The Effect of Project Fund Management Practices in Non-governmental Organizations: In Addis Ababa

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Date

2021-06-02

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Addis Ababa University

Abstract

This research attempts to examine the effect of fund management practices on project success/performance in International Non-Governmental Organizations (INGOs) in Addis Ababa and the challenges of fund management in INGOS. Three dimensions of fund management practices were considered i) Budget and planning, ii) Financial monitoring and reporting and iii) Internal control systems. A self-administered survey was used to collect responses from 200 International NGOs in Addis Ababa. Of 200, 54 useful responses were received and then statistically analyzed using SPSS software. A descriptive, correlational and inferential design approaches were used to analyze the relationship between fund management practices and project success/performance. In addition, the impact of fund management practices on performance analyzed using linear regression analysis. The result shows that the NGOs have strong, i) planning and budgeting, ii) financial monitoring and reporting and iii) internal control system in their organization. Funds management practices correlates with project success moderately with positive and statistically significant coefficient (r = 0.512, p<0.01). Specifically, the relation of fund management practices: Planning and Budgeting, Financial Monitoring and Reporting, Internal Control System with the project success is positive (r=0.468, p<0.01), (r=0.516, p<0.01), and (r=0.406, p<0.01), respectively. These practices also affect the project success with the coefficient of determination value A1-R2 = 0.219, 1B-R2 =0.266, and 1C- R2 =0.165 and p<0.01. The highest impact on project performance/success was found by Financial Monitoring and Reporting (B=0.590 and p<0,001). Also, 26.6 percent of the variation in project success was explained by the Financial Monitoring and Reporting practice in these organizations.

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Keywords

project fund management, project success, international NGOs

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