Effect of Budgetary Control Practices on Financial Sustainability of Non-Governmental Organization in Rwanda: A Case of Aids Healthcare Foundation

Jeanne Dusabimana & Thomas Tarus Kiptanui
University of Kigali
Email: dusabimanajeanne87@gmail.com

Abstract: This paper examines the effect of Budgetary Control Practices on the financial sustainability of the AIDS Healthcare Foundation (AHF) in Rwanda, guided by the Resource-Based View (RBV) Theory and the Control Theory. The study investigates the role of budget Monitoring and Evaluation in ensuring the efficient use of financial resources and enhancing organizational performance. A descriptive research design was employed, utilizing both quantitative and qualitative methods. A sample of 132 respondents was selected, with data gathered through questionnaires and interviews. The results, analyzed using SPSS, revealed a strong positive correlation between BME and project performance at AHF, with a Pearson correlation coefficient of r = 0.705. Multiple regression analysis showed that BME significantly predicts project performance, with a standardized beta coefficient of -0.368 and a p-value of 0.000, confirming the statistical significance of this relationship. The findings emphasize that effective BME processes, as outlined by the Resource-Based View Theory, help leverage an organization’s internal resources for sustained financial performance. Moreover, the application of Control Theory ensures that systematic evaluation mechanisms are in place to monitor and correct deviations from financial goals. In conclusion, the study underscores the importance of robust budget monitoring and evaluation in enhancing financial sustainability and improving project outcomes at AHF. Based on these findings, the study recommends that AHF enhance its corrective action mechanisms, improve the regularity and effectiveness of budget reviews, and invest in tools to optimize resource allocation to better manage finances and achieve long-term sustainability.