Assessment on the Effectiveness of Internal Financial Controls on the Local Authorities: A Case of Zambezi and Mufumbwe Town Councils

Abstract

The main objective of the research was to assess factors contributing to the ineffectiveness of internal financial controls of the Local Authorities in Zambia. Descriptive research design was used for this study which provided average characteristics and trends in the systems in the Local Authorities. The target population was 213 which had a sample size of 100 respondents drawn from Zambezi and Mufumbwe Town Councils. The study relied mainly on primary sources using a questionnaire and also secondary sources. Data that was collected from the field was analyzed using Excel spread sheet. Arising from the research findings, conclusion was derived that internal control systems of the Local Authorities were ineffective. It was revealed that most workers had worked for less than 5 years at their respective Councils. There was no policy for orientation of new members of staff on IFCs. Councils had internal financial control systems in place which were ineffective and that the Audit Unit which was charged with ensuring that IFCs were effective did not perform to expectation because there were not independent from the Local Authority management. Recommendations related to the study were as follows; Audit units of the Councils be allowed to operate independently, there be periodic reviews of internal financial control systems, information dissemination on financial control systems in the local authorities be enhanced, new members of staff should be oriented so that they are acquainted with the financial control systems.