The role of financial management in non governmental organisation sustainability; A case study: Caritas Arua

Abstract

Financial management is an important tool in organisation sustainability as this gives indication of health organisation with good management of resource to carry out development activities within the community. Financial management plays vital role in all facets of the organisation that integrate all other aspects of the organisation to function properly. This entails organisation management should act responsible with clear financial planning and budgeting strategy, investment decision and debt and credit control to ensure strategic goals are achieved while managing the liquidity level of the organisation with the help of competent and skilled staff. The main aim of the study was to; investigate the roles of financial management in organisation sustainability in Caritas Arua as a development arm of Arua Diocese in relation to programmes implementation base on their strategic financial plan; and what ways does it find sources of funds for community programme activities and how this funds are managed to achieve set objectives. The study sought to investigate: what is the role of financial planning and budgeting in Caritas Arua sustainability, what is the effect of investment decision and how debt and credit control are managed to enhance organisation sustainability. Random sampling methods were used to collect the data. A sample of fifty six (56) respondents contributed towards this study. The collected data were analysed both quantitatively and qualitatively. The results showed that the organisation uses financial management tools to mobilise resources and employ the resource for community programme. It was also noted that the organisation is donor dependant and any change in the donors funding strategy can affect the organisation sustainability and programme implementation