Date of Conferral
12-1-2025
Date of Award
December 2025
Degree
Doctor of Business Administration (D.B.A.)
School
Management
Advisor
Roger Mayer
Abstract
Executives of nonprofit organizations face fiscal and operational challenges due to limited resources, threatening long-term viability. Weak internal controls and financial reporting systems can stem unfavorable Single Audit opinions and reduced funding, concerning to auditors and fiscal agencies. Grounded in resource dependency theory, the purpose of this quantitative ex post facto secondary data analysis was to examine whether financial performance differed by audit opinion and internal control indicators among U.S. nonprofits receiving federal aid. Data included 158 U.S. nonprofits that received $750K–$7M in federal aid in 2021 with qualified, adverse, or disclaimer audit opinions. A three-way analysis of variance revealed a significant main effect of audit opinion, F(2, 143) = 3.31, p = .039, η² = .04, and a significant main effect of internal controls of major programs, F(2, 143) = 3.15, p = .046, η² = .04. A three-way interaction among audit opinion, internal controls over financial reporting, and internal controls of major programs significantly predicted financial performance B = -4.27, t(151) = -2.58, p = .011. A two-way interaction among internal control opinions also predicted performance B = 7.14, t(151) = 2.33, p = .021. The regression model was significant, F(6, 151) = 3.19, p = .006, R² = .11; the predictors explained 11% of the variance in financial performance. Unfavorable opinions and internal control failures resulted in lower performance overall. Recommendations for nonprofit executives include strengthening internal controls to improve audit outcomes and sustain federal support. Implications for positive social change include the potential for nonprofit executives to implement effective internal controls, thereby improving nonprofit performance and delivering critical social services.
Recommended Citation
Bedell Gadbois, Gwen Rachel, "Effective Change Management Strategies for Minimizing Financial Impact and Operational Disruption" (2025). Walden Dissertations and Doctoral Studies. 19221.
https://scholarworks.waldenu.edu/dissertations/19221
