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EFFECTS OF FINANCIAL MANAGEMENT PRACTICES ON THE

OPERATIONAL PERFORMANCE OF THE GHANA POLICE FORCE

Mark Kyei, Oscar Agyemang Opoku

University of Cape Coast, Ghana

Email: [email protected], [email protected]c.edu.g

Abstract

The study was to establish the effect of the financial management practices on the operational

performance of the Ghana Police force in the Greater Accra Region of Ghana. The study used

a descriptive survey design of the quantitative approach. It targeted staff of Ghana Police

Service in the Greater Accra Region of Ghana. The study employed census and questionnaire

was employed to gather data from them. The questionnaire was analysed descriptively using

frequencies and percentages with the aid of Statistical Package for Service Solution version

26. The study found that effective financial management practices have assisted in reducing,

crime apprehension and prosecution, crime rate, crime detection and prevention, protection

of life and property, as well as peace and tranquility. Factors that hinder the effective financial

management practices in the Ghana Police force included; political changes/interference,

timeliness of resources and finance, problems of accountability and transparency, and

problems of bureaucracy and inefficiency. Therefore, the study recommended that the Ghana

Police Service should ensure that liquidity policy is reviewed periodically. Also, the Ghana

Police Service should strengthen the system of supervision for cash collection and

disbursement. Moreover, the Ghana Police Service should ensure that there is analysis of

performance and plans are compared to actual plans with budget. Furthermore, the Ministry

of finance in collaboration with the Ghana Police Service should release resources and finance

on time. Lastly, the Ghana Police Service should ensure that there is accountability and

transparency as well as reducing the bureaucracy and inefficiency.

Keywords

: financial management practices; operational performance; ghana police force; greater

accra region

INTRODUCTION

Efforts to improve the quality of public financial management are becoming increasingly

prominent around the world, with many nations in both the developed and developing world

making significant and outstanding strides in improving public financial management and

governance. Despite this, there is still more work to be done. A growing emphasis on fiscal

management and discipline, priority of expenditure, as well as value for money, is being placed

on the public sector landscape, which is fast evolving. As a result, it is even more critical that

international donors, governments, national and local institutions, including regulators and

professional accounting groups, collaborate in order to achieve long-term gains in public

financial management, transparency, and accountability. The improvement of the quality of

public service results is dependent on the effectiveness of public financial management. It has

an impact on how financing is allocated to address national priorities, the availability of

resources for investment, and the cost-effectiveness of public services, among other things.

Furthermore, if there is solid financial stewardship, accountability, and openness in the

use of public monies, it is more than likely that the public will have better faith in public sector

institutions (Simpson & Weiner, 1989). Governments must do it right since the consequences

Injuruty: Interdiciplinary Journal and Humanity

Volume 2, Number 7, July 2023

e-ISSN: 2963-4113 and p-ISSN: 2963-3397

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will be felt across a wide range of disciplines, including aggregate financial management

(AFM). - fiscal sustainability, resource mobilization, and allocation; operational management,

including performance, value-for-money, and budget management; government, including

transparency and accountability; and fiduciary risk management, including controls

compliance, and regulatory oversight.

This study concentrated on finance, which is the lifeblood of every organization. Most at

times, public organizations especially those in the government sector are not profit-oriented

and, therefore, there is the need for proper financial management practices in those sectors, to

ensure efficiency in its operations. Financial management in the public sector may comprise

the mobilization of adequate funds from the economy in an appropriate manner, the allocation

of these funds, and the disbursement of these monies in an effective and efficient manner. It is

vital for a public financial management system to include the functions of revenue generation,

resource allocation, and expenditure control (finance usage), among other things (Simpson &

Weiner, 1989). The public sector in Ghana does generate a lot of funds and therefore there is

the need to study, know and understand how these funds are managed in the public sector to

enhance upon its service delivery to the people effectively and efficiently.

Financial management is very important to all organizations, whether private or public

sector. In the private sector, financial management is a key aspect of the organization’s general

management strategy. To them the ability to manage finance effectively increase performance

and has a huge impact on the ability to expand. To the public sector organization, Financial

Management is equally important and the benefit could be immense. However, due to the main

performance criteria of effectiveness, efficiency, and economy that is used to evaluate them,

proper financial management in terms of maximization of profit may not be a priority but

proper management of funds may increase productivity. The Ghana Police Service is not an

exception.

