Financial Reporting and Access to Donor Funds in Nongovernmental Organizations. A Case Study of Friends of Children Association-Kampala

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