Effectiveness of Compliance with Cash Flow Reporting Standards in Strengthening the Sustainability of Public Organisations: A Case of Ruwasa-Iringa Region

Author

Clementina Chiwinga

Abstract

 This study examines the effectiveness of compliance with cash flow reporting standards in strengthening the sustainability of public organisations, focusing on the Rural Water Supply and Sanitation Agency (RUWASA) in Iringa Region, Tanzania. The study adopted a quantitative research approach and a descriptive research design, involving 73 respondents comprising employees of RUWASA and Community-Based Water Supply Organisations (CBWSOs). Data were collected using structured questionnaires and analysed using descriptive statistics and Pearson correlation analysis. The findings indicate that compliance with cash flow reporting standards was generally satisfactory, with 60.3% of respondents reporting compliance with government financial regulations and 76.7% confirming adherence to recognised accounting standards such as IPSAS and GAAP. However, weaknesses were observed in internal control adherence, with only 46.6% of respondents agreeing that internal control procedures were consistently followed. Similarly, 60.2% indicated that CBWSOs implemented audit recommendations related to financial reporting. Pearson correlation analysis revealed a statistically significant positive relationship between compliance with cash flow reporting standards and organisational sustainability (r = 0.697, p < 0.001). The findings suggest that stronger compliance with financial reporting standards is associated with improved organisational sustainability among CBWSOs under RUWASA. The study concludes that strengthening internal controls, improving implementation of audit recommendations, enhancing financial reporting capacity and enforcing compliance with relevant financial regulations are essential for translating reporting compliance into improved accountability, transparency and sustainable organisational performance.

Keywords

Cash flow reporting standards, compliance, organisational sustainability, public organisations, RUWASA, financial reporting, IPSAS, GAAP, internal controls

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