Financial Management and control issues in the public sector have become the focus of

increasing attention in recent years. The new philosophy or policy of accountability and

management in public organizations advocate for qualified financial managers. For example;

the financial resources of the Ghana Police Service until recently were administered rather than

managed. They were charged with the responsibility of the delivery of services and Justice by

statutory and financial regulations.

It is noted that the Ghana Police Service is solely funded by the government to provide

security functions for the smooth running of the state. Therefore, the output they provide cannot

be quantified and measured in monetary terms. There will be measure in terms of crime

minimization and absolute peace and tranquility in the country and their ability to do so at a

reduced cost to the nation. However, the study increase in crime over many years has led the

government to consider and implement various means and measures designed to protect life

and property deter and prevent, detect, punish and rehabilitate criminals. The frontline

organization war against lawlessness is carried on by the police service. Such a major and high-

profile service is worthy of closer examination which needs financial managers to involve

themselves in planning, organizing, controlling, and strategizing limited resources.

Financial management in the public sector plays a very important role in the quality of

operations and service delivery. It affects resource availability and investment into the

operations of the public sector ministries such as the police. Public confidence in the public

sector organizations such as the Ghana police force can greatly improve with proper and

effective financial accountability, stewardship and transparency (Holtzblatt & Tschakert,

2011).

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Factors such as weak financial management practices, gaps between planning, budgeting

and implementation, poor accountability and transparency and poor monitoring and oversight

affect the effective management of public financial management systems in many African

countries including Ghana (KIPPRA, 2018). For instance, World Bank (2005) indicates that,

information on central government allocations to district assemblies’ significant delays

including information on resources and the actual transfer of funds to the various services under

government including the police which increase the opportunistic tendencies thereby affecting

the financial management process. Similarly, the Bank, (2017) identified poor cash planning,

lack of liquidity, lack of information on cash balance and poor expenditure control as some of

the factors affecting the operational performance of public services in Ghana.

These constraints impact heavily on the operational performance of the various

government institutions including the Ghana police. In the police force, poor financial

management practices have impact on their operational activities such as security, crime

minimization, peace and tranquility in the country. However, many of the previous studies on

public financial management practice has focused on the private institutions and other

government agencies, furthermore, most have concentrated ion the effect of financial

management practices on financial performance. Relatively few have concentrated on its effect

on the operational activities of the Ghana Police force. It is on this basis that the study seeks to

assess the effects of financial management practices such as financial planning, budgeting, and

public procurement and financial control practices on the operational performance of the Ghana

Police service.

METHOD RESEARCH

This study adopted a descriptive survey design. Hartman et al., (2019) indicated that

descriptive survey research involves the collection of data on a sample of individuals by

interviews or questionnaires on information such as the attitude, opinion, habits and any other

social issues of interest. It is employed to describe the characteristics of the sample or

characteristics of interest (Fisher & Marshall, 2009).

Fisher & Marshall, (2009) opined that descriptive study has several advantages; it allows

for generalization from sample to the population. In this type of research, only one sample of

subjects is studied and based upon characteristics of that sample, generalization is made back

to the population where the sample is formerly chosen. it deals with things as they currently

are (Creswell, 2014). Furthermore it is the dominant form of collecting data in the social

sciences (Miskulin et al., 2002). It paints a picture of a situation by answering questions on

who, what, when, where, and how (Zikmund et al., 2013).

The Ghana Police Service has the mission to “deliver services in crime prevention,

detection, apprehension and prosecution of offenders consistent with the expectations of Ghana

stakeholders. Their key functions include the

• Prevention and detection of crime,

• Apprehension and prosecution of offenders,

• Maintenance of law and order

• Protection of life and property (Almatrooshi et al., 2020)

The Greater Accra region has the smallest area amongst the 16 administrative regions of

the country occupying a total land area of 3,245 square kilometres. It forms about 1.4% of the

total landed area of Ghana yet the most populated region after the Ashanti region. According

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to the Ghana Statistical Service website (2020) the population of the region is about 5,055,883.

It is the most urbanized region in the country with about 87.4% of the total population of people

living in the urban centers with its capital city being Accra (Odoom, 2020).

