ASSESSMENT OF INTERNAL CONTROL SYSTEMS ON NON-GOVERNMENT ORGANIZATIONS (NGO’s)

Abstract

This paper sought to assess the functionality of internal control system of Non- Government Organizations (NGOs) a case study of Pathfinder International Ethiopia. The study was guided by the following objectives: to assess organization organizational control of PIE, to assess personnel controls of PIE, to assess operating controls of PIE, to assess periodic review of PIE. The researcher used descriptive quantitative design. A simple random sampling technique was used. A case study of 150 employees was then 70 questionnaires were distributed to the respondents. Out of these 68 returned. The main instrument for collecting primary data was self-administered questionnaire that was subjected to expert evaluation for content validity, while secondary data was collected by reviewing files, documents, published books, articles and journals. The data was analysed using both descriptive statistical like mean, median, standard deviation and narrative methods. Narrative analysis was used to explain the qualitative results of the survey. The major findings of the study were that PIE has a sound internal control system overall in terms of the control operation, controls procedures and monitoring controls, human resource controls. PIE was operating under well constituted qualified and experienced management. The periodic review aspect of the internal control specifically: (i) stocks and inventory items record, (ii) record of program and common cost allocation system were somehow mismatch with regulatory body (CSA’s) standard. The study further points out that keen attention should be paid on to adopt efficient periodic review system in the organization.