Financial management system in donor-funded projects: the case of university of Dar es salaam

A sound financial management system in donor-funded projects is vital in ensuring proper management of donor funds. As we need more donor support for the development of our economy, the need for sound financial management system becomes inevitable in order to be able to compete for the available scarce support. This study aimed at assessing the efficiency and effectiveness of the financial management system in donor-funded projects at the UDSM in achieving projects’ goals. The assessment was mainly based on looking at the existing projects’ accounting and internal control systems and projects’ organisational based self esteem that support the accounting and internal control systems. The presence of skilled, knowledgeable and experienced staff supported with clear rules, regulations and procedures is vital for the success of the projects’ objectives. Also, donors’ confidence on the presence of the sound financial management system of an institution attracts more flow of donor supports to the institution. The study revealed that the UDSM has in place a sound financial management system in donor-funded projects. The existing financial management system and the culture of transparency and accountability enable the university to attract more donor support. The study reveals the need for further research on the area of Administrative system of the financial management system, Computerization of the financial management system in the donor-funded projects and Comparison study for comprehensive conclusion on the status of financial management system in donor-funded projects in Tanzania.