Financial management practices and operational performance of non-governmental organizations in Uganda a case study of World Vision.

Abstract

The study examined the relationship between financial management practices and operational performance of Non-Governmental Organizations in Uganda focusing on World Vision. The study was guided the following objectives; to examine the effect of working capital management on operational performance of World Vision Uganda, to establish the effect of financial reporting practices on operational performance of World Vision Uganda and to assess the effect of financial control practices on operational performance of World Vision Uganda. The study employed a cross-sectional design using an Explanatory Sequential Mixed Methods approach, where quantitative data was collected and analyzed first to inform the qualitative phase. The target population consisted of 80 employees at World Vision Uganda headquarters, including managers, supervisors, and subordinate staff, from which a sample of 66 was selected using purposive sampling for managers and supervisors, and simple random sampling for subordinate staff. Data were collected through structured self-administered questionnaires and interview guides, with primary data supplemented by secondary sources. Quantitative data were coded, entered into SPSS v24, and analyzed using descriptive statistics and regression models, with p values guiding hypothesis testing, while qualitative data were transcribed, coded into themes, and used to support and explain quantitative findings. Decisions on hypotheses were made by comparing p-values to the significance level: p ≤ 0.05 led to rejection of the null hypothesis, indicating a significant effect, whereas p > 0.05 led to acceptance, indicating no significant effect. The study found that working capital management had a negligible and statistically insignificant effect on operational performance (R = 0.063, p = 0.646). In contrast, financial reporting practices showed a weak but statistically significant positive relationship (R = 0.227, p = 0.002), explaining 5.1% of the performance variance. Similarly, financial control had a weak yet significant effect on performance (R = 0.232, p = 0.004), accounting for 5.4% of the variance. The study concludes that while working capital management has no significant impact on performance, both financial reporting practices and financial controls have modest but statistically significant positive effects on the operational performance of World Vision Uganda. Strengthening transparency and internal control systems is key to enhancing effectiveness and sustaining stakeholder trust. The study recommends that emphasize improving cash flow management, enhancing the accuracy and transparency of financial reporting, and strengthening internal controls through audits, training, and oversight.