NGO's Financial Reporting and Human Capital Development

The study's purpose was to determine whether human capital development influences the quality of financial reporting of NGOs. The specific objectives of the study were to determine the relationship between human capital development and the quality of financial reporting, examine the relationship between human resource practices and the quality of financial reporting, examine the relationship between human capital development and human resource policy and examine if human resource practices moderate/ mediate the relationship between human capital development and the quality of financial reporting. The study adopted a cross-sectional parallel survey design with quantitative techniques and employed self-administered questionnaires to 60 respondents. The research data was coded and analyzed using the Statistical Package for Social Sciences (SPSS) version 20 to establish the statistical inferences. The Pearson correlation test reported that human capital development has a significant positive relationship with the quality of financial reporting (r = .551, p0.10). Some recommendations were then formulated thus: Organizations should encourage and support their accounting staff to attain professional qualifications. The staff should strive to achieve membership in professional accounting bodies. The team should also be motivated and regularly trained on the job. Management should observe strict adherence to accounting and financial manuals. Organizations should also reinforce workplace policies and review their current accounting systems to identify gaps and then put steps to fill them.