The region was created by the Greater Accra Region Law (PNDCL 26) on the 23 July,

1982. It is bordered on the North by the Eastern Region, on the east by the Volta Region, on

the south by the Gulf of Guinea, and on the west by the Central Region. The latitude of Greater

Accra Region is 5.564540, and the longitude is -0.225710 (Cunningham et al., 2020).

The Accra Police Regional Headquarters is located at Accra Central, near Tudu and

Kantamanto. The Accra Regional command is made up of 14 police divisions, 42 districts and

110 police station and posts. All regional divisions have subdivisions to ensure flexibility and

effectiveness in service delivery. With reference to this study, the Finance, audit and operations

department are located within the regional and divisional offices. Thus, for the greater Accra

region, the study concentrated on the divisional offices.

The population for this study consisted of 228 employees in the departments of finance,

audit, administration and operations drawn from seven divisional headquarters in the greater

Accra region as shown in Table 1.

Table 1: Population of Study

Finance

Audit

Administration

Operations

Total

Ministries

Nima

Airport

Tesano

La Nkwantanang-(Madina)

Adenta/Abokobi

Cantonments

Total

228

In this study, census was conducted for the population. Thus, all elements of the

population were involved in the study (228 respondents). This helps to captured the perception

of all staff from the various department in the Ghana Police Service in order to wholly

understand and examine the effect of the financial management practices on the operational

performance of the Ghana Police Force.

Sampling is the process of selecting units from a population of interest so that by studying

the sample we may fairly generalize our results back to the population from which they were

chosen (Oliver, 2013). The simple random sampling method was used to select seven (7) out

of the fourteen (14) divisions for the study. This is a technique where a group of samples is

chosen from a larger group with each individual chosen entirely by chance and each member

has equal opportunity of inclusion in the sample (Easton & McColl, 1997). The names of the

division were written on a paper and placed in a bowl; the bowl was shaken to mix after every

pick until the seven out of the fourteen divisions were chosen.

The purposive sampling method which is a non-probability sampling method was

adopted for the study since it enabled the researcher to administer the questionnaire to

respondents who are well versed in the finance and operational matters of the Ghana Police

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Service. Head of Departments and employees from the key departments (finance, audit,

administration and operations) were sampled purposively to provide the needed information

for the study.

Primary data was used for the research; the secondary data was got from on-line studies

of articles and publications. Primary data sources provide original first hand data for a specific

research work or project. It is one of the most common techniques employed for surveys

(Salkind, 2010). Data was gathered using questionnaires which are the main means of

collecting quantitative primary data in a standardized way for consistent and coherent analysis.

It is usually inexpensive and saves time (Roopa & Rani, 2012).

A structured questionnaire which contained closed ended questions was used to extract

the relevant information for the study. According to Krasikova et al., (2011), questionnaire is

made up of series of questions or items, which are written down for people to respond and later

returned to the researchers. The questionnaire contained closed ended items and has responses

from which respondents were asked to choose the one that applied to them. Section A of the

questionnaire sought to elicit detailed information about respondent’s demographic

background as well as general information based on the parameters that define the respondent’s

background and which helped the researcher to carry out the required analysis. Parameters in

this section include, gender, age, qualification, department and years of experience. Section B

discusses financial planning practices, section C discusses financial control practices, D

discusses financial reporting practices, cash management practices and F, the operational

performance.

The variables were based on the research question to be answered. They were based on

the factors that explain financial management practices and operations performance with

respect to the study. The variable “Demographic factors” were measured using a multi-choice

method which required the respondent to tick the desired option. The variables financial

planning practices, financial control practices, financial reporting practices, cash management

practices and operational performance were measured on a 5-point likert scale of Strongly

Agree (SA), Agree (A), Neutral (N), Disagree (DA) and Strongly Disagree (SA). The

dependent variable (operational performance) was also measured using 5-point likert scale of

Strongly Agree (SA), Agree (A), Neutral (N), Disagree (DA) and Strongly Disagree (SA).

Bryman and Bell (2005) refers to validity as “a measure of how well a specific

measurement of a concept, really gives an accurate picture of the concept” or the degree to

which a test measures what it is supposed to measure (Mason & Bramble, 1978). The reliability

of a research instrument concerns the extent to which the instrument yields the same results on

repeated trials (Mason & Bramble, 1978). To ensure that data collected for the study was

reliable and valid independent review by supervisor and colleagues were used to judge and

review the tool (Krause et al., 2001). Responses were used to update the questionnaire before

the commencement of the study. Sampling error was minimized by using adequate sample size

for the study. Response error was reduced by carefully constructing the questionnaire and non-

response error was reduced because respondents willingly participated in the study.

