EVALUATION OF CAPACITY DEVELOPMENT SUPPORT ON THE ACCOUNTING PRACTICES OF LOCAL NGO’s: The case of Pact Ethiopia

Abstract

This study was aimed at assessing the effect of the capacity development support of Pact as a donor agency on the accounting practice of local NGOs working as implementing partners of Yekokeb Berhan for highly vulnerable children program in Addis Abeba. Quasi experimental design was applied in the analysis of the change in the capacity of the NGOs involving both qualitative and quantitative data. From nine NGOs working with Pact, 6 were selected using convenience sampling technique. Three people from each of this IPs were selected and included in the study based on their position and knowledge of the capacity development support. Semi structured in-depth interview guide and standard management capacity assessment tool (MCAT) were used to collect data. Calculation of means and standard deviations as well as one sample t-test were used to analyze the quantitative data while narrative analysis technique was used in analyzing the qualitative data. The major findings of the study showed that the capacity development supports of Pact are effective in improving the accounting systems and practices of the implementing partners. This is clearly observed in the improvement of the management capacity assessment tool scores of the implementing partners and the major critical gaps identified during the baseline. Even if the capacity development support of Pact was found to be effective in reducing the grant managing risk and improving their gaps identified at the initial stage of the project, there are areas that need to be improved for better results. Based on the findings of the study the need to increase the frequency of MCAT, emphasizing on mentoring, applying appreciative inquiry for effective communication, and timely release of cash to assure smooth operation were recommended.