Financial Accountability Practices and Performance of Donor Funded Projects Under Kenya National Commission on Human Rights

Abstract

The first measure of project performance is a project that meets the iron triangle factors. However, aspect of overall satisfaction of the stakeholders is added to the traditional iron triangle factors of time, budget, and quality. To achieve good performance of projects, several practices must be observed such as management practices, following a predetermined project management cycle as well as observe financial accountability. Financial accountability practices help the organization to utilize funds effectively and efficiently leading to good project performance. This research aim was investigating how financial accountability practices affect projects performance. Projects funded by donors under KNCHR, a Constitutional Commission were selected for this investigation. Research objectives aim being: to examine how financial planning affect performance of donor funded projects under KNCHR; to study effect of financial M&E on performance of projects funded by donor under KNCHR; to assess the effect of financial reporting on performance of donor funded projects under KNCHR; and to explore how financial controls affects KNCHR donor funded projects performance. Resource mobilization theory, Accounting Theory and Theory of Budgeting. A total of 50 KNCHR staff members formed the targeted population. Since 50 was a small number census method was used. Mutually, quantifiable and descriptive data was gathered from selected staff using questionnaire as the primary instrument of data collection. Occurrences, proportions, standard deviations and means were calculated, plus regression and correlation. Results were tabularly presented. Resultant data depicted the magnitude of relationship in financial accountability and KNCHR Donor funded projects performance as follows; financial planning (r = 0. 693), followed by financial M&E (r = 0. 549), financial reporting (r = 0. 530) and finally internal controls (r = 0. 513). Conclusion was arrived at was the predictor variable with greatest relationship with dependent variable was financial planning. As a result, recommendation is given that all people involved in the projects to be looped in project proposal, annual planning and budgeting and continuous monitoring and evaluation results be shared with all for swift timely actions. One of the challenges cited while planning was time constraint, planning is always done within a tight deadline. Therefore, a recommendation was made to the senior management to always allocate planning process ample time since it is important for project success. A finding was made that there exist public finance management Act that guides the handling of public funds but for the donor funds there is no clear guideline. Recommendation was made to the government to formulate suitable procedures and guidelines for financial accountability practices for donor funds. To future scholars, a recommendation is made to conduct an investigation on influence of financial accountability indicators considered for this research on public projects for comparison of results with this study. Further, researchers can consider conduction similar researches on donor funded projects under different organization such as Non-governmental Organizations and give validity to this research outcomes.