Background of the study
Financial management of organizations revolve around the investment, financing and working capital decisions of an organization (McMenamin, 2002). It is concerned with decisions relating to the acquisition of real assets (quantity and type), raising capital for assets or investments and, managing the affairs of the firm in order to maximise value (Brigham & Houston, 2011). Financial management is essential for profit organisations, non-profit organisations as well as, government institutions (Brigham & Houston, 2011) and the absence of sound and effective financial management usually results in failure or breakdown of institutions (McMenamin, 2002). Effective and efficient financial management is vital to the development of an organisation. This has resulted in stakeholders becoming highly interested in solving governance and accountability issues (Zadek, 2003).
Non-Governmental Organisations (NGOs) are significant actors in economic, political and social development within the civil society (Brown & Kalegaonkar, 2002). NGOs are organizations that are not government owned or private for profit organizations (Unerman & O’Dwyer, 2006). NGOs are one of the major non-state actors who via local participation contribute immensely towards the development agenda in most countries (Dugle, Akanbang & Salakpi, 2015). The role of NGOs are very key to development, and due to their rapid growth, NGOs form a crucial part of civil society as their activities fill the vacuum for government failures (Goddard & Assad, 2006; Hearn, 2001; Kamat, 2004; Lewis & Kanji, 2009; Lloyd, R., 2005; Sommerfeld & Reisch, 2003).