An assessment of internal control systems of selected Seventh - Day Adventist secondary schools in Zimbabwe

Abstract

The purpose of this study was to assess the effectiveness of internal control systems existing in selected Seventh-day Adventist secondary schools in Zimbabwe. The study was necessitated by the desire to have effective internal control systems in the institutions to prevent and reduce the occurrence of wrong practices, mismanagement of resources and accounting errors being experienced in the institutions despite the awareness to all institutions by the Zimbabwe Union Conference on the benefits of effective internal controls. Quantitative cross-sectional and causal study designs were used in collecting data from a sample of four Adventist schools in Zimbabwe selected using the conveniencesampling method due to their proximity and accessibility to the researcher. A sample size of 103 respondents from the schools was selected using the stratified random sampling to ensure representation of all the stakeholder groups targeted in the schools. Data was collected using a researcher-constructed questionnaire and analyzed using descriptive (mean and standard deviation, frequencies and percentages) and inferential statistical (multi regression and correlations) techniques computed using Statistical Package for the Social Sciences (IBM SPSS 20). The findings of the study revealed that internal control systems exist in the Adventist schools but are not effective, thus leaving room for improvement in order to achieve the objectives. The results have also shown that the institutions are performing in the range of average, with fees collection shown as their greatest challenge. Furthermore, the findings revealed that there is a statistically significant positive relationship between internal control components and institution performance with control activities component being a strong predictor of institutional performance. Based on the research findings, the researcher recommends that the school authorities strengthen their internal control components in order to achieve internal control effectiveness and enhance performance. This can be accomplished through the establishment of an effective control environment, establishment of committees responsible for risk assessment and monitoring committees, establishment of a whistle blowing policy, and internal control manuals for continuity in the event of the hiring of new employees. It was also recommended that management improve communication and information through clear lines of communications and regular reporting to stakeholders. To enhance performance, management should strengthen their fees collection policies.