The Impact of Financial Accountability on the Financial Sustainability of Non-governmental Organizations in Nairobi County

Abstract

Accountability linked to finance has been quite possibly the most dangerous and pervasive issue for organizations globally for quite a while. They informed the basis for this study whose general objective was to examine the impact of financial accountability on the financial sustainability of Non-Governmental Organizations in Kenya. Resource mobilization theory, agency theory and fraud triangle theory guided the research. The investigation applied a research case and investigated all the 251 NGOs operating in Nairobi County due to the convenience of accessibility of the facility. The research relied on primary data gathered by administering a questionnaire that is structured through the Likert measurement scale. The mean score for each characteristic was determined and the standard deviation applied to decipher the respondent's deviation from the mean. Additionally, quantitative data was analyzed through correlation and regression analysis. The outcomes were introduced on recurrence appropriation pie graphs, tables, pie, and bar outlines. The correlation results displayed that financial planning services had a useful remarkable correlation with financial sustainability (p=0.000, r=0.761), financial management services had a useful and remarkable correlation with financial sustainability (p=0.000, r=0.781) and management competence had a positive significant correlation with financial sustainability (p=0.000, r=0.714). Results also showed that financial planning services had a useful and remarkable effect on financial sustainability (β=0.358, p=0.000). In addition, outcomes displayed that financial management services had a useful and remarkable effect on financial sustainability (β=0.565, p=0.000). findings also indicated that management competence had caused a useful and remarkable effect on financial sustainability (β=0.389, p=0.000). The study concluded that financial accountability impacted the financial sustainability of NGOs in Kenya. The research concluded that the impact was positive. The specific aspects of financial accountability that impacted financial sustainability were finance planning services, financial management services and management competence. However, the study concluded that for some aspects had greater impact than others. For instance, financial management practices had the greatest impact, followed by management competence and the financial planning services. the researcher recommends that the management of non-governmental organizations in Kenya should ensure that the hire competent staff who are able to execute laid out plans appropriately. They should be keen to identify staff who have the right skills during the recruitment process. Additionally, they should engage their staff in retraining programs with an aim of keeping them at par with the changes in the NGO world. The study recommends that the same research be carried out aiming on Community Based Organizations (CBOs). This would help to compare the two types of organizations as they have some similarities.