Abstract:
ABSTRACT
Several studies have been done in the area of internal financial control system
of organisations in countries outside Africa, in Africa and also in Ghana. Such
works posited that a good internal financial control system where there is proper
documentation of financial transactions, direct and indirect control and
preventive controls, helps the organisation to perform well financially. Added
to that, they also ascertained that, there is a direct relationship between financial
performance and good internal financial control mechanisms put in place by the
company. Thus, using a positive paradigm through a descriptive quantitative
method, the study set out to critically examine the internal financial control
system of the Komenda Edina Eguafo Abrem Municipal Assembly. It made use
of the staff of the Municipal Assembly as its respondents. The study found out
that apart from a few challenges with the Assembly’s internal financial control
system, it is doing very well in adhering to all internal financial control
practices. Again, the study recognised that there is a direct association between
financial performance and internal financial control practices. However, it came
out that, the Assembly does not provide enough logistics for financial
monitoring, being one of the important pillars of internal financial control
system. Furthermore, it was discovered that there is a positive link between the
presence of IFCS and the financial performance of the Assembly. More so, a
good IFCS practices will help the Assembly to rake in more money to undertake
its projects. In view of that, there were suggestions that adequate logistics must
be provided for proper monitoring of the system to ensure good financial
performance; the revenue unit of the Assembly must be decoupled from the
financial unit for more effective and efficient work, among others.
