IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i18p11264-d910028.html

The Necessity of Governance Thorough Internal Control and Accountability in NGOs: A Case of Buea Sub-Division Cameroon

Author

Listed:
  • Matina Ghasemi

    (Faculty of Business and Economics, Girne American University, Kyrenia 99428, Turkey)

  • Angel Musongong Ngegah Marie

    (Faculty of Business and Economics, Girne American University, Kyrenia 99428, Turkey)

  • Ladan Rokni

    (Asia Contents Institute, Konkuk University, Seoul 05029, Korea)

Abstract

The main objective of this study was to examine the role and existence of internal control and accountability in NGOs of Buea Sub-division Cameroon. The study fol-lowed these research questions: What are the main concerns of governance in NGOs in the Buea Sub-division Cameroon? Among the identified items, which ones are more important? What is the implication of each item after analyzing? Two theories consti-tuted the theoretical framework of the current study, including the agency theory and stakeholder theory. The evaluation of internal control and accountability was con-ducted through interviews with managers, directors, accountants, and project manag-ers to reach a framework in questionnaires format in fifteen chosen NGOs. By con-ducting interviews 35 items were obtained and among them, 21 items were more em-phasized by the participants. These 21 areas were analyzed using percentage frequen-cy tables and bar charts by using SPSS to analyze internal control and accountability practices in NGOs in Buea Sub-division in Cameroon. The COSO model and HAP frameworks were applied as guidance for the whole procedures and analysis. The findings revealed that some components of internal control systems were not fully ac-tive. Nevertheless, most components like control environment, information, and communication, control activities, internal audit, segregation of duty, accounting knowledge and principles, internal control and accountability were actively being practiced which resulted in a considerable and positive influence on NGOs, noted by participants. The lack of a regulatory body and control by the local government to monitor the operations of NGOs and their ethical standards were noted as problems hindering accountability and reliable reports to stakeholders by the NGO sector in Buea Sub-division. This study has its own limitations as the small group of participants and bias of self-evaluation of critical elements of governance. The study ends with a recommendation for government and NGO management to employ personnel with sound knowledge of internal control and accountability that will follow up on the weaknesses identified in the system like political instability, monitoring, disclosure, and funding constraints in order to improve the existing internal control and ac-countability systems in Buea Sub-division Cameroon.

