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The Impact of Budget and Budgetary Control in Tertiary Institutions

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– The Impact of Budget and Budgetary Control in Tertiary Institutions –

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Abstract

This study was carried out in order to find out the impact of budget and budgeting control in tertiary institution which are non-profit making organizations used Imo state university as it case study.

However, budgets are said to be a quantitative expression of plans, either physically or in financial terms or both. It could also be said to be a method for translating the goals and strategies of an organization into operational terms. Due to the importance of budget and its control in organization.

The study investigated how tertiary institutions with particular reference and controlled to meet target goals. Furthermore, in the process of carrying out the study a total of 40 subjects were involved in the study.

There are line (9) facilities in the university but due to limitations in both time and finance, the researcher were only able to sample for faculties which were randomly selected and only the senior staff members of the four faculties selected were targeted.

Finally, from the data collected and analyzed, the researcher discovered that budget and budgeting control as a management techniques can be applied in educational institutions showing that budget and budgeting control is important in non-profit making organization as it is in profit making organization.

It is also used as a corrective mechanism through the duties and by ensuring that authorization and approval of all concerned in the preparation of budgets are fully carried out.

Introduction

1.1 Background of the Study

Budgeting is essentially concerned with planning. According to Hausen .O. (1990). Dr. Jones discovered, failure of plan, either formally or informally, can lead to financial disaster. Careful planning is vital to the health of any organization.

If that is a case, what role does budgeting play in planning and control. Simply put, plans identify objectives and action needed to achieve them. Budget are the actions needed to achieve them. Budget are the quantitative expression of these plans. States in either physical or financial terms or both.

Thus a budget is a method for translating terms. As a plan of action budgets can be used to control by comparing actual outcome as they happen with the planned outcomes. Furthermore, according to Professor Anya O. Anya April 28th 2006, guarding newspaper, the universities and the challenge of a knowledge is base on the economy (2)

the said “we have seen that economic and human development indices presently confirm that Nigeria is a very poor country where otherwise immense resources and potentials have not been realized as a result squander and poor management.

We have dedicated from the above points that planning budgeting and control is very essential in all sphere of endeavour be it public or private sectors.

In other words, the necessary uncertainty and complexity in the socio-political economic and public sectors of Nigeria society have been made it very difficult for co-operate entities irrespective of the nature of their business (profit oriented or service oriented)

coupled with the changes in social, economic, technological and political system to achieve optimal result without setting proper planned targets.

With the trend of failure recently witnessed in the financial sector, arising from factors both internal external organizations and their management should ensure that they had decision about their future.

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