Abstract
This research investigation in to the budgetary control as a
tool for effective management of resources with general hospital Owerri, Imo
state as a case study. The research is
a deliberate investigation by the researcher to find out if actually the
appraisal of management performance is based on the budgetary analysis, the
extent to which the officers- in-charge of budget centers account for their
responsibility and whether variances are built in to the incentives or
disciplinary system of the institution. This research was carefully carried out
and conclusion reached for the reader to properly comprehend and appreciated
this project work. Samples of 30(thirty) workers were drawn from the
organization. Questionnaire was used to collect the data that was analyzed by
frequency by using chi-square. Finding from the study shows that budget has
relationship as in basis of controlling cost, low level of revenue generation has relationship in
setting unrealistic target. Further finding indicated that problems of budgets
in the institution can be solved. To further improve on the situation, it was
recommended that there should be budget education and should be based on
management by objectives (MBO), which is a situation where by everybody in the
organization will participate in budget formulation. There should be a
taskforce instituted to check and detect fraud on the part of budget
implementation.
TABLE OF CONTENTS
Title Page
Approval
ii Certification
iii
Dedication
iv
Acknowledgement v
Abstract
vi
Table of content
v
CHAPTER ONE
Introduction 1
1.1 Background of the
study
1
1.2 Statement of the
problem
2
1.3 Objective of the
study
3
1.4 Research
question 4
1.5 Significance of
the study
5
1.6 Scope of the
study 6
1.7 Limitation of the
study
7
1.8 Definition of
terms
8
CHAPTER TWO
2.0 Literature
review 9
2.1 Introduction
10
2.2 Nature of
budgeting and budget
11
2.3 Budgetary control
system
12
2.4 Features of
budgeting control system 13
2.5 Basic concept of budgeting and budgetary 14
Control
2.6 Types of budget
for planning and control 15
2.7 Innovation in the
area of budgeting zero base
16
Budgeting (ZBB)
2.8 The need of a budgetary control 17
2.9 Essential of a
budgetary control system 18
2.10 Summary of the
overall literature review 19
CHAPTER THREE
Research design and methodology 20
3.1 Introduction
20
3.2 Research
design
21
3.3 Sources / methods
of data collection 22
3.4 Population and
sample size
23
3.5 Sample
Techniques 24
3.6 Validity and
reliability of measuring instrument 25
3.7 Method of data
analysis
26
CHAPTER FOUR
Presentation and analysis of data 27
4.1 Introduction
27
4.2 Presentation of
Data
28
4.3 Analysis of
data
29
4.4 Interpretation of
result
30
CHAPTER FIVE
Summary/conclusion and recommendation 31
5.1 Introduction
31
5.2 Summary of
findings
32
5.3 Conclusion
33
5.4
Recommendations 34
Area of further
research
References
Appendix/Questionnaire
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
A government budget
is blue print which clearly outline government expenditure vis-à-vis government
revenue and retains plans ahead, etc. consequently, nations plans ahead in
terms of revenue and expenditure
within a specific period of time, so as individual or an state conceptualizes
anticipated revenue and disbursement
within a specific period of time.
Every organization whether economic, social, political,
public or private sector has set out
objectives ,they make plans for future.
Since every organization has set
out objectives, the way it tend
to achieve these objectives could be the maximization of profits, prove
services and
Minimization of cost.
Each organization has to plan in order to meet such objectives and budgeting is
part of planning, some organization liquidate due to poor planning, while some others
fail due to poor budgeting control techniques.
The realization
of organizational objectives requires
the requisition and utilization of both human and material resources. to achieve this objective, the organization
tries to economize or manage its scarce resources and
produce
a means of achieving its pre-determined goals. As a result
of these scarce resource, it is very essential that organization has to determine
the most effective way of reducing cost of production while
maximizing its production . modern
business management requires the use of some techniques in the formulation and adoption of plans
(good tools and system) with a view to achieving set out goals. Such tools and
systems include budgeting, variance analysis and budgetary control.
The process
setting goals or objectives to be
achieved by some future point in time and determine there goals are to be
reached is described a planning while
the process of translating
the planning into financial target can be described as
budgeting. The term budgeting and
accounting in which all operations are forecasted in
advance and actual results
championed with budgeted and differences slipped and explained.
Budgetary control techniques here help ed many organizations
since the success of any organization
depends on the planning and execution of
budget plans.
According to lucey(1984)p.23, budgeting can be defined as the process of
preparing a short term and detailed plan of activities of an organization and
converting the strategies long term
plans into action. The degree of
importance attached to this plan and
the effort made in controlling the
deviation from the planned performance differ among business and government and between
private and public corporations. Some organization especially government
parastatals view budgeting as a mere accounting tool, which a meant to be
exceeded. The department heads in government parastatals believe to
get more money (allocations) in the next budget the present allocation must be fully utilized
whether reasonable or unreasonably.