Effects of Internal Control Systems on the Financial Performance of Public Institutions

This study examines the effect of internal control systems on the financial performance of public institutions in Kenya, focusing on key components such as risk assessment, information systems, and monitoring. Motivated by declining performance in many institutions, the research uses a descriptive design with both quantitative and qualitative approaches, collecting data from senior managers in public institutions through structured questionnaires. The findings reveal a significant positive relationship between internal control systems and financial performance, identifying risk assessment, information systems, and monitoring as critical determinants. The study concludes that strengthening these components can enhance financial outcomes and provides valuable insights for institutional management, regulators, and policymakers, while also contributing to academic research.