very minimal effect if any. The objective of this study was to investigate the roles of internal audit in public financial management in the public sector in Kenya with special focus on the County Government of Vihiga. A descriptive cross-sectional design method was preferred for this study. The target population of this study was the finance department employees of Vihiga County Government where a sample of 53 employees was used. The study collected primary data on the current state of affairs of the County Government. The main instrument for data collection was by use of organized questionnaires. The research was qualitative in nature. This insinuates that descriptive statistics was used. The study found that internal control had the greatest effect on public financial management within Vihiga County Government followed by risk management internal audit independence complemented the two roles. The study suggested that in order for the county government to be effective in its operation and service delivery they should acknowledge contribution of internal auditing. Additionally, the study suggested that for the County Governments to be able to effectively lessen risks they should put in place a strong internal auditing function in its operation. The study also recommended that all County Governments should institute internal controls in its operation to curb various financial losses and enhance optimization of revenues collected. In a similar manner, the study suggested that county governments to endure internal auditing as a tool for effective internal controls so as to realize their objectives set with ease
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    Working Capital Management and Profitability of Manufacturing Companies Listed at the Nairobi Securities Exchange, Kenya
    (KAG EAST UNIVERSITY, 2020-05-25) Kisanyanya Govedi Andrew
    The study sought to examine the relationship between working capital management and financial performance of the manufacturing companies listed at the Nairobi Securities Exchange. There are a total of 9 firms; Flame Tree group Limited, East African Breweries Limited, Carbacid investments, Eveready East Africa, BOC Kenya, Mumias Sugar, Unga group, British American Tobacco and Kenya Orchads. Secondary data from the published reports and audited financial reports covering a span of five years from 2012-2016 of listed firms was used in conducting the study. The collected data was cleaned for consistency in preparation for analysis. The analysis was done using the Statistical Package for Social Sciences (SPSS). The study used both descriptive and inferential statistics in analyzing the data. Regression analysis and Pearson’s correlation analysis was used to test the relationship between working capital management and the financial performance. The study established that there exists a strong relationship between working capital management and financial performance. The study further established that working capital management explains 31.9% of the changes in financial performance of the firms listed at the NSE. The study established that the management of listed firms can create value for their shareholders by reducing the average collection period of accounts receivable. The management can also create value for their shareholders by increasing the inventory turnover so as to buffer against unforeseen shortages and delays in the manufacturing process. The study also concludes that managers can create value for their shareholders by making prompt payments to creditors to increase their credit worthiness and reputation. The study also found out that firms are capable of gaining sustainable competitive advantage by means of effective and efficient utilization of resources of the organization through a careful reduction of the cash conversion cycle. In so doing, the profitability of firms is expected to increase