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Budgeting and Budgetary Control as Tools for Accountability in Government Parastatals

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Description

– Budgeting and Budgetary Control as Tools for Accountability in Government Parastatals –

Download Budgeting and Budgetary Control as Tools for Accountability in Government Parastatals. Students who are writing their projects can get this material to aid their research work.

Abstract

This research work was focused on the investigation on the use of budgeting and budgetary control as tools for accountability in government parastatals. ( A case study of Enugu State Housing Development Corporation).

Budgetary control is a quantitative expression of the plane of action prepare in advance of the period to which it relates.

The organization is faced with the problem of lack of budgeting while planning and controlling their activities. The objective of the study is to determine if budgeting and budgetary control affect the quality of services delivery in government parastatals.

The research also aims at determining if budgetary control contributes to the improvement of management efficiency and high productivity. Data were collected from primary and secondary sources.

A secondary source of data was collected from textbooks, periodic articles, and journals. Questions were distributed as well as personal interviews with functional and departmental heads were conducted.

The sample size of 60 was used and was chosen among the number of departments/sections using Bowleys proportional allocation formula Data were analyzed using a table and simple percentage, the hypothesis was tested using chi-square statistics.

We discovered among other things that budgeting and budgetary control affect the quality of service delivery in government parastatals. It was also revealed that budgeting and budgetary control contributes to the improvement of management efficiency and high productivity.

In line with the above, we recommend among other things that the budget plan and preparation should be a corporate duty of the unit heads with head of the department in the corporation, improving legislation, realistic budget target. Adherence in the budgeting provision should be practiced by top management.

Introduction

1.1 Background of the Study

The efficiency and effectiveness of the operations of a business depend on the control available to management in almost every business organization, there are a number of activities going on at the same time such as producing, purchasing, distributing, selling, and financing a product.

These are interrelated in such a way that they affect the attainment of the organization’s goals.

The institution of cost and management accountant(ICMA) defined budget as a financial or quantitative statement prepared and approved prior to a defined period of time of the policy to be pursed during the period for the purpose of attaining a given objective. It may include income, expenditure, and the employment capital.

Therefore in order to achieve these objectives or goals, the organization must economize resources and discover the means of achieving these goals. These goals can only be realized when the property planned use of available resource are controlled and co-ordinated effectively.

Thus a system of managing a business by making forecasts of the different activities and applying a financial to each forecast becomes imperative. These forecast 2 are guided by the information and adoption of the planned systems such as techniques in budgeting, variance analysis. Etc.

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