IMPACT OF UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) FINANCIAL GUIDELINES ON FINANCIAL ACCOUNTABILITY AMONG NGOs IN TARABA STATE

Abstract

The impact of USAID financial guidelines on the financial reporting of NGOs in Taraba State is
understudied. Existing literature on NGOs' compliance with these guidelines is scarce. Proper financial
reporting is crucial for transparency and accountability, which are increasingly demanded by funders,
taxpayers, and clients. This study aims to assess the impact of USAID financial reporting guidelines on the
financial accountability of NGOs in Taraba State. A survey research design was adopted, targeting 286
respondents from senior management and finance/accounting personnel of NGOs in Taraba State. Data
were collected through questionnaires and analyzed using descriptive statistics and multiple regression
analysis. The findings reveal significant gaps in familiarity and compliance with USAID guidelines among
NGOs. There is a strong emphasis on financial discipline and budgetary controls. Compliance with USAID
guidelines significantly improves financial accountability, and USAID's capacity-building support
enhances financial reporting capabilities. However, stringent reporting requirements may impose
administrative burdens affecting project delivery. Financial planning, monitoring, and evaluation practices
are generally robust, but there is a need for improved familiarity and compliance with USAID guidelines.
Enhancing training and communication, strengthening compliance mechanisms, leveraging internal
audits, optimizing resource utilization, improving capacity-building supports, diversifying funding sources,
and monitoring the impact of financial reporting requirements on project delivery are recommended to
strengthen financial management and operational efficiency.