ASSEMENT OF FUND MANAGEMENT PRACTICES: A CASE STUDY OF ETHIOPIAN PHARMACUETICAL SUPPLY AENCY (EPSA)

Abstract

Donor funding play a critical role in procuring and distribution of health product in Ethiopia. However the streamlining of the fund regime to achieve effective donor utilization of fund still remains a challenge despite the imposition of finance condition by donor. This, therefore, puts into question the effectiveness of the donor financing conditions on the effective utilization of donor funds. Therefore, the general objective of the study was to assess fund management practices and its utilization of donor funds focusing on Ethiopian pharmaceutical supply agency. The study used descriptive survey research design and targeted 3 departments program and project management, forecasting and procurement department. 27 persons comprising fund management team members, accountants and participated in the study. Pre-tested questionnaires and interview were used for data collection and analysis. The findings revealed that the organization is not financially sustainable because it is highly depending on one source of financing which is foreign donation. The study recommends that the organization should device the strategy for fund sustainability by income diversification such as mobilizing local resources and involve in income generating activities (selffinancing), emplace a system for continuous monitoring evaluation system for the proper utilization of fund and continue its fund utilization practice based on budget specification and as per financial grant agreement.