Control environment and financial accountability

Abstract

This study addressed the relationship between the Control Environment and Financial Accountability looking at the case study of Katakwi Town Council (KTC). The specific objectives of the study were to establish the effect of management integrity on financial accountability, establish the effect of human resource policies on financial accountability and to ascertain the effect of management operating style on financial accountability in Katakwi Town Council. The researcher used a co-relational research design and respondents were selected using simple random sampling technique. Data was collected using only questionnaires. The study used both quantitative and qualitative methods in data collection and analysis. Empirical data was collected from 40 respondents on management integrity, human resource policies specifically recruitment, training, promotion and remuneration. Data was also collected on management operating style. Empirical data revealed that 52.5% of the respondents said human resource policies affect financial accountability. 7.5% said that management integrity affects financial accountability while 40% of the respondents said that management operating style affects financial accountability. 40% of the respondents also revealed that management integrity is questionable in that there are weak controls over accounting records and information. 45% of the respondents also revealed that the actions of staff are not trusted by the public. The study also revealed that if an appropriate range of human resource policies and processes are developed and effectively implemented, then the human resource will make a substantial impact on the performance of Katakwi Town Council. The result of the Linear Regression performed revealed that there is a relationship between Control Environment and Financial Accountability. This means that the management operating style and adherence to human resource policies play a great role in determining financial accountability. The study recommends that Katakwi Town Council should emphasize on professionalism, improvement in remuneration of its staff, improve on the control institutions, and design a policy on malpractices, reduction of political interference in the management of its activities and adherence to established human resource policies and practices. This can be achieved by KTC putting in place measures that ensure that accounting records and any other valuable information is kept under key and lock. Staff training and development programmes should be planned and adequately funded. Recruitment, promotion and selection of staff to go for further studies should be done on merit