ABSTRACT Financial accountability has been one of the most problematic and prevalent issues for business worldwide for a long time. Increase in financial misappropriation and number of corporate scandals had an important impact on understanding and analyzing financial accountability and in turn on audit of the same and its regulation. The growth in finance misappropriation cases indicates that a strong need exists for research approaches that better enable auditors and investigators to detect and prevent potential misappropriation. The study aimed to provide an understanding to the non-governmental. The study objective was to establish the effects of financial accountability on the performance of non- governmental organizations in Uganda taking human rights upholds Uganda as a case study. The research design used in this study was descriptive survey. Using stratified random sampling design, the researcher selected 52 respondents on whom to conduct the survey. Semi structured questionnaire were used to collect the primary data. Descriptive statistics was employed to analyze the data. The mean score for each attribute was calculated and the standard deviation used to interpret the respondents deviation from the mean. The results were presented on frequency distribution tables, pie chmis and bar chmis. Here the interest was focused on frequency of occurrence across attributes of measures. The study found that the NGOs that applied financial standards in ensuring accountability of finances in the organizations boosted Donor support which resulted in improved performance. The study also established a significant relationship between financial performance of NGOs in Uganda and the independent vm·iable financial accountability. The study finally concludes that taking the independent variables at zero, a unit increase in financial accountability will lead increase in the scores of financial performance in NGOs in Uganda. The study recommends that all NGOs should have policies and procedures established so that; boards and officers understand their fiduciary responsibilities to ensure financials are managed properly and the chm·itable purposes of the orgm1ization are carried out.
TABLE OF CONTENTS
DECLARATION .......................................................................................................................... i
APPROVAL ................................................................................................................................. ii
DEDICATION ............................................................................................................................ iii
ACKNOWLEDGEMENT .......................................................................................................... iv
TABLE OF CONTENTS ............................................................................................................. x
LIST OF FIGURES ................................................................................................................... xiv
LIST OF TABLES ...................................................................................................................... xv
LIST OF ABBREVIATIONS .................................................................................................... xvi
ABSTRACT ................................................................................................................................. xi
CHAPTER ONE ................................................................................................................ 1
INTRODUCTION ............................................................................................................. !
1.1 Introduction ............................................................................................................................ 1
1.2 Background of the study ........................................................................................................ 1
1.2 Statement of the problem ....................................................................................................... 3
1.3 Purpose of the study ............................................................................................................... 4
1.4 Research Objectives ............................................................................................................... 5
1.5 Research Questions ................................................................................................................ 5
1.6 scope ofthe study ................................................................................................................... 5
1.7 Significance of the Study ....................................................................................................... 5
1.8 Operational Definitions .......................................................................................................... 6
1.9 Conceptual Framework .......................................................................................................... 6
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CHAPTER TWO .............................................................................................................. 8
LITERATURE REVIEW .................................................................................................. 8
2.0 Introduction ............................................................................................................................ 8
2.1 Related literature .................................................................................................................... 8
2.1.1 Resource Mobilization Theory ......................................................................................... 8
2 .1.2 Fraud Theory/ Differential Association Theory ............................................................... 9
2.2 Relationship between financial accountability and performance ......................................... 10
2.3 Empirical Review ................................................................................................................. 12
2.4 Literature Summary ............................................................................................................. 14
CHAPTER THREE ......................................................................................................... 15
RESEARCH METHODOLOGY .................................................................................... 15
3.0 Introduction .......................................................................................................................... 15
3. I Research Design ................................................................................................................... 15
3.2 Target Population ................................................................................................................. 15
3.3 Sample Design ..................................................................................................................... 15
3.4 Data Collection Instruments ................................................................................................. 16
3 .4. I Primary data ...................................................................................................................... 16
3.4.2 Secondary Data ................................................................................................................. 16
3.5 Reliability and Validity of the Instruments .......................................................................... 17
3.6 Data Collection Procedures .................................................................................................. 17
3. 7 Data Analysis Procedures .................................................................................................... 17
3.8 Measurement of Variables ................................................................................................... 17
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CHAPTER FOUR ........................................................................................................... 21
DATA ANALYSIS, PRESENTATION AND INTERPRETITION ................................. 21
4.0 Introduction .......................................................................................................................... 21
4.1 Response Rate ...................................................................................................................... 21
4.2 Demographics ...................................................................................................................... 22
4.2.1 Respondent Position .......................................................................................................... 22
4.2.2 Respondent Gender ........................................................................................................... 22
4.2.3 Respondent Age ................................................................................................................ 23
4.2.4 Level of Education ............................................................................................................ 23
4.2.5 Number of Years ofExperience ........................................................................................ 24
4.3 Financial Accountability ...................................................................................................... 25
4.3 .1 Financial Standards Applied ............................................................................................. 25
4.3.2 Extent of Financial Accountability ................................................................................... 26
4.3.4 Quality of Financial Reports ............................................................................................. 28
4.3.5 Ensuring of Quality Financial Reports .............................................................................. 28
4.4 Financial Performance ......................................................................................................... 30
4.4.1 Fraud on Perfonnance ....................................................................................................... 30
4.4.2 Use ofTeclmology on Detecting Fraud ............................................................................ 31
4.4.3 Measures of Detecting and Controlling Fraud .................................................................. 32
4.4.4 Financial Performance ...................................................................................................... 32
CHAPTER FIVE ............................................................................................................. 34
SUMMARY OF FINDINGS CONCLUSIONS AND RECOMMENDATIONS .............. 34
5.0 Introduction .......................................................................................................................... 34
xii
5.1 Summary .............................................................................................................................. 34
5.2 Discussion ............................................................................................................................ 35
5.3 Conclusions .......................................................................................................................... 36
5.4 Recommendations ................................................................................................................ 36
5.6 Limitations of the Study ............................................................ · ........................................... 38
5.5 Suggestions for Further Research ........................................................................................ 38
REFERENCE ............................................................................................................................. 39
Appendix I: Letter to Respondents ............................................................................................ 43
APPENDICES ............................................................................................................................ 43
APPENDIX II: QUESTIONNAIRE .......................................................................................... 44
