Assessment of Financial Management Practices of International NGOs: The Case of International NGOs Operating in East Wollega Zone

Abstract

This study aims to assess financial management practices of International NGOs operating in East Wollega Zone. The main objective of the study is to assess and describe financial management practices of International NGOs under the study by identifying their area of strengths and weaknesses as well as encounters around the key financial management components and reporting requirements such as assessing budgeting process links with the financial planning process; extent of the record keeping system volubility, extent of internal control and financial reporting; and how they prepare their financial reports to monitor their budget and expenditure. Descriptive research method with purposive sampling technique was employed using 48 respondents selected from 12 International NGOs operating in East Wollega Zone of Oromia Regional State. In this study, reliability testing has been carried out to check the consistency of the responses. The major findings of the study indicate that finance staffs are rarely participating in budget planning and reviewing, procurement processes have hurdles of conformability in fulfilling the basic requirements of purchasing activities, presence of inconsistency and delay of payment procedures and beneficiaries’ monthly reports respectively. Thus, it is recommended that finance staff should participate sufficiently in planning and budgeting activities, the basic pillars of payment procedures and procurement processes should be kept to improve quality of work, reduce costs and quickens responses time; and to get reports from beneficiaries and giving feedback timely for better decisions and actions. Keywords : Financial Management, Financial Planning and Budgeting, Accounting Records, Internal Controls, Financial reporting, East wollega DOI: 10.7176/RJFA/12-9-02 Publication date: May 31 st 2021