ASSESSMENT OF FUND MANAGEMENT PRACTICES OF INTERNATIONAL NGOs: THE CASE OF PACT ETHIOPIA

Abstract

The purpose of this study was to assess the fund management practices of international NGOs in the case of Pact Ethiopia. This study adopted a descriptive research design and used a mixed research approach with a combination of qualitative and quantitative methodologies. Structured questionnaires, in depth-interviews and document review, were used as data collection tools. Interviews were conducted with higher officials and relevant experts from Pact and its sub-grantees. Likert scales 5 levels listing questions were prepared and distributed to respondents. 105 respondents were selected from the total targeted population of 470 by applying convenience (purposive/judgmental) sampling techniques. The data were analyzed using SPSS and interpreted in percentage, mean and frequency. The major findings of the study indicate that; there is a gap in taking corrective measures for the variance of budget against actual performance. The other result shows that there is a bureaucratic and lengthy fund release process from Pact HQ to Pact Ethiopia as well as from Pact Ethiopia to sub-grantees. Furthermore, due to unsatisfactory practice in the timely release of fund from Pact HQ and Pact Ethiopia, there is a delay of advance settlement every quarter from the sub-grantees side. These constraints hinder the organization to effectively manage funds and achieve its goal and objectives. Some of the vital recommendations made in this research to ensure effective results-based fund management are; narrow gaps on the variances of budget plan and actual expenditure. To avoid variances, Pact needs an urgent shift of using follow-up data and take corrective action. On the other hand, Pact needs to revisit its fund management process to eliminate the non-value adding layers of bureaucracy and reduce lengthy fund release process. Moreover, to avoid delay of fund release from Pact Ethiopia and advance settlement from the sub-grantee side, digitalization (application) helps to reduce the challenges of tracking data in real time. Finally, providing refresher training to its staff and sub-grantees would help to build strong fund management process.