Selected internal control systems at the Malta FA : an analysis

Abstract

Purpose: The main purpose of this research is to evaluate the control environment and internal control systems in place at Malta FA, a voluntary organisation. Specifically, this study seeks to analyse the effectiveness of the internal control systems within selected areas, including, Human Resources, Information Technology, Revenue, Procurement, Tendering, and Maintenance. Furthermore, this research aims to provide recommendations for improving the internal control systems in these areas. Design: To achieve the research objectives, a mixed-methods case study with a convergent design was adopted. Eight semi-structured interviews and seven questionnaires were conducted with the directors/managers of the selected areas within Malta FA to obtain insight into the Association. Findings: The findings indicate that the directors/managers believe there is an effective control environment at the Malta FA. Furthermore, the Association tries to maintain sound internal controls within its HR, IT, Revenue, Procurement, Tendering, and Maintenance departments. These include controls related to verification and reconciliation, approval and authorisation, and documentation of policies. However, despite efforts to mitigate risks, certain vulnerabilities remain unaddressed. Conclusions: This study concludes that, although the Association’s internal controls are suitable and adequate in certain areas, there is scope for enhancement. Risks are common in all operations, irrespective of whether one is operating a profit or non-profit organisation. Therefore, adequate controls need to be in place to mitigate risk to an acceptable level. Value: Several recommendations are proposed to address the identified weaknesses in Malta FA’s internal control systems. Implementation of these actions is expected to enhance the Association’s internal controls and lead to more efficient and effective risk mitigation practices.