THE ROLE OF INTERNAL CONTROL UNITS IN MITIGATING FINANCIAL MISMANAGEMENT IN GOVERNMENT DEPARTMENTS
-
Awonke Geqeza(1*)
Department of Auditing, Faculty of Economic and Financial Sciences, Walter Sisulu University
(*) Corresponding Author
Keywords:
Public Fund Mismanagement, Control Theory, Risk Management in Public, Finance, Mitigation, Government Department
Abstract
The study explores how internal control units (ICUs) identify, assess, and manage risks related to public fund mismanagement. This study is grounded by control theory, which explains the function of internal control mechanisms to avert financial mismanagement. The study employed the purposive sampling method in sampling respondents. Using a quantitative cross-sectional survey of 150 respondents via interviewer-administered questionnaires, the study identifies relational and predictive factors preventing the curbing of financial mismanagement, such as the reoccurrence of risk associated with unauthorized, irregular, fruitless, and wasteful expenditure. Owing to the management failure to implement ICU recommendations. This research emphasizes the critical role of ICU in mitigating financial mismanagement in government departments, thereby improving public service delivery. The findings of this study call for evidence-based policy changes that prioritize implementation of ICU recommendations by management, independence of compliance units, and strategic leadership units. These changes are essential for mitigating financial mismanagement, enhancing service delivery, and strengthening public trust in government institutions.
Keywords: Public Fund Mismanagement; Control Theory; Risk Management in Public; Finance, Mitigation; Government Department
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References
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Ma, M., Wang, N., Mu, W., & Zhang, L. (2022). The instrumentality of public-private partnerships for achieving sustainable development goals. Sustainability, 14(21), 13756. https://doi.org/10.3390/su142113756
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Mpouzika, M., Mpouzika, E., & Papathanassoglou, E. (2018). Clinical connections: the effect of the greek financial crisis on the operation of public intensive care units. Connect the World of Critical Care Nursing, 12(2).
https://doi.org/10.1891/1748-6254.12.2.48
Mwombeki, F. (2023). Effect of external audit opinions and audit committees on financial resource management in public sector entities. Ilomata International Journal of Tax and Accounting, 4(1), 38-54. https://doi.org/10.52728/ijtc.v4i1.647
Nnadi, E., Usman, M., & Okereke, R. (2024). The dynamics of public financing in heavy engineering projects: a comprehensive analysis of international relations. INOSRSR, 11(2), 1-6. https://doi.org/10.59298/inosrsr/2024/1.1.11216
Nolan, J., Sandroni, C., Böttiger, B., Cariou, A., Cronberg, T., Friberg, H., & Soar, J. (2021). European resuscitation council and european society of intensive care medicine guidelines 2021: post-resuscitation care. Intensive Care Medicine, 47(4), 369-421. https://doi.org/10.1007/s00134-021-06368-4
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Okore, O., Ibekwe, O., & Ogomegbunam, O. (2022). Implementation of the treasury single account system on public financial management in nigeria. Journal of Accounting and Financial Management, 8(4), 143-162.
