ASSESSESSMENT OF FINANCIAL MANAGEMENT PRACTICES IN SELECTED INTERNATIONAL NON-GOVERNMENT ORGANIZATIONS WORKING IN THE HEALTH SECTOR

Abstract

Sound Financial Management Practices determine the effectiveness and efficiency of any organization. This study assesses and describes types of financial management practices selected INGO’s utilize to identify their area of strength and weakness as well as challenges around the key financial management components and reporting requirements; namely Financial Planning, Budgeting, Accounting Records, Internal controls and Financial Monitoring. To achieve this purpose interviews with finance heads and a tested questionnaire framework comprising of general information data for background assessment and a Likert scale of 5 levels listing financial management assessment questions were distributed to sample seven International Non-Government Organizations that work in support of the health system in Addis Ababa, Ethiopia. The questionnaire responses were analyzed using statistical tools of means and standard deviation as well as frequency tables and the findings of the assessment showed a relatively strong level of good practice in the area of financial planning, budgeting, recording, internal controls and financial monitoring. Reliability testing has also been carried out to check the consistency of the responses. This paper is expected to provide the INGO’s working in the health sector detailed assessment tools to monitor each category of the financial management building blocks based on the results to better strengthen their system and work out an enabling environment with governing bodies. It also provides important recommendations regarding policy implications in terms of adoptability by governing bodies and local non-government organizations as well as revising the regulatory assessment categories.