Assessment of Financial Management Practices in Local NGOs-A Case of Local NGOs in Addis Ababa

Local NGOs are types of organizations those are geared toward the provision of some sort of benefits to the society and are citizen-based associations. These organizations are mobilizing financial resources from various national and international voluntary agencies to work in a coordinated manner consistent with the requirements of the society. The purpose of assessment was to assess the financial management practices of the local NGOs in Addis Ababa. Descriptive method of assessment was conducted and data were collected by applying random sampling technique, 92 respondents were selected from the total population of 1,275. The major findings were: lack of budget approval by board, common cost allocation system, records keeping for gifts in kind items, cash forecast preparation, finance staff participation in budget preparation and review, and concentration on limited projects and sources of fund, weakness in standardized financial statement preparation and delay in reporting among others. Finally, the researcher recommended: as means to discharge responsibility & accountability and to show service giving efforts, operational efficiency and effectiveness to contribution to the development endeavor of the country, they should establish a well organized financial management systems: budget management, accounts record keeping, internal control and reporting. Board should monitor regularly the financial management system, senior management shall give due attention for strengthening internal control activities

Type: 
Management
Authors Name: 
Mengesha Ayene, Prof. Raman Kumar, W/ro Fitsum Asefa