| dc.description.abstract | Financial management is considered to be one of the integral parts of overall management of
financial resources in an organisation. The need for effective financial management comes from
the fact that many private organisations have remained lagging behind amidst the available
resources in the organisation which could be due to inadequate financial management systems.
This study decisively looked at the effect of financial management on performance of private
organizations as the major objective taking empirical case of Stella Maris College Nsuube.
The study was conducted using case study research design, descriptive-cross sectional approach
and applying both qualitative and quantitative techniques. Data was collected using
questionnaires, interviews, review of available documents and records targeting basically the
Board of Directors, Management, Finance Committee, Teaching and Support staff. Data was
analyzed using the Statistical Package of Microsoft Excel Software and interpretation of results
was drawn from tables and figures in the form of pie charts and bar graphs.
The findings revealed that there exists a positive relationship between financial management and
performance. The organization mobilizes its finance through school fees collection, loans and
donations. However, it is faced with the challenges of inadequate funds due to dependency on
school fees as the major source of income and lack of participatory budgeting; ineffective
internal control system especially segregation of duties; poor inventory management and lack of
receivable and payable management policies.
The study therefore, concludes and recommends that to ensure efficient and effective financial
management, the top management needs to diversify the sources of income by establishing
income generating projects and seeking for donor funds. The organization should establish and
strengthen the receivable management policy, strengthen inventory management and institution
of internal and external audits in financial management processes; staff development, segregation
of duties and reinforcement of financial guidelines and procedures.
Therefore, it was concluded that good financial management is a necessary tool for the success
of both public and private organizations (Stella Maris College Nsuube). | en_US |
