dc.description.abstract | The study seeks to examine the financial management practices by the EAC which has been
faced with rising membership implying a bigger financial burden to the Partner States resulting
to the swelling of the budgeted fiscal requirements Thus, the financing and allocating of its funds
faces major challenges which limit the extent of implementation of her development strategy and
initiatives.
In the study, literature reviewed included principles of sound financial management; financial
planning responsibilities and budgeting principles for organizations. The processes involved in
IGOs financial management including the sourcing and utilization of funds as well as the role of
development partners Community have also been identified and reviewed. A survey research
design was employed in the study which involved qualitative and quantitative sampling drawn from
the East African Community management team. The target population for this study was the
executive staff of EAC in Arusha, Nairobi and Kampala. The study utilized primary data by use of
questionnaire to gather data on principles of financial management which had both structured closed
ended questions based on the objectives of the study.
The study findings on the adherence sound principles of financial management revealed the
following limitations in the following areas namely: contingency planning, lack of sufficient
documentation in areas of major assumptions and forecasting methods, cross referencing of
budget data to units goals and objectives significant changes in current activities, goals and
objectives, cash management plan to ensure optimal utilization of cash resources available to the
organization and significant changes in current activities. The responsibilities of financial risk
assessment showed limitations in the organization and the adaptation of the International Public
Sector Accounting Standards (IPSAS) was partial.
The study recommends the adaptation of a method for taking corrective actions which includes
revising plans or budgets to reflect changed circumstances and alteration of future budget
assumptions, documentation of managerial decisions. The responsibility of financial risk
assessment calls for review and full adaptation of the International Public Sector Accounting
Standards (IPSAS) should be considered. | en_US |