Budget compliance and financial sustainability in non-governmental organizations: A case of compassion assisted projects in the central region

Abstract

The budget compliance and financial sustainability of Compassion Ghana were evaluated in connection with its projects in the Central Region. The study adopted a descriptive research design, employed a questionnaire for data collection, and analyse data with descriptive statistics and inferential statistics. Additionally, a sample of 195 project implementors was used for the study. The study findings indicated that Compassion Ghana engages in rigorous budgetary control practices. Also, the organization was ranked by the implementors as financially sustainable. However, the organization has over-reliance on donor funds and low internal revenue generation. Nonetheless, it has good financial management and good donor-management rapport. The study also showed that budgetary controls significantly influence financial sustainability positively. The study concluded that budgetary controls continue to be essential in the budget preparation process. It put management in the direction of ensuring efficient and effective use of resources which in the end helps to achieve the grand objective of improving the lives of people in the community. The study then recommended that non-governmental organizations should ensure strict budgetary control procedures to beat expenditures without affecting their objectives. Key variances should be analysed critically and corrective measures should be taken to resolve them.