Financial Management Practices in Selected NGOs Working in jimma town

Abstract

Financial management is an important aspect of non-governmental organizations. The main aim of the study was to assess financial management practices by separating as effective and poor financial management among independent variables in selected NGOs working in Jimma town. To achieve the listed objectives of the study, purposive or non- probability sampling method was used to select sample in the study. To conduct the survey, out of 8 international and 6 local NGOs a sample size of 80 peoples was targeted ; professionals working in six (6) international NGOs (75%) and four (4) local NGOs (67) located in Jimma town were contacted. The study used a census for populations, taking a sample size of similar studies and followed non probability sampling, called purposive sampling. Given that the issue of financial management practices in selected NGOs working in Jimma town as to those predictor variables namely financial planning and budget process, fund utilization, accounting records and financial reports and financial monitoring and controlling practice. . The study also recommend that grant agreements with funders are incorporated into the comprehensive annual budget but implementers do not goes with cash flow schedules so that governments and other political has to make a free and joint fully participated NGOs according to their program schedules for good financial management performance.