Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.7, No.12, 2016 146 Effect of Internal Control Systems on Implementation of Projects at County Government in Kenya AnnroseGakenia Maina 1 , Willy Muturi 2 , Wallace Atambo 3 , Dennis Nyamasege 4* 1,2&3. Jomo Kenyatta University Of Agriculture and Technology, School of Human Resource Development, Department of Economics and Business Studies, P. O. Box 62000-00200, Nairobi 4. Kisii University, School of Business and Economics, Department of Accounting and Finance, P.O. Box 408- 40200, Kisii Abstract Over the years, there has being a problem of incorrect and unreliable financial record which has led to loss of organizational integrity, therefore affecting the implementation of projects in institutions and organizations. While financial management is a practically central concern in internal management of finances, its successful implementation remains an essential challenge for virtually any county government in developing counties. In situations where the environment is changing, the county itself is faced with a need to change. The fact that local authorities in Kenya were in transition following promulgation of the new constitutional dispensation, require an appropriate and detailed understanding on previous and existing financial challenges so that a new shift is established. This research was conducted in Nyamira County, Kenya which is amongst the 47 counties established in 2013. The study used explanatory survey design. The study used secondary data available at the county government databases..Data was analyzed using inferential statistic method of simple and multi variantregression analysis was used to determine the effect of internal control system on implementation of project at the county government. Results were presented in the form of tables for ease of interpretation. The study confirmed that internal control system has a significant effect on the implementation of projects at the county governments in Kenya. With adequate internal control measure in place at the county government then resources will be safeguarded and directed optimally to the right projects as planned. 1.0 INTRODUCTION Financial control is an integral part of financial management which is concerned with the acquisition financing, and management of assets with overall goal (Koitabu 2013). The most goals of financial control is the effective and appropriate use of public funds and the development of financial management and systematic implementation of the administrative aspects of activities(Geoges,Assis) The responsibility for good internal control rest with all managers, management sets the objectives put the control mechanisms and activities in place, monitor and evaluates the control. However all personnel in the organization play important roles in making accountability happen. The role of internal control therefore, provides support for management in safeguarding company assets, elimination of wastes MUSYA (2014) Financial resource is considered as an important resource to many institutions and establishments (Allis, et al, 2004). This means that it must be effectively and efficiently managed to bring about the needed change and results from the activity for which the funds have been made available. However, sometimes this important resource is mismanaged and misappropriated by those put in charge (Rosen & Gayer, 2010). The embezzlement of funds from public institutions, particularly in essential services is becoming more such scandals, have raised concerns about their internal control systems. Recent reports on the mismanagement of funds by the media coupled with exposure of the complex web of rot and poor control system has raised curtains on internal control system. These developments have called into question the internal control system found in public utility. Internal control is affected by people; people are what make internal control work. According to Prowle (2010) public sector organizations deal with large amounts of public funds and operate in a largely political environment, thereby necessitating a need for a high degree of confidence in the way in which their financial affairs are being conducted. Furthermore, all other aspects of finance management in the public sector should be done prudently. The goal of having a strong system of financial control is to promote the institution’s ability to reach its objectives providing reliable financial data, safeguarding assets and records, evaluating operational efficiency through budget, organizational control and encouraging adherence to prescribed policies and regulations. A sound system of financial control contributes