https://doi.org/10.56201/jafm.v8.no4.2022.pg143.162
Onwujekwe, O., Agwu, P., Orjiakor, C., McKee, M., Hutchinson, E., Mbachu, C. & Balabanova, D. (2019). Corruption in anglophone west africa health systems: a systematic review of its different variants and the factors that sustain them. Health Policy and Planning, 34(7), 529-543. https://doi.org/10.1093/heapol/czz070
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Thokoa, R., Nadioo, V., & Herbst, T. (2022). An exploration of internal branding at the national treasury of south africa. South African Journal of Business Management, 53(1). https://doi.org/10.4102/sajbm.v53i1.2593
Tretiak, D. and Miedviedkova, N. (2021). Risk management in public finance system of ukraine under global challenges. https://doi.org/10.3846/cibmee.2021.622
Umar, M., Karfe, J., Sule, G., & Ahmed, A. (2019). Effect of internal control system on risk assessment in the nigeria public sector (a study answer prepared). Scholars Bulletin, 05(12), 714-724. https://doi.org/10.36348/sb.2019.v05i12.005
Vaz, P. & Espejo, M. (2017). Trust and management control system: a study on meta-sinthetic interactions. Read Revista Eletrônica De Administração (Porto Alegre), 23(1), 156-178. https://doi.org/10.1590/1413-2311.07316.62764
Wahhab, A. & Oshba, A. (2024). Examine the relationship between the professional competency of ia and the effectiveness of rm in improving compliance in iraq's public organization. Technium Social Sciences Journal, 59, 1-22. https://doi.org/10.47577/tssj.v59i1.11192
Warsono, H., Hanani, R., & Rahman, A. (2023). Local governments’ financial accountability responses in critical time: reflection from intergovernmental management in indonesia during the early covid-19 pandemic. Academic Journal of Interdisciplinary Studies, 12(1), 303. https://doi.org/10.36941/ajis-2023-0025
Yamin, R., Mas’ud, M., & Sjarlis, S. (2022). Management of assets and follow-up the findings of the audit board to increase financial performance of local governments. Economics Business Accounting & Society Review, 1(1). https://doi.org/10.55980/ebasr.v1i1.8
Adeoye, M., Felix, A., & Adrion, E. (2024). Stakeholder perspectives on the governance and accountability of nigeria’s basic health care provision fund. Health Policy and Planning, 39(10), 1032-1040. https://doi.org/10.1093/heapol/czae082
Akidi, S., Okuna, V., & Mwesigwa, D. (2024). Integrated financial management system and financial control in uganda: a review of issues and concerns. American Journal of Strategic Studies, 6(1), 106-118. https://doi.org/10.47941/ajss.2382
Alozie, C. (2020). Fund accounting and government-wide financial reporting during the pre-ipsas implementation era from a nigerian experience. Journal of Public Budgeting Accounting & Financial Management, 32(3), 339-358. https://doi.org/10.1108/jpbafm-01-2019-0017
Annisa, I. & Sampurna, A. (2024). Analysis of the role of bpk ri in promoting organizational capacity development of aseansai in the period 2018-2023. Syntax Literate Jurnal Ilmiah Indonesia, 9(6), 3650-3672. https://doi.org/10.36418/syntax-literate.v9i6.16216
Anthon, C., Pène, F., Perner, A., Azoulay, É., Puxty, K., Louw, A., & Russell, L. (2022). Platelet transfusions and thrombocytopenia in intensive care units: protocol for an international inception cohort study (plot‐icu). Acta Anaesthesiologica Scandinavica, 66(9), 1146-1155. https://doi.org/10.1111/aas.14124
Anthon, C., Pène, F., Perner, A., Azoulay, É., Puxty, K., Louw, A., & Russell, L. (2023). Platelet transfusions in adult thrombocytopenic icu patients: protocol for a sub‐study of the plot‐icu cohort. Acta Anaesthesiologica Scandinavica, 68(3), 434-440. https://doi.org/10.1111/aas.14365
Antoniuk, O., Koval, N., Savitska, S., Mulyk, Y., Kuzyk, N., & Koshchynets, M. (2021). Development of internal control and audit in ukraine. Independent Journal of Management & Production, 12(6), s376-s390.
https://doi.org/10.14807/ijmp.v12i6.1761
Bosharo, O. and Abuga, I. (2021). Assessment of county internal control system on financial accountability in tana river county, kenya. Journal of Finance and Accounting, 5(3), 111-132. https://doi.org/10.53819/810181025024
Bracci, E., Tallaki, M., Gobbo, G., & Papi, L. (2021). Risk management in the public sector: a structured literature review. International Journal of Public Sector Management, 34(2), 205-223. https://doi.org/10.1108/ijpsm-02-2020-0049
Chudeau, N., Saulnier, P., Parot‐Schinkel, E., Lascarrou, J., Colin, G., Barbar, S., & Guitton, C. (2025). Mean arterial pressure after out-of-hospital cardiac arrest (metaphore): study protocol for a multicentre controlled trial with blinded primary outcome assessor. BMJ Open, 15(4), e096997. https://doi.org/10.1136/bmjopen-2024-096997
Elliott, I., Bottom, K., Carmichael, P., Liddle, J., Martin, S., & Pyper, R. (2021). The fragmentation of public administration: differentiated and decentered governance in the (dis)United Kingdom. Public Administration, 100(1), 98-115. https://doi.org/10.1111/padm.12803
Firmansyah, A., Arfiansyah, Z., & Yuniar, M. (2022). Local governments financial reporting quality in papua and west papua: do local government characteristics matter? Jurnal Riset Akuntansi Kontemporer, 14(2), 139-147.
