INTERNAL CONTROL EFFECTIVINESS OF NONGOVERNMENT ORGANIZATIONS (NGO’s)

Abstract

This paper sought to assess the effectiveness of internal control system of Non‐Government Organizations (NGOs) a case study of Management Sciences for Health Ethiopia. The study was guided by the following objectives: to assess internal control effectiveness of NGO’s a case study of Management of Sciences for Health. The researcher used descriptive quantitative design. Purposive sampling was used. From the total population study of 130 employees, 70 respondents were selected and 60 of them have been returned. The main instrument for collecting primary data was selfadministered 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 and narrative methods. Narrative analysis was used to explain the qualitative results of the survey. The findings of the study were that MSH has a sound internal control system overall in terms of the control operation, controls procedures and monitoring controls, human resource controls. Management Science for Health (MSH) was operating under well‐constituted qualified and experienced management. The periodic review aspect of the internal control was somehow found to be applied inconsistently regarding to regulatory body, Charities and Societies Agency (CSA). The study further points out that strong attention should be paid on to adopt efficient periodic review system in the organization. In conclusion, the organization had strong organizational control and this led to a well‐defined chain of command whereby every employee is able to understand the duties and responsibilities assigned. However, there are challenges in the implementation of personnel controls particularly in financial matters that create unnecessary delays on some organizational activities. Therefore, it is recommended that MSH management to strength the internal control system by giving training for employees on the policies and procedures of the organization and distributes copy of the policy to each department