The effect of internal control systems on the monitoring of financial resources at a higher education institution

Abstract

The main objective of the study was to assess the effectiveness of internal control systems in monitoring financial resources at the Durban University of Technology. It explored the current processes and systems of internal control used at DUT. The study identified the challenges of implementing internal control systems and examined the factors affecting the implementation. The study adopted a quantitative research design where a questionnaire was used to collect data from respondents to attain the research objectives. The study used a positivism research philosophy were a deductive research approach and descriptive survey design was utilised. The targeted population of the study consisted of eighty-five staff who are employed in the Finance department at DUT. The study used non-sampling method were census sampling was use to select a sample size of 85 respondents. Questionnaire was the main research instrument and SPSS was utilised to analyse data. From the findings, the study concludes that while the organization has several effective control measures in place, there are areas of improvement needed to strengthen risk assessment procedures, staff awareness of policies, and the adequacy of internal controls to cover all operations. The challenges in implementing controls are acknowledged as inherent due to human factors and the potential for collusion. The study highlights the organization's lack of proper risk assessment procedures and recommends developing policies, training employees, addressing control limitations, employing technology, offering governance training, ensuring fair compensation, reducing pressure, rotating personnel, and improving key factors affecting control systems through communication, monitoring, values, support, oversight, structure, audit, and policies.