Investigating the impact of internal control on financial performamce at the Namibia Student Financial Assistance Fund
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Date
2023
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Publisher
University of Namibia
Abstract
The aim of this research was to investigate the impact of internal controls on financial performance at the Namibia Student Financial Assistant Fund. The regulation and institutional framework have improved significantly over the years and define internal control as all the policies and procedures adopted by the management of an entity to assist in achieving management objectives of ensuring as far as practicable, the orderly and efficient conduct of its business, including adherence to management policies that should be adhered to, yet still NSFAF, in particular is faced with lots of challenges. It is against this background that this study was conducted. The objective of the study include: to identify the factors that will affect the choice of the internal control measures at NSFAF; examine the impact of internal control on monitoring the student funds records at NSFAF; to examine the impact of internal control on the achievement of operational goals at NSFAF; to establish the relationship between internal control and financial performance of NSFAF. Related literature was reviewed. The study adopted the pragmatism research philosophy with the purpose of improving the researcher`s knowledge on the approaches and that was also in line with the research topic as the approach was the most appropriate to improve the reliability and validity of the research findings. The study sought to get an in-depth understanding of the impact of internal controls on financial performance at NSFAF using a mixed method approach which achieved by using a cross sectional survey design through a survey and conducting of interviews. The study population was 70 staff of NSFAF Windhoek. The census technique was adopted for the quantitative part of the study. Data obtained from the survey was analysed using the Statistical Package for the Social Sciences (SPSS) software. The data was presented using statistical tools such graphs, pie charts, and tables. In analysing and presenting the results, descriptive statistics tools were used in order to give the researcher a quick and clear impression of the location of the data. The finding revealed that from the start of NSFAF, the internal controls were considered ineffective and unsatisfactory due to the ineffectiveness in the administration of the fund, lack of proper mechanisms for loan recovery and low recovery and high default rates by students. It is recommended NSFAF to adopt COSO framework, organisation to contact regular system review and the Government of Namibia as policy ii maker and the funder of NSFAF, should revise the policy on which NSFAF is governed, as effective implementation is lacking.
Description
A thesis submitted in partial fulfilment of the requirements for the Master of Science (Accounting and Finance)
Keywords
Internal control, Financial performance, Namibia Student Financial Assistant Fund (NSFAF)