THE EFFECT OF FRAUD ON THE PERFORMANCE OF PUBLIC INSTITUTIONS IN BUEA

ABSTRACT

This study examined the effect of fraud on the performance of Public Institutions in Buea, case of University of Buea. The specific objectives were; to determine the extent to which misappropriation of assets affects the performance of public institutions in Buea; to examine the extent to which improper revenue recognition affects the performance of public institutions in Buea and to determine the extent to which overstatement of assets affects the performance of public institutions in Buea. The survey method was used wherein 40 questionnaires were administered to the staffs of the University of Buea. Although the number of questionnaires distributed was not large, the survey was distributed across all the departments in University of Buea to ensure representativeness. Data was obtained through a structured questionnaire designed for that purpose and the data was analyzed using descriptive and regression analysis with the help of Statistical Package for Social Sciences (SPSS) version 25. The hypothesis was tested through a regression test, and it revealed that there is a strong positive relationship between the variables (r=0.819) whereby 66.4% of performance of public institutions could be attributed to fraud. The study concluded thus that fraud has a significant impact on the performance of public institutions. It was recommended that institution management should come up with a policy which clearly indicates steps to be taken on any staff found committing fraud. This will help reduce internal fraud which is more elaborate in the institutions than external. Furthermore, the study recommended that public institutions should ensure that there is segregation of duties, efficient internal controls, jobs satisfactions and job enrichment.

KEYWORDS: Misappropriation of assets, improper revenue recognition, overstatement of assets, performance.