Effect of Month End Close Practices on the Financial Performance of International Non-Governmental Organizations in Rwanda (2020-2021)

Authors

  • Ndabananiye Gamariela Save the Children International, Kigali, Rwanda
  • Mutabazi Placide Save the Children International, Kigali, Rwanda
  • Nyiramayira Juliennec Save the Children International, Kigali, Rwanda
  • Nsengiyera Danield Mentis Akagera Game Lodger, Kigali, Rwanda
  • Nizeyimana Fidelee Ministry of Health Rwanda, Community Health Department; Department of Public Health Mount Kenya University

DOI:

https://doi.org/10.47672/ajf.1596

Keywords:

Month-End Close, Financial Performance, Trial Balance, Reconciliations, Balance Sheet, Posting, General Ledger, Overhead Cost Allocations, Accruals and Audits

Abstract

Purpose: Month-End Close Practices are tasks performed by finance department every month (or accounting period) prior to and following the closedown of the relevant books of accounts. It is good practice to closedown financial systems for each accounting period to allow the institution to compile its management accounts (e.g. showing the actual expenditure versus budget) to assess its financial position. Therefore, month-end procedures involves running reports to check transactions and balances, as well as preparing management accounts to assess the financial position of the organization. This study focused on the evaluation on Month-End Close Practices on the Financial Performance of International Non-Governmental Organizations in Rwanda.  It aimed to  finding out  whether  the  Month-End Close Practices were  effective  and  whether  they  really  have  effect  on Financial Performance of International Non-Governmental Organizations in Rwanda especially in the selected NGOs over the period of 2020-2021. 

Methodology: The design of this study was a quantitative and qualitative descriptive in nature. The study enrolled 20 respondents senior finance staff from the selected NGOs. Quantitative data were collected using data collection sheet while qualitative data were collected using interviews, focus groups and observation. Quantitative data were analyzed using statistical package for social sciences (SPSS) version 20 and qualitative data were to look for emerging themes then further distilled to identify any abstract themes that could be understood holistically.

Findings: The study findings revealed that Month-End Close Practices have a significant effect on the Performance of International Non-Governmental Organizations. The study found a strong positive correlation between moth end practices and financial performance.

Recommendation: International Non-government organizations (NGOs) should maintain internal control system and policies related to the month-end close practices as it showed the high standard of compliance and financial performance.  

 

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Published

2023-09-29

How to Cite

Gamariela, N. ., Placide, M. ., Juliennec, N. ., Danield, N. ., & Fidelee, N. . (2023). Effect of Month End Close Practices on the Financial Performance of International Non-Governmental Organizations in Rwanda (2020-2021). American Journal of Finance, 8(2), 42–49. https://doi.org/10.47672/ajf.1596

Issue

Vol. 8 No. 2 (2023)

Section

Articles

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Copyright (c) 2023 Ndabananiye Gamariela, Mutabazi Placide, Nyiramayira Juliennec, Nsengiyera Danield, Nizeyimana Fidelee

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