Internal Control System and Financial Accountability in State Owned Polytechnics in Oyo State, Nigeria

Abstract

This study examined the effect of internal control systems on financial accountability in state owned polytechnics in Oyo State, Nigeria. Specifically, the study investigated the influence of control environment and control activities, risk assessment, information and communication, as well as monitoring and evaluation activities on financial accountability. A descriptive survey research design was adopted, with a population of 935 staff drawn from the Registry, Bursary, and Audit departments of selected institutions. A sample size of 364 respondents was determined using the Yamane formula, and data were collected through a structured questionnaire. The instrument’s validity and reliability were established using appropriate statistical tests, including Average Variance Extracted (AVE), Heterotrait-Monotrait (HTMT) ratio, and Cronbach’s alpha. Data were analyzed using descriptive statistics and inferential techniques, particularly multiple and simple regression analyses. The findings revealed that control environment and control activities have a positive and statistically significant effect on financial accountability. Similarly, monitoring and evaluation activities were found to significantly enhance financial accountability. The results further showed that information and communication exert a positive and significant influence on financial accountability, while risk assessment demonstrated a negative and statistically insignificant effect. Overall, the study established that internal control system components significantly influence financial accountability, although the explanatory power of the models remained relatively low, suggesting the presence of other contributing factors. The study concludes that effective internal control systems are essential for promoting transparency, accountability, and efficient financial management in public tertiary institutions. It recommends that institutional management should strengthen internal control frameworks by enhancing ethical standards, improving communication systems, reinforcing monitoring mechanisms, and adopting more robust risk management practices.