Accountability of Donor Funding by Non-governmental Organisations in Kisumu County

Abstract

Accountability is an important aspect of all organizations today. Accountable NGO‟s has been found to receive large funding from donors and thus undertake development programmes that alleviate human suffering. This study set to establish the accountability of donor funding by Non-Governmental organizations in Kisumu County. The study adopted a descriptive survey design.The target population was the NGOs located in Kisumu County-Kenya. The population was made up of all the 187 NGOs in the region. One respondent was drawn from a sample of 49 NGOs. The use of open-ended questions was justified on the basis that some of the information was concerning sensitive matters of the NGOs, particularly those involving finances and governance. The study established that donor funding was dependent on the accountability mechanisms put in place by the implementing NGO‟s. It was found out that NGOs were expected to keep a minimum set of financial statements e.g. Statement of comprehensive income, statements of financial position and cash flow statements. The study revealed that community involvement in oversight of NGOs was still not adequately practiced and that satisfaction of the employees with their pay perks could not be established. Donors were keen on compliance to the laws of the country and also involved the oversight bodies in checking compliance and legitimacy of the NGOs before funding and partnering with them. It was established that donors expected performance measurements to be done and that NGOs prepared specific reports. The donors also demanded that the financial statements authenticity be verified by independent auditors. This study therefore recommends that NGOs need to come up with proper and effective accountability mechanisms, which will measure performance, enhance legitimacy and accountability. This will include the use of proper performance measurement tools, compliance to both donor and government regulations in order to secure sustained financing and ensure that the development agenda of the County is achieved. The study further recommends that the NGOs procure the services of recognized audit firms that will offer value adding audits which in effect will boost donor confidence.