EFFECT OF INTERNAL CONTROL PRACTICES ON THE SUSTAINABILITY OF NGO’S IN NAIROBI COUNTY
Abstract
In the recent past, there has been a notable decrease in the foreign funding causing the already strained sector to experience greater challenges and to the worst facing closure. This study intended to establish the effect of internal control practices on the sustainability of the NGOs in Nairobi City County. A sample of 285 out of the target population of 1000 senior program managers or chief executive officers was obtained using stratified random sampling. Primary data was collected using structured questionnaires and secondary data was obtained from the audited financial statements of the NGOs through the sampled officers. The researcher collected back 181 questionnaires and found 172 to be satisfactorily completed for analysis yielding a 60.35% response rate. The data was analysed using descriptive and inferential statistics using IBM SPSS Version 23 and was presented in tables and charts. Frequencies, percentages and descriptive statistics were used for data summaries and examination of the distribution characteristics. Regression and Correlation analysis were used to analyse and assess the goodness of fit of the functional relationships modelling the effects of financial management practices on sustainability of NGOs. Chi square test was used to test for independence of various attributes, while ANOVA was used to test for equality of means. The response variable (NGO sustainability) data was tested and found to be normally distributed using the Shapiro-Wilks and Smirnov-Kolmogorov tests. Internal control practices were found to have significant effects on all indicators of NGO sustainability. The study recommended that the management should urgently develop measures to improve the internal control practices which were found to be way below the expected standards and which were likely to compromise on the growth and sustainability of the NGOs.
Key Words: NGO Sustainability, foreign funding, internal control
CITATION: Mugenyi, L. (2019). Effect of internal control practices on the sustainability of NGO’s in Nairobi County. The Strategic Journal of Business & Change Management, 6 (4), 467 – 479.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1403
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