The Effect Of Internal Controls On Revenue Management In County Governments In Kenya (A Case Study Of Nairobi City County)

Abstract

The study sought to examine effect of internal controls on revenue management in Nairobi City County Governments in Kenya and a case of Nairobi City County Government. The specific objectives were to establish the effect of control environment, control activities, risk assessment activities on revenue management in Nairobi County. This study is significant to the Management of Nairobi City County Government, employees of Nairobi City County Government and other researchers. The research design was descriptive research design. The target population of this study was 506 administrative staff at the office of Nairobi City County Government chosen from finance, accounts, IT staff and quality assurance who are considered directly involved in internal control and revenue management in the county. The sampling design was stratified random sampling. In the analysis, quantitative technique to generate mean and frequencies was used and the presentation was accomplished by use of figures such as distribution tables, pie charts and bar graphs. The management determines the knowledge and skills required for each position to enhance control environment, thus, putting the rightful employee with appropriate capacity was expected to result in better delivery of goals on revenue management. Procedure manuals were well communicated to employees for proper work discharge; therefore, it implied that employees were expected to follow the procedures as part of the control activities. The study recommends that the management of Nairobi City County Government should ensure that all control activities are fully spelt out among all the staff in order for them to know what they are expected to do. Therefore, the management should always ensure that all the authorizations procedures are followed by providing supporting information on what needs to be authorized so that subject of fraud does not come about.