A Comparative evaluation of internal control system in Universities in Southwest Nigeria

Abstract

This study examined the effectiveness of internal control system as a means of ensuring effectiveness of operation and as a foundation for compliance with financial controls in public and private universities in South West Nigeria. It evaluated the level of compliance with the various financial controls established to prevent fraudulent practices. The study was imperative considering the cases of financial mismanagement and abuse of stipulated rules, policies and procedures identified as plaguing the University system in Nigeria. The study adopted descriptive research using primary data generated through the administration of 100 structured questionnaires to staff of Bursary and Internal Audit Departments/Units of University of Ibadan, Ibadan; Olabisi Onabanjo University, Ago-Iwoye; and Bowen University, Iwo in Southwest Nigeria. The universities were selected as they one of the foremost universities in their different categories in Southwest Nigeria. Data were analysed using tables and simple percentages, Spearman Correlation and ANOVA. The findings from the analyses reveal that the forms of internal controls instituted by management are authorization and approval, management control, organizational control, segregation of duties to provide reasonable assurance for efficiency of operation. Also the analyses reveal that there is moderate compliance with the financial controls evaluated across the selected Universities except for Bowen University which revealed low compliance with the financial control. The findings confirmed that internal control system has a positive relationship with efficiency of operation in two (2) of the selected universities and that there exist a significant difference in the control system across the selected universities. The study concludes that there is a relationship between internal control system and efficiency of operations. Therefore, internal control system enhances efficiency of operations.