| Abstract: | This research focuses on the practice of budget preparation monitoring and implementation in Hamlin Fistula Ethiopia, an international NGO operating in Ethiopia. The general objective of the research is to assess the practice of budget implementation and practice as a management tool for managing variances in NGOs. The research is a descriptive research type and used mixed research approach, combining questioner survey and interview. To achieve the objectives of the thesis, a census method was used to collect the required data. Research director of the case organization was communicated to identify the key staffs that are responsible in the budgeting process. The questionnaires were dispatched for all target population of 45 staffs who are directly involved in budgeting process in the organization. To get more understanding on the responses, a semi-structured interview was made with senior management staffs. Thirty-nine staff completed and returned the survey. The quantitative data were analyzed using descriptive statistical method including percentages, mean, standard deviation, and frequency using SPSS version 20. As the findings show, the overall budget preparation and utilization system in the organization missed the participation of concerned staffs. Grant review meeting is not conducted regularly with key staffs in different departments of the organizations who have the responsibility to implement the components of the project. Participation of staffs in budget development helps to achieve the purposes of budget such as coordination, communication and motivation in the process of achieving the expected performance level. Therefore, it is recommended that Hamlin Fistula Ethiopia should involve staffs who are responsible for budget monitoring and project implementation in preparing the budget. To ensure smooth communication and timely delivery of outputs as per planned activities in accordance with the requirements of the donor and management, the organization should conduct regular grant review meetings with different departments such as program, finance, logistics and human resource. The finance department of Hamlin Fistula Ethiopia should keep reporting budget versus actual expenditures to support the monitoring of revenue and expense levels in operating activities. |