https://doi.org/10.23969/jrak.v14i2.5552
Furqan, A., Wardhani, R., Martani, D., & Setyaningrum, D. (2020). The effect of audit findings and audit recommendation follow-up on the financial report and public service quality in indonesia. International Journal of Public Sector Management, 33(5), 535-559. https://doi.org/10.1108/ijpsm-06-2019-0173
Gamaliel, M. and Ali, D. (2019). Effect of public financial management on budget implementation in the public sector, a case of ministry of devolution and asal. strategicjournals.com, 6(1). https://doi.org/10.61426/sjbcm.v6i1.1082
Geqeza, A. (2025). Impact of Internal Audit Independence and Objectivity on Provincial Government Efficiency. Journal of Accounting and Finance in Emerging Economies, 11(2), 257-266. https://doi.org/10.26710/jafee.v11i2.3332
Gibson, M. (2022). Debate: in contracts, we trust—managing risk in public contracts through a relational approach. Public Money & Management, 43(2), 83-84. https://doi.org/10.1080/09540962.2022.2133767
Gowardipe, P., Usman, M., & Fatima, D. (2024). Lung function indices in male woodworkers and healthy workers in central india – a comparative study. Asian Journal of Pharmaceutical and Clinical Research, 96-99. https://doi.org/10.22159/ajpcr.2024.v17i4.49860
Lestari, R. and Nurkhin, A. (2023). Determinant factors of local government financial performance (using financial condition dimension as indicator). Indonesian Management and Accounting Research, 20(2), 335-360. https://doi.org/10.25105/imar.v20i2.13968
Ma, M., Wang, N., Mu, W., & Zhang, L. (2022). The instrumentality of public-private partnerships for achieving sustainable development goals. Sustainability, 14(21), 13756. https://doi.org/10.3390/su142113756
Mabunda, L., Mvunabandi, J., & Chonco, C. (2023). Investigating the effect of financial mismanagement on municipalities service delivery: a case study of ethekwini municipality-south africa. Journal of Accounting and Finance in Emerging Economies, 9(4). https://doi.org/10.26710/jafee.v9i4.2891
Mäkinen, O., Bäcklund, M., Liisanantti, J., Peltomaa, M., Karlsson, S., & Kalliomäki, M. (2020). Persistent pain in intensive care survivors: a systematic review. British Journal of Anaesthesia, 125(2), 149-158.
https://doi.org/10.1016/j.bja.2020.04.084
Mpouzika, M., Mpouzika, E., & Papathanassoglou, E. (2018). Clinical connections: the effect of the greek financial crisis on the operation of public intensive care units. Connect the World of Critical Care Nursing, 12(2).
https://doi.org/10.1891/1748-6254.12.2.48
Mwombeki, F. (2023). Effect of external audit opinions and audit committees on financial resource management in public sector entities. Ilomata International Journal of Tax and Accounting, 4(1), 38-54. https://doi.org/10.52728/ijtc.v4i1.647
Nnadi, E., Usman, M., & Okereke, R. (2024). The dynamics of public financing in heavy engineering projects: a comprehensive analysis of international relations. INOSRSR, 11(2), 1-6. https://doi.org/10.59298/inosrsr/2024/1.1.11216
Nolan, J., Sandroni, C., Böttiger, B., Cariou, A., Cronberg, T., Friberg, H., & Soar, J. (2021). European resuscitation council and european society of intensive care medicine guidelines 2021: post-resuscitation care. Intensive Care Medicine, 47(4), 369-421. https://doi.org/10.1007/s00134-021-06368-4
Odhiambo, N. & Maende, B. (2023). Effect of internal controls on resource mobilization of non-governmental organizations in nairobi county. Journal of Finance and Accounting, 7(2), 98-107. https://doi.org/10.53819/81018102t2132
Okore, O., Ibekwe, O., & Ogomegbunam, O. (2022). Implementation of the treasury single account system on public financial management in nigeria. Journal of Accounting and Financial Management, 8(4), 143-162.
