INTERNAL CONTROL SYSTEMS AND REVENUE COLLECTION PERFORMANCE OF THE COUNTY GOVERNMENT OF KERICHO, KENYA
Abstract
This study inspected the impact of internal control systems on performance of revenue collection of the County Government of Kericho, Kenya. Explanatory research design was adopted and the target population for the investigation comprised 62 employees drawn from County Government of Kericho who have direct involvement in revenue management. Data was analyzed using the Statistical Package for Social Scientists and results presented in form of tables and figures. The findings revealed that control activities had positive significant relationship with revenue collection performance. The study concluded that internal control systems had positive significant effect on performance of revenue collection in County Government of Kericho where all the variables, control activities, monitoring, risk assessment, communication and control environment significantly contributed to the performance. Study recommended that the county should improve control activity through enhancing reconciliation and review of function periodically. The county government should also enhance the accuracy of their report though adoption of information accounting systems as well as accounting tools like QuickBooks. In order to improve monitoring in the county automation, continuous assessment of internal control system and independent process checks and evaluation should be done continuously. High risk assessment should be conducted to eliminate systemic risks that can be identified and document. Due to weak channel of communication within the county, there is need to improve policies, and regulation that govern communication channels to ensure proper sharing of reports and strengthen security of information. A central information centers will also assist in collection and dissemination on revenue activities. Finally, the study recommended ethical values to be upheld in the county to reduce corruption and mismanagement of revenue collected at the county level. There is need to enhance the responsibility and authority structure of chain of command to reduce loop holes in internal control system.
Key Words: Control Activities, Monitoring, Risk Assessment, Communication, Control Environment, Revenue Collection
CITATION: Kipkurui, B., K., & Makori, D. (2023). Internal control systems and revenue collection performance of the county government of Kericho, Kenya. The Strategic Journal of Business & Change Management, 10 (1), 533 – 559.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i1.2561
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