The Effect of Funds Management on Project Performance; A Case of Rwanda Dairy Development Project (RDDP) in Kayonza District, Rwanda

Abstract

Poor fund management and cost overruns entrains delays during project implementation. This study entitled the effect of funds management on project performance in Rwanda. The general objective of this research is to assess the effect of funds management on RDDP performance in Kayonza district, Rwanda. Specific objectives were to analyze relationship between budget estimate and project performance; to assess the impact of funds allocation of RDDP performance in Rwanda, and to examine the effects of funds monitoring and control on the performance of Dairy Development project in Kayonza district, Rwanda. This research was a descriptive-correlational design and used both qualitative and quantitative research approaches. A Sample size of 180 respondents determined using Slovin’s formula, was randomly extracted from 328 employees and beneficiaries of RDDP in Kayonza district. Descriptive statistics were used to determine frequencies and percentages of respondents, while regression analysis and Pearson correlation coefficient were used to establish relationship between variables under study. The Statistical Packaging for Social Sciences version 28 was used in this study. The researcher found that there is a positive relationship between funds allocation and project performance in Rwanda, there is a positive relationship between funds control and project performance in Rwanda, there is a positive relationship between budget estimate and project performance in Rwanda. The study also found that the regression analysis equation is projects performance (Y) = .465+ .601* budget estimate + .332* funds allocation + .515* funds monitoring &control. This implies that the transition from managing projects requires more focus on budgeting, funds allocation and funds monitoring & control. Based on the discussion, it is concluded that, budget estimate, funds allocation and funds monitoring & control plays a big role towards performance of the project. The techniques used during this process of budgeting are supposed to make sure that effective management of funds is done. The management of the project should always make sure that, budgets systems, funds control, funds allocation are clear and following the principles of project management to avoid audit queries all the time which may affect the implementation of the project activities. Key words: Fund Management, Project Performance and RDDP