Abstract:
Sound Financial Management Practices determine the effectiveness and efficiency of any
organization. This study assesses and describes of financial management practices for selected
NGOs 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 was distributed to sample seven International Non
Government Organizations. The questionnaire response was analyzed using statistical tools of
means and standard deviation as well as frequency tables. The average mean scores for the
various financial management practices are as follows: Financial Planning Practices (Mean =
3.87), Budget Process (Mean = 3.55), Accounting Record Practices (Mean = 3.68), Internal
Control Review (Mean = 4.14), and Financial Monitoring Practices (Mean = 3.87). The
assessment of the organization's financial management practices indicates a generally strong
framework, particularly in internal controls and financial monitoring. While financial planning
and accounting record practices are sound, there is room for improvement in documentation and
risk assessment. The budget process shows the greatest variability, suggesting a need for
enhanced consistency and integration. Overall, the organization demonstrates effective financial
management with key areas identified for further enhancement. To enhance the organization's
financial management practices, it is recommended to ensure thorough documentation and
regular updates of policies and procedures, strengthen risk assessment processes, actively
engage program managers in financial planning and monitoring, provide continuous
professional development for financial management staff, and establish a system for regular
evaluation and improvement of financial practices.