The Statistical Package for Social Sciences (SPSS) version 25 was used to analyze the

data. Responses from each item of the questionnaire were edited and coded for easy

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classification. Data was analyzed using descriptive statistics and presented using frequency

tables, percentages, measure of central tendency and measure of dispersion.

RESULT AND DISCUSSION

Characteristics of the Respondents

The study recorded some basic information or characteristics of the respondents. These

variables included; sex, age, marital status, years worked in the organization, as well as

qualification. There were 228 respondents as response rate. Out of this, females were 105

(46%) while males form 54 percent (123). Thus, males were little higher as compared to the

females. This may be due to the male domination in the security service of Ghana. Also,

majority (77%) of the respondents were found below 46 years. On marital status, a greater

number of respondents (49%) were married, followed by 98 (42.9%) who were singled.

Though, none of the respondent was a widowed, but 18 respondents were separated. Regards

to the total number of years been in the organization, half of the respondents have served for

more than 10 years while majority of the respondents have been in the Ghana Police Service

for more than 5 years. This means that majority of the respondents have been working with the

Ghana Police Service for long and were abreast with the issues regarding financial management

and operational performance of GPS in Greater Accra Region. On the qualification of the

respondents, Table 2 shows that most (140, 60%) of the respondents have first degree, followed

by 70 respondents with masters degree and diploma (18, 8%). However, none of the respondent

has a PhD or professional certificate.

Financial management practices in the Ghana Police force in the Greater Accra Region

of Ghana

Objective of the study sought to explore the various financial management practices in

the Ghana Police force. In view of that, respondents’ views or perception was examined on the

various financial management practices of the Ghana Police force. Data from these respondents

were analysed and presented in Table 2.

Table 2 shows that among the cash management practices in Ghana Police force, 35

(15.4%) strongly agreed that organizational prepares cash budget on monthly basis and this

was supported by 153 (69.3%) of the respondents who agreed to this notion. However, 17

(7.5%) of the respondents disagreed to the statement that “organization prepares cash budget

on monthly basis”. Thus, majority of the respondents perceived that the organization prepares

cash budget on the monthly basis.

Table 2: Cash Management Practices in Ghana Police Force

Organization prepares cash budget on monthly

basis

15.4%

158

69.3%

7.9%

7.5%

0.0%

Organization analysis and forecasts cash flows

7.9%

158

69.3%

7.9%

14.9%

0.0%

Organization has effective billing and cash

collection system

8.0%

105

46.0%

30.0%

16.0%

0.0%

Effective supervision of cash collection and

disbursement

15.4%

23.2%

7.9%

38.6%

14.9%

liquidity policy is reviewed frequently

15.4%

23.3%

7.9%

105

46.1%

7.5%

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On the analysis and forecasts cash flows, 18(7.9%) strongly agreed that the organization

conduct analysis and forecasts cash flows and this was agreed by 158(69.3%) of the

respondents. Nevertheless, only 36(14.9%) of the respondents disagreed to this notion

“organization analysis and forecasts cash flows”.

Also, 18(8%) of the respondents strongly agreed that organization has effective billing

and cash collection system, 105(46%) of the respondents agreed to this notion while 69(30%)

of the respondents could not decide on it. However, 36(16%) of the respondents disagreed that

the organization has effective billing and cash collection system. Therefore, most of the

respondents perceived the organization as having effective billing and cash collection system.

Regarding supervision, 35(15.4%) of the respondents strongly agreed that there was an

effective supervision of cash collection and disbursement, 53(23.2%) agreed to this notion

while 18 of the respondents were indecisive. Nevertheless, 88 (38.6%) of the respondents

disagreed to this notion and 34 of the respondents strongly disagreed that there was an effective

supervision of cash collection and disbursement in the Ghana Police force. Thus, more than

half of the respondents perceived weak system of supervision on cash collection and

disbursement.

On liquidity policy, 35 (15.4%) of the respondents strongly agreed that it was reviewed

frequently, 53 of the respondents agreed that it was reviewed frequently whereas 18 of the

respondents could not tell whether it was frequent review or not. On the other hand, 105 of the

respondents disagreed to this notion. In view of that, it can be said that more than half of the

respondents disagreed that liquidity policy is reviewed frequently. This means that liquidity

policy is not reviewed frequently.

