The paper reviewed the existing literature on financial management systems or practices that served as deterrent factors to sound financial performance in Nigerian Universities and beyond. The purpose was to determine the factors that negatively affect sound financial performance and to suggest possible solutions to address the problems. Several related papers depicting the influence of good financial management systems, financial practices such as budgeting, cost analysis, financial controls, and recruiting exercise on the financial performance of the universities were reviewed. Some of the problems discovered in the paper are the issue of perpetrating fraud activities and the issue of budgeting. The paper suggested setting up a policy to identify man-power need, recruitment of personnel based on merit and putting in place an efficient internal control system to detect and prevent the fraudulent acts. The recommendations also include the mandatory budget preparation and its thorough implementation. In conclusion, protecting the universities against financial misuse is one way to assure its sound financial performance.