TABLE OF CONTENTS
DECLARATION .......................................................................................... i
APPROVAL ............................................................................................... ii
DEDICATION .......................................................................................... iii
ACKNOWLEDGEMENT .............................................................................. iv
LIST OF ACRONYMS ................................................................................. v
TABLE OF CONTENTS .............................................................................. vi
ABSTRACT .............................................................................................. ix
CHAPTER ONE ......................................................................................... 1
1.0 Introduction .............................................................................................................. !
1.1 Background to the study ...................................................................................... I
1.2 Statement of the Problem ..................................................................................... 2
1.3 Purpose of the Study ............................................................................................. 2
1.4 Objectives of Study ................................................................................................. 2
1.5 Scope of the study .................................................................................................. 3
1.5.1 Subject Scope ......................................................................................................... 3
1.5.2 Geographical Scope ................................................................................................ 3
1.6 Significance of the study ...................................................................................... 3
1.7 Conceptual framework .......................................................................................... 4
CHAPTER TWO ........................................................................................ 5
LITERATURE REVIEW ............................................................................. 5
2.0 Introduction ............................................................................................................. 5
2.1 Literature on Quality of Financial Reports ....................................................... 5
2.1.1 Definition of Financial Reporting ........................................................................ 5
2.1.2 Essence of Financial Reports .............................................................................. 6
2.1.3 Characteristics of financial statements ............................................................ 6
2.1.4 Guidelines for Projects on Reporting Financial Performance ..................... 7
2. 1.5 Qualities of a good financial report .................................................................... 8
2.2 Literature on access to Donor Funds ................................................................ 9
2.2.1 Grants and Sponsored Projects .......................................................................... 9
2.2.2 The Information Content of Financial Statement ........................................ IO
2.2.3 Sponsored activities are characterized by one or more of the following
criteria: ................................................................................................................................... IO
2 .3 Relationship between Quality of financial reporting and access to Donor
Funds 11
2.3.1 Financial statements required of Donor Funded Projects ......................... 12
2.4 Conclusion ............................................................................................................. 14
CHAPTER THREE .................................................................................. 15
METHODOLOGY .................................................................................... 15
3.0 INTRODUCTION .................................................................................................... 15
3.1 Research Design .................................................................................................... 15
3.2 Survey Population ................................................................................................ 15
VI
3.3 Sampling Design ................................................................................................... 15
3.3.1 Sample Size ............................................................................................................ 15
3.3.2 Sampling procedure ............................................................................................. 16
3.4 Sources of data ...................................................................................................... 16
3.5 Tools of data collection ......................................................................................... 16
3.6 Data Processing, Analysis and Presentation .................................................. 17
3.6.1 DataEditing ............................................................................................................ 17
3.6.2 Coding ........................................................................................................................ 17
3.6.3 Tabulation ................................................................................................................ 17
3.6.4 Statistical analysis ................................................................................................. 18
3.6.5 Data Presentation ................................................................................................... 18
3.7 Limitations to the study ........................................................................................ 18
CHAPTER FOUR . . .. . . . .. . . . . . . . .. .. .. .. . .. . . . .. .. . .. . .. . .. .. .. . . . . ... .. . .. . .. . . . .. . . . . . . . . . .. . . . . . . 19
PRESENTATION AND ANALYSIS OF FINDINGS ....................................... 19
4.0 Introduction ............................................................................................................ 19
4.1 Findings on the demographic characteristics of respondents .................... 19
4.2 Findings on the quality of financial reporting ................................................ 24
4.3 Accessibility of Donor funds ................................................................................ 27
4.4 Relationships between the quality of Financial Reporting and the
Accessibility to Donor Funds ........................................................................................... 30
CHAPTER FIVE ...................................................................................... 31
SUMMARY, CONCLUSION AND RECOMMENDATIONS ............................. 31
5.0 Introduction ............................................................................................................ 31
5. 1 Summary of main findings .................................................................................. 31
5 .1.1 Quality of financial reporting ............................................................................... 31
5 .1.2 Accessibility to donor funds ................................................................................. 31
5.1.3 Relationship between quality of financial reporting and accessibility to
donor funds .......................................................................................................................... 32
5.2 Conclusions .............................................................................................................. 32
5.2.1 Quality of financial reports ................................................................................... 32
5.2.2 Accessibility to donor funds .................................................................................. 32
5.3 Recommendations .................................................................................................. 33
5.3 .1 Quality of financial reports ................................................................................... 33
5.3.2 Accessibility top donor funds ............................................................................... 33
5.3.3 Relationship between quality of financial reporting and access to donor
funds .......................................................................................................... 33
5.4 Suggested areas for further research .................................................................. 34
APPENDIX I ........................................................................................... 35
REFERENCES ........................................................................................ 35
APPENDIX II .......................................................................................... 37
STUDY QUESTIONNAIRE ON QUALITY OF FINANCIAL REPORTING AND
ACCESS TO DONOR FUND IN FOCA ....................................................... 37
APPENDIX IV ......................................................................................... 41
PROPOSED RESEARCH BUDGET ............................................................ 41
ABSTRACT The study was undertaken with the main purpose of establishing the effects of the quality of financial reporting on access to donor funds in Non Government Organizations. The study was a survey research on Friends of Children Association (FOCA). The objectives of the study were to investigate and establish the quality of financial reports, accessibility to donor funds in case of friends of children organization and to establish the relationship between the quality of financial report and accessibility to donor funds by FOCA. To achieve the study objective, the sources of data used were both primary and secondary with methods like face to face interviews and structured questionnaires for the primary and review of relevant Organisation financial records and text books for secondary data. I The findings of the study was intepr4eted by use to tables and percentages and the researcher took a sample 35 respondents was selected which comprised of 5 board members, 9 project accountants, 15 project staff and 6 donor staff. The main findings of the study revealed that the4 quality of financial reports in FOCA are substandard, access to donor funds is also greatly determined by financial reporting and therefore it was found that the4re is a high relationship between the quality of financial reports and access to donor funds. Basing on these findings, some of the recommendations are that FOCA should access the quality of their financial reports, in accessing donor funds, donor interests regarding reports must be ensured and to find ways of strengthening the relationship between quality financial reporting and access to donor funds.
