Effects of internal control system on financial performance in an institution of higher learning
The study investigated the relationship between internal control systems and financial performance in Surigao del Sur State University. The research was conducted using both quantitative and qualitative approaches using survey, correlation and case study as research designs. Data were collected using questionnaires and interview guide basically Deans, and Finance and Accounts staff as respondents from a population of 13 Surigao del Sur State University staff. Data was analyzed using the Statistical Package for Social Scientists where conclusions were drawn from tables. The study found that management of the institution is committed to the control systems, actively participates in monitoring and supervision of the activities of the University, all the activities of the Institution’s activities are initiated by the top level management, that the internal audit department was not so efficient, in the reporting address weaknesses in the system. It was however, revealed that all revenues and expenditures are properly classified, and that assets of the University have generally increased. The Study therefore concludes that internal control systems do function although with hiccups and that there was a significant relationship between internal control systems and financial performance in an Institution of higher learning.
Keywords: Internal control system, Financial performance, Surveys, Correlation and case studies, Higher learning