Internal Audit and Performance of International Non-Governmental Humanitarian Organizations in Nairobi, Kenya

Accountability for most of the international humanitarian non-governmental organizations has been a major concern where most of the organizations fail to account for the funds allocated by the donors. This has resulted to a gradual decline in the performance of most of international humanitarian non-governmental organizations making a lot of donors to drive away their funds to other organizations. The research aimed primarily at assessing the effects of internal audit and the performance of international NGOs in Nairobi, Kenya. The research assessed the impact of internal controls, independence of auditors and internal audit structure on international humanitarian performance. The research employed a descriptive research design. 76 respondents including management staff from 161 international humanitarian NGOs in Nairobi was targeted. 76 respondents were selected as a sample size. Self-administered questionnaires were utilized for primary data collection while secondary data was collected via the data collection sheet. The questionnaire consisted of questions which were both open and closed. The results were evaluated using SPSS Version 25.0. All numerical variables were measured with descriptive statistics such as frequencies, percentages, mean score and standard deviation. Qualitative data from the open-ended questions were analyzed and summarized in prose using conceptual content analysis. The relationship between the independent variables and dependent variables was done using regression analysis. To present the information, frequency tables were utilized. The study found that bank reconciliations were carried out monthly to a very great extent. The study also found that Internal Audit (IA) also distanced itself from practices that resulted in conflict of interest; produced free and unbiased reports; and had clear reporting lines to a large extent. It was also found that the coordination of the IA Department was done; and the IA structure was flexible enough to accommodate the changing environment to a moderate extent. The study concluded that internal audit structure had the greatest effect on performance of international humanitarian non-governmental organizations in Nairobi, followed by independence of auditors, while internal controls/control environment had the least effect on the performance of international humanitarian non-governmental organizations in Nairobi. The study recommends that internal control ought to be viable when looking at outline can amazingly gainful and is as a rule for association administration and broadly to monetary proclamations at present, a wide range of business firms have utilized interior controls through the development of strategies to guarantee a shielding resources and beneficial business environment particularly bookkeeping arrangement, administration approach, and operational strategy. The study recommends that the boards and officers of those international humanitarian non-governmental organizations should be responsible for managing and preserving the charitable assets that benefit all stakeholders.