Despite the fact that liquidity policy was not reviewed periodically, the study found that

other equally important factors were put in place to ensure that cash management practices are

properly done. This confirms the study by Agyei-Mensah, (2010) which shows that having a

cash policy promote effective cash budgeting and helps the business invest surplus cash. This

is supported by Kotut, (2003) who established that cash budgeting affects the financial and

operational performance of org anizations because it helps plan for the shortage and surplus of

cash. Ross, (2011) also asserted that efficient cash management practices in improves business

performance.

Table 3: Financial Control Practices

Budgeting techniques are used to achieve

financial control

38.6%

105

46.1%

15.4%

0.0%

Use of financial controls to detect financial

malpractice and errors

15.4%

123

53.9%

23.2%

7.5%

0.0%

Sound internal audit system for internal control

30.7%

102

44.7%

3.95%

20.6%

0.0%

Analysis of budgets and reports for proper

monitoring and control of activities

30.7%

158

69.3%

0.0%

Regular checks and assessment of projects for

efficient execution

23.2%

140

61.4%

15.4%

0.0%

Table 3 shows that among the financial control practices in Ghana Police force, 88

(38.6%) strongly agreed that budgeting techniques are used to achieve financial control and

this was supported by 105 (46.1%) of the respondents who agreed to this notion. However, 35

(15.4%) of the respondents could not decide on this notion. Thus, majority of the respondents

perceived that the organization employed budgeting techniques in achieving financial control.

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On detecting of financial malpractices and errors, 35(15.4%) strongly agreed that

financial controls are used to detect financial malpractice and errors and this was agreed by

123(53.9%) of the respondents. Nevertheless, only 17(7.5%) of the respondents disagreed to

this notion “use of financial controls to detect financial malpractice and errors”.

Moreover, 70(30.7%) of the respondents strongly agreed that organization has sound

internal audit system for internal control, 102(46%) of the respondents agreed to this notion

while 9(3.95%) of the respondents could not decide on it. However, 47(20.6%) of the

respondents disagreed that the organization has sound internal audit system for internal control.

Therefore, most of the respondents perceived the organization as having sound internal audit

system for internal control.

Regarding budgets and reports, all (100%) the respondents agreed that there is analysis

of budgets and reports for proper monitoring and control of activities. On regular checks and

assessment of projects, 53 (23.2%) of the respondents strongly agreed that it was regularly

check for efficient execution whereas 35 of the respondents could not tell whether it was

regularly check or not. No respondent disagreed to this notion. Thus, majority of the

respondents perceived that there is regular checks and assessment of projects for efficient

execution.

The outcome of this study is in line with a similar study conducted by Rotich (2018) on

the influence of financial management practices on profitability of government funded youth

group businesses in kuresoi, kenya and established a positive significant relationship between

financial controls and financial performance of government funded youth groups in Kenya.

Table 4: Financial Reporting Practices

Proper financial records are kept

15.4%

140

61.4%

15.4%

7.9%

0.0%

Annual financial statements and

reports are produced on time

15.4%

158

69.3%

7.9%

7.5%

0.0%

Regular Upgrade of Financial

reporting Systems

30.7%

15.4%

23.2%

0.0%

Qualified and trained accounting

and finance staff

30.7%

38.6%

30.7%

0.0%

Openness and clarity of process and

procedure of financial reporting

38.6%

105

46.1%

7.9%

7.5%

0.0%

Table 4 shows that among the financial reporting practices in Ghana Police force, 35

(15.4%) strongly agreed that proper financial records are kept, and this was supported by 140

(61.4%) of the respondents who agreed to this notion. However, 35 (15.4%) of the respondents

could not decide on this notion. Thus, majority of the respondents perceived that the

organization kept proper financial records.

On annual financial statements and reports, 35(15.4%) strongly agreed that they were

produced on time and this was agreed by 158(69.3%) of the respondents. Nevertheless, only

17(7.5%) of the respondents disagreed to this notion “annual financial statements and reports

are produced on time”.

Moreover, 70(30.7%) of the respondents strongly agreed that organization has regular

upgrade of financial reporting systems, 70(30.7%) of the respondents agreed to this notion

while 35(15.4%) of the respondents could not decide on it. However, 53(23.2%) of the

respondents disagreed that the organization has regular upgrade of financial reporting systems.

