Financial management practices and financial performance of the Catholic Church in Uganda: A case of Kampala archdiocese.

Abstract

The study investigated the relationship between financial management practices and financial performance at Kampala Archdiocese, one of the nineteen Catholic dioceses in Uganda. Objectively this study established the relationship between cash management and financial performance, the relationship between budgeting and budgetary control and financial performance and the relationship between financial planning and analysis and financial performance. Both correlation and descriptive research designs were used and data was collected using questionnaires and interviews from a sample of one hundred thirty five (135) respondents. Data was analysed using correlational and regression analyses. The study established that there was: a significant and positive relationship between cash management and financial performance with the figures as r=0.515, p=0.041 for cash management; a significant and positive relationship between budgeting and budgetary control and financial performance where r=0.678 and p=0.031; and a significant and positive relationship where r=0.665 and p=0.032 between financial planning and analysis and financial performance of Kampala Archdiocese. The study concluded that there is significant relationship between financial management practices and financial performance, meaning that cash management, budgeting and budgetary control as well as financial planning and analysis have a significant relationship with financial performance. The study recommends that the archdiocese should promote the use of financial management practices to have good and stable financial performance by ensuring that there is robust training of personnel of the finance council and setting clear implementation plans of such programmes throughout Kampala Archdiocese.