https://doi.org/10.56201/jafm.v8.no4.2022.pg143.162
Onwujekwe, O., Agwu, P., Orjiakor, C., McKee, M., Hutchinson, E., Mbachu, C. & Balabanova, D. (2019). Corruption in anglophone west africa health systems: a systematic review of its different variants and the factors that sustain them. Health Policy and Planning, 34(7), 529-543. https://doi.org/10.1093/heapol/czz070
Read, S. & Miller, L. (2023). Behavioral regulation relies on interacting forces and predictive models. Journal of Personality, 91(4), 917-927.
https://doi.org/10.1111/jopy.12815
Sekandarzad, A., Flügler, A., Rheinboldt, A., Rother, D., Först, G., Rieg, S., & Biever, P. (2025). Reduced antimicrobial consumption through enhanced pneumonia management in critically ill patients: outcomes of an antibiotic stewardship program in the intensive care unit. Frontiers in Medicine, 12. https://doi.org/10.3389/fmed.2025.1549355
Shonhadji, N. & Maulidi, A. (2020). Is it suitable for your local governments? a contingency theory-based analysis on the use of internal control in thwarting white-collar crime. Journal of Financial Crime, 29(2), 770-786. https://doi.org/10.1108/jfc-10-2019-0128
Srivastava, V. (2022). Covid-19 and its impact on course design of finance courses. Management and Labour Studies, 48(2), 238-241.
https://doi.org/10.1177/0258042x221076593
Sumardjo, M. and Jayanti, F. (2021). Determinants of government characteristics and audit findings on local government financial performance. Information Management and Business Review, 13(2(I)), 7-15.
https://doi.org/10.22610/imbr.v13i2(i).3200
Taner, F., Baddal, B., Theodoridis, L., & Petrovski, S. (2024). Biofilm production in intensive care units: challenges and implications. Pathogens, 13(11), 954. https://doi.org/10.3390/pathogens13110954
Thokoa, R., Nadioo, V., & Herbst, T. (2022). An exploration of internal branding at the national treasury of south africa. South African Journal of Business Management, 53(1). https://doi.org/10.4102/sajbm.v53i1.2593
Tretiak, D. and Miedviedkova, N. (2021). Risk management in public finance system of ukraine under global challenges. https://doi.org/10.3846/cibmee.2021.622
Umar, M., Karfe, J., Sule, G., & Ahmed, A. (2019). Effect of internal control system on risk assessment in the nigeria public sector (a study answer prepared). Scholars Bulletin, 05(12), 714-724. https://doi.org/10.36348/sb.2019.v05i12.005
Vaz, P. & Espejo, M. (2017). Trust and management control system: a study on meta-sinthetic interactions. Read Revista Eletrônica De Administração (Porto Alegre), 23(1), 156-178. https://doi.org/10.1590/1413-2311.07316.62764
Wahhab, A. & Oshba, A. (2024). Examine the relationship between the professional competency of ia and the effectiveness of rm in improving compliance in iraq's public organization. Technium Social Sciences Journal, 59, 1-22. https://doi.org/10.47577/tssj.v59i1.11192
Warsono, H., Hanani, R., & Rahman, A. (2023). Local governments’ financial accountability responses in critical time: reflection from intergovernmental management in indonesia during the early covid-19 pandemic. Academic Journal of Interdisciplinary Studies, 12(1), 303. https://doi.org/10.36941/ajis-2023-0025
Yamin, R., Mas’ud, M., & Sjarlis, S. (2022). Management of assets and follow-up the findings of the audit board to increase financial performance of local governments. Economics Business Accounting & Society Review, 1(1). https://doi.org/10.55980/ebasr.v1i1.8
Published
2025-11-13
How to Cite
Geqeza, A. (2025). THE ROLE OF INTERNAL CONTROL UNITS IN MITIGATING FINANCIAL MISMANAGEMENT IN GOVERNMENT DEPARTMENTS. Journal of Management : Small and Medium Enterprises (SMEs), 18(3), 2063-2075. https://doi.org/10.35508/jom.v18i3.25755
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Articles
