EVALUATING THE ROLE OF INTERNAL CONTROLS IN STRENGTHENING FINANCIAL GOVERNANCE IN PUBLIC ADMINISTRATION

Abstract

This study examines the critical role of internal controls in enhancing financial governance within public administration. Effective financial governance is fundamental to ensuring accountability, transparency, and efficient resource management in government institutions. Internal controls—comprising policies, procedures, and mechanisms—serve as the backbone for safeguarding public assets and minimizing risks such as fraud, misappropriation, and financial mismanagement. Through a mixed-methods approach combining qualitative case studies and quantitative data analysis from various public agencies, this research evaluates how well internal control systems contribute to improved financial oversight and compliance. The findings reveal that robust internal controls significantly strengthen financial governance by promoting accurate financial reporting, enhancing operational efficiency, and fostering a culture of accountability. However, challenges such as limited capacity, resistance to change, and inadequate monitoring were identified as barriers to the effective implementation of internal controls. The study concludes with practical recommendations for policymakers and public administrators to reinforce internal control frameworks, thereby advancing sound financial governance and public trust. However, challenges like limited staff skills and poor monitoring affect their effectiveness. The study recommends strengthening these controls to promote transparency and trust in public finances.