Assessment of Donor Fund Utilization in Ethiopia: The case of Productive Safety Net Program

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Addis Ababa University


The purpose of this study is to conduct an assessment of donor fund utilization in Ethiopia taking productive safety Net Program as a case. This study adopted a descriptive research design. The target population was a total of 69 employees working on activities of PSNP in the five organizations. This was from Amhara and Oromia regional states, MoANR, World Bank (in WB those who are working on the position of financial specialist, financial analyst, procurement specialist, M&E specialist and finance coordinator) and MoFEC. The selection of the respondents was determined based on their organizations’ high relation with the program. These are significance of their responsibility, the allocation of highest program’s funds/budget and proximity to Addis Ababa for data collection. Primary data was collected by distribution of questionnaires to 69 employees working in these five organizations. Descriptive statistics was used for analysis of the research data. The study revealed that (i). Institutional dimensions have a neutral effect on fund utilization with the key factors of : weak coordination between the implementers, involvement of multi sectors in the fund utilization, high staff turnover, long procedure in fund transfer request (ii) Financial management factors have direct relation with fund utilization with key factors of:- delay in budget information notification,, delay in preparation of Procurement plan, delay in procurements , improper budget preparation and (iii) technical factors has shown that it has neutral effect on the fund utilization. Therefore, it was recommended that:-Institutional arrangement needs to be restructured .That is - to facilitate smooth, proper and timely utilization of PSNP fund, separate and independent (autonomous ) project coordination unit that comprises staff from each concerned sectors with multidisciplinary fields of staff with adequate remuneration needs to be established at federal, regional and woreda level . Furthermore, to avoid improper logistic arrangements Specific vehicles have to be assigned and used only for PSNP activities to facilitate timely payments to beneficiaries of the program. Finally, the data base has to be updated to accommodate all types of beneficiaries’ payments in a very organized manner to avoid repetitive resetting.


A thesis submitted to the department of accounting and Finance (A.A.U) in partial fulfillment for the requirement of The degree of Master of Science in accounting &Auditing


Financial management factor, Institutional factors