Financial Management Practices and Financial Sustainability: A Study of Donor-Funded Projects by Windle International Kenya
- July 27, 2021
- Posted by: rsispostadmin
- Categories: Accounting, IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue VI, June 2021 | ISSN 2454–6186
Khadijah Nabwire Majimbo1, Musau Salome2
1Department of Accounting & Finance, Master of Business Administration (Finance), School of Business, Kenyatta University, Kenya
2Lecturer Department of Accounting & Finance, School of Business, Kenyatta University, Kenya
Abstract
The purpose of this study was to investigate the effect of financial management practices on financial sustainability of the donor funded projects in the case of Windle International Kenya. This study used both descriptive survey design and explanatory approach. The target population was sixty eight senior management programme supervisors, field officers and finance officers who were also the respondents for this study. The study relied on primary data which was collected by use of questionnaire as the main research instrument and later analyzed by use of descriptive statistics inform of frequencies, means and standard deviations and inferential analysis such as Pearson correlations and regression analysis. The study key findings were that budgeting control, financial reporting, internal control and financial control were both used as financial management practices in the organization and they positively influenced the financial sustainability of projects in the organization.The regression analysis also indicated that budgeting control, financial reporting, internal control and financial control both have positive effect on the financial sustainability of projects in the organization. The study recommends among others that organization should consider putting various financial management practices such as budgeting control, financial reporting and internal control due to their huge significant effect on the financial sustainability of donor funded projects. Organizations have to also constantly ensure that budget timetables are developed in time and allocate budget preparation responsibilities to relevant organs, ensure the bids are evaluated and aligned with the priorities of the organization.
Key Words: Financial management practices, Financial sustainability, Non-Governmental Organizations
1.0 Introduction
Financial sustainability has for long time been a major constraint in running various donor funded projects by civil society organizations around the world (USAID, 2018). Despite there being a variety of different toolkits and research papers done on examining different financial sustainability approaches and strategies, many civil society organizations (CSOs) continue to struggle in developing and maintaining various resources needed to run their projects and also carry out their respective missions. This critical challenge continues to limit the autonomy of organizations across the globe by inhibiting their longterm planning and being flexible in designing and running various organizational activities (USAID, 2017).
