Internal Control Systems and Financial Performance of Public Tertiary Institutions in Anambra State, Nigeria

Effective internal control is widely regarded as a safeguard for public funds, yet evidence on how its components affect financial performance in public tertiary institutions in Anambra State, Nigeria, is limited. This study examined the effect of the five components of the COSO internal control framework (control environment, risk assessment, control activities, information and communication, and monitoring activities) on the financial performance of public tertiary institutions in the state. The study is anchored on agency theory, stewardship theory, and the COSO framework. It adopts a cross-sectional survey design, and primary data are collected with a structured 35-item questionnaire administered to Bursary staff, accounting, and internal audit staff of the institutions. The instrument was validated by experts and tested for reliability using Cronbach's alpha (Cronbach, 1951). Data were analyzed using descriptive statistics, Pearson correlation, and multiple regression at the 5% level of significance. The findings revealed that all five dimensions of internal control exert a statistically significant positive effect on financial performance. The study concluded that robust internal control mechanisms are vital for minimizing financial wastage, optimizing revenue collection, and ensuring budget compliance. It is recommended that institutional managements reinforce the control environment, grant independence to internal audit units, and enforce strict adherence to control activities.