Determinants of Donor Fund Utilization: The Case of Public Sector Capacity Building Program (Pscap) Fund in Implementing Sectors of Oromia National Regional State
Creators: name: Asrat, Daniel
Publisher: name: National Academic Digital Repository of Ethiopia
Year: 2015

description: The study was aimed to examine the determinants of donor funds utilization specifically PSCAP fund in implementing Sector of Oromia National Regional State. This study adopted a descriptive research design. Descriptive survey examines a situation as it is and yield quantitative information that can be summarized through statistical analyses. The target population was from Procurement, Finance and Property Administration and Internal Audit Departments of all PSCAP program implementing sectors. The sample of respondents was determined using stratified sampling which relies on mere chance to determine who would be selected in the sample and called for random selection in the inclusion of the cases into the sample. Stratification was done based on employees' technical skills in both Departments of the five implementing sectors. A total of 64 employees out of a sample frame of 127 were selected from Procurement, Finance and Property Administration and Internal Audit Department of the implementing Sectors. This represents 50% of the total sample. Both primary and secondary methods of data collection were used for this study. Primary data was collected from questionnaires distributed to the Finance officers, Procurement Officers, Property Administration officers and Internal Audit officers. The secondary data was obtained from the records. The data was analyzed using Statistical Package for the Social Science (SPSS) version 20 to assist the researcher in answering the research questions. Descriptive and inferential statics were used for analysis of the research data. The descriptive statics part was analyzed using mean and standard deviation whereas correlation and regression were used from inferential statics. The data was summarized by use of descriptive statistics of the mean and standard deviation. Descriptive statistics aimed to summarize the data set while inferential statistics including correlation and regression analysis used the data collected to make conclusions on the whole population under study. The findings of the study established that there is positive and significant relationship between utilization of PSCAP fund and financial management and managerial factors (r=0.786 &amp; 0.611, n=64, p=.000) as P&lt;0.05 respectively. However, technical factors had negative, weak and insignificant relationship with PSCAP fund utilization(r= -0.091, n=64, p=0.476) as P &gt; 005. The study also revealed that the three key factors: financial management, technical and managerial factors have significant effect on PSCAP fund utilization (β1, β2, β3= 0.647, -0.143, 0.348; p-value = 0.000, 0.036 &amp; 0.000) which is less than α = 0.05) respectively. The study recommends that implementing sectors have to work towards improvements that will make the three determinants favorable to utilization of PSCAP fund. Key words: Financial management factors, Technical factors, Managerial factors