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David Mwaura Ndungu - Student, Kenyatta University, Kenya

Dr. Lucy Wamugo Mwangi (PhD) - Lecture, Kenyatta University, Kenya


Non-Governmental Organizations (NGOs) that provide support to individuals living with HIV/AIDS have encountered various challenges resulting into financial distress. Amongst these challenges, some scholars specializing in HIV/AIDS NGOs suggest that financial controls are the contributing factors to financial distress. The purpose of this study was to examine the effect of financial controls on the financial distress experienced by HIV/AIDS NGOs in Kenya. The specific objectives of the study were to assess the effects of donor financial reporting compliance and financial reconciliations on the financial distress of these HIV/AIDS NGOs. The study was anchored on the theory of inspired confidence, agency theory to explain the relationship between financial controls and financial distress. An explanatory research methodology was employed for the study. The target population consisted of 219 HIV/AIDS-related NGOs listed in the NGO Coordination Board register in 2021. A sample size of 142 NGOs was randomly selected using simple random sampling. Structured questionnaires were used to collect primary data which was analyzed using descriptive statistics and logistic regression analysis in the Statistical Package for the Social Sciences (SPSS). The research findings were presented using tables, pie charts, and bar graphs. The study revealed that donor financial reporting compliance, financial reconciliations had statistically significant positive influence on the financial distress of HIV-AIDS NGOs. The study recommends that donors want to increase compliance rates, need to create dialogue platforms with funded HIV/AIDS NGOs’ employees and management for mutual understanding of the rules and regulations of a particular donor.

Full Length Research (PDF Format)