IMPACT OF BUDGETING AND BUDGETARY CONTROLS IN TERTIARY INSTITUTIONS

IMPACT OF BUDGETING AND BUDGETARY CONTROLS IN TERTIARY INSTITUTIONS


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IMPACT OF BUDGETING AND BUDGETARY CONTROLS IN TERTIARY INSTITUTIONS

PROJECT TOPICS AND MATERIALS ON IMPACT OF BUDGETING AND BUDGETARY CONTROLS IN TERTIARY INSTITUTIONS


CHAPTER 1----INTRODUCTION

1.1      BACKGROUND OF THE STUDY

The concept of budgeting and budgetary control is a fundamental management function in every organization in the private and public sector. Budget is viewed as a financial plan for the intended projects or program of action of an organization for a specified period of time. Lambe, Lawal and Okoli (2015). Budget is also viewed as a detailed and coordinated plan of action stated in financial terms for the conduct of the business activities of an enterprise for a given period of time. Egbunike (2014). According to Lucey (2003), a budget is the organizational plan stated quantitatively. Budgetary control is a system of control which entails the assessment of budget, monitoring performance and comparing outcome of budget performance with planned budget to determine significant deviations with the view to   acting upon results to achieve maximum profitability. (Brown & Howard, 2002). According to Batty (1982), budgetary control is used for planning and controlling all aspects of the organization. It determines the difference between budgeted income and expenditure and actual income and expenditure. Consequently, budgeting and budgetary control are needed for evaluating the performance of an organization. The study seeks to determine the impact of budgeting and budgetary controls in tertiary institution. A case study of covenant university otta.

1.2       STATEMENT OF THE PROBLEM

The neglect and insufficient attention given to budget preparation and budgetary control is affecting the performance of many organizations. When income and expenditures are not defined through a comprehensive detail plan of action for a given period of time for the organization, progress cannot be measured and it is also difficult to ascertain accurate performance measure for the firm. This will lead to wastage, inefficient use of resources and inability to attain financial objectives. Budget is viewed as a financial plan for the intended projects or program of action of an organization for a specified period of time.

Budgetary control is a system of control which entails the assessment of budget, monitoring performance and comparing outcome of budget performance with planned budget to determine significant deviations with the view to   acting upon results to achieve maximum profitability. The problem confronting the study is to Investigate the impact of budgeting and budgetary controls in tertiary institutions. A case study of covenant university otta.

1.3 OBJECTIVES OF THE STUDY

The main study objective is to investigate the Investigate the impact of budgeting and budgetary controls in tertiary institutions. A case study of covenant university otta; while the specific objectives include:

  1. To examine the effect of budgeting on productivity.
  2. To identify the different types of budgeting.
  3. To identify factors that can enhance productivity.

1.3      RESEARCH QUESTIONS

    i.        What are the effects of budgeting on productivity in Covenant University?

   ii.        What are the different types of budgeting?  

 iii.        What are the factors that can enhance productivity in Covenant University?

1.4      STATEMENT OF HYPOTHESIS

Ho1: There is no significant relationship between budget and productivity.

1.5      SIGNIFICANCE OF THE STUDY

The study shall provide relevant information for the preparation of budget and budgetary control. It shall be of immense value to managers and accounting officers.

1.6 SCOPE OF THE STUDY

The study focuses on the appraisal of the impact of budgeting and budgetary controls in tertiary institutions. A case study of covenant university otta.

 1.7 LIMITATION OF THE STUDY

 The study was confronted with logistic and geographical constraints.

1.8 DEFINITION OF TERMS

 BUDGET DEFINED

Budget is viewed as a financial plan for the intended projects or program of action of an organization for a specified period of time.

BUDGETARY CONTROL DEFINED

Budgetary control is a system of control which entails the assessment of budget, monitoring performance and comparing outcome of budget performance with planned budget to determine significant deviations with the view to   acting upon results to achieve maximum profitability.

PERFORMANCE EVALUATION

Performance Evaluation is used to determine the performance of the budget.

 

CAPITAL BUDGETING DEFINED

Capital budgeting is the decision to commit major capital, or investment, expenditures to a project so as to increase the value of the firm to its shareholders.

TURNOVER DEFINED

This represents the value of the goods or services sold during a particular period of time.

PROFITMAXIMISATION DEFINED

Profit maximization is the attainment of the highest possible profit with the resources and market share currently at their disposal profit.

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1.2 STATEMENT OF THE PROBLEM The neglect and insufficient attention given to budget preparation and budgetary control is affecting the performance of many organizations. When income and expenditures are not defined through a comprehensive detail plan of action for a given period of time for the organization, progress cannot be measured and it is also difficult to ascertain accurate performance measure for the firm. This will lead to wastage, inefficient use of resources and inability to attain financial objectives. Budget is viewed as a financial plan for the intended projects or program of action of an organization for a specified period of time... accounting project topics

IMPACT OF BUDGETING AND BUDGETARY CONTROLS IN TERTIARY INSTITUTIONS

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