Financial management practices in non-governmental organisation in Uganda: case of make a Child Smile Foundation Uganda

Abstract

The study examined the financial management practices at Make a Child Smile. Financial management practices facilitate control of funds to promote the smooth running of NGOs to achieve efficiency. The study was guided by three research objectives; to examine the current financial management practices at Make a Child Smile foundation Uganda; to identify the gaps in the financial management practices at Make a Child Smile foundation Uganda and to design strategies of improving financial management practices at Make a Child Smile foundation Uganda. The study used a qualitative research design and was cross-sectional in nature. Data was collected from five participants using an interview guide and later themes were used and ethical guidelines adhered too. The findings revealed that financial management practices include making budgets, requisition for activities, monitoring and control, accountability, internal audit, procurement policy, evaluation of funds, donor financial approval, annual work plan, bank reconciliation, external audit of financial reports and implementation of cash system. The gaps were limited funds, receipts not carried back, understaffing, absence of internal audit practices, programs are survivor centered, lack of proper financial guidance policies and lack of procurement committee expose organization to risks to incur loss which indicate ineffective financial management. The strategies to improve financial management practices were writing proposals to solicit for funds to meet the budget, volunteers staff to help in performance of activities, Gantt chart resource, on the-job training in financial management, internal audit, administering penalties to culprits of misuse of funds allocated on receipts, monitoring and evaluation of activities to compare the expectations with actual outputs.