The effects of financial monitoring on programme performance for international non-governmental organizations in Kenya

Donors provide funds to various organizations with a sole believe that the funds will be \nutilized towards the achievement of organizational objective as laid out in the detailed \nimplementation plan and annual work plan. Financial monitoring systems are required in \nthe quest to maximize the efficient use of resources, create the highest level of \ntransparency and accountability in an organization’s finances and to ensure long-term \neconomic success. The study therefore attempts to find the effects of financial monitoring \non the programme performance for INGOs in Kenya. \nThis study employed multiple regressions to analyze the effect. The data collection \ninvolved the use of both quantitative and qualitative research methodology. A sample of \n50 INGOs was selected out of which, I successfully obtained data from 31 INGOs. This \nrepresents 62% response rate which was significant for the study. The data was analyzed \nusing the Statistical Package for Social Scientist (SPSS). Before running the regression, \ndata testing was conducted. To obtain a good-fit estimation, some tests were carried out to \nensure statistical assumptions, such as linearity of variables, no correlation among \nindependent variables, and no omitted variable problem. \nThe result showed that financial monitoring positively contributes to INGOs’ programme \nperformance. INGOs that conducted frequent financial monitoring performed well in their \nrespective programme, other determinants constant. Therefore, concluded financial \nmonitoring techniques should be conducted frequently to enhance programme \nperformance. A recommendation was made that NGOs should strengthen their monitoring \nthrough periodic review meetings, onsite and offsite financial monitoring .The leadership \nof the NGOs should also ensure fund accountability is enhanced.