Suggested Citation

  • Matina Ghasemi & Angel Musongong Ngegah Marie & Ladan Rokni, 2022. "The Necessity of Governance Thorough Internal Control and Accountability in NGOs: A Case of Buea Sub-Division Cameroon," Sustainability, MDPI, vol. 14(18), pages 1-21, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:18:p:11264-:d:910028
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/18/11264/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/18/11264/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Janet G. Townsend & Gina Porter & Emma Mawdsley, 2002. "The role of the transnational community of non-government organizations: governance or poverty reduction?," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(6), pages 829-839.
    2. Jensen, Michael C. & Meckling, William H., 2008. "Theory of the firm: managerial behavior, agency costs and ownership structure," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 48(2), April.
    3. Ebrahim, Alnoor, 2003. "Accountability In Practice: Mechanisms for NGOs," World Development, Elsevier, vol. 31(5), pages 813-829, May.
    4. Matina Ghasemi & Mazyar Ghadiri Nejad & Naif Alsaadi & Mu’tasim Abdel-Jaber & Mohd Shukri Ab Yajid & Mamun Habib & Alireza Goli, 2022. "Performance Measurment and Lead-Time Reduction in EPC Project-Based Organizations: A Mathematical Modeling Approach," Mathematical Problems in Engineering, Hindawi, vol. 2022, pages 1-15, February.
    5. Adil Najam, 1996. "NGO Accountability: A Conceptual Framework," Development Policy Review, Overseas Development Institute, vol. 14(4), pages 339-354, December.
    6. repec:aer:wpaper:116 is not listed on IDEAS
    7. Michael Edwards & David Hulme, 1995. "NGO performance and accountability in the post‐cold war world," Journal of International Development, John Wiley & Sons, Ltd., vol. 7(6), pages 849-856, November.
    8. Barr, Abigail & Fafchamps, Marcel & Owens, Trudy, 2005. "The governance of non-governmental organizations in Uganda," World Development, Elsevier, vol. 33(4), pages 657-679, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abdulkadir Abdulrashid Rafindadi & Zakariyah Aliyu Olanrewaju, 2019. "The Impact of Internal Control System on the Financial Accountability of Non-Governmental organisations in Nigeria: Evidence from the Structural Equation Modelling," International Review of Management and Marketing, Econjournals, vol. 9(3), pages 49-63.
    2. Seyla Rizky Amelia & Miranti Kartika Dewi, 2021. "How a nonprofit organization delivers online accountability through social media," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 18(3), pages 317-334, September.
    3. Ronelle Burger & Canh Thien Dang & Trudy Owens, 2017. "Better performing NGOs do report more accurately: Evidence from investigating Ugandan NGO financial accounts," Discussion Papers 2017-10, University of Nottingham, CREDIT.
    4. Roberts, Susan M. & Jones III, John Paul & Frohling, Oliver, 2005. "NGOs and the globalization of managerialism: A research framework," World Development, Elsevier, vol. 33(11), pages 1845-1864, November.
    5. Chaudhry Ghafran & Sofia Yasmin, 2020. "Ethical Governance: Insight from the Islamic Perspective and an Empirical Enquiry," Journal of Business Ethics, Springer, vol. 167(3), pages 513-533, December.
    6. Banks, Nicola & Hulme, David & Edwards, Michael, 2015. "NGOs, States, and Donors Revisited: Still Too Close for Comfort?," World Development, Elsevier, vol. 66(C), pages 707-718.
    7. Hall, Matthew, 2017. "Crafting compromises in a strategising process: a case study of an international development organisation," LSE Research Online Documents on Economics 62299, London School of Economics and Political Science, LSE Library.
    8. Brendan O'Dwyer & Jeffrey Unerman, 2010. "Enhancing the role of accountability in promoting the rights of beneficiaries of development NGOs," Accounting and Business Research, Taylor & Francis Journals, vol. 40(5), pages 451-471.
    9. Chenhall, Robert H. & Hall, Matthew & Smith, David, 2017. "The expressive role of performance measurement systems: A field study of a mental health development project," Accounting, Organizations and Society, Elsevier, vol. 63(C), pages 60-75.
    10. Gani ALDASHEV & Cecilia NAVARRA, 2018. "Development Ngos: Basic Facts," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(1), pages 125-155, March.
    11. Lore Wellens & Marc Jegers, 2017. "Beneficiaries’ participation in development organizations through local partners: A case study in Southern Africa," Development Policy Review, Overseas Development Institute, vol. 35, pages 196-213, October.
    12. Djan, Kwame Ohene & Mersland, Roy, 2017. "Does Religious Affiliation Influence the Design of Corporate Governance? Evidence from the Global Microfinance Industry," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26(2), pages 101-116.
    13. Hidayatul Ihsan & Maliah Sulaiman & Norhayati Mohammad Alwi & Muhammad Akhyar Adnan, 2017. "A Study of Accountability Practice in Dompet Dhuafa Waqf of Indonesia دراسة للرقابة في وقف دومبيت ضعفاء في إندونيسيا," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(2), pages 13-22, July.
    14. Ranis Gustav & Xiong Shirley & Singer Olivia, 2012. "NGOs and Development Reconsidered," New Global Studies, De Gruyter, vol. 6(3), pages 1-24, December.
    15. Paweł Mikołajczak & Piotr Bajak, 2021. "Does NGOs’ Commercialization Affect Volunteer Work? The Crowding out or Crowding in Effect," Public Organization Review, Springer, vol. 21(1), pages 103-118, March.
    16. Taylor, Dennis & Tharapos, Meredith & Sidaway, Shannon, 2014. "Downward accountability for a natural disaster recovery effort: Evidence and issues from Australia's Black Saturday," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 25(7), pages 633-651.
    17. repec:bla:annpce:v:89:y:2018:i:1:p:125-155 is not listed on IDEAS
    18. Andrews, Abigail, 2014. "Downward Accountability in Unequal Alliances: Explaining NGO Responses to Zapatista Demands," World Development, Elsevier, vol. 54(C), pages 99-113.
    19. Haugh, Helen M., 2021. "The governance of entrepreneurial community ventures: How do conflicting community interests influence opportunity exploitation?," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    20. Farkas, Ferenc & Molnár, Mónika, 2005. "Szimultán elszámoltathatóság és kapcsolatrendszerek a nonprofit szervezetek működésében [Simultaneous accountability and connection systems in the operation of non-profit organizations]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 763-770.
    21. Ahmed, Zahir Uddin & Hopper, Trevor & Wickramasinghe, Danture, 2023. "From Minnow to Mighty: A hegemonic analysis of social accountability in BRAC - the world’s largest development NGO," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 92(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:18:p:11264-:d:910028. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.