Empowering Excellence: Uncovering Best Internal Control Practices of an Adventist Higher Education Institution

Clarijun Montebon; Rhody Laynn Morada; Calvin Clyde  Chinedo; Crystal Kyna  Erguisa

doi:10.35974/isc.v11i3.3614

Authors

Clarijun Montebon SPAC
Rhody Laynn Morada South Philippine Adventist College
Calvin Clyde Chinedo South Philippine Adventist College
Crystal Kyna Erguisa South Philippine Adventist College

https://doi.org/10.35974/isc.v11i3.3614

Keywords:

Internal Control, Stewardship Theory, Operational Efficiency, Appreciative Inquiry

Abstract

Internal control practices are essential for Adventist higher education institutions as they safeguard assets, ensure the accuracy of financial reporting, and promote compliance with regulations and denominational policies. By establishing strong internal controls, these institutions can reduce the risk of fraud and mismanagement, fostering transparency and accountability. In today's dynamic business environment, Adventist Higher Education Institution’s (HEIs) steadfast commitment to upholding the values and doctrines of the Seventh-Day Adventist Church is truly commendable. Integrating the Stewardship Theory of Donaldson and Davis, this qualitative research employs an appreciative inquiry approach to explore the best practices utilized by an Adventist higher education institution in internal control. The study was conducted in the Southern part of the Philippines. Through purposive sampling, the participants of the study are employees with a minimum of 3 years of work experience in the business office. Data was collected through in-depth interviews and document analysis. The data analysis is anchored on the spiral approach by Creswell and Poth. Effective internal controls help build trust among stakeholders, including students, faculty, and the broader community, while reinforcing a culture of integrity and responsible stewardship. The findings revealed that the current best practices are transparency, continuous improvement, proper documentation, clarity of purpose, collective commitment, adaptability, ethical culture and commitment to competence. The ideal internal control practices identified involve encouragement of reporting of issues, enhanced accountability, maintenance of timeliness and accuracy, comprehensive risk identification and assessment, understanding interdependencies, proactive mitigation, prevention and detection of errors and fraud and operational efficiency. To realize these ideals, researchers recommend establishing culture of trust, contextualizing expectations, identifying controls and risks, utilizing project management tools, defining clear objectives, conducting comprehensive assessments and leverage in technology. Conducting quantitative research on internal control strategies fit among Adventist HEI is recommended. Keywords: Internal Control, Stewardship Theory, Operational Efficiency, Appreciative Inquiry

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