Financial Management and Sustainability of Educational Projects in Bosaso District, Puntland Somalia

ABSTRACT 

This study carried out an investigation on financial management and sustainability of educational projects in Bosaso, Puntland, Somalia. The objectives of the study were 1) To examine the financial management practices in Bosaso, Puntland, Somalia 2) To determine the sustainability of educational projects in Bosaso, Puntland, Somalia and 3) To determine the relationship between financial management and sustainability of educational projects in Bosaso, Puntland Somalia. The study employed descriptive correlation study design which involved a quantitative approach. With regards to this method, the researcher used structured questionnaires and an interview guide. Out of a target population of 170, 119 respondents were identified as the sample size by use of the Slovene’s formula. Systematic random sampling was used to identify the respondents to take part in the study. Analysis entailed frequencies, percentages, means, standard deviation, t-statistic and ranks. Findings suggested that financial management practices were low. The sustainability of educational projects was also found to be low. It was also established that there was indeed a relationship between financial management and sustainability of educational projects which stood at 0.627 on the Pearson Correlation scale which was interpreted as positive and strong relationship. There was a general revelation that the decision makers and practitioners are well aware of and agreed to the importance of financial management practices in the educational projects sector. The study suggests recruiting of better financial managers, ensuring proper internal controls, training of managers and administrators, emphasis should be put on forecasting, sound records keeping and maintenance.

TABLE OF CONTENTS

DECLARATION A ii

DECLARATION B iii

DEDICATION iv

ACKNOWLEDGEMENT v

TABLE OF CONTENTS vi

LIST OF TABLES viii

LIST OF FIGURES ix

LIST OF EQUATIONS x

LIST OF ACRONYMS AND ABBREVIATIONS xi

ABSTRACT xii

CHAPTER ONE 1

INTRODUCTION 1

1.0 INTRODUCTION 1

1.1 BACKGROuND OF THE STUDY 1

1.2 STATEMENT 0F THE PRoBLEM 6

1.3 OBJECRvEs OF THE SmDY 7

1.4 REsEARcH QUESTIONS 7

1.5 HYPoTHESIS 7

1.6 ScOPEOCTHESTUDY 8

1.7 SIGNIFICANcE OF THE STUDY 8

CHAPTER TWO 10

LITERATURE REVIEW 10

2.0 INTRODUCTION 10

2.1 THEORETICAL REVIEW 10

2.2 CoNCEPTUAL FRAMEWORK 12

2.3 FINANcIAL MANAGEMENT 13

2.4 PRoJECT SuSTAINABILFry 6

2.5 RELATED STUDIES 10

2.6 RESEARCH GAPS 13

CHAPTER THREE 15

METHODOLOGY 15

3.0 INTRODUCTION 15

3.1 RESEARCH DESIGN 15

3.2 RESEARCH P0PULKn0N 15

3.3 SAMPLE SIZE 15

3.4 SAMPLING PROCEDURE .16

3.5 RESEARCH INSTRUMENTS 17

3.6 VALIDm’ AND RELIABILm’OFrHE INSTRUMENTS 18

3.7 DATA GATHERING PROCEDURES 20

3.8 DATA ANALYSIS 20

3.9 ETHICAL CONsIDERATIONs 21

3.10 LIMITATIONsOFTHESTUDY 22

CHAPTER FOUR 23

FINDINGS PRESENTATIONS, ANALYSISAND INTERPRETATION 23

4.0 INTRODUCTION 23

4.1 DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS 23

4.2 FINANCIAL MANAGEMENT 25

4.3 PROJECT SUSTAINABILFry 28

4.4 RELATIONSHIPS 31

CHAPTER FIVE 37

DISCUSSIONS, CONCLUSIONS AND RECOMMEDATIONS 37

5.0 INTRODUCTION 37

5.1 DISCUSSION OF FINDINGS 37

5.2 CONCLUSION 43

5.3 RECOMMENDATIONS 43

5.4 AREAS FOR FURTHER RESEARCH 44

REFERENCES

APPENDICES iv

APPENDIX IA: TRANSMITTAL LETTER iv

APPENDIX IB: TRANSMITTAL LETTER FOR RESPONDENTS v

APPENDIX II: INFORMED CONSENT vi

APPENDIX III: MEAN RANGE OF INTERPRETATION vii

APENDIX IV: RESEARCH INSTRUMENTS viii

APPENDIX V: INTERVIEW GUIDE x

APPENDIX VIII: RESEARCHER’S CURRICULUM VITAE xi