Internal Control Systems and Financial Accountability in Tertiary Institutions in Enugu State

Recurring financial irregularities and audit queries in Nigerian tertiary institutions have underscored the inadequacy of existing internal control systems, raising concerns about the stewardship of public and institutional funds. This study examined the effectiveness of internal control systems and their impact on financial accountability in tertiary institutions in Enugu State, with focus on three government-owned universities. The study was anchored on the Committee of Sponsoring Organizations (COSO) internal control framework, which identifies control environment, risk assessment, control activities, information, and monitoring as core components. A survey research design was adopted, with a population of 285 bursary staff, internal auditors, and finance directors. A sample of 165 respondents was drawn using stratified random sampling. Data were collected through a structured questionnaire and analyzed using multiple regression analysis. Results revealed that control environment and monitoring activities were the strongest predictors of financial accountability, while risk assessment procedures were weakly implemented. The study concluded that gaps in the control environment and monitoring significantly undermine accountability in the selected institutions. It was recommended that the Tertiary Education Trust Fund should make the strengthening of internal control systems a prerequisite for institutional funding and mandate annual internal control effectiveness assessments.

Keywords: Internal control systems, financial accountability, tertiary institutions, COSO framework, audit