In Kenya, public secondary schools have consistently announced lack of funds with no records of f... more In Kenya, public secondary schools have consistently announced lack of funds with no records of financial records, causing school operations such as procuring teaching materials, remunerating teachers hired by the Board of Management (BOM), completing school infrastructure schools, and supporting academic programs to be hampered. All these point to poor working capital management. Previous studies on this problem have failed to link internal control systems with public secondary schools' working capital management. This study's main objective was to determine the effect of internal control systems on public secondary schools' working capital management. In particular, the study sought to establish the effect of risk assessment on the working capital management of public secondary schools in Kuria, Kenya. The research was driven by theories of agency, stewardship, and optimistic accounting, and used a cross-sectional research design. The study population was the chairs of the BOM Information system subcommittees of Kuria's public secondary schools. All 67 chairpersons of the Information system subcommittee in public secondary schools were selected using census. Results showed that risk assessment has a positive statistically significant effect (β = 0.205, p = 0.000) on public secondary schools' working capital management. Based on correlation results, the association between risk assessment (X1) and working capital management was found to be positive and significant (r = 0.719; p = 0.00).
In Kenya, public secondary schools have consistently announced lack of funds with no records of f... more In Kenya, public secondary schools have consistently announced lack of funds with no records of financial records, causing school operations such as procuring teaching materials, remunerating teachers hired by the Board of Management (BOM), completing school infrastructure schools, and supporting academic programs to be hampered. All these point to poor working capital management. Previous studies on this problem have failed to link internal control systems with public secondary schools' working capital management. This study's main objective was to determine the effect of internal control systems on public secondary schools' working capital management. In particular, the study sought to establish the effect of risk assessment on the working capital management of public secondary schools in Kuria, Kenya. The research was driven by theories of agency, stewardship, and optimistic accounting, and used a cross-sectional research design. The study population was the chairs of the BOM Information system subcommittees of Kuria's public secondary schools. All 67 chairpersons of the Information system subcommittee in public secondary schools were selected using census. Results showed that risk assessment has a positive statistically significant effect (β = 0.205, p = 0.000) on public secondary schools' working capital management. Based on correlation results, the association between risk assessment (X1) and working capital management was found to be positive and significant (r = 0.719; p = 0.00).
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