Internal Control Systems and Financial Performance of Higher Learning Institutions in Rwanda

ABSTRACT The topic of the study was ‘Internal Control Systems and Financial Performance of Higher Learning Institutions in Rwanda’. It was guided by 4 objectives, they included: 1) To determine the profile of HLIs in Rwanda in terms of Age, gender, education level, positions and years of experience, 2) To examine the functionality of Internal Control systems in Institutions of Higher Learning in Rwanda, 3) To examine performance of Institutions of Higher Learning in Rwanda, and 4)To examine the relationship between internal control systems and perform~~ance in an Institution of Higher Learning Institutions in Rwanda. It was set to test the hypothesis that there is no relationship between internal control systems and performance in the HLI5 in Rwanda. The methodology of the study was descriptive co - relational design. The findings of the study were that the levels of internal control systems and financial performance were high respectivelly and there is a positive relationship between internal control systems and performance within the HLIs in Rwanda. Therefore, the null hypothesis was rejected. Finally, the findings indicated a positive relationship between the extent of functionality internal control systems and financial performance in selected HLI5 in Rwanda. Major conclusions has been generated such as 1) The extent of functionality of internal control systems in institutions of higher learning in Rwanda was generally found high. This means that generally, the functionality of internal control systems in HLis is high. The level of financial performance was also found to be high and this indicated that these institutions always did their financial planning very effectively. The research recommendations stated that there is a need for these institutions improve on the relationship with stakeholder and improve on their stature and also there is a need to work on registering expenses as they are incurred. The research indicates that 3 important prospective researches can be researched on like 1) Number of students and financial performance in HLIs in Rwanda, 2) An investigation between the private and public institutions in terms of financial performance and 3) Record keeping and financial performance in HLI5 in Rwanda.

 TABLE OF CONTENTS

DECLARATION A.....................~.

DECLARATION B

DEDUCATION iii

ACKNOWLEGDEMENT iv

ABSTRACT v

LIST OF ABREVIATIONS AND ACRONYMS vi

TABLE OF CONTENTS vii

LIST OF TABLES x

CHAPTER ONE 1

THE PROBLEM AND ITS SCOPE 1

Background of the Study 1

Theoretical Perspective 2

Conceptual Perspective 2

Contextual perspective 3

Statement of the Problem 4

Purpose or General Objective 5

Research Objectives 5

Specific objectives 5

Research Questions 5

Research Hypothesis 6

Scope of the study 6

Geographical Scope 6

Content Scope 6

Time Scope 6

VII

Theoretical Scope .6

Significance of the study 6

Conceptual Framework 7

Operational definition of Key terms 7

CHAPTER T~NO 9

REVIEW OF RELATED LITERATURE 9

Concepts, Ideas, Opinions from Authors/ Experts 9

Theoretical Framework 19

Related Studies 23

CHAPTER THREE 24

METHODOLOGY 24

Research design 24

Study Population 24

iIifl~ui~nn~ Sample size 24

Sampllng Procedures 25

Research Instruments 25

Validity and Reliability of the Instrument 25

Data Gathering Procedure 26

Data Analysis 26

Ethical Considerations 27

Limitations of the Study 27

f~IiH.I

CHAPTER FOUR 29

DATA PRESEANTATION, ANALYSIS AND INTERPRETEATION 29

Introduction 29

CHAPTER FIVE 46

SUMMARY OF FINDING, CONCLUSIONS AND RECOMMENDATIONS 46

Introduction 46

Findings .46

Conclusions 47

Recommendations 48

Areas for further research 48

References 49

APPENDIX I : TRANSIMM1TAL LETTER 52

APPENDIX II: INFORMED CONSENT ...~ 53

APPENDIX III : TRANSMiTTAL LETTER FOR RESPONDENTS 54

APPENDIX IV: CLEARANCE FROM ETHICS COMMITTEE 55

APPENDIX V: RESEARCH INSTRUMENT (QUESTIONNAIRE) 56

RESEARCHER’S CURRICULUM VITAE