Financial control practices and financial irregularities in senior high schools: a case study of selected second cycle institutions in the central region of ghana

Abstract

The study assessed the nexus between financial control practices and financial irregularities among second-cycle institutions in the Central Region. Primary data were collected through a questionnaire distributed to 133 Head of Schools, Accountants, Matrons, Bursars and Administrators. The primary data was analyzed using both SPSS and the Partial Least Squares (PLS) estimation technique. The research design employed was explanatory. The findings of the study revealed that misappropriation of funds, embezzlement, fraudulent activities related to financial transactions, challenges in maintaining accurate financial records and procurement processes in school vulnerable to financial irregularities are the common form of financial irregularities in second-cycle institutions. Again, the study revealed that budgeting as a financial control mechanism help detect and control financial irregularities. Moreover, the study discovered that auditing is an important conduit in identifying and preventing financial irregularities. Furthermore, the study found that an increased account management procedure is linked to detection and control of financial irregularities. Therefore, the study recommended that the government should develop and implement robust internal controls and oversight mechanisms to address vulnerabilities identified in the study, particularly in areas prone to misappropriation of funds, embezzlement, fraudulent activities and challenges in financial records and procurement processes. Also, the head of schools should strengthen budgeting processes by ensuring they are comprehensive, transparent and aligned with the institution's goals and priorities. Besides, the authorities of second-cycle institutions and government should always conduct a thorough review of auditing protocols and procedures to ensure they are effective in identifying and preventing financial irregularities. Finally, the authorities of second-cycle institutions and government should invest in technology and systems that facilitate efficient account management procedures including robust financial software, automation and data analytics tools. They are also entreated to conduct regular training for staff involved in account management to ensure they are well-equipped to detect and respond to financial irregularities.