INTERNAL CONTROL GUIDELINES TO ENHANCE BUDGET MANAGEMENT EFFICIENCY OF MEDIUM-SIZED SCHOOLS UNDER CHIANG RAI PRIMARY EDUCATIONAL SERVICE AREA OFFICE 2

Abstract

This independent study aims to:  1) examine internal control and the efficiency of budget administration in medium-sized schools under the Chiang Rai Primary Educational Service Area Office 2; 2) investigate the relationship between internal control and the efficiency of budget administration in these medium-sized schools; 3) explore best practices in budget administration among schools under the Chiang Rai Primary Educational Service Area Office 2; and 4) develop internal control guidelines to enhance the efficiency of budget administration in medium-sized schools within this jurisdiction. This study is based on the conceptual framework of internal control, which comprises five components: control environment, risk assessment, control activities, information and communication systems, and monitoring activities. The sample consisted of 132 school administrators and teachers from medium-sized schools, selected through purposive sampling. Data collection instruments included a 5-point Likert scale questionnaire with a reliability coefficient of 0.99, and semi-structured interviews. Data were analyzed using descriptive statistics, including mean and standard deviation, as well as inferential statistics such as Pearson’s correlation coefficient and content analysis.

The research findings revealed that:

• The study found that the overall level of internal control implementation

was high. The aspects of internal control were ranked from highest to lowest average score as follows: control environment, risk assessment, control activities, monitoring activities, and information and communication, respectively. Similarly, the overall efficiency of budget administration in medium-sized schools was also found to be high. The components were ranked from highest to lowest average score as follows: financial management, asset and inventory management, accounting management, budget preparation and proposal, budget allocation, internal audit, and lastly, resource mobilization.

• There was a statistically significant and strong positive correlation between

internal control and the efficiency of budget administration, with significance at the .01 level.

• Best practices in budget administration that integrate internal control

mechanisms to enhance efficiency were identified. These practices emphasize transparency and accountability, clear budget planning, continuous risk assessment, the use of technology to monitor budget expenditures, and outcome tracking systems to enhance budgetary efficiency.

• The recommended internal control guidelines to enhance the efficiency of

budget administration in medium-sized schools include: promoting a culture of transparency and accountability; encouraging participation from personnel and the community in budgetary decision-making; conducting continuous risk analysis and monitoring; utilizing technology to improve transparency and reduce errors; ensuring open and diversified communication channels for disseminating expenditure information; and employing clear performance indicators for regular evaluation and improvement of budget management.