ASSESMENT OF FINANCIAL MANGEMENT PRACTICES OF INTERNATIONAL NGOs: THE CASE OF INGOs OPERATING IN EAST WOLLEGA ZONE.

Tesfaye Eresso (Assist.Pro)

This study aimed to asses’ financial management practice of International Non-Governmental Organizations operating in East Wollega Zone. The main objective of the study is to assess and describe financial management practice of International Non-Governmental Organizations under the study utilize to identify their area of strength and weakness as well as encounters around the key financial management components and reporting requirements such as assess the budgeting process link with the financial planning process, extent of the record keeping system volubility, extent of internal control and financial reporting extent and how they prepare their financial report to monitor their budget and expenditure. Descriptive methods with Purposive technique of 48 respondents were selected from 12 international non-governmental organizations operating in East Wollega Zone of Oromia. Reliability testing has also been carried out to check the consistency of the responses. The major findings were: Some finance staff were not participated in budget planning and reviewing, sometimes procurements process is not full fill all requirements of purchase, there is a gap on payment procedures and beneficiaries were not monthly reports on time. Finally, the researcher recommended that finance staff must participated on planning, and `budgeting, keeping payment procedure and procurement process and beneficiaries get report on time and give feedback should be in a given period. Based on the finding, the researcher aspires to provide the international non-governmental organizations under study with the study finding so as to enable each to further review internally their own system and use the information to further strengthen their system. Key words – Financial Management, Financial Planning and Budgeting, Accounting Records, Internal Controls, Financial reporting