Influence of financial management practices on organizational performance of non-governmental organizations in biodiversity, ACCRA

Abstract

The purpose of the study was to investigate the influence of financial management practices on organisational performance of NGOs who are into biodiversity, and are in Accra in the Greater-Accra Region of Ghana. The target population was all permanent staff of NGOs in Accra who are into biodiversity. However, the accessible population was all spending officers including management staff, project coordinators, field officers and finance/account/audit staff of the organisations. The total number of these categories of staff considered in this study was 235. The NGOs and the categories of staff were selected purposively. Questionnaire with a reliability coefficient of 0.812 was the instrument used. 219 questionnaires were completed accurately, resulting in 93.2% response rate. Both descriptive and inferential statistical tools were used to analyse the data. The findings of the study revealed that cash management practices of the NGOs are not effective as expected. However, the internal financial control systems put in place by the NGOs were perceived to be effective. Also, the financial reporting and analysis of NGOs were seen to be in good shape. Collectively, working capital management practices, internal financial control systems, and financial reporting and analysis were able to influence significantly performance of the NGOs. Based on the findings and conclusions, management of the organisations should improve their financial management practices by ensuring that there are sufficient internal financial control measures which when implemented will make it mandatory for NGOs to prepare, review and spend within their respective budgets