The effect of financial control measures on financial management: a case study of Ezemvelo KZN Wildlife (EKZNW).

Abstract

The ability of any organisation to meet its’ planned goals and objectives, whilst embracing the limitations expressed within internal financial control measures, is a familiar occurrence, that transpires within the different public and private sectors, globally. This study provides an insight into the effect of financial control measures on financial management within Ezemvelo KZN Wildlife (EKZNW), the appointed custodians of conservation within the province of KwaZulu-Natal, a state-owned entity, reporting to the Provincial Department of Economic Development, Tourism and Environmental Affairs. The study seeks to determine if the financial control measures in place within EKZNW are effectively communication and understood; whether financial control measures enhances effective performance within EKZNW and to explore the functions of financial control measures in relation to the overall financial management of the organisation. The study delved into the relationship between the financial control measures and the financial management, testing the extent to which financial control measures are effected and the effect it has on financial management, within the organisation. The sample size comprised of 220 participants that are employed within financial administration positions, resulting in a 97% response rate. The data collection process included the distribution of questionnaires to the sample population. The study comments on the audit findings and other literature, to support or refute the core areas of strengths and weakness, with regards to the financial control measures. This was accomplished using the quantitative research methodology, in gathering and analysing the data collected. The overall study results confirmed that a positive correlation existed between the effectiveness of financial control measures and the communication of financial control measures. The study also concluded that the communication and understanding of financial control measures were successful within the organisation and that financial control measures were effective. Upon examination of the organisations’ integrated annual reports, contradictory evidence was found, that supported certain minority results within the study. The study concluded that although most participants responded positively, there were gaps and weaknesses found within communication, training and the effectiveness of financial control measures. Recommendations addressing the challenges of inadequate training, a lack of financial control measures and so forth, were proposed, to close the gaps.