The effects of financial monitoring on programme performance for international non-governmental organizations in Kenya

Abstract

Donors provide funds to various organizations with a sole believe that the funds will be utilized towards the achievement of organizational objective as laid out in the detailed implementation plan and annual work plan. Financial monitoring systems are required in the quest to maximize the efficient use of resources, create the highest level of transparency and accountability in an organization’s finances and to ensure long-term economic success. The study therefore attempts to find the effects of financial monitoring on the programme performance for INGOs in Kenya. This study employed multiple regressions to analyze the effect. The data collection involved the use of both quantitative and qualitative research methodology. A sample of 50 INGOs was selected out of which, I successfully obtained data from 31 INGOs. This represents 62% response rate which was significant for the study. The data was analyzed using the Statistical Package for Social Scientist (SPSS). Before running the regression, data testing was conducted. To obtain a good-fit estimation, some tests were carried out to ensure statistical assumptions, such as linearity of variables, no correlation among independent variables, and no omitted variable problem. The result showed that financial monitoring positively contributes to INGOs’ programme performance. INGOs that conducted frequent financial monitoring performed well in their respective programme, other determinants constant. Therefore, concluded financial monitoring techniques should be conducted frequently to enhance programme performance. A recommendation was made that NGOs should strengthen their monitoring through periodic review meetings, onsite and offsite financial monitoring .The leadership of the NGOs should also ensure fund accountability is enhanced.