The Effect of Budgetary Controls on the Performance of Non-Governmental Organisations in Uganda: a Case Study of the Inter Religious Council of Uganda (Ircu)

Abstract

The purpose of this study was to assess the “effect of Budgetary Controls on the Performance of Non-governmental Organizations in Uganda” case study of IRCU. The study was guided by the following specific objectives to:

The study adopted a case study design which involved the use of both qualitative and quantitative approaches in data collection and analysis. The study gathered both primary and secondary data. Primary data was obtained through interviews and questionnaires to randomly selected employees of IRCU. Primary data was collected using interviews conducted one on one with the researcher and questionnaires were circulated and filled by the respondents. Secondary data included censuses, organizational records and data collected through qualitative methodologies or qualitative research. A sample size of 60 staff was were selected using both purposive and random sampling techniques among Administrators and Finance and accounts staff to collect data. Data was analyzed using frequency tables, Pie charts computer programs such as, Microsoft excel and word.

The study concluded that IRCU Budgeting involved the establishment of predetermined goals, the reporting of actual performance results and evaluation of performance in terms of the predetermined goals. Budgetary control systems were universally applied and have been considered an essential tool for financial planning. Budgetary control helped IRCU to provide a forecast of revenues and expenditures. IRCU uses budget control as the primary means of organizational internal controls; it provides a comprehensive management platform for efficient and effective allocation of resources. Budgetary controls enabled the management team to make plans for the future through implementing those plans and monitoring activities to see whether they conform to the plan. However IRCU failed to institute effective internal controls and bureaucratic budgeting procedures affected its performance.

It is therefore recommended that, NGOs should adopt comprehensive internal control systems and reporting procedures to allow further training for the staff in the accounts sections and close supervision of the audit department through regular audits and checkup. There is need to implement proper budgetary control measures to enable proper financial reporting at IRCU. The study suggests that further research should be conducted to; examine the role of Government intervention on influencing the performance of NGOs, assess the effect of internal Auditing on financial management in an organization and investigate the determinants of profitability of NGOs in Uganda.

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