Effect of Financial Management Skills on the Effectiveness of Donor Fund Utilization in Health Projects in Tanzania

Abstract

This study examines effect of financial reporting
skills on the effectiveness of donor fund utilization in
health projects, focusing on the Ministry of Health
in Dodoma, Tanzania. The study utilizes a mixedmethods approach, combining both quantitative and
qualitative data collection techniques. A sample of
129 respondents, including project managers,
accounting officers, procurement officers, and other
key personnel, was surveyed to assess their financial
reporting practices and perceptions of donor fund
utilization. The study revealed that financial
reporting skills, including accuracy, timeliness, and
adherence to reporting standards, significantly
enhance the effective use of donor funds. Strong
leadership commitment, clear financial reporting
guidelines, consistent monitoring, and timely
submission of reports were identified as key factors
contributing to successful fund utilization. The
findings suggest that improving financial reporting
skills is essential for optimizing the impact of donorfunded health projects, ensuring accountability, and
aligning project outcomes with donor expectations.
Based on these findings, the study recommends
targeted training programs for project staff, the
development of robust reporting guidelines, and the
implementation of regular monitoring and
evaluation systems to improve financial
management in health projects. This research
contributes valuable insights into the role of
financial reporting in managing donor funds
effectively in the health sector, particularly in lowand middle-income countrie