Relationship between Principals’ Competencies in Internal Financial Control and Performance of Financial Management Roles in Public Secondary Schools in Kenya (Published)
This study investigated the relationship between the principals’ internal financial control competencies and effective performance of selected financial management roles in public secondary schools in Kajiado County, Kenya. The study was underpinned by the agency theory. The study adopted the quantitative methodology using correlational research design and qualitative methodology to using a case study. Data from principals’ and bursars was collected through questionnaires, while semi-structured interviews were used for school auditors. The study used a multistage sampling technique to select a sample of 115 public secondary school principals, 111 school bursars and three school auditors. The study established a positive and statistically significant relationship between principals’ internal financial control competencies and their performance of selected financial management roles (r=0.885*; p<0.05)) at alpha 0.05 level. The findings and conclusions of this study were that most principals did not have the necessary internal financial control competencies to detect errors in the budgets, approve financial transactions, authorise payments, develop passwords in financial management ICT systems and develop detective controls. Most principals were also ineffective in carrying out periodic financial reconciliations, adhering to budget plans, and approving financial transactions. This study recommends that principals be trained, mentored, and coached on the identified competency and skills gaps.
Keywords: financial management competencies, internal financial control, internal financial control competencies, internal financial control roles, performance of internal financial control