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Therefore, most of the respondents perceived the organization as having regular upgrade of

financial reporting systems.

Regarding qualification and training of staff, 70(30.7%) the respondents strongly agreed

that there is qualified and trained accounting and finance staff in the Ghana Police force,

88(38.6%) of the respondents agreed to this notion. Nevertheless, 70(30.7%) could not decide

on it.

On openness and clarity of process and procedure of financial reporting, 88 (38.6%) of

the respondents strongly agreed that there was openness and clarity of process and procedure

of financial reporting whereas 18 of the respondents could not tell whether it was open and

clear or not. No respondent disagreed to this notion. Thus, majority of the respondents

perceived that there is regular checks and assessment of projects for efficient execution.

The study therefore, revealed that there is an effective financial reporting standards or

practices observed in the Ghana Police force. This confirms a study in Tanzania to assess the

role of financial reporting in enhancing financial accountability in the public sector in local

government by Chalam & Ng’eni, (2017) that found that the quality of financial reporting

significantly enhanced the financial accountability of government.

Table 5: Financial Planning Practices

Financial planning process

considers stakeholders priority and

participation

38.6%

30.7%

15.4%

0.0%

Department allocation is based on

priorities

30.7%

15.4%

30.7%

23.2%

0.0%

Budget legislation and plans are

well executed to avoid financial

challenges

23.0%

158

69.0%

8.0%

0.0%

Budgets of police is implemented as

approved

7.9%

158

69.3%

7.9%

14.9%

0.0%

Analysis of performance by

comparing actual plans with

budgeted is done

15.0%

31.0%

105

46.0%

0.0%

Table 5 shows that among the financial planning practices in Ghana Police force, 88

(38.6%) strongly agreed that financial planning process considers stakeholders priority and

participation, and this was supported by 70 (30.7%) of the respondents who agreed to this

notion. However, 35 (15.4%) of the respondents could not decide on this notion. Thus, most of

the respondents perceived that the organization has financial planning process which considers

stakeholders priority and participation.

On department allocation, 70(30.7%) strongly agreed that department allocation is based

on priorities, and this was agreed by 35(15.4%) of the respondents. Nevertheless, a greater

number of respondents (70, 30.7%) could not decide on it while 53 of the respondents disagreed

to this notion “department allocation is based on priorities”.

Moreover, 53(23%) of the respondents strongly agreed that budget legislation and plans

are well executed to avoid financial challenges, 158(69%) of the respondents agreed to this

notion while 17(8%) of the respondents could not decide on it. Therefore, majority of the

respondents perceived the organization as having budget legislation and plans well executed to

avoid financial challenges.

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Regarding budget of police, 18(7.9%) the respondents strongly agreed that budget of

police is implemented as approved, 158(69.3%) of the respondents agreed to this notion.

Nevertheless, 34(14.9%) of the respondents disagreed to this notion. On the analysis of

performance and plans, a greater number of respondents (105, 46%) could not decide whether

such analysis was compared to actual plans with budgeted or not. However, 46 percent of the

respondents agreed to this notion as compared to 8 percent who disagreed.

The study finds that majority of the respondents agreed to all the factors that form

Financial Planning Practices including; Financial planning process considers stakeholders

priority and participation; Department allocation is based on priorities; Budget legislation and

plans are well executed to avoid financial challenges; Budgets of police is implemented as

approved and Analysis of performance by comparing actual plans with budgeted is done.

Mogaka et al., (2016) explained that financial planning and budgeting activities include

assessing the current financial position of government agencies, analyzing future growth

prospects, appraising development practices, estimating fund requirements and financing

options and comparing actual performance against planned performance. The financial

planning and budgeting activities includes preparing budgets and forecasting practices and

financing decisions. This study finding is in support of the study of Isaboke and Kwasira (2016)

who observed a strong relationship between the budgetary process and financial performance

of an organization. They further found that a good budgetary process is one which establishes

possible links to organizational goals are focused on results and outcomes and effectively

promotes communication with the stakeholders.

Explore the effect of the financial management practices on the operational performance

of the Ghana Police force in the Greater Accra Region

It is perceived that financial management practices affect the operational performance of

Ghana Police force, therefore, data were gathered from the respondents on how they perceived

this effect to be and the result is presented in Table 6. This was meant to achieve the objective

three set for the study.

