EFFECTS OF GRANT MANAGEMENT SYSTEM IN PROJECT SUCCESS IN THE CASE OF PSI ETHIOPIA

Abstract

Grant management is an integral part for non-governmental organizations, and it is fundamental for the achievement of the project’s objective. Grant is a legal instrument used to transfer anything of value (i.e. money, property, or services) to a recipient in order to accomplish a public purpose of support. The transfer of this resource provides considerable support to developmental effort of the country. It’s vital to have effective grant management because project success is mainly depending on the effective use of available resource on time with desired quality of deliverable for beneficiaries. The main objective of the study was to analyze effects of grant management system in project success the case of Population service International Ethiopia. The study adopted descriptive research design and qualitative research approach. Analysis was conducted based on primary and secondary data. The primary data were collected from staff members at the Population service International Ethiopia office through questionnaires. Secondary data were obtained from Yearly performance report (2016 -2018). Purposive sampling technique used to collect qualitative data based. From the study, the researcher found that there is inconsistent application of policy, procedure & government rules, Lack of communication and information exchange with sub grantee, failure to receive report in scheduled time to truck project performance and using unsuitable grant instrument throughout project implementation. The study conclude grant management system has significant influences in project success because Projects are executed through grants and that is clear the success /failure of the overall grant management system directly affect the projects. More, grant management system has great consequence in project success by making efficient process in preaward, awarding and post-awarding stages which promotes on time budget release that could facilitate project implementation as per the approved work plan and budget. Finally, Its recommended that PSI should maintain adequacy in allocating annual budget in certain grant period, work to align with overall donor compliance & regulatory obligations, maintain specific line of communication to manage grant deal, negotiation and agreement process, apply different grant instrument by considering grantee capacity, scope of work and duration of projects and maintain strict schedule and receive reports before on time.