Internal Control Systems and Financial Sustainability of the Catholic Relief Services, Rwanda

Abstract: This study assessed the role of internal control systems in enhancing the financial sustainability of NGO projects in Rwanda, using Catholic Relief Services (CRS) as a case study. The specific objectives were to examine the effects of administrative controls, quality-control activities, control and heritage management, and control accounting on the financial sustainability of NGO projects. The study was motivated by the challenges NGOs face in maintaining financial stability after donor support ends, despite the existence of internal control mechanisms. A mixed-methods research approach was employed, combining quantitative and qualitative data collection techniques. The target population comprised 161 CRS employees, from which a sample of 115 respondents was selected using Slovin’s formula at a 95% confidence level and a 5% margin of error. Data were collected through surveys and financial records and analyzed using descriptive statistics, correlation analysis, and multiple regression techniques to determine the relationship between internal control system components and financial sustainability. The findings revealed that administrative controls have a positive and statistically significant effect on financial sustainability (B = 0.516, p = 0.015), indicating that stronger administrative procedures contribute substantially to sustainable financial performance. Similarly, control accounting demonstrated a positive and highly significant influence (B = 0.381, p = 0.003), highlighting the importance of accountability, transparency, and sound financial management practices in ensuring organizational sustainability. Quality-control activities showed a positive but statistically insignificant effect (B = 0.197, p = 0.295), suggesting that while they support sustainability, their impact is limited unless reinforced by effective administrative and accounting controls. The study concludes that robust internal control systems are critical for enhancing the financial sustainability of NGO projects. It recommends strengthening and standardizing administrative controls, positioning control accounting as a strategic management function, integrating quality-control and heritage management activities into financial planning processes, reassessing audit practices, and adopting a comprehensive systems-based approach to financial management and sustainability. These measures can help NGOs improve accountability, optimize resource utilization, and maintain long-term financial viability beyond donor funding. Keywords: Internal Control Systems, Financial Sustainability, Catholic Relief Services, Rwanda. Title: Internal Control Systems and Financial Sustainability of the Catholic Relief Services, Rwanda Author: Amiel Nsanzamahoro, Dr. Eugenia Nkechi Irechukwu International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 14, Issue 1, April 2026 - September 2026 Page No: 600-610 Research Publish Journals Website: www.researchpublish.com Published Date: 16-June-2026 DOI: https://doi.org/10.5281/zenodo.20717295 Paper Download Link (Source) https://www.researchpublish.com/papers/internal-control-systems-and-financial-sustainability-of-the-catholic-relief-services-rwanda