THE EFFECT OF FINANCIAL GOVERNANCE ON FINANCIAL MANAGEMENT SYSTEM EFFECTIVENESS IN HEALTH ORIENTED CIVIL SOCIETY ORGANIZATIONS
DOI:
https://doi.org/10.47672/ajhmn.36Keywords:
financial governance, financial management system, health oriented civil society organizationAbstract
Purpose: The purpose of this study was to to determine the extent to which financial governance affect financial management system effectiveness in health oriented civil society organizations.
Methodology: The study was conducted through a cross sectional descriptive survey. The target population of the study was 1065 Nongovernmental organizations in Kenya. The accessible population refers to the 606 Nongovernmental organizations located in Nairobi County. A sample of 10% equivalent to 61 Nongovernmental organizations was selected from the Nongovernmental organizations located in Nairobi County. The respondents were financial managers in every selected Nongovernmental organization. Data was collected by use of a questionnaire and was analyzed by use of inferential and descriptive statistics. Descriptive statistics included frequencies and means. Inferential statistics included correlation, regression and ANOVA analysis. The tool for data analysis was the Statistical Package for Social Sciences (SPSS) version 20. The results were presented using tables and pie charts.
Results: Study results indicated that financial governance affects financial management systems effectiveness of NGO's. The results are further supported by a majority of respondents who agreed that the NGO's have a governing body that provides strategic direction and leadership.
Unique contribution to theory, practice and policy: The study recommended that financial governance ought to be thorough throughout the company with sound rules and regulations that governs the accounting and financial sector of the company. This will ensure timely and accurate disclosure of all financial matters regarding the corporation to the regulatory body thus showing the efficiency in financial management systems.
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