Financial reporting and donor funds accountability in humanitarian organisations in South Sudan, a case study of South Sudan Red Cross - Juba

Abstract

The study assessed the influence of financial reporting on donor funds accountability in the South Sudan Red Cross in Juba, South Sudan. The study was guided by the following objectives: to examine the relationship between financial Statements and donor funds accountability in South Sudan Red Cross, Juba; to assess the relationship between budgeting and donor funds accountability in South Sudan Red Cross, Juba; and to determine the relationship between internal control measures and donor funds accountability in South Sudan Red Cross, Juba. The study employed a descriptive research design using a quantitative research approach. The sample size of 211 respondents was selected from a population of 450 respondents. Quantitative data was coded and entered into SPSS for statistical analysis. Descriptive statistics such as frequencies and percentages were used. Regression analysis assessed relationships between financial reporting and donor accountability. Qualitative data from interviews was transcribed and analyzed using thematic content analysis. Emerging themes on financial reporting challenges and donor accountability mechanisms was identified and interpreted. Quantitative data was presented in tables and charts, while qualitative findings was summarized in thematic narratives. The study concludes that financial statements, budgeting, and internal control measures are all critical for ensuring donor funds accountability in NGOs. Transparent and accurate financial reporting, supported by regular external audits, builds donor confidence, fosters long-term relationships, and encourages continued funding. Effective budgeting ensures proper allocation and utilization of resources, while integration with auditing strengthens oversight and demonstrates responsible stewardship. Strong internal controls, including segregation of duties, regular monitoring, and authorization procedures, prevent mismanagement and fraud, whereas weak controls and financial misreporting undermine transparency and donor trust. High audit costs, particularly for smaller NGOs, pose challenges to maintaining rigorous accountability. Overall, the findings highlight that a combination of reliable financial statements, systematic budgeting, and robust internal controls is essential for promoting transparency, preventing mismanagement, and sustaining donor confidence. The study recommends that NGOs ensure timely preparation and submission of accurate and detailed financial statements and NGOs implement systematic and realistic budgeting practices that align resources with project needs.