Assessing The Effectiveness of Internal Controls on Sustainability of Local Non-Governmental Organisations in Malawi: A Case of Christian Health Association of Malawi (CHAM)

Non-Governmental Organisations (NGOs) in Malawi play a critical role in socio-economic development, particularly in health, education, and community support. The Christian Health Association of Malawi (CHAM), which delivers about 30% of the nation’s healthcare services, is one of the most influential NGOs but faces sustainability challenges linked to weak governance and inadequate internal controls. This study assessed the effectiveness of CHAM’s internal controls in sustaining operations, guided by the COSO framework, which comprises five components: control environment, risk assessment, control activities, information and communication, and monitoring. A mixed-methods design was applied, using questionnaires with 28 respondents and document reviews. Both quantitative analysis (Likert-scale responses, cross-tabulations) and qualitative insights (open-ended comments) were employed. Findings indicate that CHAM has key control systems that enhance accountability, transparency, and donor confidence. A strong control environment and effective communication were observed, but weaknesses were noted in monitoring, segregation of duties, and staff capacity. Longer-serving staff expressed greater concerns about sustainability than newer employees. Open-ended responses highlighted strengths (committed staff, donor partnerships), weaknesses (delayed financial reporting, limited training), opportunities (capacity building, technology), and threats (funding volatility, external pressures). The study concludes that while CHAM’s internal controls are generally effective, reinforcement is required for long-term sustainability. Recommendations include strengthening monitoring, staff training, segregation of duties, and investment in modern financial tools. These insights are valuable not only for CHAM but also for other NGOs in Malawi seeking to enhance accountability and resilience.