ASSESSING THE INTERNAL CONTROLS IN LOCAL GOVERNMENTS IN GHANA

Purpose – Adequate internal control systems are prerequisites for efficient and effective operations of local governments but their mere presence does not guarantee efficiency and effectiveness. In Ghana, internal audit reports recount irregularities in operations resulting in the delivery of poor services and amenities to the communities. This study sought to assess the internal control systems in local governments to ascertain their effectiveness or otherwise. The institutional theory informed the study. Methodology - The qualitative research approach was employed for the study. The purposive sampling technique was used to select 24 officers from six selected local governments in the Central Region of Ghana. In each local government, a Coordinating Director, an Audit Committee member, an Internal Auditor, and a Finance Officer were interviwed. Primary data were collected by the use of interview guide while secondary data were collected by document review guide. The secondary data were derived from literature on internal controls. The data was subjected to thematic analysis and interpretation. Findings - The study revealed that management bodies of local governments have put in place the desired standard internal controls but there were irregularities in their operations, thereby leading to ineffective internal controls. Conclusion - The internal controls of the selected local governments were similar to the standard controls. However, the implementation of internal controls did not result in propriety and soundness due to irregularities. It was recommended that relevant authorities should ensure adherence to internal controls in local governments. Keywords: African communities, Operations, Internal audit reports, Local governments JEL Codes: M41, M42, H83