Assessment of the Effectiveness of Internal Control Systems of Adamawa State Ministries, Departments and Agencies in Adamawa State, Nigeria

Aim: This study examines the effectiveness of internal control systems (ICS) of Adamawa state Ministries, Departments and Agencies (MDAs).

Study Design: Survey research design.

Place and Duration of Study: Sample: Ministries, Departments and Agencies in Adamawa State in 2019.

Methodology: The sample size of the study was one hundred and sixty-five (165) target respondents which consist of all heads of MDAs, Directors of Finance, internal auditors’ and two key staff from accounts and audits of the ministries, departments and agencies. The study used primary data and questionnaire was used in collecting data used for analyses. The effectiveness of the internal control systems under four dimensions: control environment (CE), control activities (CA), information, and communication (IC), and monitoring of controls (MC) were analyzed using descriptive statistics while ANOVA test was used to test the hypothesis of the study.

Results: The study found that the effectiveness of ICS for the MDAs in Adamawa state was good. The Departments category generally had the highest rating for CE, CA, IC and MC. This is reflected in their overall effectiveness. However, other categories (Ministries & Agencies) had moderate ICS effectiveness, particularly the Agencies that recorded the lowest rating in concerning to CE and CA.

Recommendation: The study recommends that Departments should maintain their level of internal control systems through effective monitoring and separate evaluations of their systems of control. This will help enhance or maintain the current level of their internal control systems. Ministries and Agencies should strengthen their Control Environment through mechanisms such as a commitment to integrity, ethical values, and competence, and Control Activities by ensuring that unauthorized transactions are not processed and more controls are put in place to avoid overspending. This will render the other components of internal controls more effective.