Factors that Limit Full Utilisation of Donor Funds to Ap Ac District

ABSTRACT 

This study looked at the factors that prevent full utilization and absorption of funds by Apac District and its effects. The high rate of under-utilization and returning of funds has persisted which in tum has had negative effect on the implementation and sustainability of Donors funded projects in Apac District. The empirical data was collected from Apac District. A sample of 174 civil servants was selected using simple random sampling method. Questionnaires were used for collecting primary data meanwhile review of records and documents was the source of secondary data. The analysis was done using SPSS and the findings were presented in tabular and graphical form. The key findings of the study show that the present financial management structure, policies and procedures of Apac District are generally adequate for the management of donor funds. However, the following areas will require improvement for the effective and efficient utilization of donor funds: accounting, policies and procedures, reporting, monitoring and information management systems, staffing, timely release of funds and capacity support by donors. The study therefore recommends strengthening the district's financial management system, capacity development of staff working in finance department, timely release of funds, effective support supervision, monitoring of donor funded programmes and community sensitization to ensure transparency and accountability.

TABLE OF CONTENTS

TABLE OF CONTENTS ................................................................. i

DECLARATION ............................................................................ iv

APPROVAL ···················································································· V

DEDICATION ................................................................................ vi

ABBREVIATIONS AND ACRONYMS ..................................... vii

ABSTRACT .................................................................................. viii

CHAPTER ONE .............................................................................. 1

1.0 INTRODUCTION AND BACKGROUND ............................................................. I

1.1 Introduction ............................................................................................................... I

1.2 Background ............................................................................................................... I

Table 3: UNICEF Releases to the District 2005-2009 ................................................... 4

1.3 Statement of the Problem .......................................................................................... 7

1.4 Significance of the Study .......................................................................................... 8

1.5 Purpose of the Study ................................................................................................. 9

1.6 Specific Objectives ................................................................................................... 9

1.7 Research Questions ................................................................................................... 9

1.8 Scope ......................................................................................................................... 9

1.9 Conceptual Framework ........................................................................................... 10

CHAPTER TWO ........................................................................... 11

2.0 LITERATURE REVIEW ....................................................................................... 11

2.1 Introduction ............................................................................................................. 11

2.2 Conceptual/Theoretical Review .............................................................................. 11

2.3 Financial Management ............................................................................................ 14

2.4 Spot Check Guideline ............................................................................................. 16

2.5 Performance management. ...................................................................................... 17

2.6 Capacity building .................................................................................................... 18

2.7 Financial Decentralization ...................................................................................... 20

2.8 Service delivery ...................................................................................................... 23

2.9 New public management reforms ........................................................................... 24

2.10 Reforms in Uganda ............................................................................................... 28

CHAPTER THREE ....................................................................... 3 2

3.0 RESEARCH METHODOLOGY ........................................................................... 32

3.1 Introduction ............................................................................................................. 32

3.2 Research Design ..................................................................................................... 32

3.3 Sources of Data ....................................................................................................... 32

3.4 Target Population .................................................................................................... 33

3.5 Sampling Frame ...................................................................................................... 33

3.6 Sample Size Determination .............................................................................. 35

3.7 Sampling Technique ............................................................................................... 36

3.9 Data Collection Methods and Tools ....................................................................... 37

3.10 Data management ................................................................................................. 38

3.11 Data Analysis ........................................................................................................ 39

3.12 Study limitations ................................................................................................... 39

CHAPTER FOUR .......................................................................... 40

4.0 FINDINGS .............................................................................................................. 40

4.1 Socio -Demographic Characteristics ...................................................................... 40

4.2 Unabsorbed Funds .................................................................................................. 42

4.3 Financial Management in the District ..................................................................... 43

4.4 Existence of Budgetary Control .............................................................................. 44

4.5 Existence of Internal Check .................................................................................... 46

4.6 Factors that limit full utilization of funds ............................................................... 4 7

4.6 Effect of Underutilization of Funds ........................................................................ 52

3.7 Strategies to Improve Utilization of Donor Funds ............................................ 54

4.8 Relation between Variables Using Cross Tabulation ............................................. 57

4.9 Key Informants ....................................................................................................... 59

CHAPTER FIVE ........................................................................... 62

5.0 Discussion conclusion and Recommendation ......................................................... 62

5.1 Trend in funds Disbursement and Utilization ......................................................... 62

5.1 Factors Limiting Full Utilization of Funds ............................................................. 62

5.2 Effect of Underutilization of Donors' Funds .......................................................... 64

5 .3 Strategies to Improve Utilization of Donor Funds .................................................. 65

5.4 Conclusion ................. _. ........................................................................................... 66

5.4 Recommendation .................................................................................................... 69

REFREN CES ................................................................................. 71

APPENDIX 1 ................................................................................. 7 4

QUESTIONNAIRE ...................................................................................................... 74

APPENDIX 2 ................................................................................. 78

KEY INFORMANT INTERVIEW GUIDE ................................................................. 78

APPENDIX 3 ................................................................................. 79

MAP OF APAC ............................................................................................................ 79