Table 6: Effect of the Financial Management Practices on The Operational

Performance Of The Ghana Police Force In The Greater Accra Region Of Ghana

Performance

The district has experienced a

decline in crime

23.2%

123

53.9%

15.4%

7.5%

0.0%

Improved protection of life and

property

23.0%

123

54.0%

23.0%

0.0%

Improved crime detection and

prevention

15.4%

140

61.4%

23.2%

0.0%

Improved criminal apprehension

and prosecution

15%

150

66%

19%

0.0%

Improved peace and tranquility

23.0%

39.0%

23.0%

8.0%

7.0%

Table 6 depicts the effect of financial management practices on the operational

performance of the Ghana Police force. It shows that 53(23.2%) of the respondents strongly

agreed that the organization has experienced a decline in crime and this was supported by 123

(53.9%) of the respondents who agreed to this notion. However, 17 (7.54%) of the respondents

disagreed to the statement that “district has experienced a decline in crime”. Thus, majority of

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the respondents perceived that the district has experienced a decline in crime rate due to

financial management practices in Ghana Police force.

On the protection of life and property, 53(23%) strongly agreed that there has been some

improvement in the protection of life and property and this was agreed by 125(54.8%) of the

respondents. Nevertheless, 52(23%) of the respondents could not decide on this notion. Thus,

majority of the respondents perceived that financial management practices have improved upon

the protection of life and property.

Regarding crime detection and prevention, 35(15.4%) of the respondents strongly agreed

that there has been some improvement on crime detection and prevention, 140(61.4%) of the

respondents agreed to this notion while 53(23.2%) of the respondents could not decide on it.

Thus, majority of the respondents perceived improvement in crime detection and prevention

due to the practices of effective financial management in the Ghana Police force.

On criminal apprehension and prosecution, 35(15%) of the respondents strongly agreed

that there is improved criminal apprehension and prosecution, 150(66%) of the respondents

agreed to this notion. Nevertheless, 43 of the respondents did not decide on it. This means that

majority of the respondents agreed that there has been improvement in criminal apprehension

and prosecution due to proper financial management practices in the Ghana Police force.

With regards to peace and tranquility, 53 (23%) of the respondents strongly agreed that

there has been some improvement in peace and tranquility, 88(39%) of the respondents agreed

to this notion. On the other hand, 18 of the respondents strongly disagreed to this notion while

it was supported by 16 respondents who disagreed to the notion that “there is improved peace

and tranquility”. It can be deduced that most of the respondents perceived improvement in

peace and tranquility in the Ghana Police force due to effective financial management

practices.

The study finds that majority of the respondents agreed that financial management

practices have helped to reduce crime rate; improved protection of life and property; improved

crime detection and prevention; improved criminal apprehension and prosecution; and

improved peace and tranquility. Thus, these factors have been improved by effective financial

management practices in order to enhanced operational performance of Ghana Police force.

This finding is similar to that of Abanis et al., (2013) that looked at working capital

management, investment, financing, financial reporting and analysis and accounting

information systems. Their findings point to the fact that failure to comply with sound financial

management practices has dire consequences on firms operations and performance.

Dambala et al., (2021) also researched on the effects of Public Financial Management

Practices on the Financial Performance of Mombasa County Government – Kenya. The study

concluded that financial planning, revenue mobilization; financial reporting and financial

control had positive and significant relationship with financial performance of Mombasa

County Government. They argued that improved public financial management practices would

lead to improved financial performance. Thus, having sound financial management practices

improves upon the firm operations and performance.

Assess hindrances which tend to affect the financial management practices in the Ghana

Police force in the Greater Accra Region of Ghana

Objective four of the study sought to examine the challenges of financial management

practices of Ghana Police force in the Greater Accra Region. Data were gathered from the

respondents on their views concerning those challenges and the result is presented in Table 7.

