Factors influencing financial sustainability of projects managed by Rural Water Supply and Sanitation Agency: a case of Muheza District.

Maharangata, Cleophace Jerome (2023) Factors influencing financial sustainability of projects managed by Rural Water Supply and Sanitation Agency: a case of Muheza District. Masters thesis, The Open University of Tanzania.

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Abstract

Access to a consistent water supply is essential for improving health and economic outcomes in rural regions of low and middle-income countries. However, there has been limited consideration of the factors associated with maintaining the financial sustainability of projects managed by water authorities and agencies in these areas. The overarching goal of this study was to investigate the factors that influence the financial sustainability of projects overseen by the Rural Water Supply and Sanitation Agency (Ruwasa), with a specific focus on Muheza District Council. A cross-sectional research design was employed for this study, and a sample of 132 respondents was selected to participate, each of whom completed questionnaires. The collected data were subject to descriptive analysis, and multiple regression analysis was conducted to explore the relationships among various variables. The null hypotheses were rejected in favor of the alternative hypotheses. The study's findings unveiled that Ruwasa consistently utilized periodic budgeting as a means to bolster its financial sustainability. It reviewed budgets and other financial plans in alignment with its mission, a practice that contributed to an improved financial outlook. Furthermore, Ruwasa implemented a clear separation of responsibilities, supported by comprehensive documentation, and maintained up-to-date annual accounting records. This meticulous approach ensured that all expenditures and funds were meticulously considered, fostering the production of accurate and timely financial reports. Likewise, Ruwasa actively engaged stakeholders in its operations, including the collection of water user fees, which positively influenced financial sustainability. The relationship between financial control systems and the financial sustainability of projects revolved around debt reduction, timely project completion, and the effective management and allocation of resources. As a result, it is recommended that financial control systems should aim to achieve financial sustainability through prudent measures such as the elimination of unnecessary debt, effective resource management, and timely project completion. Key words: Financial Sustainability, Budget Strategies, Financial Controlling Systems, Stakeholders involvement, Financial Control

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