ABSTRACT

       The importance of internal control in theadministration of wages and salaries in ministry cannot be over emphasized. Itis the responsibility of management to establish and maintain an effectiveinternal control system that will enhance the attainment of organizationalgoals.

       Therefore, this study seeks to find outwhat extent the effectiveness of internal control system in ministries in Imo Statecan checkmate frauds. To carry out this assignment both the primary andsecondary sources of data were used. A descriptive design was adopted for thestudy. One hundred and twenty questionnaire were distributed but only onehundred were returned. All the two were testing using Chi-square at 0.05 levelof significance.

       One accepted the null and rejected thealternative indicating that gross payment in the ministry is not inflated whilethe other one reject the null and accepted the alternative indicating thatthere is a significant relationship between an effective internal control andfinancial accountability.

       The summary of the finding revealed that

1)    There exists an internal control system inministry.

2)    That there is a laid down procedure but theproblems lies in its operations

3)    Those handling cash or near cash item areproperly checked but sometimes superiors may encourage those handling cash tospend it inappropriately.

4)    Importance is attached to the separation ofduties in the area of execution and custody of cash and bank reconciliation.

Basedon the findings the following recommendations were made.

1)    It is suggested that all wages and salariesirrespective of the amount should be paid by cheque as to allow theauthenticity of wages and salaries payment.

2)    It is strongly recommended that workersshould be effectively motivated to attain organizational goal.

3)    Young officer should be made aware of theinternal control measure in the environment in which they operate.