Lucy Wamugo MwangiNdungu, David Mwaura2024-02-072024-02-072023-10https://ir-library.ku.ac.ke/handle/123456789/27593A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of Degree in Master of Business Adminstration (Finance Option) of Kenyatta UniversityNon-Governmental Organizations (NGOs) that provide support to individuals living with HIV/AIDS have encountered various challenges resulting into financial distress. Amongst these challenges, some scholars specializing in HIV/AIDS NGOs suggest that financial controls are the contributing factors to financial distress. The1 purpose1 of1 this1 study1 was1 to1 examine the effect1 of1 financial1 controls1 on the financial1 distress1 experienced by HIV/AIDS NGOs in Kenya. The1 specific1 objectives1 of1 the1 study1 were1 to1 assess the effects of donor financial reporting compliance, financial reconciliations, asset surprise checks, and management reviews and oversight on1 the1 financial distress of these HIV/AIDS NGOs. The study drew from theoretical framework of the theory of inspired confidence, agency theory, cash1 management1 theory, and positive accounting theory1 to1 explain the1 relationship1 between1 financial controls and1 financial1 distress. An explanatory research1 methodology1 was1 employed for1 the1 study. The1 target1 population1 consisted of 219 HIV/AIDS-related NGOs listed in the NGO Coordination Board register in 2021. A sample1 size1 of1 142 NGOs was randomly selected using1 simple1 random1 sampling. Structured1 questionnaires1 were1 used1 to1 collect1 primary1 data, and the1 data1 was1 analyzed using1 descriptive1 statistics1 and1 logistic1 regression1 analysis1 in the Statistical1 Package1 for1 the1 Social1 Sciences (SPSS). The research findings were presented1 using1 tables, pie charts, and bar graphs. The1 study1 revealed1 that donor financial reporting compliance, financial reconciliations, Asset surprise checks, management reviews and oversight had statistically significant positive influence on the financial1 distress of HIV-AIDS NGOs. The1 study1 recommends that donors want to increase compliance rates, need to create dialogue platforms with funded HIV/AIDS NGOs’ employees and management for mutual understanding of the rules and regulations of a particular donor.enFinancial ControlsFinancial DistressHiv-AidsNon - Governmental OrganizationKenyaThesis