Effect of Financial Management Practices on Program Implementation: A Case of Early Childhood Development Program in Gasabo District, Rwanda

The purpose of this study was to investigate the effect of financial management practices on program implementation, a case study of early childhood development (ECDs) program. Specially, to assess the effect of program budgeting on implementation of early childhood development program in Gasabo district, to analyze the effect of financial risk management on implementation of early childhood development program in Gasabo district and to examine the effect of working capital management on implementation of early childhood development program in Gasabo district. This study was guided by the theory of budgeting, theory of constraints and cash management theory. Further, this study utilized the descriptive and correlational research design. A sample size of 338 respondents were drawn on 2187 people using Yamane formula. The study employed stratified and simple random sampling. Data collected were analyzed using both descriptive and inferential analysis. The findings show a very high mean score of 4.31 (SD=0.684) for the combined statements overall strong positive agreement that there is effect of program budgeting on implementation of early childhood development program in Gasabo district. Further, it shows a very high mean score of 4.02 for the combined statements an overall very strong positive opinions that there is effect of financial risk management on implementation of early childhood development program in Gasabo district, and a very high mean score of 4.23 (SD=0.632) for the combined statements an overall strong positive agreement that there is effect of working capital management on implementation of early childhood development program in Gasabo district. This study concludes that there is significant effect of financial risk management on implementation of early childhood development program in Gasabo district. The study suggests that program budgets should align financial resources with strategic objectives, ensuring effective allocation of funds. A well-structured budget enhances operational efficiency, accountability, and transparency. Managers should safeguard assets for long-term sustainability, identifying potential risks like market fluctuations, credit risks, operational challenges, and regulatory changes. Proactive risk assessment frameworks can help detect vulnerabilities early. Managers should maintain ECD's liquidity and operational efficiency by optimizing the balance between current assets and liabilities to ensure sufficient cash flow for daily operations. Overall, a well-structured budget enhances operational efficiency and accountability.