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Table 7: Assess hindrances which tend to affect the financial management practices in

the Ghana Police force in the Greater Accra Region of Ghana

Political changes/interference

30.7%

38.6%

15.4%

0.0%

Timeliness of resources and finance

30.7%

125

54.8%

7.9%

6.6%

0.0%

Problems of Accountability and

transparency

31.0%

105

46.0%

15.0%

8.0%

0.0%

Inadequate training for staff

0.0%

15.4%

105

46.1%

23.3%

Problems of bureaucracy and

inefficiency

38.6%

105

46.1%

7.9%

7.5%

0.0%

Table 7 shows that among the factors that hinder the effective financial management

practices in the Ghana Police force, 70 (30.74%) strongly agreed that political

changes/interference and this was supported by 88 (38.6%) of the respondents who agreed to

this notion. However, 35 (15.4%) of the respondents disagreed to the statement that political

changes/interference affect effective financial management practices. Thus, majority of the

respondents perceived that the political changes/interference hinders smooth financial

management practices.

On the timeliness of resources and finance, 70(30.7%) strongly agreed that the timeliness

of resources and finance hinders smooth financial management practices and this was agreed

by 125(54.8%) of the respondents. Nevertheless, only 15(6.6%) of the respondents disagreed

to this notion. Thus, majority of the respondents perceived that timeliness of resources and

finance affect effective financial management practices of Ghana Police forces.

Regarding accountability and transparency, 70(31%) of the respondents strongly agreed

that problems of accountability and transparency hinders effective financial management

practice, 105(46%) of the respondents agreed to this notion while 35(15%) of the respondents

could not decide on it. However, 18(8%) of the respondents disagreed that problems of

accountability and transparency is challenge for effective financial management practices.

Thus, majority of the respondents perceived the accountability and transparency as key to

effective financial management practices.

On training for staff, only 35 (15.4%) of the respondents agreed that inadequate training

for staff is a problem for effective financial management practices. On the other hand,

105(46.1%) strongly disagreed to this notion and this was supported by 53(23.3%) who

disagreed that inadequate training of staff is a blockade to effective financial management. This

means that staff are given the needed and required training for effective financial management

practice in the Ghana Police force.

With regards to bureaucracy and inefficiency, 88 (38.6%) of the respondents strongly

agreed that problems of bureaucracy and inefficiency affect the smooth financial management

practices, 105(46.1%) of the respondents agreed to this notion whereas 17 of the respondents

disagreed. It can be deduced that there is problem of bureaucracy and inefficiency in the Ghana

Police force that hinder effective financial management practices.

The study outcome shows that majority of the respondents agreed to factors such as

political changes/interference, timeliness of resources and finance, problems of accountability

and transparency as well as problems of bureaucracy and inefficiency that hinder the financial

management practices in the Ghana Police force.

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CONCLUSION

The descriptive survey was well conducted through appropriate methodology

(quantitative approach), and the following inferences were made over the findings based on the

objectives of the study. Among the cash management practices in Ghana Police force,

organization prepares cash budget on the monthly basis; organization conduct analysis and

forecasts cash flow organization has effective billing and cash collection system. However,

liquidity policy was not review frequently and there was weak system of supervision on cash

collection and disbursement. Also, among the financial control practices in Ghana Police force,

organization employed budgeting techniques in achieving financial control; financial controls

are used to detect financial malpractice and errors; organization has a sound internal audit

system for internal control; there is analysis of budgets and reports for proper monitoring and

control of activities; and there is regular checks and assessment of projects for efficient

execution. Moreover, regarding the financial reporting practices in Ghana Police force, proper

financial records are kept; annual financial statements and reports were produced on time;

organization has regular upgrade of financial reporting systems, however, organization did not

regular upgrade of financial reporting systems. There was qualified and trained accounting and

finance staff in the Ghana Police force; and there is regular checks and assessment of projects

for efficient execution as well as openness and clarity of process and procedure of financial

reporting. Furthermore, among the financial planning practices in Ghana Police force,

organization has financial planning process which considers stakeholders priority and

participation; department allocation was not based on priorities; budget legislation and plans

are well executed to avoid financial challenges; budget of police is implemented as approved;

and analysis of performance and plans was not compared to actual plans with budgeted.

Effective financial management practices have assisted in reducing; crime apprehension

and prosecution, crime rate, crime detection and prevention, protection of life and property, as

well as peace and tranquility. Factors that hinder the effective financial management practices

in the Ghana Police force included; political changes/interference, timeliness of resources and

finance, problems of accountability and transparency, and problems of bureaucracy and

inefficiency.

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Mark Kyei, Oscar Agyemang Opoku (2023)

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Injurity - Interdiciplinary Journal and Humanity

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